The Fixer

Zaring Septic’s Dave Ritchie takes pride in the septic detective work he and his crew provide for customers in Kentucky

When you visit Zaring Septic & Drain Service’s Web site, you are immediately greeted by the company’s brand promise: “At Zaring Septic & Drain Service, we make sure all of our clients know THE REAL TRUTH ABOUT YOUR SEPTIC SYSTEM.”

That about sums up Dave Ritchie Sr.’s approach to customer service.

“There’s a difference between being a service business in the septic industry, and being a septic pumper,” says Ritchie, a 25-year veteran of the pumping industry and owner of the Crestwood, Ky.-based company since 2000.

A focus on diagnosing problems, then administering the best solution — which often goes far beyond just pumping a tank — is the distinction that has allowed Ritchie to navigate the ups and downs of a long career in the liquid waste industry. Now 59, Ritchie is looking ahead to retirement, yet he continues to run Zaring with a dedication to the fundamentals that have helped him build and grow the business by 1 to 4 percent year after year. The ingredients for his success: employee training and unwavering devotion to educating customers.

THE PROBLEM SOLVER

With a tough slate of competitors in the six-county area he serves, and growing price-consciousness among customers, Ritchie has carved out a niche by being service-oriented and dedicating special attention to identifying the root cause of problems.

“We get calls all the time where people tell the same story: ‘The guy came and pumped my septic tank and now there’s a problem.’ Evidently, someone didn’t follow up properly.”

Ritchie’s attention to diagnosis results in finding not just a solution to a problem, but the right solution. Employees fill out a questionnaire on each service call describing the appearance of the tank and its contents. If the report raises a red flag during Ritchie’s review, he calls the homeowner to describe what was found — and then suggests ways to fix it.

Knowing how to capture calls when they come in is important, as customers tend to put undue emphasis on finding the lowest price these days, he explains.

“When someone calls the office, the No. 1 question they ask is, how much do you charge to pump a septic tank?” Ritchie says. This is where the customer-education process begins.

“You need to ask questions first, and find out what the problems are,” he explains. “You have to diagnose and just talk to them and establish a sense of caring with the customer if you’re going to capture the call. That’s what it’s all about.”

And with 75 percent of his business serving residential customers (the other quarter is commercial grease trap cleaning), handling customers with care and consideration is essential. Having the proper expertise, then backing that up by taking the time to educate customers makes for a winning value proposition, he explains.

UP TO THE CHALLENGE

Running a small business is always a challenge, but recent years have seen the business environment grow tougher yet. Since Zaring was first profiled in Pumper 10 years ago, economic pressures have become more intense, especially when it comes to healthcare and taxes.

His own and his employees’ health insurance has been a huge thorn in Ritchie’s side as premiums have skyrocketed. “It’s disastrous,” he says. “We used to provide 100 percent for individual employees, and if they wanted a spouse or dependent covered, they’d pay for that portion. It has just gotten outrageous.”

Ritchie has recently reduced coverage to 75 percent. Some employees work second jobs for the health insurance benefits, or have switched to their spouse’s coverage. The group coverage once valued by employees is barely worth it anymore because the rates are so high, he explains.

“It’s better for them to just buy an individual coverage package,” he adds.

Ritchie has firsthand experience dealing with high healthcare costs, after having a heart valve replaced in November 2008. After the procedure, his rates went up 45 percent.

He has also felt the strain of new taxes imposed by all the cities in which Zaring does business. While they probably add up to just $500 or $600 annually, there is the time investment involved with reporting and record keeping.

“When they send you the tax forms they’ll say that you could be subject to an audit. If you don’t have it documented, you’re hurting,” he explains. “It’s all very time consuming to try to keep up with.”

OFFERS RAISES

Even while feeling the pinch of trying economic times, Ritchie understands the importance of keeping his employees satisfied with their jobs. At the end of last year, despite a decided dip in business due to weather and the holiday season, Ritchie did something unusual for an owner facing a downturn:

“We were down to a skeleton crew and they were working pretty hard and we were still losing money, but in February I gave them all a raise. You might think that’s crazy, but I wanted to let them know I wasn’t scared of the economy.

“It cost me some money, but it let them know I was here to stay,” he adds. “All in all, it was a great move.”

