Posts Tagged independent

Interview with David Carnahan from Mainstreet Computers


Today I’m talking with David Carnahan, the owner of Mainstreet Computers, Inc. Mainstreet opened for business in May 1982.  Mainstreet is a leading provider of software solutions to the automotive glass repair and replacement (AGRR) industry. I’ve been fortunate to have utilized David’s software products to help manage AGRR businesses in the United States, as well as Canada. Over the years, I’ve found David as a businessman who has the highest of values, principles and ethics in operating Mainstreet. This April Mainstreet celebrates its 30th year in business.

DR:   Congratulations David! That is quite an accomplishment in the longevity of any business and one you and your employees should be most proud. How did you find yourself providing software solutions to the AGRR industry?

David Carnahan:  In those early days we sold to virtually any industry, but we concentrated on smaller businesses.  This was before the days of “off the shelf software”.  We wrote or modified our programs to suit each company we sold.  After selling to several glass shops we became more familiar with their needs and saw an opportunity to become a complete solution to glass shops across the country.  So beginning in the mid 1980’s we began focusing on glass and Glas-Avenue born.

 

DR:  What do you feel are the keys to your success in being able to build, sustain and grow Mainstreet Computers over the past 30 years?

David Carnahan:  Though there are many “keys to success”, I’d like to mention two …

1.     A mentor to Steve Jobs (the founder of Apple Computer) is quoted as saying that a company that lasts must be willing and able to reinvent itself.  I believe that is true and particularly true in the technology field.  When we started serving the glass industry back in the 1980’s we concentrated as much on selling hardware as we did on selling software but by the early 1990’s customers were better served buying hardware locally, so we changed our whole model and focused strictly on software and software solutions.  Then about seven years ago we extended that service into designing and developing websites which has proven to be a great “re-invention” as we have helped scores of glass (and other service industry) shops “re-invent” themselves and move from dying to thriving.

2.    A lasting company must have a long term mentality.  We have always hired people with the idea they would work here until they retire.  The cost in time and customer frustration of hiring and training new people is much greater that most people realize.  Most of our people have well in excess of 15 years with us.  When your people don’t expect to be around in a few years it affects every facet of the company from new product development to customer support.  It’s also makes the work environment more rewarding.

 David Carnahan (left) with Programmer Dave Daniels (right) who recently celebrated his 25th year with Mainstreet.

David Carnahan (left) with Programmer Dave Daniels (right)  who recently celebrated his 25th year with Mainstreet.

DR:  How would you describe your management style and who has been a great help to you in building your business?

David Carnahan:  I am a Christian and my faith impacts the way I lead the company.  I view Mainstreet as God’s company not my own, so I’m responsible to be a good steward of His company.  My philosophy is to find good people, treat them right and provide an environment where they can shine and excel in their strength areas.  I have a speech that I give prospective employees.  I tell them that I don’t believe in micromanaging, so … “if you’re the type of employee that only performs well with someone constantly looking over your shoulder to make sure you do your job, you won’t fit in here.”  Our people know their jobs and the mission of our company and they “just do it”.   I believe the longevity of our staff speaks for itself.

 

DR:  What lessons have you learned in growing your business that you think could be helpful to others seeking similar success?

David Carnahan:  Don’t give up.  Success is not an event, it’s a process.  I believe slow steady growth is much more stable than explosive growth. Never stop trying to improve and never take anything for granted – customers, sales or employees. 

 

DR:  What are the services that Mainstreet Computers provides to its customers and how have those changed over the past 30 years?

David Carnahan: We provide fully integrated Point Of Sale and accounting software to retail glass businesses – from small “mom and pop” shops to large multi-store chains.  We also offer website design and web hosting geared toward helping the glass shop market themselves and increase sales through the internet.  The biggest change in our strategy came 25 years ago when we began focusing primarily on the glass industry.  This strategic decision of ‘narrowing the focus to broaden the impact’ has enabled us to really gain an understanding of the needs of the glass industry.

 

DR:  How do those differ from your competitors? 

David Carnahan: Mainstreet is the first and only glass software provider to offer a fully integrated accounting system.  We wrote it ourselves and it’s specifically designed to work with our Point Of Sale program. Since we wrote it we fully support every part of it, so we’re the only contact a glass shop has to make for help with their software.  We are also the only glass software provider designing websites for the industry.

Beyond basic products, the other characteristic that sets Mainstreet apart is our level of support.  We have more people with more years of experience supporting our products than any other company.  We are relentless in our commitment to provide support that is unparalleled in the industry.

 

DR:  You’re an innovator in the industry. What were the main reasons you felt that strategy would work as successfully as it has?

David Carnahan:  The reason for our success is simple.  Mainstreet’s software and services meet a real need by enabling glass shop owners to benefit from technology without being or becoming technology experts.  We provide the technological expertise while they concentrate on running their glass business.

 

DR:  I very much appreciate your taking the time to talk with me today. In closing, is there anything further you’d like to share with the readers of this blog?

David Carnahan:  Thank you David for all you do for the glass industry.  You have a depth of knowledge and experience in this industry that is very rare.  I hope you continue to advocate for the independent glass shop owners.

Thank you David and thanks again for taking the time to talk. I know that you, your employees and company will continue to have great success in the years to come.

Just sayin’.

