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.
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.