As you know the Professional Servicers Organization of California (PSOC) conducted these meetings because both major appliances and electronics repair is faced with serious issues that have a direct impact on our existence. These issues were identified thanks to the open sharing of member concerns with us.

It is the goal of this organization to take immediate action and bring about correction.

We feel that it is imperative to find resolutions for the protection of the American consumer as well as the wellbeing of our entire industry.

PSOC officers are working on formulating a campaign to resolve the problems which have been identified that effect on our ability to provide our customers with the best possible service experience.

A real concern was expressed about the timely procurement of repair parts. Under California’s Song-Beverly Act, manufacturers are required to make repair parts, schematics and service information available for seven years after the last date of production.

For some brands of digital televisions, especially those made in the People’s Republic of China, parts are almost nonexistent. For some appliance and electronics brands, parts are in short supply and can remain on backorder for weeks. Customers don’t like waiting for repairs. When parts don’t arrive in a timely manner, service dealers lose jobs and these customer’s future business.

Worrisome is the fact that we now have parts which have been harvested from used or recycled products, and end up in customer’s unit without their knowledge or authorization!

The bottom line is that the American consumer is being damaged by these actions.

Inadequate compensation from third-party service contract administrators is been a topic that no longer can be ignored by the industry. Some contract sellers ignore facts of what our costs of doing business (CODB); cost to provide professional repair work in the field really is. They have chosen arbitrary rates pulled out of the air without substance, they offer these to service dealers on a take-it-or-leave-it basis thereby pressuring servicers to work below their base line, below their minimum sustainability, below their CODB.

The Song-Beverly Act places the starting point for any rate negotiations at the servicers regular COD rate. The presumption of the law is that your COD rate is in fact your warranty rate! It became evident in our meetings that this is not the case at all. The question: how much longer servicers can provide service and stay in business with these rates was answered with shrugs and a deafening silence.

To understanding your CODB and to negotiating rates in good faith is critical for the survival of any business. We teach these and many more important business classes in our annual conventions.

Some third party administrators (TPA’s) are forcing servicers to accept as much as a 50 to 60 percent lower than the average COD rate in order to get business from them. Without exception every servicers present in our meetings had a serious issue with this practice. Many chose to refuse to do business with those particular TPA’s that clearly don’t care about the survival of professional servicer.  

Note: A manufacture or contract company does not have to do business with a servicers, but if they choose to do business with them, then they must negotiate with them based on the Song-Beverly Act!

With the change in doing business came along the “simplification” and “cost reduction” of parts ordering. The truth of the matter is that parts ordering is just as hands on as it has been before they came up with the idea of “helping us” by taking away our ability to buy good parts from good sources and have eliminated our markup. It is not ok to have zero profit on parts considering all the work of part research and parts ordering and parts handling that servicers still have to do. This discussion led to the suggestion that servicers should include a 25% increase on labor rates to at least recoup the amount of time/labor spent on the parts processing with each job which requires parts.

Furthermore for any Parts received defective, rebuilt, new defective, or used which result in multiple trip repairs and which shipped from an administrator or a manufacturer should be billed for a second, third, fourth trip or as many trips as it takes to complete the call.

Discussed were background checks which manufacturers and service contract administrators require before servicers can be authorized to support warranties and/or contract repairs to be conducted on all their employees. PSOC members and non-members understand the need for background checks. The only objection is the expense for those checks by multiple agencies. There are currently two large companies performing background checks and several smaller ones. Individual manufacturers and contractors typically specify which firm they want for verification, thus requiring repair professionals to submit to checks from several firms. This puts an unfair financial burden on small local independent repair firms. It is recommend that manufacturers, contractors and repair professionals agree on one background check standard. It is necessary to come up with one standard criterion which would allow the repair professional to hire any background agency to perform their employee checks. This process should include all associations and background check agencies interested in creating a standard.  If they insist on different standards than they should be prepared to reimburse the repair professional for the expense.   Note: A committee has been formed to create the standards and PSOC is participating.

