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FLORIDA’S VOICE IN ELECTRONICS "WATTS CURRENT" is the official newsletter of the Florida Electronics Sales & Service Association, Inc. and is published bi-monthly. EMAIL: fesa@fdn.com We Support NESDA Awarded Best State Publication 1993,1996 & 2000 |
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FESA or Watts Current neither endorses any company, product or service - nor guarantees the validity of statements made in any advertisement - appearing in any advertisement or article included in this publication. Watts Current is published quarterly. All articles to be published in "Watts Current" must be received by John Eubanks, Editor, 5323-3 Firestone Rd., Jacksonville, Fl 32210 by the following dates: 2/15, 5/15, 8/15, and 11/15 in order to be printed in the next newsletter. Otherwise, they will be published in the following issue, as appropriate. Please send any inquires or comments to the Editor. Please excuse any grammar or punctuation errors you may find as this newsletter is entirely composed and published by association volunteers. |
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| President's Message Members and Friends, There is quite a bit to speak of as we continue our transition from today into tomorrow. Things that we have relied upon for success seem to have lost much value. With all the industry chatter over an endeavor by a group of familiar Independent Servicers’ in an attempt to provide another source for national service, most of this issue, our first quarterly one, is devoted to a well researched article by a known industry veteran. We have covered this in two of our preceding issues. In the interest of presenting our members a more complete perspective for this controversial plan it is included unedited in its entirety. We are approaching our Annual FESA-Jacksonville Picnic. Complete information on this event is included on page 16. Everyone is invited just let Viola or Ethan know so that we can have enough food to go around. Instructions and directions are included. Our Hospitality Room for NPSC 2005 is in jeopardy of becoming un-fundable due to the apparent lack of a primary sponsor. We were originally contacted by our previous sponsor but repeated attempts to contact them for confirmation have gone unanswered. About all one can conclude from "no response" is no deal. So anyone wishing to participate with us to accomplish this is invited and welcome. Sincerely, Pat Eubanks President FESA |
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| National Service Alliance: Friend or Foe to Independent Service? National Service Alliance (NSA). A consortium that brings smiles of contentment to some, and raging fury to others. What is it? How does it – or might it – affect you in the service business?... By Wallace Harrison We hope to answer those questions for the many people who have been seeking more information on this topic. But, before we can talk about what NSA is, we will first have to explain how – and why – it came about. A LEGACY SET IN STONE Immediately after an enterprising cave dweller invented the wheel, three new industries were born: (1) wheel manufacturers; (2) wheel re-sellers; and (3) wheel servicers. Not long after that, each industry segment more than likely tried to increase its level of profitability at the expense of the others. And within each segment, the entrepreneurs looked for ways to gain a competitive advantage to either help ensure its survival, or increase its level of prosperity. The wheel had to be built progressively more round, wider, stronger, with more features. The price had to come down to allow Og to outsell Groof, and get more people to buy more wheels. And once the wheels were sold, someone had to grind the rough edges, patch the holes and cracks, and help consumers attach them to their various carts or barrows. The segments had to find ways to work together while fiercely competing, both inter-industry, and intra-industry. Some of that Neanderthal mindset is alive and well today. The electronics industry of today is far removed from the birth of the wheel. It is also far removed from the electronics industry of fifty, twenty – or even ten – years ago. With the evolution of the industry, the battle for business survival and profitability – among and between manufacturers, retailers, and servicers – becomes more intense each year. THE BATTLE OF THE TITANS Manufacturers battle each other over brand image, market share, product price points, service cost containment, and other issues affecting their profitability. Retailers battle each other over roughly the same issues. However, where once upon a time, manufacturers could dictate terms and prices to retailers, that is no longer the case. The growth of mega-retailers and their clout with consumers, and their intense competition with each other, means their demands for the lowest possible price point will be heeded, if not by that manufacturer, then by the next. This competition among manufacturers also fuels their extensive efforts to minimize the costs of in-warranty service. Caught in the middle (or out on the exploding fringe) of this phenomenon, is the independent service community. Also enter into this equation the realization of the long-sought-after national service company, and it becomes obvious that the pressures on independent service are tremendous. WHITHER NATIONAL SERVICE? Better than half a century ago, the first lasting national trade association was formed to enhance the lot of radio and television servicers. But the fierce independence of those in the industry, and even of those who saw value in association, kept it from realizing its promising potential...Continued on next page The associations could never attract anywhere near even 10% of the eligible professionals. Many of those who did join were subject to perpetual infighting. Factions broke off to form new "national" associations, which further diminished the industry’s effectiveness. The National Electronics Service Dealers’ Association (NESDA) is the oldest and arguably the most successful of these organizations. It and the others provide numerous avenues for members to work together and gain professional self-improvement. But it, too, is limited in what it can do for individual member-businesses. These limitations provided an incentive for some of the largest and most successful of the independent service companies to band together in different kinds of groups. Most often, their purpose was to obtain knowledge and gain concessions they couldn’t get from within the existing trade associations. They sought group purchasing advantages or exclusive product lines, petitioned for favorable warranty business, bargained for discounts, and pushed for better warranty reimbursement rates and amenities that might not have been available to the average independent. One of these groups of servicers was called "The Dirty Dozen" (TDD). Over time, TDD matured and expanded to accommodate changing business conditions (and eliminated the parameters of being merely a dozen). In the mid-1980s, it became the Service Advisory Group (SAG), and included several members of the existing national associations, including NESDA. It was a prestigious, self-help group that allegedly did not seek and would not accept special favors from manufacturers or distributors. This group found advantage in discussing industry issues and trends, as well as sharing their own "confidential" management and financial information. In the meantime, numerous companies (including some manufacturers, and eventually, some servicers) tried to create a lasting all-brand national service company. Some of these were: RCA, Philips, Tronics 2000, Montgomery Ward, Sears, etc. In 1998, some NESDA members, including NESDA’s then-president Randy Whitehead CSM, set up a far-reaching group, Service Express International. None of them succeeded to any great degree. In 1999, Gerry McCann CET/CSM/EHF, a NESDA member from Metairie LA, tried to institute an alliance of independent servicers, the NESDA World Service Network, through NESDA. This failed too, partly because NESDA had no ability to sign national service support contracts or establish collective bargaining. In 2002, NESDA launched another well-intentioned program to serve the industry: NESDA/FieldPower. Three manufacturers invested substantial sums of money to develop software to provide independents with an on-line service-call scheduling and dispatching system. This was developed from a program already used by MCI to enhance its customer service capabilities. Among other benefits, this program would: (1) directly schedule repairs by manufacturers and warranty centers; (2) provide real-time comprehensive reporting of work status and accounting activity; and (3) import and export data automatically without any special software. (Servicers with their own software would have had the expense of writing import/export routines for their in-house software.) This was an innovative program that some say could have been the basis for a comprehensive nationwide service information system. However, it failed to succeed because it was not sufficiently embraced by the servicers, nor supported adequately by enough manufacturers... WHY NSA? Even though some manufacturers’ service personnel remained solidly behind independent service, many weren’t getting what they thought they needed in the way of quality service, or timely service information. While most service companies were both competent and honest, far too many were incompetent, dishonest, and provided lousy customer service. Many others were simply mired in "business as usual," being unable or unwilling to modernize, or serve modern consumer needs. Many of the manufacturers felt they needed an alternative. And they were being courted by the latest incarnation of national service; conglomerate companies that were promising much of the alternative methods the manufacturers and retailers desired. These were nationally oriented companies like A&E, Decision One, IBM, Rent-A-Center, Rent Way, and UPS. (Allegedly, at least one of these companies was disparaging the overall independent industry as being dishonest and incompetent.) According to Lane Norman CSM (Atlanta GA), one of the attractions of these national companies is the ability to aggregate all data throughout the service experience; from service request to repaired-product delivery. Critical information is at the finger tips (or mouse click) of the manufacturer or retailer during the repair process. They no longer have to wait for the after-service report. Manufacturers want to know that a consumer’s service request is promptly attended to, if a particular part shows a pattern of premature failure, or if consumers are having connectivity problems with a particular model, etc. That information serves them better if they can get it the day of the repair process, rather than days or weeks after the repair is complete. Gradually, according to Randy Whitehead, president and CEO of NSA, the independent servicers have already lost a sizeable chunk of warranty business. Many manufacturers have already stopped, or are in the process of ceasing the production of CRT-equipped TV sets. This includes Sony, Hitachi, Mitsubishi, and Toshiba. Within a few years, many of the major brands will even stop making plasma-screen sets in favor of LCD. The carry-in market (small TVs, VCRs, DVDs, component music systems, boom boxes, etc.) has dried up to the extent that many independents are already out of the picture. These units, when out-of-warranty, are being replaced rather than repaired. Even Circuit City, which at one time had 37 service centers, now has difficulty keeping technicians busy at five depots. Some manufacturers have started the process of phasing independents out of board-level repair, with this business going to large computer repair companies. For example, Sony uses Decision One for its laptop and computer repair. Sony is currently doing a pilot service program with both Decision One and Qualxserve on their Grand Wega and