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AAA FIRE : A LOCALLY
OWNED COMPANY SERVING SEATTLE & WESTERN WASHINGTON SINCE 1953
An Affordable
Full Service Solution For All Your
Fire
Protection &
First Aid
Needs.
Commercial ~ Industrial ~
Restaurant
Fire and Safety Equipment, Supplies & Support
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FIREWATCH
! Article page 2
March 2001
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In 1985, AAA Fire & Safety was a business dominated
by portable fire extinguisher sales and service, which
represented 73 percent of the AAA Fire & Safety sales. Of those sales,
almost 60 percent were low margin sales of portables to dealers
and contractors. "I have never been as enamored by
the top line as I have by the bottom line. Accordingly,
over the years we have cut back these low margin sales and
replaced them with higher margin service sales. While we
have seen good growth in portable service, we have seen
even better growth in our alarm and sprinkler service
division. As in portables, with alarms and sprinklers we
focus primarily on the higher margin service and stay away from
major installs. In addition, we have expanded our work in
restaurant systems, off-road vehicle systems, shaft
pressurization, generation testing, FM200 systems, fire escape
testing, and we even have a thriving first aid division."
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Seattle, as with many cities around the
country, is at full employment, and
AAA Fire & Safety has adopted a tactic
to keep good employees. It is based on a lesson Brian
remembers from a NAFED conference many years ago. Although
he doesn't remember the speaker's name, or even the topic, he has
remembered his key point: "Pay people above the going
rate, and you will get problem solvers rather than problem
creators." Brian recalls the speaker's story about an
accounting department that was in a constant state of
disarray. The speaker didn't have a
comprehensive understanding of the intricacies of
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was it his wits' end. Finally, in desperation, he hired a
person who commanded a significantly higher salary than he was
paying. Within weeks, as if by magic, things began to run
smoothly, and all the former problems disappeared. Brian has taken this lesson to
heart: "Along with hiring problem solvers and paying
them above market, I try to delegate as much responsibility as
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and as far down the chain of command as possible. I
believe this gives people more of a challenge and a feeling of
empowerment. It allows them to stretch their wings and show
what they can do."
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Education and training is a priority at
AAA Fire & Safety. "We require each technician to demonstrate
competency in his or her particular job. Where needed, we
send our technicians to manufacturers' schools. In addition,
they are required to pass the appropriate City of Seattle
Licensing test." Brian has an MBA from the University
of Washington. "My MBA not only gave me the knowledge
needed to put together the financing to purchase the company, but
it gave me the confidence to do it as well. It was also
invaluable by giving me the skills I needed to analyze the
company's performance and to set financial goals."
Although Brian found his degree helpful, he wouldn't necessarily
recommend pursuing an MBA to small business owners. "I
think a lot of people who end up owning companies grow up in a
family business or in families that are very business
oriented. Often times, this gives them the equivalent of an
MBA. My parents both worked in state government, so the
world of business (covering a payroll, making a profit) was
foreign to me. My MBA education, along with my cable
business experience, gave me the necessary tools."
Adding another education element, Brian's brother Jim, who also
holds an MBA, is AAA Fire & Safety's point person on industry
issues. As a former NAFED board member and now as treasurer of
the association, Jim has been involved in developing and
commenting on proposed regulations in Oregon and Washington. He
has testified on behalf of AAA Fire & Safety and NAFED before
numerous committees at the state and local levels. Brian believes
that "establishing a state "AFED would be a positive thing,
because most of the legislative and regulatory action happens at
the state and local levels. A State "AFED would be better
positioned to deal with these localized issues." He is concerned
that some state fire marshals do not want annual inspection of
fire extinguishers. "I think our association can and should do
more to educate and influence these people. I believe that NAFED
should create a mailing list consisting of all the authorities
having jurisdiction (AHJs), and using fax, email, or even regular
old-fashioned U.S. Mail, send everyone on the list regular
mailings about changing regulations and issues of concern." AAA
Fire & Safety is also looking toward the future. It has a great
interactive website with an info request form, online ordering,
and a list of satisfied customers for references. "A point of
pride we are staying on the cutting edge of technology. Our
website www.aaafire.com brings
in additional business every week and, while the numbers are not
huge, the type of customer we reach is the type we are seeking.
Examples include soft-ware companies, legal firms, large
manufacturing companies, and surprisingly-- other service
companies. I believe that, in five years, more people will find
service companies like
AAA Fire & Safety via the internet rather than from the yellow
pages."
Brian credits three things for growing AAA Fire &
Safety into the success it is today. Once, he has hired
experienced managers, delegated authority to them, and challenged
them with the mission to grow the company.
Two, he has provided incentives like bonuses for meeting specific
growth and profit targets. And three, he has stayed out of the
way and allowed them the room to try new ways of doing things or
to explore new business opportunities. "I believe the key to AAA
Fire & Safety's success has been our ability to attract and keep
quality people. I believe we have done this not just by
compensating them well, but by empowering them with an enormous
amount of individual discretion over their particular job
responsibilities." By giving his employees latitude and flexible
hours, he feels that they can more easily integrate their personal
lives with their professional lives. "I believe this gives people
a better feeling about their work environment and creates good
morale, and it seems to be working." We think so too. ~~~~ |
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