Indeed, Mattes's equipment sales run 30% higher than they did in his pre-ATD days, and his sales of service contracts are up by 20%. "It's my business," he says. "If I want to prosper, then I'm going to be aggressive."
Mind you, the program didn't unfold without setbacks. Only 14 of the 18 managers made the leap to the new regime. The others still thought of themselves as head plumbers, not coaches. They retired, quit, or were demoted. And 8 of the first 12 ATDs decided the program wasn't for them. They wanted to remain ordinary mechanics. That was OK -- Warner still needed them for commercial jobs.
* * *
To introduce the ATD campaign, Warner mailed out flyers on each new director to every address in each director's zip codes -- well over 100,000 pieces in all. Each flyer featured a color photo of the zip code's ATD and described his experience. There was a general number to call, day or night (1-800-4-HOT-WATER), along with the number of the director's own line.
The quickest way to build a clientele is to sell a $100 Homeguard service contract. It requires the mechanic to be in the house at least twice a year for routine inspections. So the flyers included a 10%-off coupon for Warner's service contract.
Andy Kondas, an HVAC mechanic in the Fairfax, Va., branch, was among the first ATD volunteers. A self-described workaholic, Kondas likes the compactness of his new territory. But the program's best feature, he says, is that he has his own customers. "Why should there be five different people in a customer's home on five different occasions? Nobody knows what's been done, and the customers never get to know you."
Mary Jane Sherman, one of Kondas's customers, likes the arrangement, too. Warner's Superplumber spots enticed her to call, and now she's a convert. "It's like having a family doctor," she says. "He knows my house and all the quirks of its system."
As he made his rounds one day last April, Kondas was careful to leave "door hangers" at the adjacent houses -- standard procedure for ATDs. Yellow and red, like the Warner trucks, the hangers feature $10-off coupons and the ATD's business card. The big-type message: "Your Warner neighborhood representative has been helping a neighbor. May we help you?"
It's one of the techniques Kondas has used to build a base of more than 1,000 customers. He also places ads in church bulletins and newsletters for condo associations and civic groups. Most branches budget about $5,000 for the little ads, which pay big dividends.
Many mechanics hesitated before joining the program. One reason was the two-year noncompete contracts Warner required. "It's a commitment," says Chris Jones, who runs the Gaithersburg branch. "Some people don't want to wear someone else's name for the rest of their lives." But the success of people like Kondas, Mattes, and Inscoe has encouraged others to enlist. Now, every time a dozen or so are ready, Harrison runs them through the training course. The company now has some 80 ATDs, with many zip codes still vacant. Warner expects eventually to have about 200 in the Washington area and 100 more in nearby Baltimore.
Word has spread, and top mechanics clamor to join Warner's organization. "Many days I see competitors' trucks outside while their plumbers are in here trying to get a job," says Jay Shew, vice-president of the plumbing branch in Kensington, Md. "Of 25 that apply, I might hire one."
Last spring, for the first time, Warner ordered his new vice-presidents to submit annual business plans, with hard-nosed revenue projections. He has expected everyone to be as creative as necessary to attain targets. And already good ideas have bubbled up from below.
One branch chief, in a major departure from industry tradition, had decided to stay open until 8 p.m. and still charge customers regular, not overtime, rates. The feature proved so popular that Warner expanded it to all 18 branches. And now they're open on Saturdays, too.
"I was not real enthused, but we stuck with it," says Jim Parker, who runs the plumbing branch in Reston. "By last October 46% of my homeowner jobs were being serviced in these evening hours and on Saturdays. People hate taking off from work to wait around for the plumber. It's been a big weapon for us in gaining market share."
"Two or three years ago," Warner says, "I had to think of everything, and people just waited for me. Now our people come up with their own ideas, and I'm cheering more than leading."
He's got plenty to cheer about. In his fiscal year 1993, which ended on April 30 of that year, the company registered revenues of $15.6 million, with after-tax earnings of $544,000 -- a margin of roughly 3.5%. In fiscal 1994, as the ATD program got under way, revenues jumped to $20.3 million, with net income at $1.3 million -- a margin of about 8.3%.
Sitting in his headquarters office in Washington, Warner flips through the projections submitted by his branch chiefs. "If they are right, and I think these numbers are real, we'll do just over $31 million this year, with a profit of $4.8 million. I used to worry and sweat and stay up nights trying to figure out how to make things work," he says. "Now it's coming to me on a silver platter. For the first time in my life, I don't have to worry about making the phones ring.
"This thing is really taking off now. I just wish I'd done it sooner."
BY THE NUMBERS
Fiscal year (ending April 30) '88 '89 '90 '91 '92 '93 '94 '95*
Sales (in millions) $19.8 $15.8 $15.5 $14.6 $16.3 $15.6 $20.3 $31.0
Margin 0% -4% -3.9% 1.4% 4.3% 3.5% 8.3% 15.5%
Percentage of residential work 15% 30% 35% 35% 40% 50% 60% 70%
Percentage of commercial work 85% 70% 65% 65% 60% 50% 40% 30%
*estimate