Plasma sets. Samsung has done a trial with Decision One. InFocus, a major projector manufacturer, uses UPS for their repair. IBM has assumed the functions of Philips' service division, including the repair of all Philips products. Major retailers, including Circuit City, were also looking in the direction of a single national entity for repair service. MEETING A CHALLENGE One member of SAG relates that, at one of their meetings on March 29, 2004, in San Diego, some key manufacturers’ representatives implored them to create an alternative to the big national service companies. Otherwise, they said, they would also be forced to throw their lot with those groups which were hotly pursuing them. In May, 2004, not willing to accept the alternative, the bulk of the members of SAG formed the National Service Alliance (NSA). It is incorporated in the state of Delaware, with its headquarters in Salt Lake City UT. WHAT IS NSA? In an advertisement to recruit technicians that appeared on the Internet in January 2005, the company claimed to be: "a consortium of the premier independent repair facilities across the U.S." It claims to need technicians "in every major city in the U.S." – from Boston to Los Angeles, and from Portland OR to Miami FL. It also informs that it "has a national contract with one of the largest electronic retailers to repair television products from more than 600 (out of approximately 620) of its stores nationwide." (That retailer is Circuit City.) Our information indicated that there are now 18 shareholders who have put up substantial sums of money to get the program off the ground. Most of these are present or former movers and shakers within NESDA (including several past presidents). The Board of Directors of NSA consists of the following officers: President and CEO, Randy Whitehead, Service West, Salt Lake City UT; Vice President, Charles Chappell, United Radio, Syracuse NY; Secretary, Gerry McCann, McCann Electronics, Metairie LA; and Treasurer, Chuck Masa, Electra-Sound Inc., Parma OH. Additional members of the board are: Brian Weisner, AVRC, Kernersville NC; Jeff Manning, Sharper Video, Portland OR, Lane Norman, Norman’s Electronics Inc., Chamblee GA, and John Spiridakis, Advisory TV, New York City. According to Lane Norman (one of those past presidents), a portion of the seed money went to develop software and interfaces for the most commonly used business management systems. They have successfully linked popular software packages, such as SoftServ, CDA, and Servicing Systems, that are used by other servicers. One of the eventual results is that customers, including manufacturers, and retailers, can go to a website and immediately determine the status of their product. These clients also have the ability to access the NSA website to retrieve information in the format they desire. Gerry McCann outlines the purpose of NSA as "to study, offer, negotiate, standardize, establish common MIS technology, and organize the service of member servicing companies and their associated contractors." He also says the plan is to "develop and establish programs with manufacturers, retailers, third-party administrators, and others." He adds that, "Further development is intended to expand toward a network of servicers with equal commitment to satisfying the needs of the consumer electronics marketplace." According to some key NSA participants, the funding by investors into the creation of NSA is many times the manufacturers’ investment in NESDA’s FieldPower. They also claim that the engine for scheduling, product tracking, and reporting is ten times stronger than that used in FieldPower. Nevertheless, the NSA founders have tried to make this venture valuable to NESDA as well. They encourage their shareholders and participating service centers ("associates") to be members of NESDA. They also must be – or be prepared to become – a Certified Service Center (which requires both management and technician certification). BASIC REQUIREMENTS The contract that "Authorized Service Providers" (ASP) must sign include the following provisions: (1) use only industry standard parts; (2) provide the highest quality customer service; (3) maintain clean, orderly, and sanitary premises and vehicles; (4) achieve Certified Service Center status within one year (with encouragement to be or become a NESDA member); (5) comply with all pertinent laws; (6) guarantee the repair (and labor on the entire unit) for an agreed-upon duration: (7) accept referred resolution of unserviceable units; (8) assume total responsibility for possessed products; (9) honor extended warranties at a predetermined rate; (10) submit to random quality control inspections; (11) transmit to NSA a monthly management and performance report for each client relationship; (12) pay NSA 3% of applicable billed labor; (13) carry a million dollar-plus general liability insurance policy, and add "additional insured" as required; (14) submit daily status reports on all NSA-related repairs to NSA FTP; etc. Agreements are for one year unless terminated "as per agreement." Another requirement is that those without one of the requisite service management software, must obtain it (at up to $4,000) in order to collect and transmit the requisite data. Each investor will cover their respective (exclusive) service area using a combination of resources. This will include sub-contracting with other independent servicers to cover areas outside the NSA member’s normal service territory. Of course, some sub-contractors (such as small servicers who fill coverage gaps in rural or outlying areas) could not, and will not be expected to meet all of these requirements. However, the ASP is ultimately responsible for all aspects of service it performs or sub-contracts. Therefore, the ASP will be careful who it selects, and what type of criteria it establishes for sub-contractors.HOW DOES NSA WORK? NSA negotiates a contract with a client. In theory, this would be either a manufacturer, service contract company, or mass retailer. (In practice, at this time, NSA’s only