HENDEL’S HISTORY BOOK

Introduction

I am Joe Hendel and I would like to introduce my wife, Linda, and our children Laurie and Robert. As this story unfolds you will also become acquainted with some of the most dedicated employees any business owner would be honored to have on his payroll, and how together we made Hendel’s Air Conditioning so successful.

Our story is an account of what it took to build an exceptional and prestigious air conditioning company. Hendel’s Air Conditioning required determination hard work, innovative thinking, impeccable customer service, and skilled and trusted employees.

Joe and Linda Hendel | Laurie and Robert Hendel

From St. Louis, Missouri

In 1960 I moved to Phoenix, Arizona from St. Louis, Missouri. During my high school years in St. Louis I worked at my father’s service station. It was a great opportunity for me. I learned a lot about service and business and hoped one day I would have a station of my own.

When I arrived in Arizona I landed a job with Mobil Oil Company in a service station training facility. I worked four hours a day as a service station attendant and then spent another four hours per day attending a dealer-training program. I was elated and felt as though opportunity was knocking.

In 1962, Mobil Oil offered me a temporary job managing a service station at 16th Street and Osborn in Phoenix. I was anxious to demonstrate the knowledge and skills I learned while working for my father. Mobil was so pleased with the way I managed the station that they offered me the opportunity to become a dealer even though when I signed the lease I was only 20 years old. Eight days later I turned 21 and had to resign the contract. Mobil stated that I was the youngest dealer they had ever assigned a station.

Planning to Own a Business

I mentioned to Linda that I missed having my own business. I told Linda that I dreamed of having my own air conditioning business. Linda was very supportive and positive about this idea and she encouraged me to think more seriously about my dream.

Not long after this we purchased a book titled, “Modern Air Conditioning.” It explained the basics of air conditioning. I left Motorola after being employed there for three years and took a job at Corky’s Air Conditioning. Corky’s turned out to be a good place for me to learn more about the air conditioning business. There was little direction or management within the company so I was able to take a little extra time to confirm my diagnostics and make effective repairs. I learned a lot but did not earn a lot.

About this time changes were taking place in Linda’s life as well. Linda also left Motorola as other opportunities became available. She accepted a job as a file clerk in accounts payable at Salt River Project and began taking accounting classes at Mesa Community College. Linda was a straight A student!

Working in the Air Conditioning Industry

After a season at Corky’s Air Conditioning I found work at Isley’s Air Conditioning. When I applied I found the job required welding experience. I badly wanted the job but I had never welded anything in my life! However, I learned not to let things like lack of experience get in my way.

I practiced welding at a friend’s garage over an entire weekend. The next day I began welding air conditioning compressor mounts for farm machines and foreign cars. There were no “factory made kits” available for these types of applications and we had to custom produce them.

Isley’s Air Conditioning was also in the business of home air conditioning repair and service. While welding compressor mounts I worked alongside the technicians and spent a lot of time bending their ears about service and repair techniques. While at Isley’s I was fortunate to learn how to gas weld aluminum. However, at the end of the busy

Hendel’s Home Maintenance

Linda and I were married in 1970. We felt it was time to start our own business but did not want to rely solely upon air conditioning repair. We therefore named the business “Hendel’s Home Maintenance.”

Between the two of us we had $1,500.00 from our combined Motorola profit sharing. We also borrowed an additional $500.00 from First National Bank. We started purchasing what we needed to start our business which included numerous hand tools, a welder and a 1961 Ford Econoline.

We started the business in a small apartment on West 5th Street in Tempe. Our plan was to treat our customers fairly and provide speedy service. While Linda continued to work at Salt River Project I went out on repair service calls and passed out business cards.

Linda thought that advertising might help generate business so at her suggestion I went to the Tempe Daily Newspaper to inquire about advertising and how it might help our business. The advertising representative told me I would need a slogan and a logo. I liked the phrase “sudden service” and used a picture of a roadrunner with a tool pouch on its side. We also had business cards printed and painted the roadrunner on the side of our Econoline van.