Maintaining a professional image for the repair industry is not an option but a must. In their quest to secure support for their warranties or service contracts at the lowest possible rates, several manufacturers and service administrators have chosen repair providers that fall short in basic standards of service experiences thereby damaging the image of the entire repair industry.

When consumers purchase a new product or contract they are buying peace of mind or are they? An overwhelming request was made by servicers, that the consumer be educated. On our part effort needs to be put into practice to make the consumer aware before they make a purchase. We have a unique opportunity to advise and inform consumers if a manufacturer or TPA supports a product with timely service, if good parts or good customer service is provided by them or not. Consumers are becoming increasingly frustrated with the hours spent calling customer service and then not being able to communicate with the person answering the phone.

A greater emphasis should be used when choosing repair firms who maintain professionalism in appearance and service skills. Customers place higher value on quality of work performed than on the cost. Many customers are willing to pay more to get it.

Going forward the PSOC Board of Directors will be sending questionnaires to the companies mentioned in the meetings. Questionnaires will also go out to companies known not to support the product they sell. We support companies that are pro consumer and offer total support for the product they sell and denounce these that don’t. This stand across our Industry would eliminate the majority of the problems we are facing today.

It is the PSOC’s intention to make all of our findings public.

On behalf of the PSOC membership and Board of Directors I want to take this opportunity to wish you and yours a Happy New Year.

To the betterment of our Industry,

Eloy Fierro

President

Huge brand once household names are mere shells of what they used to be. They are almost as extinct as some of the American names like Zenith and RCA. In the not so distant past these companies always took care of their customer by providing a great service experience either through their ASC’s or their Factory Service. All of them made sure that any parts needed were made available, that training was provided and that the service literatures were made available. Through these actions they developed customer satisfaction which resulted in brand name loyalty. Some are still doing their best to support their product.

Today off-brand manufacturers treat the American consumer market as a dumping ground for their, in every way, inferior product. Consumers are lied to that their purchases are a “great deal” but they are not told for whom. Customers are oblivious to the fact that the new low prices are directly proportional to the “quality” they are buying.

The only goal these manufacturers which flooded our market, had was to secure a lion share giving no thought of the problems they are creating for the consumer, or the servicer, not to mention the environment by creating tremendous amount of hazardous waste.

The appliance industry still has a chance to correct its attitude toward the market share by continuing to provide quality product and still make a profit. Sad to say, but they too seem to be slowly sliding down to the levels of the electronic manufactures in that they are cutting back on the support provided to their customers. Another area where this is also evident is in the drastic decrease of product training, lack of technical literature, and not least the low repair rates which are insufficient to sustain their Authorized Service Centers.

Luckily the appliance manufacturers still have enough American presence to kept offshore manufactures from dumping their products on our market creating loss. In my opinion all manufactures owe Whirlpool a big thank you because they are the ones that brought the action to the Department of Commerce and won.

In recent history we have seen many independent repair service centers as well as big retailers close down their operations. Sears and Kmart just announced they are closing over 100 stores.

I fondly remember my own beginnings with the “mom and pop” retail store. They knew how to make a profit by making their customer their prime goal. Business dealings required nothing fancy; a simple hand shake was enough. Along came the big boys with their huge discounts and with their hands wrapped around the manufactures throats; contracts that only lawyer can interpret, and customer support became an old fashioned outdated concept.

Friends, none of this happened overnight. We are at the crossroads and some of us feel that we can take the higher road out of this mess and make a difference. The question we should be asking the manufacturers among others are these: Are you aware that Consumers in growing numbers are becoming fed up with hi-tech, low-end disposable, non-serviceable product? Will you continue eroding your own profits until you are forced to close operations or can you change your course and bring back this entire industry to a healthy and profitable level?

Let us work together to make 2012 the year of positive changes. Only when we get serious about the future of OUR BUSINESS will we be able to move forward, to raise the standard of expectation for services rendered, to eradicate the trunk monkey, to eliminate zero profit on parts which hurts our existence, and to request a re-evaluation of repair rate offered in compensation. It is time to re-group and get into survival of the fittest mode.

