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SGI members learn from failure at fall expo

By Kelly Faloon
slide
Steve Egner, owner of Steveâ??s Plumbing in the Seattle area, tells SGI President Rebecca Cassell and the audience how one of his service techs embezzled money from clients.
November 26, 2014

One word was used often at Success Group International’s Fall Expo, held Oct. 2-3 in Palm Desert, Calif. — failure. And one phrase was used just as often — embrace failures and learn from them. Educational sessions over the two days showed how members of Plumbers’ Success International, Roofers’ Success International, Electricians’ Success International and AirTime 500 learned valuable lessons from some devastating failures and turned their businesses around.

SGI President Rebecca Cassell also briefed members on how the organization was evolving since its purchase by investment group Aquila from Direct Energy earlier this year. The goals of SGI are to build closer relationships to its members and continuing growing its membership.

Discussions of business failures — as well as how to rise above them and achieve success — included handling customer complaints, companies unable to grow because of leadership obstacles, and marketing and advertising mistakes.

One key area plumbing and heating contractors need to focus on is employee theft, Cassell noted. An audience poll revealed that 78% of audience members have had an employee steal from them.

“One of the top reasons service businesses fail after the 5th year is because of embezzlement,” she said. “And 33% of business bankruptcies are caused by employee theft.”

Most contractors believe their field staff may be stealing from them, but office staff and managers also have opportunities to take money from the business.

“Most frauds are committed by trusted, long-term employees with access to money,” Cassell explained. “The more seniority and more responsibility an employee has generally means larger sums of money are stolen.”

 Preventing fraud involves due diligence of the owners — know what your margins should be, institute internal controls on who has access to financial information, and properly dispose of written and digital financial information.  

KEYWORDS: employees plumbing contractors

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Kelly june 2015 200

Kelly Faloon was a former editor of Plumbing & Mechanical as well as the BNP Media Plumbing Group’s Integrated Content Development Specialist. She also was a former editor of the Radiant Comfort Guide the Radiant & Hydronics Report — both official publications of the Radiant Professionals Alliance — and twice-monthly Radiant & Hydronics eNews, an enewsletter for anyone interested in the world of heating with hot water.

Her editorial specialties included women in plumbing, recruiting for the trades, green construction techniques, water conservation, water treatment, hydronic heating, radiant heating and cooling, snow melt, solar thermal and geothermal.

After a 3½-year stint at sister publication Supply House Times, Faloon joined the PM staff in December 2001 as senior editor. She was named PM’s managing editor in 2006 and editor in 2013.

Previously, she spent nearly 10 years at CCH, a publishing firm specializing in business and tax law, where she wore many hats — proofreader, writer/editor for a daily tax publication, and Internal Revenue Code editor.

 A native of Michigan’s northern Lower Peninsula, Faloon is a 1986 journalism graduate of Michigan State University. 

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