I did all types of repairs. When I visited a customer’s home, I would always look around to see what other needs they might have and offered my services. I repaired dripping faucets; installed new rollers in sliding doors, made electrical and swimming pool repairs, and of course repaired air conditioning units.

Not only did we receive calls from the business cards that I left in neighborhoods, many new customers came from word-of-mouth referrals. We gained new customers because we stayed true to our basic business plan of treating customers fairly and providing quality work and speedy (sudden) service.

Linda and Joe Hendel

Specializing in Air Conditioning Repair

After two years I had confidence in my ability to provide professional air conditioning repairs and service. I wanted to specialize in the more lucrative air conditioning repair business and downplay the other repairs that I had been doing. So we changed our company name to Hendel’s Refrigeration and Heating.

The business grew rapidly, as did our family. Linda was expecting our first child and resigned from her job at Salt River Project. In those days there was neither voicemail nor cell phones and we were fortunate to have Linda at home to answer the phone and take messages. I would call every hour to check for any new messages. Many times after completing a repair service I used the customer’s phone and called Linda to see if there was additional work.

In 1971, while we still operated our company from the same small apartment in Tempe, Arizona, we grossed $16,151.51 in sales and netted a profit of $4,601.30.

Tempe Jaycees

I decided to join the Tempe Jaycees to make new business contacts. Most of the members hired Hendel’s for their air conditioning needs and helped promote the company. I later became the President of the Tempe Jaycees, and then State Vice President. At one Jaycee meeting I met a guest named Jerry Story who had started a publication called “Penny Saver.” Jerry was looking for advertisers and offered me a discounted rate. As I looked through a sample production it seemed to me that all the ads were repetitive and boring. I thought to myself, ‘We can do better than this!’

Joe Hendel in the Tempe Jaycees | Hendel’s Logo with Joe Sez

A Flair for Advertising Generates Results

We decided that our advertising message needed to be different. I remembered an ad that my father had in his gas station window. The faces of the countless customers who took time to read the ad had amused me. My father offered a ten-point service special. Along with the ten-point service he included a couple of free services. I would use the same basic strategy my father used.

I knew that well thought out ads would stand out. With this in mind we decided to dedicate a substantial portion of the ad space to draw people’s attention. This would improve the chance of getting them to read the ad. While growing up in St. Louis I remembered a sign in a cemetery that read, “Better to have and not need than need and not have.”

I went back to Tempe Daily News to scan through pages of logos. I selected one that resembled an old fashioned professional service man. The Penny Saver magazine used the serviceman logo and inserted a balloon near his head with the words inside, “Better to have and not need than to need and not have.” We labeled the ad, “Joe Sez.”

In the following years countless old sayings and slogans followed. Some that we have used were: “A smile ads to your face value,” “If you think education is expensive, try ignorance,” and “If you think you can, you can. If you think you can’t, you’re right.” As I look back on the old sayings that we used over the years I could see that they made a lot of sense. Some of the others were: “Haste makes waste,” “Lost time is never found,” “A smile adds to your face value,” and “Make hay while the sun shines.”

The logos stood alongside a ten-point service special, like my father had on his service station window, but we adapted them to promote the air conditioning business. Many customers said that they looked forward to seeing our ads to find what the “new” old saying would be. Over the years the idea to use part of the ad space to draw attention to our ad has been used in every advertisement our company has used in newspapers, magazines, radio and television.

The “Joe Sez” ads, modeled after the ad in my dad’s service station window, offered a 10 Point Tune-Up Special with 3 FREE Services. I figured if the window ad worked for dad a similar approach would also work for us. The “Joe Sez” ads were so successful that many of our competitors copied our ad ideas. (Imitation is the most sincere form of flattery.)