First we change the way we see ourselves, and our business then we ask our industry partners to bring about change on their end. We can insist on bringing back Customer Support. Increase effort to raise the levels of Consumer Satisfaction. Create ads that educate the Consumer about the value of their money. Either it is thrown away, or it is invested. If invested then they deserve to get peace of mind. If they lack that, then they need to ask for it.

The goal of your 57 year old PSOC is to help Servicers remain in business. It is our goal to continue to be the voice for the independent appliance and electronic repair specialist. Be sure to check out our new website which recently underwent a successful facelift. Please don’t forget to renew your dues for 2012. Also don’t forget to keep an eye for the upcoming convention. As you know your PSOC conventions are educational, motivational, inspiring, and are a fully deductible business expense. We need you and your valued input to create resources which will financially benefit you and others. May 2012 be the year we look back on fondly.

All the best to you and yours

Eloy

PSOC

At our annual convention we have programs in place for government education, manufacturer relations, as well as business and technical training. We pioneered quite a few of technical tests including criteria for a professional repair center.

The association benefit I value the most has been networking with not only other repair professionals, but with manufacture reps, parts distributors, and servicer contract companies I have met throughout the years. These people who are involved with the organization are making a difference with their involvement and with their dues. Without them PSOC would be silenced forever and would in fact cease to exist. To prevent that, we must work together and cooperate with each other for the betterment of our industry and the protection of the lifeline of our very existence, that being the consumer.

PSOC has taken on every challenge to protect the well being of the industry and the consumer including going to the Supreme Court to fight for repair parts. We helped create changes in the contract industry which ultimately removed unscrupulous practicing companies. All too often today the contract company’s actions are hurting the service industry. These company’s need to stop pulling labor rates out of the sky and start negotiating based on the CODB plus a reasonable profit. They claim to use an “average” cost for repairs when they should be using the COD average versus their take it or leave it mentality.

I mention a few of these Association accomplishments because plain and simple we are in jeopardy of losing our voice. Our Association is not exempt from the same failing economy we all face. PSOC depends on dues and proceeds from our convention to cover our operating costs. Dues invoicing will be going out soon and without your membership we will not be able to continue. If you value this association, what it stands for, and what we can do together please don’t let it go by the wayside. “We need your help.”

This past year has been a challenge not only for the repair professional, but the manufacturer that still cares for the customer, and the parts distributors that feel the pinch as well.

Today we face a greater challenge than before. There are far too many offshore manufacturers and service contract companies that have forgotten about customer service. They manufacture, sell a contract and try to provide service with little to no parts (or expect us to use used parts), and in many cases parts are defective, no longer available, or we experience lengthy backorders. The very customer they spend millions to attract suffers their failures.

America is no longer a manufacturing country accept for a few still building product here. But it’s up to us to see that we are still a country of repair professionals. Just because manufacturing has eroded that does not mean service should erode as well. All manufactures should embrace the concept of Panasonic and Subzero; “Take care of the customer at all cost”. These two companies have empowered their repair professional partners (ASC’s) to provide the best service experience to the customer when needed. They consider their ASC’s an asset not a liability or a necessary evil. They provide the ASC’s with every tool necessary to make their customer happy. This dedication will certainly lead to loyal “brand conscious” customers.

We repair professionals seem to be first in line for their cost cutting measures. They cut our rates, our training, etc, etc, etc. It appears when these decisions are made we are not part of the calculation. I want to remind all of you that we are the point of contact for the customer. After all don’t we advise our customer’s when a product is not worth repairing, don’t we recommend brands, places to purchase, and aren’t we often asked if extended warranties are worth the money? We have a large influence over market share.

It is time for every sector of the industry to come together and figure out what direction would be the most effective one to provide the consumer the best service possible while allowing all of us to make a profit. The consumer should not suffer.

