Gerardo Lizardo - Business Proposal

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Gerardo Lizardo
A Proposal for the Future of U-Save Power Equipment
The future can be scary because it is unpredictable, the actions that one takes, either good
or bad, could have a dire consequence or be celebrated for as a grand achievement. Fearing the
unknown prevents people; or businesses; from making executive decisions for change. “Often,
the revolutionary types of change that result from restructuring and reengineering are necessary
only because an organization and its managers ignored or were unaware of changes in the
environment and did not make incremental changes as needed (George and Jones 2008).” It is
proven with careful decisions and Action Research that a business can improve. George and
Jones define ‘action research’ as a strategy for generating and acquiring knowledge [for]
managers to define an organization’s desired future state and to plan a change program that
allows the organization to reach that state. U-Save Power Equipment must embrace research and
development. Change is the key that will guarantee success.
U-Save Power Equipment is a small family-owned and operated business that is located
in Oakland, CA, since 1984. We specialize in the selling and repairing two-cycle and four-cycle
engines. These sorts of machines are usually lawn mowers, chain saws, generators, etc. The
company refers to these machines as units. Both professional and home-owners utilize these
types of units. This mechanic shop has a retail revenue that exceeds five hundred thousand
dollars each year. I have seen the good times and the bad within this business for the past fifteen
years as I worked for my father. I have worked for the business since I was eleven years old and
have learned many aspects of its day to day operation. Given the opportunity, I believe I can
recommend some changes that would make the company more profitable and organized. There

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are a couple of weaknesses that I must address, and new methods that can be implemented to
increase our revenue and become more organized.
We spend too much money on parts because we do not have a proper method of
organizing what kind of parts we need and the amount we have. There are many times that we
will order parts that we still have and begin to overstock in potential parts that do not sell as
quickly. A software that is able to manage inventory; by calculating the amount of parts in our
inventory and remind us when it is time to order more, is necessary. It will become a helpful way
of managing inventory and the product turnaround. The accuracy of knowing which products sell
more and which ones take a while to sell. This will eliminate inventory write-offs, perform
audits, and avoids the countless hours looking for lost parts. An inventory management system
decreases data entry errors, increases productivity and lowers operational costs. This can help us
organize used parts in good condition that we can either sell, or use it to fix a unit that needs such
part. The software can organize the parts; a tracking system can organize units that are in the
states of work-in-process and repair completed.
Another organizational problem that we have is about the data entered of the incoming
units that need to be repaired. We are not entering the necessary information into the archive of
work-in-process inventory and the time duration of us being able to inspect units is ridiculous.
The length of time that we take to be able to inspect a unit can take from a day to almost a
month. The middle of Spring and to beginning of Fall are the busy seasons. The time duration
can be from three to four weeks for us to inspect a unit. A tracking system will enable us to
fulfill the duty of inspecting the unit on the day it was promised. Meeting these dates can allow
us to receive the agreement from the client, if they wish to have their unit repaired, at a faster
rate. The tracking system will consist of when the unit arrived; a description of what the issue is;

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and also be able to be updated better. It also can allow us to adjust to the workflow that each
mechanic can repair within the week. At a current staff of three mechanics, we are not able to
meet the demand that a client needs their unit. It then leaves us with unsatisfied customer service,
and the possibility of losing customers. We contain an atmosphere that allows customers to feel
comfortable. I want us "to take advantage of such positive cultural characteristics, hire the right
people, to sustain it (Gratchev 2001)” and continue to make our clients happy.
The idea of first inspecting a unit through a quick diagnostic when a client brings his unit
can help decrease the amount of units “in-process” of being repaired. If this action is
implemented, the client can have a quicker decision of either repairing or not. An increase in the
inspection fee from $20 to $30 should be a demand; if the client wants us to dispose of it there
can be a fixed charged of $15, as well. The ten dollar increase is issued as a storage fee. The
storage fee should be utilized due to the issue of unit never being repaired or forgotten by both
mechanic and owner. Also, finding a better method of how to dispose of such units; either we do
it ourselves or we maintain a good relationship with the people that pick up scrap metal to
dispose of it. The issue of owner continuing to forget to pick up machines should also be
addressed by providing a better warning system.
The warning system will be catagorized when either the machine is repaired; waiting for
confirmation; or the machine is not worth repairing. When we give our clients a call to let them
know of the status of their units; we will give them a 30 day notice of picking up their units that
are ready. The machines that are waiting for a confirmation will be given 15 day notice to make
their decision; and finally for the units that do not work will be given only a week notice (These
notices can be changed if mechanic and client are at agreement, i.e. client is out of town). Only
the units with the status of Ready/Confirmation in Process (CIP) will be subject to be given three

