So Far, Very Good

Pumper Ronnie Daniels concentrates on personal customer service as he navigates a challenging economy during his first year in business

After months of clearing hurdles, Ronnie Daniels of Brewster, N.Y., achieved his dream of opening his own business — Ronnie’s Septic Tank Service Inc. — in April 2009.

Daniels decided to strike out on his own after working for several years as a driver for a septic service in suburban New York City. He felt that as a sole proprietor he could offer a high level of personal service that would generate referrals and repeat business in an area dominated by upscale homes. To keep overhead low and quality high, he intended to specialize in septic pumping, inspections and small repairs. His wife, Iris, agreed to keep her full-time job as a billing analyst for an expense management firm and moonlight as the bookkeeper for the new venture.

Timing wasn’t on Daniels’ side as a nationwide banking crisis in late 2008 made it nearly impossible for businesses to obtain credit. But he developed a detailed business plan and worked with a commercial leasing company to obtain a new service truck that was delivered at the Pumper & Cleaner Environmental Expo International in February 2009.

Other logistical concerns ironed out over several months included state and local operating permits, business licensing, additional equipment purchases and marketing.

A contractor profile in the January 2010 issue of Pumper documented Daniels’ many trials related to starting a business from scratch with a promise to revisit him a year later and report on his progress.

Pumper:

So, how was your first year?

Daniels:

In a word, great! We’re at 75 percent of where we want to be. Word-of-mouth has been extremely strong for us. The customers I get by referral are the kind I like. I’ve had emergency calls on virtually every holiday the past year, but that’s OK. Our service is creating what I hope are customers for life.

Pumper:

Your business plan included a goal of pumping 20 tanks a week within two years. Where are you with that?

Daniels:

I’m now averaging 15 tanks a week. That’s covering our expenses just fine. Once I hit 20, that’s where I want to stay. I believe we’ll start hitting that in April, when my two-year customers kick in.

Pumper:

Were there any surprises — good or bad — in your first year?

Daniels:

The surprises were all good. If anything, the surprise was how much the phone has rung. We did a lot of marketing in advance, a Yellow Pages ad, ads in the shopper, handing out pens. The word-of-mouth has gotten so good that we decided to cancel our small Yellow Pages ad. That’s saving us $4,500 a year.

The truck (2009 Kenworth T370 from Abernethy Welding) has 30,000 miles on it. It’s running just great. It was well worth the investment.

Pumper:

You started out with a flat rate in the area of $300 to pump a tank up to 1,250 gallons. Have you had to adjust that rate over the past year?

Daniels:

For the majority of calls, the flat rate has been just fine. I include up to 2 feet of hand digging. There are no add-ons. I let customers know upfront what they’ll be paying. I’ll be flexible with people because it’s my time. I’m not paying someone else.

I’ll tell people who call and are clearly shopping for a cheap price: “What do you want, the best service or the best price?”

Pumper:

When we talked a year ago, you had a good handle on your monthly expenses. Have there been any changes?

Daniels:

We’re still on track — Iris makes sure of that. We live pretty modestly. Our work has covered our expenses and even helped put some money in the bank, which we’re happy to see. It absolutely helped to have a good, detailed (business) plan going into this.

Pumper:

Are there things you might have done differently if you had the chance?

Daniels:

I really can’t think of anything. We went into this with our eyes wide open. We knew what to expect.

I have to say that I really feel blessed by all the great people we’ve gotten to know. I mean, there’s a real community out there among pumpers and plumbing contractors and so on. We really help each other out. In the past year, I’ve been asked to cover emergency calls for one of the area’s most established septic services while they’re on vacation. I’m happy to do so because I know they will be there if I need something.

Pumper:

For several weeks before your April 2009 launch, you spent a lot of time marketing yourself. What have you done since then?

Daniels:

Word-of-mouth simply took over. I’ve taken emergency calls, at all hours, and those have been the best advertising. But also, I’ll spend time with customers. I get to know them and they get to know me. There’s no great rush. I think that’s made a big difference for us. They’ll remember us and will tell their friends and neighbors.

Pumper:

When you started, you had an option to refinance your truck after the first year. Did you do that?

Daniels:

I looked into it, but on the advice of my accountant, it turned out that it (refinancing) wouldn’t make sense the way the loan is structured. It’s a five-year loan and we’ll be able to take advantage of depreciation, so that’s what we decided to do.

Pumper:

What’s planned for 2011?

Daniels:

We’ll be getting the 18-month and two-year cycles. It will be nice to start seeing my regular customers most of the time because I’ll know where the tanks are. It will help things go a lot faster. I keep a file card on every customer with details about their systems.

We’re expecting another 25 percent (increase in the number of tanks serviced.) After that, we’ll be right where we want to be. I’m not interested in getting into anything beyond pumping tanks at this point. I don’t want to expand into another truck or anything like that. My whole approach is to keep it simple.

Pumper:

You’ve talked about the friends and professional contacts you’ve made at the Pumper & Cleaner Environmental Expo. Are you planning to attend in 2011?

Daniels:

I certainly hope to attend. It’s a great show! If I make it, I’d like to check out some new products — nothing in particular though.



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