To the repair professional PSOC is providing an avenue for you to voice your concerns.“If you don’t like what is happening to our industry, you are most welcomed to join with us at our next town hall meeting and share in the discussion.” Together we can make a difference.

We are conducting town hall meetings throughout California. Our first meeting was held in Fresno. The main concerns were 1) parts 2) Compensation 3) Background checks and 4) Professional image. We are convinced that these concerns will be similarly voiced in subsequent meetings. After our final meeting we will share the information with everyone.

Eloy Fierro
PSOC President

We are less than one month away from closing another tough year in business. PSOC is an organization with members consisting of repair professionals from the appliance and electronic industry.  Our members come from manufacturing, contract companies, administrators, parts distributors, vocational schools and repair professionals.

I know most of us have been busy and probably forgot or put aside the invoice for the dues. Please take a minute of your valuable time and send in your dues. PSOC only has you, the member, to depend on and this year has been tough.

Don’t allow your voice to go silent and I promise PSOC will always protect your interest!

We all share one common denominator and that is the consumer. Every single one of us share a responsibility to providing that customer the best service experience possible from the day the product is sold to the day it needs repair.  Now more than ever we must all partner together for our very survival. As the industries get realigned the need to understand each other becomes more important to
provide us a healthy prosperous business.

PSOC has been a vehicle for all of us since 1955. PSOC is where we all come to network, train, eat and have a little fun. PSOC is the venue where our skills are sharpened with technical and business seminars. PSOC is where we come every May to discuss issues of concern and have an opportunity to agree or disagree.

Speaking about a 1955 vehicle that has never broken down on us through thick and thin, the PSOC website is getting a new motor with the latest gadgets. We will be introducing the product by the end of this year. We want your immediate input as we want it to provide you a smooth ride.

For you member sponsors please expect a call from me within the week. May 2012 is approaching fast!

I want to take this opportunity to thank Charlene, Tim, Sam, Sam Jr., and Mattie for their hard work and leadership. With the exception of Charlene the board of directors is a volunteer group of dedicated repair professionals and without them, and you, there would be no PSOC.

May you and yours have a Merry Christmas and a Happy New Year.

Sincerely,

Eloy Fierro, President

While the benefits are almost never ending, here are 7 powerful reasons to get your business online and fast!

Credibility

Businesses that can be found online have more credibility. Why? Because your customers can get online and check you out.

More than ever, people are researching the internet before making buying decision. If you have a website that explains all of your services or products in detail, you’re more likely to get the sale.

Also, being online gives you a chance to list your qualifications. It provides a place to show off the associations you’re part of like the Better Business Bureau and so forth.

Cheap

Whoops! Did I say cheap? In business we say “cost effective”. For starters, getting a quality website up and running has never been easier. Gone are the days where you need to spend thousands and thousands of dollars on a company website.

It’s as simple as buying a domain, getting some hosting, and setting up a WordPress site – all of which can be done in a few hours.

Also, advertising your business is incredibly cost effective as you can set the exact amount you wish to spend and then see your immediate ROI. In fact, in many cases, you can produce amazing results advertising for free through places like Craigslist and Backpage. It’s a very low entry cost (free) with potential huge returns.

Customers

Your customers are online. Are they going to find you or your competition? Do all you can to get listed in the local search results. Learn to dominate your niche online. Be where your customers are looking for you.

Naturally you need to have a website, do some SEO, produce some great content, and connect through social media. That will put you in place to be found by your customers.

Connections

Once your customers have found you online, be sure to connect with them. With the various social media platforms, it’s never been easier to stay in touch with your customers.

You can increase traffic through your doors by offering specials through Groupon, Living Social, and Google Offers. You can build up customer loyalty by using tools like FourSquare and Facebook Places. You can even give customers “inside information” by connecting with them on Twitter or Facebook.

Close

Wouldn’t it be nice to have a salesperson that never calls in sick, works 24-7, and presents the exact right message to your customers every single time? You can! It’s your website!

