Friday, October 21, 2011

Repair Help-Lines Are Important To Customer Service

October 21 -- These days, Americans are more inclined to patch up household products like vacuum cleaners, blenders and mowers rather than junking them.

This wave of frugality is increasing call volume to customer help lines, prompting some companies to boost their call-center staffing and offer more online tutorials on fixing and maintaining household machinery.

Kathleen Jones, a retired accountant in Wenonah, N.J., was one of the thousands of people who recently called the Glenwillow, Ohio, office of Techtronic Industries Co., the Hong Kong-based maker of Hoover and Dirt Devil vacuum cleaners. Ms. Jones was tempted to replace her 20-year-old vacuum after the old floor-brush attachment broke. But she found it would cost at least $300 for a similar new model. Instead, she ordered a replacement brush for $15.47.

"If I get another couple years out of it, that's pretty good," Ms. Jones says.

In many cases, "if you call us, we can fix it with you over the phone," says Dan Gregory, president of Techtronic's floor-care business in the Americas. Techtronic has seen about a 20% increase in U.S. help-line call volume each of the past two years. To handle more than 2,000 calls a day, the staff at the Ohio call center has almost tripled over the past two years to 65. The company also puts how-to-repair videos on its websites.

For both financial and marketing reasons, Techtronic wants customers to call when vacuums break down. To encourage them, it has begun putting a sticker on each product with the call-center phone number. "At that moment of frustration, it's right then that you either lose a customer or keep a customer," says Mr. Gregory.
Handy Help

Before undertaking a repair, consult the owner's manual. Consumers who are uncomfortable or unfamiliar with electric appliances or gas-powered engines should consider a professional repair service. Here is a sampling of useful phone numbers and websites:

Another risk: A customer who can't find a quick fix may return the vacuum to the store that sold it. The store may then give the customer a new machine, even if the old one wasn't really defective. Techtronic picks up the tab.

Other companies also report more interest in repairs. Briggs and Stratton Corp., which makes lawn mowers, pressure washers and back-up electricity generators, says do-it-yourself-repair calls and emails are the fastest-growing category at its "answer center." Overall call volume is up more than 60% from the level before the 2008-09 recession and totals several thousand per day during the peak summer season, says Dan Benischek, director of the call center. The number of call-center employees has risen to more than 60 in peak periods from 40 before the recession.

At Ariens Co., a maker of lawn mowers and blowers, sales of replacement parts now run at 12% to 13% of overall sales, up from 9% to 10% a few years ago. "Definitely consumers are extending the life cycle of products," says Daniel Ariens, president of the family owned company in Brillion, Wis. He has expanded his telephone tech-support team to nine people from five and persuaded three Ariens retirees to take calls at home during snowstorms, when lots of customers call in with blower problems.

At Techtronic's Ohio call center, employees deal with all kinds of cleaning crises.

"Hello, this is Heidi," Heidi Barchalk, a senior Techtronic help-line staffer, said on a recent afternoon as she picked up a call. Vivek Malik, the owner of four cellphone stores in southeastern Massachusetts, was having trouble with the Hoover Whisper Cyclonic vacuum used to clean one of the stores. A new belt hadn't done the trick.

After Ms. Barchalk prescribed a new part for the brush roller, Mr. Malik argued that Hoover should provide that for free because the vacuum was less than a year old. Ms. Barchalk said the warranty covered only residential use. Sturdier commercial vacuums should be used in stores, she advised.

"I can't believe this!" Mr. Malik barked. Ms. Barchalk offered to give him a 30% discount on the part, bringing the cost to $14.55 plus tax, and to rush the shipment.

Mr. Malik finally agreed. "We've already not vacuumed for three days, and the place is a disaster," he said. A week later, Mr. Malik said the Hoover worked with the new part, "so it's a happy ending."

Hundreds of vacuums line the aisles of the call center so employees can grab the relevant model if needed to explain something to a customer.

Sometimes it's only a matter of pushing a reset button, replacing a broken belt or cleaning a filter clogged by pet hair.

Another caller reported that her Hoover lacked suction. Ms. Barchalk asked the caller to remove the hose, hold it perpendicular to the ground and try dropping a quarter into the top end. The caller complied.

"Did it come out the other end?"

"No."

"That indicates the hose is clogged up," Ms. Barchalk said. She told the customer to use a broom handle to nudge debris out of the hose. After she hung up, Ms. Barchalk said, "We get that a lot."

Some vacuum crises are more difficult to resolve. The tough ones are escalated to a supervisor. If that doesn't suffice, the caller is referred to a local authorized repair shop. They don't offer advice on engine repairs, because that work is considered too dangerous for amateurs.

One woman called Techtronic to say her vacuum was "possessed," says Lisa Thomas, who manages the call center. Another had accidentally vacuumed up a beehive. "They were asking how to get the bees out," Ms. Thomas says. "We basically said, 'very carefully.' "

Briggs and Stratton Enters into New $500 Million Senior Unsecured Credit Facility

MILWAUKEE -- Oct. 13 --  Briggs and Stratton Corporation today announced the closing of a new five-year $500 Million Senior Unsecured Revolving Credit Facility with a syndicate of financial institutions.

The multicurrency credit agreement also includes an optional increase in aggregate commitment amount of up to $250 million, subject to certain conditions.

