1. Berkshire Systems Group, Inc.
Serving Eastern Pennsylvania
Creating a $ Profitable
Fire Alarm Service Organization
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

2. Our Basic Philosophy
At Berkshire, we are eternal optimists. We believe that if we provide “quality service” customers will naturally come and choose our company over our competition. Customers who don’t place a high value for quality service are probably not going to do business with us. We are not, and don’t want to be, the cheapest game in town.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

3. We Serve the Dreaded Bid Market
“Parts & Smarts” – 80% of our new Project Business
We do very little actual installations
We provide CAD drawings for most projects
Even though we have 4 Project Managers, our Application Specialists (Salesmen) do far too much Project Management
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

4. Present Service Department Volume
Service was Approximately 22% of our total business volume in 2006.
This volume includes:
Parts
Billed Service Labor
Inspections & Tests
Does not include New Project Commissioning
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

5. Service Manager’s Response To:
Why is Berkshire’s Service Dept. Successful?
We deal aggressively with all Customer Complaints
Good communications with Customers
We don’t make promises we knowingly can’t keep
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

6. Service Manager’s Response To:
Why is Berkshire’s Service Dept. Successful?
We go the extra mile, even though it might not initially be to BSGI’s financial advantage. Always be honest.
Efficient Scheduling
Pro-Active to Customers Needs
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

7. Present Service Department Management
Service Manager
Staff Support Clerk
Supervisor - Protection Division Service/Installations
Supervisor - Inspections/Test
Supervisor - Sprinkler Services
Supervisor - Communications Dept. Service/Installations
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

8. Present Service Department Management
Protection Division
13 Technicians
10 Full-Time Inspectors
5 Part-Time Inspectors
2 Sprinkler Technicians
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

9. Present Service Department Management
Communications Division
4 Technicians
3 Telephone System Technicians and Installers
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

10. Other Contributing Issues
On-Call Policy
U.L. Certificated Systems
Having the Required Tools
Managing our Customers Programs
Certifications and Training
Keeping Turnover Low
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

11. On-Call Policy
There is always the following on-call service available:
On-call Protection Division Technician
On-call Communications Division Tech
On-call Access Control Technician
On-call Security Technician – Government Agencies
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

12. On-Call Policy
The Protection Dept. technicians are on-call one day at a time. (The Technician changes every day)
A Communications Div. Technician is on all for a week at a time. (few after-hours calls)
The Access Control Technician is called by the other on-call Technicians only when there is an Access Control Issue
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

13. On-Call Policy
Government Accounts Technician is called when there is a call at one of these Facilities.
On-call technicians will contact other On-Call Technicians or other technicians not on call, when the need dictates
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

14. On-Call Policy
We do not place the On-call Technician in the uncomfortable position of deciding if they should respond or not. If the customer wants them to respond – RESPOND. The basic policy is, for other than a very few accounts, go get the job done, management will deal with collecting the money. We lose very little service revenue due to this policy.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

15. On-Call Compensation Technicians are paid $20 a day to be on-call.
They receive $5.00 for each after- hours phone call.
If they are called out, they are always paid double time from the time they leave their home until they return back home.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

16. Customer Benefit
Berkshire considers the on-call policy and availability of Emergency Service to be a very important “Value Added” benefit to our customers.
We market this value added benefit and our reputation supports this value.
When managed properly, this is a profitable part of our Service Revenue.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

17. U.L. Certificated Systems
Berkshire presently has in excess of 70 U.L. certificated Fire Alarm Systems.
Emergency Service response is required within 4 hours from the time called.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

18. U.L. Certificated Systems
U.L. requires the building Owner to maintain this level of response on a 24/7 basis.
We either include the cost of this emergency response in our Maintenance Agreement or charge on an “as needed basis”.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

19. Managing our Customers Programs
All programs are stored on a networked desk-top PC in the Service Dept.
Program down-loads are also accessible from the field via our password protected Web-site.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

20. NICET Certification NICET Certification is strongly promoted
Fire Alarm Systems
6 Level IV
1 Level III
10 Level II
2 Level I
Presently 22 employees are enrolled in an in-house NICET Study Course.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

21. NICET Certification Sprinkler Certification
3 - Automatic Sprinkler Systems Layout
1 - Inspection of Water-based Systems
2 – Special Hazards
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

22. Communications Div. Certifications
NICET Audio Systems
2 - Level II
1 - Level I
BiCSi
1 – Level II
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

23. NICET Certification Compensation
Berkshire pays:
All reference material
Testing costs
Seminars for maintaining certification
A $1,000 annual increase for each level obtained, starting at Level II in Fire Alarm Systems, Level I Audio.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

24. Keeping Employee Turnover Low
Treat all Employees with Respect.
Listen, Listen, Listen – They most often have the answers.
Fair pay and benefit package
Annual reviews.
Provide Employee Assistance Programs when needed.
Training – you can’t provide enough.
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

25. Summarizing Contributing Issues for Long-Term Profitability
On-Call Policy
U.L. Certificated Systems
Having the Required Tools
Managing our Customers Programs
Certifications and Training
Keeping Turnover Low
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

26. BUT!
There are many other items that can and will effect profitability.
Don’t expect short-term profit decisions to have lasting effects on your bottom line!
AFAA Annual Meeting - Colorado Springs, CO April 19, 2007