Hendel’s First Employee

One day I had to replace a compressor at a bar. In those days some air conditioning compressors were made of cast iron and they were very heavy. It was extremely difficult to raise the compressor onto the roof. This particular compressor was so heavy that I couldn’t get it on the roof by myself. I tried to raise the compressor with a rope but the rope got stuck in the grout between the bricks. I recruited a patron from inside the bar to help me but still we could not raise the compressor to the roof. The patron asked a passer-by to help and finally the three of us were able to pull the compressor to the roof.

After this job I decided I needed help. I hired a young man, Harry Ruster, who had run away from his home in Michigan. Harry was hard working and had good mechanical aptitude. His compensation was $1.25 per hour and we also paid for his lunch. Harry worked at Hendel’s Air Conditioning for ten years and then started his own business, Blue Ribbon Air Conditioning. By the way, Harry’s two brothers were named Tom and Dick.

After hiring our first employee I remembered reading the policy manual at Motorola and thought it would be a good time to begin my own policy manual. Every time a situation arose I wrote a procedure on how to deal with it. I continued to expand the manual over the years.

Hendel’s First Truck

The Challenges of Running a Business

With increased business activity there were also new challenges to manage. Although challenges may not always be pleasant they are part of owning a business. After countless service calls our ever-faithful 1961 Ford Econoline van was on its last leg. Linda and I decided since we were achieving some success I would keep limping along with the Econoline for a while longer and we would purchase a second vehicle. We found a used Chevy truck and hired another technician. This was a big decision for us!

It was a busy summer and the ever-faithful Econoline van was exhausted and worn out. Linda and I decided to purchase two new Ford trucks and hire a third employee as well. I oversaw three employees and also handled service calls. This often required me to be in two or more places at a time so Linda and I decided it was time for another change. I was going to have to be a manager rather than a repairman. It didn’t take long for me to see that time management was paramount in the air conditioning business. I spent a significant amount of my time finding shortcuts.

Many times Linda and I would go out to dinner and our entire evening would be spent planning how we might improve the business. Linda sometimes thought I was a little too aggressive but she was always supportive. We made all the decisions jointly and there were plenty of issues to consider. We decided to hire an answering service to handle after-hours calls. As we realized that our employees were traveling all over the valley on service calls, it seemed as though our employees spent half of their time just traveling from job to job. In the interest of time management this led us to restrict our service area only to the Tempe area.

Past Experiences were Beneficial

We were very grateful for the skills that we had developed along the way. Every past experience that Linda and I learned became important in the ongoing success of Hendel’s. Linda’s background in accounting was a key to our success.

Originally, at the end of the day I entered the sales into a ledger. Since Linda had accounting training and experience she decided that she should do the books and she’s been doing an outstanding job ever since. Linda handles all of the day-to-day entries and an outside accountant was hired to complete the monthly and year-end reports.

About this time we also decided that we wanted to focus on residential air conditioning service and repair. I did not have the background and training for commercial service. Additionally we wanted to be the best at what we did and there was no shortage of work in the residential area.

While still at the apartment on West Fifth Street we learned how important it is to be ready before the air conditioning season arrives. If we were going to be successful it would be necessary to handle all the business that came our way. We learned that organization and time management is critical in a seasonal business.

Hendel’s Ledger Books | Hendel’s First Location

First Rented Location

Although Linda and I subsequently moved into a roomy apartment at 410 West Pebble Beach in Tempe we still worked out of our home. We now had three service trucks and there was a lot of activity at our apartment. As you can imagine we began to hear complaints from our neighbors.

To solve this problem we rented a small 10’ x 10’ office near Broadway and McClintock in Tempe. This small office provided a place to store some parts and also a place to park the trucks. Linda answered the phone but this was becoming a burden because she was also raising our two children. So we decided it would be best if we relied more on the answering service to help out.

