Frank Blau: The Most Influential Contractor Of The Last 25 Years
by Jim Olsztynski
March 1, 2009
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| Frank Blau addresses the Nexstar membership at the 2007 Super Meeting in Pittsburgh. |
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A complex, controversial man on a mission who’s
helped thousands of contractors.
A moment stands out in memory that speaks
volumes to endorse our tribute to Frank Blau as PM’s
Most Influential Contractor. It was at a “Super Meeting” of Contractors 2000
(now Nexstar) held in New Orleans in fall 1997. At the closing banquet,
President Brad Martin presented Blau with a customary plaque
upon conclusion of his two-year term on the board of directors. Then, speaking
to an audience of more than 300 people, Martin invited everyone among them who
had been personally helped by Frank Blau to come toward the podium.
Virtually every seat emptied as contractors surged forward and surrounded the
stage. Then a spontaneous, thunderous and sustained ovation arose, the likes of
which this reporter had never before witnessed at any business
event.
That audience represented only a small fraction of the service contractors
Frank has helped over the years. Their numbers certainly stand in the
thousands.
By “helped,” I don’t mean in a casual way. The “Business of Contracting”
articles Frank wrote for this magazine for almost two decades were indeed
helpful to thousands upon thousands of readers, but that’s just the tip of the
iceberg. Reading Tiger Woods’ tips in Golf Digest might well help improve your
game a bit, but it doesn’t compare to how good you could become if you had the
great fortune to receive a bunch of extended personal lessons from him. Frank
Blau has given that kind of hands-on attention to myriad contractors over the
years.
For years he hit the road conducting paid seminars that usually ended up around
the break-even mark once all expenses were tallied. Beyond that, he has spent
countless unpaid hours chatting on the phone with contractors from near and
far. Many of them have made a pilgrimage to visit Blau Plumbing & Heating in
Milwaukee to see details of an operation that ranks as one of the most successful
PHC service companies in the country — again, without charge. (Frank retired
from the business several years ago, and it is now run by two of his nine
children, sons Jim and Bob Blau.)
Frank doesn’t believe in business secrets. He’s always been willing to share
operational best practices even with direct competitors. His abiding philosophy
is that a rising tide raises all ships. To him the biggest competitive threat is
not from companies that operate like his at the upper rungs of professionalism
— and charge for their services accordingly. Instead, he sees the entire
industry dragged down by hordes of contractors who may be technically astute
but clueless about running a business. Frank spent the first half of his career
making himself and his family financially secure. He’s spent the last half as a
man on a mission helping fellow service contractors realize the same kind of
prosperity.
A crowning achievement of Frank’s career was the formation of Contractors
2000/Nexstar, of which he was the driving force. Almost a thousand firms have
been members since the affinity group was formed in 1992, and they have been
privy to some of the best business and marketing information available to
service companies in this or any other industry. Most of those members past and
present would tell you that crossing paths with Frank Blau was one of the best
things that ever happened in their lives.
Customers Get What They Pay For
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| Speaker Michael Gerber (left) shakes hands with Frank at the Seattle Super Meeting last October. |
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Frank is one of the industry’s pioneers of flat
rate pricing for residential service work. He has been controversial in that
role because it’s common knowledge that flat rating is a method to disguise
high labor rates that otherwise would cause customers to gasp if broken out in
a time and materials format. This brings charges of gouging by folks who tend
to overlook the flip side of this coin. Frank Blau has always preached
top-notch customer service and high employee compensation along with elevated
prices. He’s also been generous donating to industry, community and charitable
causes.
One of the things that always impressed me about Blau Plumbing & Heating
was that a vast majority of the company’s business came from repeat customers.
Gougers can get away with fleecing someone once, but when people keep coming
back for more, you have to conclude they perceive value in the services
rendered at the prices charged.
As important as all the expertise he’s passed along has been the boost Frank’s
given to the industry’s self-esteem. No evangelist has ever preached with more
fervor than he has — a gospel centered around the message that PHC technicians
and contractors bring valuable skills and services to society, and deserve to
be compensated accordingly. Smoke comes out of his ears at any notion that
there ought to be limits to how much money a plumber or owner should make.
Curious Charisma
Years ago Frank coined the term “slugs” to refer
to business-challenged contractors that he contends are responsible for the
industry’s poor image. During the years he was writing for this magazine, I had
a running battle with Frank over the use of the term, which I felt — still do —
was uncharitable and needlessly alienated many contractors who might otherwise
be more receptive to his message. But getting Frank to change his ways is like
trying to command the wind to stop howling. We agreed to disagree about this
issue, and it points to an aspect of what I term his curious
charisma.
Charisma is one of those words hard to define but you know it when you see it.
It’s a rare trait of personal magnetism and persuasiveness, and Frank’s version
is curious because charisma usually is associated with charming personalities.
Although I count myself among his close friends and admirers, neither I nor
most of the thousands of other people who are members of this club would associate
the word “charming” with Frank Blau. He can be blunt and profane to the point
of insulting, and is about as un-PC in his political and social views as one is
likely to find in modern mainstream society. Many people with thin skins can’t
stand Frank Blau.
Yet, it all translates into that curious charisma for the vast majority of us
who know him. When Frank walks into a room, the center of gravity shifts in his
direction. His charisma stems not as much from personality as from the power of
his ideas and wisdom, and his generosity in sharing them.
Frank’s outspokenness obscures perhaps the most
pronounced characteristic that has contributed to his success. I’ve observed
him in hundreds of settings spanning large meetings, small groups and
one-on-one conversations. The thing that strikes me most from all of these
interactions is that Frank is one of the best listeners I’ve ever known. It’s
said the best salesmen talk only 10 percent of the time, and in most encounters
with Frank that’s about where his voice ends up. He listens intently to what
others have to say, and when he does finally speak up, it’s clear he has
absorbed the wheat and discarded the chaff.
Lasting Legacy
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| Classic plumber deskware: A Blau Bobblehead |
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Soon to hit 80, Frank Blau still maintains an
office at his old company but spends much of his time tooling around at a
rustic wildlife preserve he owns in central Wisconsin. But he’s still quite
active giving business advice to old and new friends, and serves as honorary
chairman of the Nexstar Legacy Foundation, whose scholarship program is named
after him.
During these past 25 years, I’ve encountered a few other contractors who have
been just as smart and just as successful as Frank Blau. But in terms of being
influential, of touching other peoples’ lives in a positive way, he vaults to
the top of the list.
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