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warnings. (We must also think about the issue of some units having their carburetor gaskets
become damaged due to gasoline being left for over 30 days. This can be addressed at a later
date.)
The first warning will be the 30 days for units that are ready and 15 days for units of CIP.
Once the dates pass, we call a second time but their wait decreases for units that are
ready=15days; CIP=7days. Finally, the last call will let the clients know that if they do not pick
up their units we will throw them away. The units that are ready 5day; the owners of the CIP
units will be given one more day to make up their mind. This warning system informs our clients
of their unit’s current status and we remain encouraging our clients to pick up their property.
This avoids the issue of clients making rash comments of us “stealing” or not informing them.
We can be able to make more calls if we had the man power to do so, and also have a system that
informs us which units need to be picked up by their owners or need to be called.
We currently have three employees that are dedicated to repairing each unit; two are also
responsible for talking to customers on the phone and in person. Hire more employees; the
workload will decrease for the three to manage. Within the average day, a mechanic can be able
to repair at least five different units that either have the same problem or different issues. The
encounter of being distracted by customers or other potential responsibilities, causes the average
repair being completed per machine lowers to an average of three units repaired a day. Hiring
about three more employees, the average unit repaired can increase from three to five units
repaired. It also gives the opportunity of allowing people to find a job, “lowering [the]
unemployment rates within the urban community, (Choi 2015),” and putting food on the table for
their families.

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At the end of each week, instead of having about fifty-four units repaired, we will be able
to increase up to having about 150 units repaired by the end of the week. This becomes about
170% increase of units repaired per week. With having more employees, it helps the two
employees to remain focused in customer service and increase in sales. An article from Wells
Fargo stated that this year, “small-business owners are feeling better about their companies'
revenues, with nearly one-half (49%) reporting that their revenues have increased over the past
12 months. The increase in revenue creates a net positive hiring situation, with more owners
reporting hiring over the last 12 months than decreasing their workforce. (McMurray and
Newport).” According to U-Save Power’s Income Statements and Balance Sheets, we are also
showing an increase in revenue on 2014 of an increase of 59% in part of our Net Profits and it
can continue to increase if we hire more employees.
The possibility of increasing the amount of employees, we need to also double-check our
own safety requirements and/or improve them. We are dealing with sharp objects, hazardous
chemicals, and wear-and-tear of the building needs to be brought up to code. Before we hire, we
have to make sure potential employees have had certain vaccines that makes them less likely
become infected if they are injured/cut while working.
Our sales have decreased because we are not able to attend to our customers as efficiently
as we would like. An increase of employees as previously stated will allow at least two
employees to focus on customer service. The two employees are now able to answer questions
that clients may have and motivate customers to buy one of the different types of brands that we
have available. The ability to motivate customers to continue to buy our products, will result in a
rise in revenue.