national client is the retailer, Circuit City.) The service center then gets together with that client to personalize the transaction, and determine the client’s service needs, and logistics. Units are picked up on an agreed-upon schedule. When they arrive at the service depot, the units are logged into the ASP computer system. This data, and subsequent repair information, is automatically forwarded (through an interface) to the NSA server. There, it is consolidated with data from all ASPs. In-warranty units are billed to the applicable manufacturer, while non-warranty merchandise is repaired up to an agreed-upon cost limit. If an estimate approval is needed, the service center puts the service order in an estimated status in his own computer system and indicates the dollar amount of the estimate. Their computer transfers this estimate data to the NSA server where it is then presented to the client on the website. The client reviews each estimate on the website and clicks the appropriate box to indicate if the estimate is approved, declined, or if more information is needed. The website then immediately sends an email to the respective service center to inform them of the decision. (A text file can also be sent to the service center if their computer is capable of importing the authorization number and estimate-approval information.) The estimate submittal and approval notification process is totally automated. On the day prior to delivery, the NSA server automatically notifies the client. The ASP prepares a manifest, and returns the repaired units to the client. At any point, 24/7, the client can inspect this data, and extrapolate whatever information the company needs: stock availability, repair part needs, failure trends, repaired-product availability, etc. In the case of a nationwide chain (such as, say, Circuit City), national headquarters can get information on all of its stores serviced by NSA associates that day (or any day). Each individual store can view only the information applicable to them. After the units are returned, the ASP bills the manufacturer or client directly. All billing to an NSA client, like Circuit City, is automatically exported through the website and validated before it is submitted. Circuit City uses the NSA website to approve all claims for payment according to their own pre-programmed business rules. Rejections are automatically sent by email to the servicer for notification. The servicer goes to the website to correct any incorrect data and resubmits the claim for payment. Most potential clients have indicated a preference for the automated claims processing and payment option. However, according to Mr. Whitehead, they may request a consolidated file that contains their claims from all NSA members. The ASP is then responsible for forwarding the applicable transaction/administration fees (3% of labor) to NSA. (Some of these procedures may change in the future.) NESDA President Brian Gibson CET of Wellesley MA, reported that Gerry McCann outlined the purpose of NSA’s business model to the NESDA Board of Directors in August 2004. He said that NSA intends to negotiate national contracts, including a national or regional rate structure, along with performance metrics with the manufacturers. NSA also plans to develop programs such as call scheduling, enhanced service billing, and reporting with manufacturers, retailers, and extended warranty providers, utilizing advanced computerization. In the works are such additional features as allowing participating servicers to share generic information, permitting consumers to schedule their own service calls with the ASP, and more. NESDA’S POSITION By NESDA President, Brian Gibson CET, owner Elite Media Solutions, Wellesley MA (This is condensed from an article that appeared in NESDA’s ProService Magazine.) At the 2004 NESDA convention in Nashville, industry figures made two separate significant presentations to the NESDA Board of Directors. The first was by representatives of Philips Consumer Electronics Co., Wayne Nichols and Ken Goins. They related that IBM was assuming the customer relations, parts distribution, and service administration functions of Philips’ entire service division. It is anticipated that board-level repair of their products will replace current component-level repairs for in-warranty service within the next few years. The second presentation was by Gerry McCann of the National Service Alliance. He explained what NSA is, the reason for its creation, and its potential impact on the NESDA membership. NESDA’s position on national service has not wavered. We still believe that the independent service network is the best way to provide warranty and extended warranty service to the entire country. If Philips’ conversion to IBM includes the use of independent service networks, then we could mutually benefit. However, if IBM intends to use independents only in the short term merely for their component-level skills, then completely take over in-home service once board-level repairs becomes the norm, then everyone will lose. Consumers, especially, will lose when they are deprived of service options when the warranty expires. NSA’s efforts to secure a national contract seems more encouraging for independents than those of other national entities. Presumably, some of us will be included, albeit as sub-contractors. As always, the devil will be in the details. We find it troubling that the criteria mandates that membership in a clique is more important than competency. Some superior service centers may be harmfully left out due to their geographic relationship to an NSA investor. Also, the task of covering the entire country seems daunting and implausible. Many manufacturers have expressed staunch support of NESDA and independent service. However, it seems that some manufacturers have been disingenuous. Several years ago, we were told that better times were coming. When the new, expensive products arrived, they said, the service of these high-tech products, like HDTV, would bring increased profitability. We