Early in 1997, met a maintenance director who needed help on a refrigeration issue; RC&S was only able to offer advice. After several phone conversations, communication ceased for several years. While in the area on another project, stopped in to touch base and during lunch he mentioned they were about to hire a engineering company to design a plant addition. Raised the question of a design/build project; he indicated that any design/build team would need to be able to work through the manufacturing issues as well as the many construction issues.

At the time, RC&S did not have a complete internal engineering department. Further, this project was going be two to three times larger than anything RC&S had done before.

Sought out a national architectural and engineering group. They agreed to meet information needs for pricing development, provided RC&S use their services if the job went forward. This was not a small commitment, considering the project was a year in the design and estimating stages. This left only the manufacturing issues such as cost justifications, ROI, and equipment layout for manufacturing. After studying and learning the plant, products and labor costs, developed the equipment layout and process flow charts. Further, working with their CFO, performed the cost justifications and ROI for the financial package. Researched and presented all process equipment based on its ability to meet the financial projections. There were three separate presentations of several hundred pages before the final presentation was accepted.

RC&S was awarded a $14.7M contract to construct a 60,000-sq.ft. building and included the process equipment. In addition, before the contract acceptance RC&S billed in excess of $100K in fees to cover the time RC&S had expended in development of process equipment and financial data.

Illustrating work ethic to overcome many issues, leveraging manufacturing and engineering background, and relationship building with the maintenance director were the deciding factors in securing this lucrative contract.

During a seasonal downturn, asked the union in Mason City to go to a thirty-two hour workweek and they refused.

Costs were out of line with revenue because of the union contract, seasonal sales drop, and the fact that most of the company’s work was in the warmer climates during this time, thereby costing more in shipping.

Moved all work south, and in a ten-day period closed Mason City facility. In the process, let the local TV station know that the company had met with each man and asked for their support but the union hardliners carried the day; this truly made the union look like the problem.

Upon reopening the plant three months later, the union collaborated in a very improved manner. Laying those workers off was difficult and is still regretted, but it kept the division operating and led to a healthier company, which resulted in the vast amount of them being rehired.

A new vendor had been trying to get RC&S to test the polyurethane foam his company manufactured. The product was significantly less expensive, had all approvals and met the specs of the current manufacturer. In one division alone, it would result in over $100K yearly.

Purchasing felt that because sister companies were using the same foam producer, RC&S should stay with them and not "rock the boat." Further, this was a manufacturer with a long-term relationship with the company and CEO.

Tested the foam and found it to be as advertised. Ran the numbers for both the division and the sister companies. After compiling all available information, requested a meeting with the CEO and presented the findings.

The new vendor was accepted and the company saved over $500K in the first year with the new vendor. Working for the good of the company and setting aside politics gained tremendous respect and trust. The CEO never even bought up a relationship question; he just did what was best for the company.

Kolpak management’s sales expectations were $5M, but sales had only reached as high as $3.2M. Sales reps were not up to par, the company was not seen as the market leader, and there had been warranty issues on previous jobs.

Sought out reps that were seen as warehouse sales people. Developed new literature geared towards the market. Began calling directly on contractors for units that were not for restaurant or commercial sales. Identified and seized the sales of a bankrupt competitor. Actively engaged in bring business from the marketplace to the company, alongside the sales reps.

Doubled sales in six months. Because of this success, promoted to President of Tonka.

Company needed to create additional manufacturing capacity through increased efficiency in order to boost sales. The product was high-quality but outdated technology: the insulated panels were no longer using wood frames, but they were cheaper to build.

Pursued the market in which price ruled: e.g. Wal-Mart, less successful accounts, and smaller convenience stores. Created and developed new marketing materials. Replaced reps that were no longer interested in aggressively representing the product. Developing new pricing to increase profit by volume.

Profits increased, and revenues amplified from $34M to $41M.

Division’s representatives were not qualified to present and sell the products. They were qualified for the company’s main products, but these specific divisions required more than a catalogue and taking the order. At the same time, these were the best reps in the food service industry; in fact, Kolpak was the largest nationwide offering this product. This meant that any action with these reps needed careful handling so as not to lose any.

Contacted each rep in an effort to find out who wanted to keep the warehouse line in their area. While many did, others simply felt they had too much to handle already. The ones who wanted to keep it were interested in learning how to sell the product. Based on these findings, identified eight new rep groups and began training to educate the other 18 groups. Requested each group to assign one rep, and personally trained them on making calls and learning the various strengths and weaknesses of the product offering.

Sales took off in a few short months, reaping an increase of over twice that of the previous year. The customers had simply been taking what they could find, and once the team began to address the issues and add value to the offering, they saw Kolpak as their solution. At the end of the year, after doubling sales, the largest competitor went under and Kolpak was the only group positioned to take the sales. Solving clients’ problems through great service targeted the best business available.

Refrigeration division had been performing installations for General Mills restaurants across the country. There was great potential for additional business besides just installs. General Mills is so large that additional business must be sought through many different people.

Aggressively began to pursue more contacts by becoming the vendor that would take the more difficult projects. These included jobs that were way behind schedule or had permit issues, etc.