His reasoning, of course, is that happy employees tend to stay put. Ritchie notes that employee turnover can kill a business, especially when your crew is small and highly skilled at what they do.

“If you have eight or nine people, losing one can kill you,’’ he says. “It’s just hard to get the right group of people together.”

Ritchie personally trains all his employees — currently seven. His long career in the industry coupled with his hands-on approach helps employees get up to speed quickly.

“When I first got involved in this business, I didn’t know how it worked, and I thought, ‘I need to know how to do this,’ so I hopped in the truck and said, ‘Let’s go.’ I did that for three weeks, and asked so many questions I probably drove (the driver) crazy.”

BUILDING REVENUE

Ritchie’s current fleet includes a 2001 466 DT International with a 2,500-gallon steel tank built by Lely Mfg. Inc.; a 2000 466 DT International and 1975 466 DT International, both with 2,200-gallon steel tanks; an 863 Bobcat with backhoe; 753 Bobcat with backhoe; and Kubota S123 Series tractor on rubber tracks. He also has two RIDGID SeeSnake video inspection units and an AquaBlast jetter.

All these years in business — plus doing a lot of the dirty work himself — have given Ritchie the expertise needed to avoid competing in the low-price game. In a tougher economy, he has noticed that customers have a tendency to become more price sensitive.

“In these economic times people are always looking for the most inexpensive cost number. But I don’t have that number,” he explains.

“The thing that really makes me mad is that I have a lot of overhead, and my price is adjusted to that overhead. And competitors with little or no overhead, instead of being $10 cheaper, they’re $50 cheaper.”

That’s where Zaring’s service focus comes into play, allowing him to justify a higher price than some competitors.

“All those companies that provide pumping — they’re missing the boat for additional revenue … They kill themselves by not being capable of recognizing and knowing what other work is involved.” It’s often the customer who suffers when jobs aren’t done right, he adds.

But a competitive environment isn’t all bad, he says.

“Competition is good. It makes your company better and keeps you on your toes. You may not like it, but we all become too lax in business if you don’t have the competition.”

Having employees that emulate Ritchie’s knowledge, skills and service philosophy has been a key to success in serving customers’ needs.

“We do have people that will pick up the phone and call the office and say, ‘I just want to praise the guys that were out there.’ ” Ritchie makes the most of these commendations. “I tell them to put it in writing and e-mail or fax it to me and I give a copy to (the employee) and put a copy in their file and hang it on a wall of customers’ letters that are framed where people sit there and read them. That’s gratification for doing it the right way,” he adds.

Ritchie encourages employees to be self-motivated learners and pick up all the knowledge they need to succeed.

“The people I currently have are well educated on how the systems work, but they’re not teachers. I tell the new employees, ‘If you want to learn it, then make sure you ask why.’ ”

RETIREMENT DONE RIGHT

Even after undergoing a heart valve replacement, Ritchie remains as committed as ever to the business he’s built over the past decade.

“It didn’t change me much,” he says of the surgery. “I still want to go to work and think you just need to keep on going forward — that’s all you can do,” he adds. “I like staying busy.”

Retirement, however, has been on his mind. And with his three children not interested in taking over the family business, Ritchie is unsure about the future.

“If I knew when I was going to check out, I’d have all this figured out,” he jokes. Ritchie hasn’t taken any major steps yet in preparing to sell the business, but he’s got some ideas. Right now, the focus is on youthful energy.

“I need somebody to come in that’s got some good creative ideas. I have the ideas, I just don’t have the energy I’ve always had to get them done. There’s a lot more doors we can open,” he says.

An arrangement where Ritchie could stay involved in the business, working alongside the buyer while he learns the ins and outs of the business is an attractive option.

“It’s been going over and over in my mind. I wish I had it all plotted out, but I don’t.

“I’m kind of on a hunt. If I could find the right individual to come in and learn it and give that person the opportunity to buy it, they could pay me back over time,” he explains. “But, it’s hard to find them,” he admits.

For now, he is interviewing candidates, but hasn’t found a match quite yet. The search — and the search to figure it all out — continues, as Ritchie works as hard as ever to keep business humming.

“It’s been a good business, it’s been a good ride,” he says.



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