09 September 2010

Have you seen any OPE industry headlines recently?  I have and I’m beginning to think that I should start feeling really good about the prospects for our industry and for the future of the businesses you and I run.  Of course, I can always look at the local newspaper’s morning headlines to bring me back down to reality and make me depressed.  

But why do that?  I’m only going to look at the OPE industry headlines because I want to feel good!  Here are some positive OPE headlines I’m seeing right out of the Outdoor Power Equipment and Engine Service Association’s (OPEESA) OPE-in-the-Know e-mail newsletter and other recent business news sources:

• “Echo Expands in Lake Zurich.” Well, Echo did buy Shindaiwa, and we thought it was only a matter of time before they had to expand. 129,000 square feet! Wow, that’s pretty big!

• “Briggs Invests $35.5 Million in Murray, KY Plant.” That’s a lot of money. What do they know that we don’t?

• “MTD to Add 107 Jobs with $9.3-Million Expansion in Mississippi.”  MTD is expanding into a 525,000-square-foot building with 10 plastic injection molding machines to be followed by two more assembly lines and a paint applicator system.  That’s a terrific investment in jobs and a tremendous belief in the strength of future business.

• “Blount International Acquires Speeco.” Blount will gain entry into products and markets that will complement its existing business with Speeco’s log splitters, post-hole diggers, tractor three-point linkage parts and equipment, and farm accessories. We could call this “growing smartly.”

• “Toro Profit Rises 70% as Demand Rebounds.” This Aug. 19 headline was the result of renewed demand from the professional segment of Toro’s business, which accounts for 70 percent of its total sales.

Our industry’s OEMs obviously have confidence in the future.  You and I should too.

In a recent edition of the Outdoor Power Equipment Institute’s (OPEI) SmartBrief e-mail newsletter, the following headline caught my eye: “OPEI Stresses Importance of Understanding Your Equipment.”  Does this mean if my lawnmower and I don’t get along, we have to go to counseling together?

Comedian Stephen Wright once said, “If we’re not allowed to have midnight snacks, why is there a light in the refrigerator?”   Well?

Harvey Mackay, my favorite business blogger, tells a story about the Wright brothers of airplane fame and the arrogance of the French government.\

“Early in the development of flight, the Wright brothers (Orville and Wilbur) were largely dismissed at home in America, and had to go abroad to get proper recognition for their aeronautical achievements.

“The French government gave the brothers an opportunity to demonstrate what they had done. But the French were obviously jealous of the two modest Americans.

“At a banquet in Paris to honor the accomplishments of the two Wright brothers, the chief speaker at the dinner devoted most of his remarks to claiming that France had led the world in aviation exploration and would do so in the future. However, he said very little in praise of the two American guests.

“When Wilbur Wright was called upon to speak, he said: ‘I am no hand at public speaking, and so I must on this occasion content myself with a few words. As I sat here listening to the speaker who preceded me, I heard his comparisons made to the eagle, to the swallow, and to the hawk as typifying skill and speed in mastery of the air. But somehow or other, I could not keep from thinking of the parrot, which, of all the ornithological kingdom is the poorest flier and the best talker.’”

Clearly, arrogance didn’t fly with Wilbur Wright.

Harvey Mackay suggested this moral for the story: “Arrogance is an odd affliction.  It makes everyone else sick.”

No. 7 July 2010

Every afternoon on the way home I see a sign or two along the way that reads:  “I buy, sell, trade and repair lawn mowers.”  And right beside the sign will be a couple of push or self-propelled lawn mowers and occasionally a riding mower.  A few years ago I didn’t see any such signs.  Now I see them everywhere.  I guess they are “signs of the time.”

The upside is that hopefully these real “shade-tree mechanics” are buying parts and engines from some of our customers – authorized service centers and contracted OPE dealers just like you.  Long term, putting these recycled mowers back in use, creates future parts and service business for us all. 

Back in the 1980’s and ‘90’s, my Dad use to say that he believed 1/3 of our parts business was generated by old mowers that one neighbor sold or gave away to another.  The new owner would then be willing to invest $100 or $200 toward fixing it up, putting a new seat on it or having the engine tuned up and the belts and blades replaced.  I use to chuckle every time he said that, and he said it often.  But I think his statement is still very valid.

I smile now when I think about that transition from being a son and a teenager to becoming a friend and a business partner with my Dad.  Thank goodness my Dad was patient and forgiving.  Thank goodness many teenagers turn into responsible adults.  He was my mentor, my teacher and my friend.  I miss him every day.

An African impala can jump to a height of more than 10 feet and cover a distance of greater than 30 feet.  It's a remarkable feat to observe -- so effortless and graceful, a real defense mechanism necessary for survival on the predator-filled savannas.

But put these magnificent creatures in an enclosure in a zoo surrounded by just a three-foot wall, and they will not jump over the wall - if they cannot see where their feet will land.  They will be killed rather than risk the unknown.

Many humans share these characteristics.  They thrive in familiar territory, doing what they know is safe and comfortable, but they won't take any risks for fear of failure.  They would rather watch opportunities pass them by than jump over the wall. 

Do you take risks in your business or do you stick with what you know is safe and comfortable?   Do you try to understand what the consequences might be before you act?  Remember the old adage “measure twice and cut once.”  We know that really does reduce risk.

Do you know who is making most of Sears’ OPE equipment for the 2010 model year?  It’s not Husqvarna, which has had most of Sear’s business for many years.  It’s now MTD.  Even though Sears uses many different suppliers forvarious portions of their OPE business, think about the effects of this change on your own parts and service business now that MTD is making a great majority of Sear’s riders, push and self-propelled mowers.

One of the best compliments I can give when writing a reference letter is that the person takes initiative. 

Translation:  the willingness to at least try, to take a risk, to give it your absolute best shot.  When I recommend someone in those terms, a light goes on for the prospective employer.

Initiative is not a promise of perfect results.  Sometimes it results in failure.  Sometimes, it results in a satisfactory but not remarkable outcome.  Other times, the effort ends in a great success.

An employee who can step up to the plate three runs down in the bottom of the ninth with bases loaded and two batters out, and envision a grand slam instead of a pop fly is the kind of player I want on my team.  That employee will wait for just the right pitch and send it over the fence.

Don't worry if you weren't born knowing how to take initiative -- it can be learned.  In fact, a lot of us learn it the hard way, getting stuck in a rut and trying to dig our way out.  At some point, frustration sets in and we decide to take charge of the situation.  That’s when good things happen.