In less than six months, the team gained the attention of the executives who made decisions on equipment purchases. Became the preferred provider of icemakers to the Red Lobster account, prompting annual sales of more than $1M a year. Positioning the company as a solution provider resulted in clients seeking solutions in other areas from the company.

An international company was going to construct a new refrigeration project in GA. After being given the lead on the project, found that there was very little information available: not even a name. The local chamber would not give any information, stating they had no knowledge of the situation.

After six weeks, found a business license for a refrigerated storage company from Ireland. It took two calls to company HQ to track down the name of their person in GA. After great effort, the gentleman finally agreed to a meeting, during which he stated that he would buy equipment directly from the manufacturer. After a few weeks of building a relationship, positioned company to present a bid that included all equipment.

Won the project at a $2.3M price tag, including the equipment. A few years later, learned from a manufacturer's company rep that they had been the company with whom the original order was to be placed by the Irish company. The reason they gave for changing their minds was the level of service and aggressiveness in pursuing the project. Hard work, persistence, and resourcefulness earned this major contract.

At the end of second year, RC&S had outgrown its offices, communication and accounting systems. The age of the company and the tremendous growth required keeping all possible funds free for growth and maintaining a strong bottom line for banking and bonding.

The management team took advantage of the fact office space was overbuilt and very inexpensive to lease. Found a two-story brick building in an industrial area very close to the airport. Over half of the 10,000 sq. ft. had not been built out, so negotiated for just the finished space and did the build-out internally. Used trades at cost and managed the job for the desired outcome. While the work ensued, researched phone and computer systems, settling on Nortel phones, IBM computers and COINS software.

When the construction work was finished, clients commented on how nice and professional the offices were. This greatly improved the company image. The communication systems stopped a great deal of the busy activity and meetings began to flow instead of constant interruptions. By going to auto-attendant, saved the cost of a receptionist. The accounting systems allowed information only a few days old and ability to "manage by" the numbers was increased tenfold. Assigned all superintendents laptops and cameras for field record keeping as well nightly updating of all field accounting and reporting functions to the home office.

There is no way of overstating the effects this had on RC&S’s ability to communicate and understand what both hands were doing on a daily basis. It also created an air of confidence in the personnel and boosted morale.

Company lacked working capital for growth. The company was small, and lack of collateral and a fully developed reputation hindered the quest for supplemental funding.

Sought and secured national accounts in need of the company’s services. Developed policies and procedures that reinforced corporate structure. Developed complete business plan to illustrate the company’s goals and strategies. Worked at securing larger, higher-profit accounts on a national level that would build both capital and reputation.

Financial institutions became much more open to working with the company after the company was able to outline goals, create a strategy for realizing those goals, and began creating and implementing the tools that would facilitate growth.

RC&S, Inc. had an opportunity to develop an international account with the sales of equipment and an onsite manager to oversee installation using the client’s work force. Early estimates showed a net of 18% to 22% on each project. In addition, the client asked for 60-day terms. RC&S did not have qualified labor for the overseas work, and the additional terms would present tremendous cash flow problems.

Contacted the manufacturer, and after a great deal of negotiations that included a request for 75-day terms, 60 days was accepted. Then contacted the client and confirmed the 60-day terms on equipment only. These terms were offered to the client and the onsite manager cost was offered only on normal terms. The onsite supervision would be performed by a VP of the company with a chosen superintendent along to learn on the first project and then continue on future projects as RC&S’s onsite rep.

The contract was signed and would result in revenues of $2M annually. The manufacturer honored the 60-day terms and the client agreed to pay all other costs on a ten-day basis. The superintendent who was trained, unfortunately, did not last due to the travel issues and its affect on his family.

Understanding what all sides needed, rather than what they were asking for, allowed everyone a win-win outcome to the situation.

While President of RC&S, traveled via plane to New Orleans at the urgent request of a long-standing client (with a $100M in revenues for food manufacturing). During the meeting, after being asked to sign a confidentiality agreement, learned that they had terminated the top three personnel in their maintenance department for what they believed to be widespread theft. After a great deal of discussion, was asked to take over the maintenance department and, once operating correctly, hire a new director to take over. As the talks developed, it was made very clear that there was no one else to whom they would feel safe entrusting operations. They requested a compensation proposal; they had to have a number quickly, and the situation needed to be considered carefully.

Requested to see the maintenance records for the last three years, and after five hours of pouring through them, made the following offer: 1) an onsite office complete with phone, computer, etc., to use as needed for personal business as well as their maintenance operations; 2) an hourly consulting fee of $90.00; 3) airfare (as needed) and living expenses; 4) a one-year commitment with 30% of company savings versus the last year; and 5) the ability to find and hire a maintenance director whom all parties accepted as soon as the department was squared away. This person would work directly for RC&S with all fees to hire being a cost to the maintenance department. This was agreed to and oversight of the department ensued, while directing RC&S remotely with trips back and forth as needed.

The contract lasted one year with a decrease of $800K over the year before. Therefore, the savings to RC&S amounted to $240K and the hourly and miscellaneous was another $200K. RC&S was also compensated for the transfer of the new maintenance director.

It was a great opportunity and the theft led to legal action. It also allowed the management team at RC&S to grow as a unit. They were strong and stood the challenge during my absence. The maintenance director is still at the company and has been for the last seven years.