were advised to increase the proficiency of our technicians, and to invest in new, modern (and expensive) test equipment. Now that these new products are here, we hear a different tune. Some are suggesting that we no longer need technically knowledgeable technicians because no great technical expertise is required to swap boards. Coincidentally, they say, since high-salaried technicians are no longer needed, we have to reduce our rates. NESDA realizes that the actual repair of new products may be less costly. However, the complex technologies, and the likelihood the sets will be interconnected with other devices, requires additional technical skills, such as networking and computer repairs. It also requires extensive customer-relations skills. So, it’s NESDA’s position that we still need highly skilled technicians to meet the complex challenges of the future. NSA, and the Philips/IBM partnership – and the unrealistic expectations of some manufacturers – top the list of our challenges. We feel we can meet those challenges. as we always have. THE BOTTOM LINE Obviously, this isn’t a plan that everyone can fit into. Many servicers can’t qualify for this, just as they couldn’t qualify for a Certified Service Company or NESDA World Service Network designation. Some who could qualify, won’t want to submit to the kind of rules and scrutiny that NSA requires. Some won’t like being "naked," with real-time information readily available on-line. Now, procrastinating servicers will lose the ability to gain time by falsely blaming others (such as claiming that "the part is on order" when it isn’t). Some of the smaller companies will not wish – while some cannot afford – to invest up to several thousands of dollars in a compatible management software program.. A portion of the servicers feel that NSA is another unfair structure that the smaller independents have to compete with, or is an abandonment of the all-for-one philosophy that NESDA and the other trade associations embody. Some feel that the requirements drain whatever profits there might be, rendering any increase in business worthless, while leaving them scant time to care for their current customer base. There’s also the fear by some that NSA will take some of their existing service business (such as with Circuit City), and award it to an NSA investor. And others are assured that such a national consortium is doomed to failure like all the predecessors. COMMENTS, PRO & CON: Following are comments from some of the people in each camp: those who are for it, or believe it’s the way to go; and those who are agin it, or feel it can’t succeed. PRO: THE WAY OF THE FUTURE…. KEEPING OPPORTUNITY ALIVE By Randy Whitehead CSM, President/CEO, National Service Alliance, Salt Lake City UT: One thing that helps put this issue into perspective is projecting what it will mean to independents and the industry two to four years into the future. We all know in-shop repairs are going away. That means independents will be doing only in-home repairs. There are two types of in-home repairs: component-level repairs, and board-level repairs. The major manufacturers have said that most in-home componen- level repairs will disappear within three years as traditional analog-CRT televisions are phased out. HDTV has accelerated this change because High Definition sets are based on digital technology which incorporates circuitry that is small and difficult to repair to the component level. Some time ago, manufacturers recognized the service challenge posed by HDTV. They have moved to a board-level repair model that makes it easier to repair a set in a timely manner for the customer. This trend is not new, and soon all sets will be board-level repair. Knowing that the future of service will be in-home board-level repair, this major threat to independent service becomes obvious. More and more manufacturers are choosing to outsource board-level repairs to the large national computer repair companies. This would leave nothing for most independents to do. Some could remain in business for a couple of years living off the diminishing scraps of component-level repairs. However, that avenue will eventually evaporate completely. If independent service doesn't provide a viable and competitive alternative to the large national computer repair companies, then independent electronics repair becomes a "buggy whip" industry. It will be doomed to dry up and disappear. NSA was formed in response to that threat. Its mission is to become the absolute best solution in the industry. It is a strong and competitive offering that can turn the tide. It can allow independents to retain their position as the premier providers of electronics repair in the industry. It is important to remember that the NSA service model is to create a nationwide network for on-site service. All NSA service providers will be connected by May 2005. Then, a manufacturer, retailer or extended service company can schedule service calls on-line any where in the country. On-line service call scheduling, dispatching and complete tracking of repair status is what sets NSA apart. It is what national accounts are begging for. It is what will enable independents to compete against the national computer service companies that don't have the technical expertise that we do. PART OF THE SOLUTION By William Sims CSM, Owner Bayard Electronics, Dallas TX; NESDA Region 4 Director; Past President, Texas Electronics Association I have consistently tried to alert my fellow members of NESDA and the independent service industry to the growing threat from the non-independent, national service companies. These are aggressive entities, and if they are successful, will leave you, me, and all of NESDA out in the cold. They have put intense pressure on the manufacturers to move the service of their products to them, and away from the independents who have served the manufacturers and consumers so well for so many years. NESDA was warned that such changes, if not properly responded to, would put an end to our profession as we know it. Like