Page 17 - The Compass - Volume 14 Issue 5
P. 17
In those days, while Ongaro & Sons had a service
division, it was primarily a new construction
business. “Service is what pulled us through those
bad times,” Paul said. “It became apparent to us that
we should really focus on service and only service.
It’s really hard to do both well.”
“You can’t show your value in construction. Lowest
price wins. You’re using the wrong end of the pencil
to figure out the price of the job,” Ernie added and
then laughed. “We eventually stopped construction
all together.” HVAC DEPARTMENT
Ongaro & Sons began innovating and growing One of the family’s first adjustments was to their price
over the next three decades. It was among the first book. “We stuck with our flat-rate guide, but we really
companies to adopt a flat-rate pricing structure in the fine-tuned it,” Paul said. “We needed to raise our prices.”
early 1990s. It created a residential plumbing-install
department, understanding not all technicians enjoy the Ongaro & Sons also invested in ServiceTitan software
communication requirements of service work. And it and took the bold initiative to go paperless. “I don’t think
acquired another plumbing company in Sonoma County, we would have been able to grow like we have if we were
expanding its service area in 2001. still on paper,” Ernie said. “We would have had to double
By 2015, Ongaro & Sons’ revenues hovered around our staff. It would be twice as much work for half the
results.”
$5 Million annually. “Over the years, we’ve hit different
walls. You make a move, and you get over it,” Ernie “My biggest take-away [from EP] was the business
explained. “Well, before SGI, we were at another wall.” model. That’s what we really wanted. We wanted to
Paul had first learned of SGI through a former know all the percentages we should be striving for. What
should your labor be? What should your materials be?”
member: “He kept telling us it was the best decision he Ernie continued.
had ever made for his business. I knew Ernie felt like we
needed to do something to take us to the next level. Next “We wanted to grow the business—that was a big part
thing you know, we’re going to a Profit Day.” of joining SGI. But we had a fourth generation coming
“We went to Sacramento, and we signed up that day,” along. We really wanted to get our stuff together—to
fine-tune it all—before we turned it over to them.”
Ernie added. “We were ready.”
Immediate Changes Following EP Adding Management
to Stimulate Growth
Weeks later, the four owners flew to Sarasota, Florida,
to attend an Executive Perspective (EP) meeting for the Months prior to Ernie and Paul attending Profit Day, six
week. They would be introduced to the SGI model and quality plumbers walked into the office of Ongaro & Sons
inundated with information. “As soon as we got back looking for jobs. They left their previous employer that
home, we started implementing,” Paul said. “You can day, frustrated and looking for a job. Paul couldn’t say no.
read it all and get overwhelmed or just start. We took The net result was an additional million dollars in sales
one thing at a time and started moving.” and the realization that they needed help.
“We needed another layer of management, honestly,”
Paul said. “When you’re responsible directly
for so many people, it’s difficult to accomplish
everything.”
“So, we started promoting guys who’d been
with us a long time,” Ernie interjected. “So, we
really started growing before SGI and before
Rick started. But when Rick started, it took us to
another level big time.”
Rick is Rick Chandler, Ongaro & Sons’
aforementioned general manager. He’s an HVAC
lifer, starting at 18 years old. It’s all Rick’s known
for nearly the last 30 years. He’s held every position
from installer to General Manager and everything
in between, including being multi-million-dollar
PLUMBING DEPARTMENT sales producer. Sales is what Rick was looking to
do when he applied for a job at Ongaro & Sons.
THE COMPASS | Issue 5 | 2019 17
