How Saffer Plumbing, Heating & Electrical controls inventory costs and retains talent

Two weeks ago, we slipped our way into another contractor class and listened to Scott Krahling of Saffer Plumbing, Heating & Electrical share how they control inventory costs, think about sales, and retain customers and employees.

Keeping stock: Every two and a half weeks, Saffer’s technicians roll into the shop one by one to have their trucks cleared and then replenished. A replenishment manager mans the process, and they utilize universal truck stock to keep things simple.

• “This strategy minimizes technician downtime,” Krahling said. They’re conscious of not overloading trucks, too.
• They lean on customer calls to help with parts prioritization. “What are customers asking for?”
• The team also uses a planogram-like image so that everyone can see what a fully stocked truck should look like.

In a unique twist, he said, “We Uber parts to jobs.” Instead of hiring someone who might wreck a truck, they let Uber drivers deliver parts worth less than $250 to jobs, reducing their liability.

• To supplement, he suggested hiring parts-runners for $15/hour to sit in supply house parking lots and scoop parts when needed, so technicians don’t have to.

Saffer currently utilizes consignment — where a vendor stores a few items at their location that they only pay for when items are actually used — but is moving toward vendor-managed inventory (VMI).

• The difference, he explained, is that VMI will give them everything they need, versus just a few items with consignment. He encouraged contractors to talk to vendors about this.

Buying minds: Krahling opened this part by saying, “Tim has five kids, so a Jeep Wrangler wouldn’t work for him, but it works for me.”

• “People make decisions based on upbringing, previous experiences (like a bad technician, in this case), income, wants, and needs, and they do it subconsciously,” he added.
• Reading the room is a Saffer practice. For example, a customer who hoards might appreciate a tankless water heater for the extra floor space — so they can hoard more, of course.
• “Break down the wall,” he urged. In one case, on the way to a job, his team called a wife whose husband they were about to visit and asked if he’d like a coffee. When they showed up coffee in hand, it went over well, to say the least.

Retention, retention: Saffer utilizes To Your Success, a gifting service that integrates with a handful of software systems, including ServiceTitan, which they use.

• It enables them to send their appreciation to customers automatically. If a customer spends X dollars, for example, a gift gets auto-delivered — in Saffer’s case, a nice tumbler and some freshly baked cookies.
• For employees, they use an app called Bucketlist, which is basically an internal social network with some cool features.
• Employees can earn points that can be redeemed for gift cards, trips, charity donations, sporting events, and more. Krahling spoke highly of it.