The Chairman's Corner

By Former CMSA Chairman Dennis Doody (2011-2012)

December 2021

Editor's Note: With CMSA Chairman John Chipman Jr. serving as chair for two years, CMSA has scheduled several guest columnists to replace half of his Chairman's Columns. We thank Chairman Chipman and look forward to his column next month.

I cannot believe it has been over 10 years since I wrote my last article as Chairman of the CMSA!!

The theme to my 2011 articles was about creating a team environment where quality service was our focus. All the members of the Blue Chip family had one job… delivering quality service to our customers so we can keep the doors open and grow. We have succeeded in doing just that. Blue Chip is no longer a one-location moving company. We have four separate locations with three branches. The Blue Chip Family of Companies consists of Blue Chip Moving and Storage, Conejo Valley Moving and Storage, and SAV ON Moving and Storage. We fly the Mayflower Transit flag at Blue Chip and the United flag at Conejo Valley. We pride ourselves in serving our customers from Santa Barbara, through Los Angeles and Orange County to Northern San Diego on a daily basis.

There is no substitute for quality. I am a firm believer that quality starts with great people. I am lucky to have great people whom I am proud to work with day in and day out. There is no way Blue Chip would be in business if it were not for the team in place. The team consists of move coordinators, packers, movers, drivers, warehouse people, salespeople, dispatchers, managers, general managers, a vice president, and a president. Each has a role in delivering quality service. I am very proud Blue Chip was awarded the Circle of Excellence in 2020 by Aires. Nothing better when a customer recognizes our emphasis on quality.

I share the road traveled by Blue Chip because I owe it to the people I met, and the lessons I learned as a member and chairman of the CMSA. I owe it to attending the chapter meetings, serving as president of the Los Angeles chapter, attending many conventions, and serving as Chairman. I met so many wonderful people along the way. People I call friends, customers, colleagues, and competitors. Sav On and Conejo Valley are part of Blue Chip because I met and became friends with the folks who previously owned them through the CMSA.

As Blue Chip expanded, I had to focus on business lines that made money. No longer could I hope we priced services properly. I had to understand my costs and margins. It was an eye-opener when I learned that some business lines were just not worth servicing. Or lines of business that we needed to focus on because the margins were good. It was hard to toe the line on discounts and pricing. I was guilty of always saying “yes” to the business. Hoping if we did enough, we would make money. I have salespeople that want to sell. Movers that want to move. But Blue Chip is too big to put resources and capacity towards lines of business that are not profitable. Sales can kill any company. Especially the bigger ones.

You should take the time to dig into the numbers to see what is and is not profitable. Do not say “yes” to all the offers simply to fill your dispatch for the day. Know how much revenue you need to pay your staff, pay the movers and packers fairly, and for the company to make the margins you should.

This brings me to the Global Household Goods Contract (GHC). I am all for improving quality for our Military families. They deserve a quality move for the sacrifices they and their families make for us. In turn, I have my responsibility to make sure the services are priced to meet my obligation to the Blue Chip family members and my margin expectations. I only have so many trucks and crews to dispatch on a daily basis. This “capacity” must be utilized in a manner that makes money. The spirit of the initial announcement of the GHC was to put more money in the pockets of those servicing the Military member. What the Military called “boots at the curb.” That is us, the moving companies with trucks, trailers, movers, and warehouses. I have not seen the pricing, but I am cautiously optimistic the pricing kept this in mind.

One of my salespeople raises three fingers up to a customer that is only interested in the lowest possible price. He shares there are three ingredients to a move, as he holds up his index finger for “Quality,” his middle finger for “Price” and his ring finger for “Service.” He tells his potential customer, “Take away ‘Quality’ and ‘Service,’ all you’re left with is ‘Price.’”

We all should study the pricing of the GHC. If you know your costs and margins, you will know if you should accept the offers. If not, double down on business that makes you money. Remember you only have so much capacity. That capacity should be laser-focused on quality and profit.

Thank you for allowing me to share my thoughts once again with the membership of the Great CMSA.

Make 2022 a happy, healthy, and profitable New Year.

Merry Christmas.

Dennis Doody

December 2021- CMSA Communicator