This agreement replaces the company's existing credit agreement maturing in July 2012. As of the end of the company's most recent fiscal year ended July 3, 2011, no amounts were outstanding under the existing agreement.

"We are pleased to have replaced this important source of unsecured, committed financing with such a strong showing of support from our existing and new financial institutions. It is a testament to our strong relationships as well as their confidence in the continued strength of and the outlook for our business," said David Rodgers, Briggs and Stratton Corporation Senior Vice president and Chief Financial Officer.

"Our capital structure, management, continued strong free cash flow generation and the new credit facility provide us with the financial flexibility to support continued organic growth in our core businesses and our strategy to diversify and grow geographically."

Fifteen financial institutions participated in the facility, which was more than 35 percent oversubscribed with J.P. Morgan Securities LLC and U.S. Bank N.A. serving as joint lead arrangers.

The company intends to use the Senior Unsecured Revolving Credit Facility to fund strategic growth initiatives, working capital and other general corporate purposes.

Material terms and conditions of the credit facility will be described in the company's filings with the Securities and Exchange Commission.

Monday, October 10, 2011

OPEI Announces New VP of Industry Affairs

The Outdoor Power Equipment Institute (OPEI) announced Oct. 4 the appointment of Gerry Coons as its new VP of industry affairs.

Coons, an engineer and MBA, is a 30-year OPE industry veteran, having most recently served as general manager at the Husqvarna production facility in Orangeburg, S.C. In his new role with OPEI, Coons will oversee and manage ISO and ANSI standards work and regulatory relationships with the Environmental Protection Agency (EPA), Consumer Product Safety Commission (CPSC), California Air Resources Board (CARB), Health Canada and Canadian Provincial Authorities.

“OPEI is strengthening its core capabilities to better serve our members’ needs,” said Kris Kiser, president and CEO of OPEI. “Gerry’s substantial background with equipment manufacturing and regulation brings ‘real world’ experience to our organization. It is imperative that OPEI continue to be the global leader in the harmonization of rules and standards for outdoor power equipment, and with Gerry’s oversight, we’ll be able to grow and bolster the association’s role.”

Briggs and Stratton CEO Predicts Strong Three to Five Year Growth

Buoyed by a strong balance sheet, Briggs and Stratton Corp. plans to incorporate acquisitions into an aggressive growth plan over the next several years, according to the company’s top executive.

“We’ve got a lot of room and a lot of cash on the balance sheet,”  Briggs and Stratton president and chief executive officer Todd Teske said.  “I’m really excited about what we can do.  We’re not going to go out and do deals for the sake of doing deals.  We’re going to do smart deals.   But we can grow this company pretty dramatically over the next three to five years.

The Wauwatosa-based manufacturer of small engines and outdoor power equipment, such as lawn mowers and generators and power washers, is considering deals in both developed and emerging markets.  

“A lot of it has to do with channel and product,” Teske said.  “Part of our strategy is to get into things that have higher margins.”

“Acquisitions in emerging markets could be key to the company’s international growth,” he said.

“As we try to grow internationally, we think it’s important to have a presence there in some way, shape or form,” Teske said.

“Serving a country like Brazil, given its restrictive duty and tariff structure,” he said, “requires an in-country manufacturing presence.”

International sales currently account for about one-third of Briggs and Stratton’s overall revenue, compared with 25 percent three years ago, according to Teske.  Nonetheless, the company plans on being judicious when it comes to making deals, Teske said.

“I’m really excited about what we can do, but we aren’t going to go out and do deals just for the sake of doing deals,” he said.

The ultimate goal of the company’s acquisition strategy will be to expand the breadth of its product line or possibly gain access to new distribution channels, he said.

Briggs and Stratton has the financial where-withal to pursue acquisitions that fit with its strategy, Teske said.

He pointed out that the company, which had a market capitalization of about $735 million early the week of Sept. 12, has net debt of just $18 million.

“I’ve been with Briggs for over 15 years and our balance sheet has never been in this good of shape,” Teske said.

At the same time, Briggs and Stratton continues to deal with challenges brought on by a sputtering economy.  Teske doesn’t expect a full-fledged economic recovery in the United States  to happen for another two years.

“Somebody asked me recently if I see any light at the end of the tunnel.  The answer is yes, but it’s way, way off in the distance,” he said.  “We’re already seen a double dip in our industry.  We were down for four years, up one and then down again this past year here in the United States.”

Briggs and Stratton’s business did get a boost recently as a result of massive power outages along the East Coast caused by Hurricane Irene.

“We ramped up production and met the commitments we had,” Teske said.  “I’m not going to kid you.  The pipeline is relatively empty right now.  We’ve got out plant down in Auburn, AL, cranked up and making as many generators as we can.”

Briggs and Stratton’s generator business, which Teske once led, is reliant upon hurricanes to drive business.

“When there are no hurricanes, this is a tough business to be in ,” he said.  “We look at this in three-to-five-year chunks.  It is volatile, no question, but you’ve got to be there when people need you.”

“Having government, both at the state and national level, adopt a more “pro-business” agenda also would benefit manufacturers, including Briggs and Stratton,” he said.

“I think Wisconsin is on the right track,” Teske said.  “I see the impacts that this pro-business environment has had.  It’s been very positive, but it’s still early.”