the warnings of icebergs sent to the Titanic, my warnings were not well-received. In the spring of 2004, the threat became more urgent and more ominous. A group of us in another association decided to create a nationally oriented service organization of our own. This was partly because NESDA had not, and actually could not, create such an organization. Our rationale was that by doing this, we might retain most of this service work for us and many other independents. As we held discussions with manufacturers, we perceived that many of them preferred to continue dealing with progressive independent servicers like you and me. But we knew that things were going to change fast, and we had to move quickly to succeed. The formation of NSA is now history, and I am proud to be a part of the forward-looking stockholders and other participants. I am still a "little guy," trying to stay in business and represent your interests as a member of the NESDA board of directors. And believe it or not, the founders of NSA are still concerned about, and are working for the benefit of the independent electronics industry. CON: A MISGUIDED PLAN….TOO MANY QUESTIONS By Al Moses CET; Owner, Al’s TV Service Center, Dover DE; President VPEA/Chairman Mid-Atlantic Conference There are three main thoughts that persist about this NSA venture: (1) If Circuit City could not survive financially doing their own service, why does NSA think they can? RCA, Philips, and Sony are among many who have tried to compete against independents with all-brand national service, and they all failed. (2) The only people I can envision this program working for are those who are just starting a service business. In that case, you can afford to give your devoted attention to the record keeping and financial demands of the NSA group. If you are already established in business, and are taking care of the manufacturers and customers who have helped put you where you are today, it’s a different matter. You can’t afford to give your current clientele any less attention or you are sure to fail. (3): Even if you were to join this NSA group, there is a major concern. There are no guarantees that Circuit City and/or the NSA group is going to be around in two or three years. How will you then satisfy your investments, and who will pay your invoices for the work already accomplished. I would personally rather take my chances in the stock market. With or without NSA as a contender, I expect to be servicing my contented customers many more years. MFRS. WILL KEEP CONTROL By John Eubanks CET/EHF, Owner, Quality TV, Jacksonville FL; Editor FESA Watts Current; NESDA Immediate Past President; ISCET Treasurer NSA has a pact between them and Circuit City to repair their stock merchandise nationally. To me, this is the very worst form of service. That's because every store tries to claim that all their defective stock sets are in-warranty. They do this even when consumers have registered those products with the manufacturer before they are returned to the store. That always causes extra work and/or delay for payment. I am neither pro or con towards this venture. I view it as a good-sounding idea that isn't going any further than such schemes have in the past. And there’s very good reason for that. Manufacturers never have and never will allow external forces the kind of control this will create. Others would then have too much influence over their options. They are not going to paint themselves into any service corner. This arrangement might appeal to "bean counters," but the novelty will soon wear off and prove to be an overall unwise choice. Then they will all march in their own directions, and to their own bands. INDEPENDENTS OUT OF BUSINESS By Al Leatherman, Al’s TV, Mine Hill NJ If NSA succeeds, the manufacturers will feel that their problems are solved. However, everybody else will have to fold their businesses and either retire or go to work for the big guys. But those companies will cut the less productive employees, while they operate without competition. That is, until the manufacturers put NSA (or other national company) out of business. Remember, once you shut your doors for a length of time, you most likely could not get your business going again. The only real concern I have about NSA is the possibility of them upsetting or siphoning off support from the manufacturers. That could be detrimental to NESDA, as we depend on the manufacturers for service support, technical training, and financial aid for the annual convention. Without that support, NESDA would have to hold NPSC in a tent at the Fair Grounds. COSTLY LONG-DISTANCE SERVICE By R. Daniel Champion CSM/CET, Electronics Specialists CSC, Lansing MI National all-brand service? We have witnessed many failures at this concept in the past. What I’d like to know is how they approach servicing the small towns, rural areas, and places that require travel in excess of 20 miles. Our company is getting increasing requests to take care of consumers with in-warranty products in such areas. But, I am saying "no" to servicing any in-warranty product that involves travel of 60 miles for an intermittent shut-off problem. The business costs are huge for long-distance service, and most manufacturers don’t want to assume this cost themselves. (Out-of-warranty, we can collect the reasonable extra costs from the customer.) So, does NSA plan to service only the large metro areas and leave the boondocks up for grabs? VAINLY RAIDING TECHNICIANS By Anthony and Linda Falvo, Anthony’s TV & VCR Repair, Utica NY One of the NSA elite in our area, has been contacting the smaller service centers. They ask the owner/tech to shut down his business and go to work for them. They are also actively soliciting technicians from our businesses. They should realize there are no good techs left to steal. Their dream of 100% coverage will never happen. AUTHOR’S NOTE: When I started this article, it was because there seemed to be a great deal of apprehension and unanswered questions on the part of many servicers. There was also