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Hiring employees can be a hassle because of the issue of finding the right person for the
job. Luckily many companies use similar methods through their hiring process but we can also
add our own ideas so we hire people who fit our culture of work ethic. Growing up in Oakland, I
can confirm that there is no shortage of mechanics, we also should at least try to hire those that
live within the area of Oakland.
Many people do not realize the importance of having a good logo for their company.
They believe that it is a waste of money and it does not make a difference. The company name is
not the only deciding factor that potential customers look at before they either make a call or
come by to visit. A logo is also a great deciding factor because “a picture is worth a thousand
words.” A logo that represents and describes the type of services that we provide makes
customers realize the expertise and the type of equipment that we handle.
Marketing and advertising are a couple of business’s tools to be able to sustain
themselves within the cut-throat business world. It is one of the crucial factors that as a result,
brings customers to their doorstep. As of now, we use the Yellow Pages and other small types of
advertising. The ability of word-of-mouth that customers engage with others has helped U-Save
Power remain operational throughout these years. Our customers are able to advertise for us to
their friends and family, and encourage them to visit U-Save Power Equipment. "Advertising
remains a sales tool to bring buyers and sellers together for the exchange of goods and services.
(Kapoor)" Advertising is costly, but in the long run it is beneficial. The internet is a platform that
we can begin to put our business for the world, at least the Bay Area, to see. Facebook, Twitter,
and other types of social media should be embraced and used to its advantage. The range in age
that many of our customers fall under are from 25 to 60 years old. We must consider that the
younger generation that understands smartphones and its applications will get older in age as

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well. They will own a home and will need a lawn mower to maintain their lawn. This younger
generation needs to begin to follow our social media sites and also one day download our very
own app.
Embracing social media should be utilized at the best of its abilities. Facebook, Yelp,
Twitter, etc.; is free to use and easy to operate. Customers who follow us on Facebook or Twitter
will be able to see our recent posts of sells or we can also post general advice to keep our
customers updated. Yelp is important because it is a platform where customer describe their
experience with us. It comes to a point if we receive bad reviews, it causes potential customers to
avoid our business because they are relying on another person’s experience that they had with us.
In addition, we should post pictures of our business, showroom, products, etc. because as
previously stated, “a picture is worth a thousand words.” These photos allows the people to know
how our business looks like and also see what sort of products/brands that we offer.
A quick advertisement strategy that we can try is basically talking to our neighbors. I
believe if a customer was able to have a conversation outside of our work environment, they feel
more comfortable of coming and maintaining their business with us. A simple knock at the door
and give them advice, such as a pamphlet can go a long way. The pamphlet can contain general
knowledge of issues of what to look for when operating their unit, so they have a better
understanding if their unit is beginning to malfunction; and a quick description of how to
maintain their lawn. This early warning can save them money and also we gain their trust as
individuals looking out for our neighbors. Great public relations can go a long way if it is
executed right.
Cold calling certain companies, such as construction companies, to let them know of the
type of services that we provide can also be benefited from both parties; coming to us to fix their

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units and us gaining a potential new client. The method of cold calling can be applied to the
many landscape companies within the Bay Area as well.
The City of Oakland (COO) is one of our best customers, but there is no real connection
between the both of us. We have the issue the COO falls behind in their payments. I believe if
they begin to know us as a company they might begin to pay their payments at a faster rate. Also,
since they have large influence of what happens in Oakland, they have the influence and power
to possibly recognize us as one of the long-running companies in this city. Our name can go onto
their social media or newspaper, basically free publicity.
Sadly gentrification is implemented in Oakland. The poor are being driven from their
homes because property/rent is increasing. This ends up leaving the possibility of people from
the Silicon Valley area and San Francisco area to move to Oakland because it is cheaper for them
to move here. Homes are being renovated and their lawns will need to be maintained. The future
of Oakland will be different in the incoming fifteen years, so why not be prepared.
We cannot deny of the Digital era that this nation is beginning to grasp. The creation of
the U-Save Power app will help us and our customers. This app is able to link the customer and
U-Save Power in the comfort of the customer’s home through their smartphone. This app will
have great features. Customers are able to order parts from their phone and check to make sure if
we have the part in stock. This app can also remind us to order parts that customers need if we
run out of stock. Also, the client is able to schedule their unit to be brought in for repair and
schedule U-Save Power to make ‘house-calls’ as well. The best part is that this app will continue
to improve and be able to be applied by other shops like U-Save Power because there are no apps
that will be similar to this one. Once the app is fully operational and user-friendly, we can be
able to sell other shops our software.