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

1 Comment

Just Sayin Blog – Be Smart In 2012

There have certainly been a number of events happening since the first of the year that are effecting or may affect the auto glass repair and replacement (AGRR) industry in 2012. Where to start? Well let’s see:

 

1.    First the earth shook on January 2, 2012, when Safelite® Solutions officially took over the responsibilities for administrating Allstate® Insurance auto glass claims from PGW Lynxservices®. By all accounts Safelite® Solutions must be doing a masterful job in this new role administering claims for Allstate® as I’ve heard from a number of you that your auto glass claims from the second largest insurer in the United States are dramatically lower since the administrator change took place. Mild weather could also be a contributing factor. Adding to the pain of lost units, the pricing for those Allstate® replacements are also lower.

 

Have you seen your auto glass claims with Allstate decline since January 2, 2012?

 

2.    On January 6, 2012, glassBYTEs.com™ reported that Grey Mountain Partners Acquires Binswanger. Binswanger is a truly amazing full-service glass company with its roots going back to 1872 with its first location in Richmond, Virginia. It is certainly great news to hear for all of the Binswanger employees that they have a new owner who is interested in working with them to help build the company. I think that a strong Binswanger is healthy for the glass industry in the United States.

 

How about you?

 

3.    Neil Duffy recently announced in his very well written blog View From The Trenches that he’s considering a new career by starting a ‘new third-party glass claims administrator’. It sounds as though he’s thought it out pretty thoroughly by looking at all the pros of this new venture and I for one think he should go for it. I don’t see any cons.

 

What do you think?

 

4.    Then there is that anonymous letter from a ‘Concerned Citizen’ that surfaced yet again last week titled “New Anti-Trust Concerns”. This letter had a postmark from Bloomington, Illinois, and its resurfacing at this time might have some relationship to #1 above.

 

It does seem pretty obvious that the letter was written by someone in the auto glass industry as no one else would really care about the issue. The letter does raise a number of interesting points, but the conclusion of the ‘Concerned Citizen’ is that:

 

‘While the relationship between a TPA and its insurance company clients may not be illegal, the abuse of that position could be unfairly excluding independent competitors.’

 

There are a number AGRR initiatives taking place in various states where attempts are being made to try to restrict the big guy from taking your lunch money day in and day out. If one of them was successful it would certainly be good for independents in the industry.

 

Are there any legislative initiatives happening in your state that will be of any help to you in your business?

 

5.    For those of you who happen to follow @Safelite on Twitter you may have seen them sending out ‘Tweets’ asking for your input. One ‘Tweet’ poses a question to its followers and directs you to a web page survey question asking ‘How likely are you to recommend Safelite?’ Safelite® gives you the opportunity to answer with a ‘Not Likely’ – 0 score to an ‘Extremely Likely’ – 10 score.

 

I’m not sure to whom exactly Safelite® is targeting the question, but you’ve got to provide an email address in order to answer the question which is somewhat problematical. If you’d like to offer your view anonymously I guess you could use a fake email address.

 

I know what my number is in answer to the question. What number would you mark as your answer?

 

6.    And finally there was an article in the Chicago Tribune on January 18, 2012, reporting that the average age of vehicles in the United States has climbed to 10.8 years. The article stated that in 2010 the average age of vehicles was 10.6 years with the average age of vehicles having climbed steadily since 1995 when it was at 8.5 years. Over the past several years low new vehicle sales has certainly been a major factor in the increase in the average age, but with new car sales picking up new car manufacturers are expecting a great year in 2012. That will help to slow the growth in average age and hopefully bring it down. What does average age have to do with the AGRR industry?

 

One byproduct of an aging vehicle fleet is that you see an increasing number of the ‘do nothings’ (consumers that delay replacements) when auto glass breaks. Consumers obviously will be more accepting of a repair over replacement if the vehicle is older. New vehicles typically provide a higher average invoice value since the only replacement glass initially available to consumers will be auto glass manufactured for the vehicle by the Original Equipment Manufactured (OEM) glass company (i.e. Pilkington-NSG, PGW, Saint-Gobain Sekurit, etc.). The cost for non-OEM manufactures to reverse-engineer a replacement part for new vehicles is initially too expensive due to the low volume of parts needed in the aftermarket. The older the age of the vehicle fleet the more opportunities for non-OEM suppliers to sell reverse engineered replacement parts that are typically cheaper than the OEM’s. Ultimately that can mean less profit for the AGRR industry as a whole. New vehicle sales should mean more profit opportunities for those in the AGRR industry.

 

What do you think?

 

 

I hesitate to mention other things going on so far this year that may have an effect on your business like the lack of a severe winter in the East, the predictions for much higher gasoline prices later this year, a sputtering economy, the price changes that have taken place in the State Farm® Insurance Company auto glass program and various people coming and going from here to there. How you’re dealing with the variety of issues that you’ll face in 2012 will determine how you survive the year. Someone I’ve known for a long time in the industry commented to me last week that, ‘2012 is shaping up to be a watershed year for many in the industry. Survive this year and hope that next year will be a better one.’ That outlook makes sense to me. We’ll see if he’s right.

 

In closing, a former Princeton University men’s basketball coach by the name of Pete Carril wrote a book titled “The Smart Take from the Strong”. It’s a great book. Pete Carril was 5’6” tall, he was an All-State Pennsylvania high school basketball player, an Associated Press Little All-American in college and he coached at Princeton for 29 years before going on to the NBA to become an assistant coach for the Sacramento Kings. Coach Carril is also a member of the Naismith Memorial Basketball Hall of Fame. When he was young man his father told him:

 

            ‘The strong take from the weak, but the smart take from the strong.’

 

So be smart in 2012!

 

Just sayin’…….

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

4 Comments

Follow

Get every new post delivered to your Inbox.

Join 1,077 other followers