a great lack of specific information. While the subject was bandied about extensively on the NESDA e-mail chat forum, NESDAnet, even there the pertinent facts were confusingly mixed with non-facts and even some paranoid conjecture. We attacked the topic without any preconceived notions. We sought truth – and some worthy opinions – without any desire to either witch-hunt or whitewash. We contacted some people, on both sides of the equation, who either would not talk openly, or who seemed less than candid in their responses. Others, including those whose opinions are printed on these pages, displayed both unique frankness, and a passionate concern for their industry. (Some of those came not from direct interviews, but from opinions published on NESDAnet. In those cases, we requested permission to publish their edited comments.) The primary source of this information, however, were some of the people who are heavily involved with NSA. I was pleasantly surprised at the degree of openness and candor I encountered. Gerry McCann, Lane Norman, and NSA President Randy Whitehead did not take offense at any questions, even the hard ones (well, maybe one), and freely cooperated in helping me arrive at a factual presentation. I have no idea whether this venture will ultimately be judged fair or foul to the industry, or whether it will even succeed. But, unlike some previous ventures, this one is not currently cloaked in a lot of secrecy. An open book, and the light of truth, are good things. ABOUT THE AUTHOR: Wallace Harrison is a former president of local and state chapters of the Virginia Professional Electronics Association (VPEA), a former editor of the VPEA Reporter, and a former officer in NATESA, NEA, and NESDA. He also served NESDA as the Publications Editor and Director of Communications for 23 years. Now retired, he lives in Virginia Beach VA. This Article was published with the permission of its Author for the purpose of bringing another more comprehensive view to our members. We have previously expressed other opinions regarding this service endeavor by Independent Servicers. What do you think? We will be happy to publish your thoughts.. |
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| FOR IMMEDIATE RELEASE March 9, 2005 Release # 05-130 CPSC Consumer Hotline: (800) 638-2772 CPSC Media Contact: (301) 504-7908 CJVC Service Hotline: (800) 252-5722 PSC, JVC Announce Recall to Repair Rear-Projection Televisions WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission announces the following recall in voluntary cooperation with the firm below. Consumers should stop using recalled products immediately unless otherwise instructed. Name of product: Rear-projection televisions Units: 26,500 Manufacturer: JVC Americas Corp., of Wayne, N.J. Hazard: An internal electrical connection can cause electrical arcing, charring or smoking inside the television, which pose a fire risk to consumers. Incidents/Injuries: JVC has received two reports of incidents, including one case of melted television parts and one case of a minor television fire. No injuries have been reported. Description: The recalled 52-inch and 61-inch JVC rear projection televisions were manufactured between May 2004 and November 2004. The televisions have the following model and serial numbers: HD-52Z575: 10980014 through 16980772 HD-52Z575: 16986471 through 16989999 HD-52Z585: 10980031 through 16981502 HD-61Z575: 10980031 through 16982712 HD-61Z585: 10980031 through 16980942 The model and serial numbers can be found on the back of the television in the lower center portion of the unit. The JVC logo appears on the front of the television. Sold at: Consumer electronic stores nationwide from July 2004 through January 2005 for between $3,000 and $5,500. Manufactured in: Mexico Remedy: Consumers should immediately contact JVC for further instructions and to schedule a free in-home service. JVC is contacting registered consumers directly via regular mail and e-mail to arrange a free at-home service. Consumer Contact: Call JVC at (800) 252-5722 between 9 a.m. and 10 p.m. ET any day or log on to the company’s Web site at www.jvc.com/support/notification Source Consumer Product Safety Commission |
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| Industry Update Thomson Enters Alliance with Funai Electric Jan 20, 2005 Consumer electronics maker Thomson announced that it has formed a business alliance in digital television (DTV) development with Japanese television and electronic goods manufacturer, Funai Electric Co., Ltd. The alliance includes joint development work and the exclusive license to Funai of certain patents relating to digital television (DTV) technology. Under a separate cooperation supply agreement, Thomson will provide Funai with color picture tubes (CPT). According to Thomson, the agreement with Funai reflects its strategy to leverage its intellectual property in DTV and will also expand the development and sales potential of the CPT business as Funai shipped over 9 million televisions in 2004. Thomson has previously announced a strategy of partnerships in CPTs, which continues to progress on plan and schedule Thomson Reports Declined Q4 Revenue Feb 10, 2005 European consumer electronics maker Thomson said its fourth quarter revenue fell 15.6 percent due to the strengthening euro. Revenue was 2.3 billion euros (approx. U.S. $1.8 billion) in the 3-month period ending Dec. 31, 2004, down from 2.7 billion euros (approx. $2.2 billion) in the fourth quarter of 2003. Excluding the foreign currency impact, Thomson said its revenue grew 6 percent for the full-year period, in line with its earlier guidance. The company said revenue last year was 7.9 billion euros (approx. $6.4 billion), down from 8.5 billion euros (approx. $6.8 billion) in 2003. The company, which launched a drive to shift its business away from making cathode ray tubes (CRT) for televisions towards more high-growth media activities last year, said currency movements stripped 118 million euros (approx. $94.5 million) from its fourth quarter