Many companies still have “legacy websites”. These are the kind of sites that talk about a mission statement, list hours of operation, and company address. Who cares!

Your customers are searching for a solution to their problems. Let your website (and your social media outlets) save the day! If done right, your website can “close” your customers automatically.

Customer Service

Because you’re a superstar at growing your business online, why not use the same tool to address all of your customer service concerns? One of the easiest ways to slim down customer service issues is to set up a F.A.Q.’s section on your website.

Want to address the concern immediately? Have one of your employees monitoring Twitter and get your customer an answer instantly. By interacting directly, you’ll resolve the problem quickly and your reviews on Yelp will skyrocket!

You can also use your awesome customer service skills to reward your best customers. As mentioned before, you can incentivize your customers by using platforms like Foursquare or Groupon. You can even offer secret deals if they join your mailing list or a special “elite members” closed Facebook page.

Cash

What business wouldn’t love to generate more revenue? Are you a brick and mortar business? What want or need does your business satisfy? Turn that expertise into an information product of some sort!

Let’s say you have a kitchen remodeling contractor. You can take your years of experience and create a series of how-to videos and sell them on your website.

What if you’re a product-based business? Let’s say, for example, you own a clothing boutique. You can create an online store that features your best clothing. You can even direct your in-store traffic to your website for special inside deals.

By creating on online portion of your business, it creates an additional revenue stream. It also takes your business from a local business to a global enterprise with unlimited income potential. In short, you become scalable.

**

So there you have it. We’ve covered some of the basics of marketing your business online.

By doing just a little bit to market your business online, you’ll soon pull ahead of your competition. Do what it takes today to make sure you take advantage of the internet – the most powerful marketing tool ever invented.

::

PSOC Guest Author, Sean Marshall, is an online marketing activist who helps service professionals increase their revenue by properly leveraging the internet. He’s the main guy behind Social Rocketship.

The purpose of our new look is to gather information and opinion in one place.  You will find photos from past conventions.  (We invite you to share your pictures, too!)  Opinion?  We invite your opinion and ideas on post topics related to industry matters.  You can add them in our discussion area.  Have an idea or opinion that does not appear in our discussion area?  Is it relevant to our members?  Why not create a new discussion!  With our new look, you can!  Have an idea? Feel free to offer your suggestions.

Our new look is for you!  An organization’s strength comes from member support.  PSOC’s strength is in your support.  Why not take a look around? We need your thoughts, ideas, and most of all, your support!

Operate my business under required Licenses in an area zoned for business.

Maintain records of service performed, materials used, and charges made for each customer. Each customer is to be given an itemized copy of the Invoice with Warranty clearly stated thereon, such records to be kept in legal accordance.

Provide and fully honor a clearly stated Warranty or Guarantee on each Sale or Repair Invoice.

Reduce all Service Contract or Warranties to writing explicitly stating what is covered and what exclusions there may be, including duration dates.

Maintain adequate test equipment in keeping with Professional Servicing Standards.

Perform repairs in the shop or home in accordance with Professional Servicing Standards, including preventive maintenance and Factory Authorized Modifications, limiting parts replacement to those parts required to return equipment to normal operation equal to the Original Equipment Manufacturer’s specifications.

Use only parts and material of equal or superior quality to O.E.M. specifications.

Use diligent care in the customer’s home and fully protect his/her property while it is in our possession with adequate insurance or other provisions to compensate for its loss or damage occasioned by fire, theft, or vandalism.

Base my Service Call prices on the following conditions:

A Service Call is defined as a call to the home upon a customer’s request. A properly equipped and fully trained Technician will be sent for the purpose of repairing electronic equipment.

Service Call prices will be based on a maximum half hour time in the home, including travel time, if within our normal service area.

Time in excess of basic Service Call may be charged for at the shop’s prevailing rates, and Services Calls made outside our normal area may be charged mileage.

10. Abide by the PROS Advertising Code as follows:

Promote PROS in my advertising using the registered Trademark, Decals, and other materials available from the State Office.