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As customers are navigating through the features that the U-Save Power App has, we at
U-Save Power will be able to add our very own advertising where we will include the
information of the brands we sell; create specific information of the deals of the month; and be
able to locate any nearby 2-cycle mechanic shops within a certain range from the users location.
These types of features will increase the chance for other shops to hop on board and buy our
software to also increase their revenue in the long run. We must find a way to “remain relevant
in the digital age, [businesses] large and small are creating [apps], conducting quick beta tests of
products early in the development stage and partnering with startups (American banker).” We
have to adapt of what the customer likes, or else we will fall behind the competition with the
possibility of closing.
The benefits that U-Save Power Equipment offers at this time to their customers is our
unmatched customer service; better brands; professional knowledge of the each product; and
over 30 years of experience. “Complete customer satisfaction has been at the forefront of our
operation since we first established this business. When many believed that we were going to
fail, and this business was going to close in the first couple of years. We tried at the best of our
abilities of not giving up and always working hard. We still remember the first product bought
from our store was a spark plug. Just like this object gives the ignition for the machine to start, it
also was the ignition in our hearts to not give up because our families were depending on us
(Paez and Lizardo 1984).” Not many of the similar types of mechanic shops around the Bay Area
can compare with these attributes that U-Save Power offers. Many customers have admitted that
they prefer to drive the extra mile to have us inspect and repair their units because they ‘like’ us
and the great work that we do. Many customers appreciate the services that we offer at this
moment, and there should not be a reason why we cannot continue to give a better service.

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Starting with first finding a system that organizes our inventory (parts and units in need
of repair), we can then move forward with hiring more employees. Once there is a system of man
power for repairing and selling units, our revenue will increase. Marketing our store for new
potential customers to see may be a challenge because there are many different ways to
advertise. Creating the new U-Save Power app for customers to use will potentially revolutionize
the way 2-cycle mechanic shops operate, and easily adapt to the generation who understand the
digital world. We also must not forget the foreground that U-Save Power has been able to sustain
itself for these past thirty years. Throughout the years our amazing customer service is what
continues to maintain new and current customers, encouraging them to come to our business.
Our methods of business is why longtime customers continue to see us, and also their children
continue to do business with us as well. We are a business that enjoys to work for the families of
the Oakland community. We must continue to live up to our reputation.
Our motto that we remind customers when they pick up their units is, “now you have no
more excuses.” We are usually referring to their duty to now fulfill their household chore of
maintaining their lawn and making their home look presentable. Our mission now should be to
execute that slogan of ‘having no excuses,’ to move forward and increase our potential of
becoming something great. In order for us to move forward we must look at the present and
acknowledge our mistakes/weaknesses and make them into our strength.

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References
American Banker. (2014). 10 big ideas for banking in 2015.179(200)
Choi, J. H., & Painter, G. (2015). Housing formation and unemployment rates: Evidence from
1975-2011.50(4), 549-566.
George, J. M., & Jones, G. R. (2008). Organizational change and development. Understanding
and managing organizational behavior (Sixth ed., pp. 530-555)
Gratchev, M. V. (2001). Making the most of cultural differences.79(9), 28-30.
Kapoor, N. (2005). Advertising Basics: A resource guide for Beginners/Effective advertising:
Understanding when, how, and why advertising works (pp. 102-105)
Lizardo, G., & Paez, M. (1984). U-save power equipment. CA:
McMurray, C., & Newport, F. (2015). U.S. small-business Owners' optimism highest since
2008. Gallup Poll Briefing, (1)

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