revenue. Fourth quarter revenue was also reduced through the disposal of a TV business, Thomson said….. Source Dow Jones DecisionOne lays out bankruptcy plan: March 17, 2005 A provider of computer support and repair services has filed a bankruptcy reorganization plan it said will enable it to get its financial house in order. DecisionOne of Frazer, Pa., said Tuesday it filed the plan along with a petition for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. The plan has been approved by 98 percent of DecisionOne's creditors and calls for them to exchange their debt for equity and a substantially reduced level of new debt in a restructured DecisionOne. In conjunction with the filing, DecisionOne has secured $25 million in debtor-in-possession financing from its existing lender, Wells Fargo Foothill, a subsidiary of Wells Fargo & Co. (NYSE: WFC). DecisionOne said the financing, which must be approved by the bankruptcy court, plus its cash, will give it adequate working capital during its restructuring. DecisionOne said it will continue normal business operations during the restructuring process. It expects to emerge from bankruptcy by early May….Philadelphia Business Journal |
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The FESA-JAX Picnic and Officer Installation
Will be held on Saturday June 18, 2005 1:00 PM-5:00 PM at the Bryceville Community Center: 7280 Motes Road, located behind the Fire Station on Motes Road & Hwy 301 N. Directions: Take I-10 West. Take Baldwin/301 exit North. Turn left at traffic light. Go to flashing light (dead end). Turn right, cross RR track, get in left hand lane. Turn left at 301 N. sign. Turn right at Motes RD. Fire Station is on corner , Community Center is Behind the Fire Station. Call 327-5189 if you get lost! Catered by The Pig on Normandy Food served 1:00 PM till 5:00 PM. Plenty to eat and drink: BBQ & all the trimmings; Iced Tea & Soft Drinks FESA-JAX Ladies will provide the desserts FUN & GAMES KARAOKE DONATION: $7.50; CHILDREN FREE Come out & support our officers at This fesa-jax 2005 officer installation Make Your Reservations now Call ethan or viola allen Phone 904--266-4597 We must have an accurate count before 6/13/05 |
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www.hermanpanson.com |
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| REQUEST FOR FESA MEMBERSHIP DATE_________ NAME_________________________________ COMPANY NAME________________________ ADDRESS_______________________________ CITY/STATE_________________ZIP_________ PHONE NO.______________________________ NO.OF EMPLOYEES_____________ Dues Per Year: 1 Person Service Center= $25.00/ 2/3 Person Service Center=$30.00/ 4/6 Person Service Center=$35.00/ 7/9 Person Service Center=$40.00/ 10 & up =$45.00. This rate schedule is for independent membership and may be affected by a chapter or affiliate in your region. Please include your dues with your completed application, this will constitute your agreement to abide by the Constitution and BY-Laws of FESA. Members will continue to receive Watts Current. For a Non Member Watts Current Subscription Only. Include your check for $12.00, write Watts Current subscription on this form and return it to: Billy F. Williams EHF 1409 Glendale Rd. W. Jacksonville, FL 32216 Phone: (904) 725-9789 |
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NET WIT
FAQ and Answers From A Male Chauvinist Pig Q. How many men does it take to open a beer? A. None.. It should be open when she brings it. Q. Why is a Laundromat a really bad place to pick up a woman? A. Because a woman who can't even afford a washing machine will probably never be able to support you. Q. Why do women have smaller feet than men? A. It's one of those "evolutionary things" that allows them to stand closer to the kitchen sink. Q. How do you know when a woman is about to say something smart? A. When she starts a sentence with "A man once told me..." Q. When your dog is barking at the back door and your wife is yelling at the front door, who do you let in first? A. The dog, of course. He'll shut up once you let him in. Q. What known food will diminish a woman's sex drive by 90%? A. It's called a Wedding Cake. Q. Why do men die before their wives? A. They want too. Q. When will Women be equal to men? A.When they can walk down the street with a bald head and a beer gut, and still think they are sexy. Author Unknown and reportedly has gone into hiding |
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www.nesda.com |
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| FESA SERVICE INVOICES PRICE LIST - MEMBERS ONLY INVOICES ARE CARBON FOUR PART WITH CLAIM AND HARD FILE COPY ZONES 4 & 5 #1 (SMALL) 1000 2000 3000 4000 5000 63.50 125.00 183.00 218.00 275.00 IMPRINT 1000 2000 3000 4000 5000 26.50 48.00 69.00 85.00 102.00 Sub Total 1000 2000 3000 4000 5000 90.00 173.00 252.00 303.00 377.00 S/C 1000 2000 3000 4000 5000 7.50 12.50 15.00 20.00 22.50 TOTAL 1000 2000 3000 4000 5000 102.50 190.50 272.00 328.00 404.50 UPS PREPAID FREIGHT COLLECT Please note: The price increase announced previously is now in effect. We delayed the increase until the forms previously contracted have been depleted. All form requests from this time forward will be at the posted prices, freight collect. We no longer have a supply of the LARGE invoices. We are in the process of locating new a source for our large invoices. Until we find a new source the FESA-Large invoices are NO Longer Available. NEW ORDERS TAKE 3 TO 4 WEEKS --- INCLUDE IMPRINT INFO WITH CHECK REPEAT ORDERS TAKE 2 TO 3 WEEKS RUSH ORDERS WILL NOT BE PLACED UNTIL I RECEIVE YOUR CHECK! MAKE CHECK PAYABLE TO F.E.S.A ALL SERVICE INVOICE ORDERS SHOULD BE MAILED WITH YOUR CHECK DIRECTLY TO THE FESA TREASURER: Mr. Billy F. Williams EHF 1409 Glendale Rd. W. Jacksonville, FL 32216 Phone & Fax: (904) 725-9789 NOTE: Small Invoices are 5:5/8"W X 9:1/8" H / You must be a Member of FESA to order forms from FESA. |
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www.tritronicsinc.com |
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