Not initiate any form of false or misleading advertising, realizing that such activity is detrimental to the Service Industry.

To conform with the Ethical and Professional Standards of Advertising as set forth in Chapter 27, section 2700 series of the business and professions code of the State of California.

Not initiate political advertising of any type using the PROS Registered Trademark unless submitted to and approved by the State Board of Directors.

11. Take price in my chosen profession and my position in it. I will remember that, in building my business it is not necessary to tear down another’s', but will respect my competitor’s position and endeavor to earn his respect.

12. Comply with the California B.E.A.R. Laws and Regulations emanating therefrom, and further comply with all National, State, and Local Laws, Rules, and Regulations pertaining to my category of electronic business.

13. Comply with the PROS Charter, By-Laws, and Code of Ethics governing regulations with my customers and my fellow PROS members.

14. I understand that violation of this Code of Standards will be cause of revocation of my membership and the loss of all privileges accorded by such membership, subject to provisions within the By-Lays of the Professional Servicers Organization of California.

The hottest (latest) business information and service industry trends!!! Know it now!!!

Receive the latest news that is important to the profitability to your service business and opportunities to update and adjust your business strategies. Available online for viewing and downloading, catch the news that is relavent to your service business.

Discover the newest innovations and the latest technical and business solutions to improve the value of your services, increase profits and have the competitive advantage.

The PSOC maintains a comprehensive web site for access by members, non-members and the general public. The members only area, protected by user ID and password, contains helpful information to manage the day-to-day operations of a service business. Non-members and the general public have access to information about the association and topics such as consumer troubleshooting tips. Member servicers are also listed in the “ Find a PRO” section so consumers have easy access to search for member information to obtain product repair and installation services. The web site is listed on all the major search engines using a multitude of key words and linked to other domain names all relative to product service.

This website has it all! It provides the PSOC member with the most comprehensive information about the industry and about running your business. Here you will find the breadth and depth of information to meet all your needs. You can search for information, link to other resources, and yes, even find customers!

Annual State Convention

The annual state convention where you have the opportunity to network with industry professionals and the PSOC members to share the latest information and updates about new technologies and business management solutions. This convention allows PSOC members to attend business and technical seminars provided by service industry professionals. The seminars help participants to identify methods and tools to improve business processes and profitability to maintain a competitive business advantage.

Insurance Program

OC members may elect to participate in a preferred rate insurance program offered by Rubin Insurance including:

Group Medical

Group Life

General Liability

Property & Casualty

Workers Compensation

Deeply discounted rates can be obtained by contacting Bernie Sharpe at 800-782-4620, Ext. 204. Call for a rate quote today!

Member Discounts

PSOC members receive various discounts from the following parts and test equipment distributors:

PSOC Credit Card Program

The PSOC is partnered with CardService International to offer members with the best rates and services. CardService International, accessible 24X7, is a one-stop shop for credit debit card processing, TeleCheckâ check guarantee service, Internet processing, deeply discounted wireless terminals and software and web-based reporting. Banking services are available online, 24X7, at http://www.mymerchantoffice.com/

Interested members should contact the PSOC representatives at 888-896-0888.

Legislation Watchfulness

The PSOC keeps a watchful eye on legislative activities both in the State of California and nationally. Routine contact is made with government officials and the State’s Bureau of Electronics Repair (“BEAR”) located in Sacramento, California to ensure members are informed, in advance, of proposed laws or rules that may affect their businesses. The PSOC Board of Directors also maintain communications with the government to assure they understand the members’ views and opinions.

Manufacturer and Industry Relations

The PSOC proactively maintains an open dialogue with all manufacturers in the appliance and electronics industries to improve the relation between service dealer members, the manufacturers and their mutual customers.

Coming Soon

The PSOC marketing and training committees are actively pursuing the following programs:

• · Statewide technical and service management training
• · PSOCANet, an online forum for members
• · TechNet, on line access to comprehensive technical and service tips for hundreds of products