Our First Home

Business was good so we decided that it was time to buy a house. We found a home on Geneva Street in Tempe for which we paid $36,000.00. The house was just a few years old but there was a lot of repair work that needed to be done. During our “off-season” I painted the entire house both inside and out. Linda and I installed new floor coverings by ourselves. I also installed an evaporative cooler and improved the landscaping by planting several gardens. We lived in the house for two and a half years and then sold the home for $68,000.00. We then purchased a beautiful new home on Sesame Street in Tempe where we raised Robert and Laurie and lived there for 17 years.

Hendel’s First Home | Hendel’s SHOWROOM

A Retail Location

The business growth continued unabated and we quickly outgrew the small space we rented on McClintock and Broadway. Linda and I decided that we should have a more professional image so we rented a storefront in Danell Plaza at Mill and Southern in Tempe.

We also hired a person to handle all the phone calls and sell parts at the retail counter. The parts sales helped pay the salary of our first in-house employee. We helped home and apartment owners make their own air conditioning repairs. The idea to sell parts proved to be a good move, not only did it bring more income; it brought recognition to the company. At that time the retail sale of air conditioning parts was unheard of.

mplementing Others’ Successful Models

As Linda and I traveled around town we always observed other businesses. We searched for things that might have contributed to their success and thought about how we might apply their methods to our business. One day I called a Radio Shack store. The person answered, “Hello, this is Radio Shack, your technology store where we have the answers and guaranteed lowest prices. How can I be of assistance to you today?” After several minutes of flipping through pages the person replied that he was not familiar with the particular product that I sought. I thanked him for trying and his reply was, “No problem.”

Linda and I decided that henceforth a phone call to Hendel’s would simply be answered, “Hendel’s.” We inserted this in our policy manual. We also decided that only knowledgeable, experienced employees would answer our phones. When we finished assisting a customer on the phone we would simply conclude the call by saying, “Thank you.” We also cancelled our telephone answering service.

Another day I went to a supplier to pick up some parts. I noticed that several competitors’ technicians were just standing around the Coke machine wasting time. I decided that from that time forward all parts would be delivered to Hendel’s rather than “picked up” and Hendel’s employees would be kept busy in the field.

Hendel’s Delivery Vans | Hendel’s Policy Manual

Hendel’s Policy Manuals

Over the years I continued to make entries into the policy manual. One day we found a professional format for a policy manual. We spent a lot of time converting the text to the new format. Now we have three policy manuals that cover the various job categories at Hendel’s. They have been very important to our success.

Hendel’s Begins Selling New Air Conditioning Units

As we serviced and repaired air conditioners we sometimes found units that needed to be replaced. We were not equipped to install new air conditioner units at that time and had to refer customers to other companies. We did not like losing this business and decided to take the necessary steps to be able to sell new air conditioning units. This also included purchasing the equipment for a sheet metal shop.

We began searching for a bigger building that would be large enough to house a sheet metal shop. We found a 1,200 square foot building at Baseline and Price in Tempe and successfully negotiated and signed a lease. One of our suppliers told us of an air conditioning company that was for sale.

We contacted the company and purchased all of their sheet metal shop equipment. We also hired their employee, Roger Ferguson, to fabricate metal air duct. To keep Roger busy we started advertising the installation of evaporative coolers, which were popular at that time. Roger eventually retired from Hendel’s but we kept his position filled.

Hendel’s Sheet Metal Equipment | Home Depot’s Ad Comparing Hendel’s

Home Depot takes Notice!

One Sunday morning I was barely out of bed and Linda came running in the bedroom. She was very excited as she showed me a full-page ad in the newspaper. Our advertising was so effective that Home Depot had targeted Hendel’s Air Conditioning stating in their ad: “We’ll beat Hendel’s Price by 5%.”

We felt our company was finally was on the map. You cannot imagine the recognition we received from our suppliers and colleagues alike. I decided to spend more of my time working on the marketing aspect of the business.

Hiring a Key Employee

Additional growth made it necessary for Linda and I to hire a service manager. The service manager would answer the telephone and dispatch the technicians while maintaining an inventory of service related items.

The person we hired was Ted Janssen, who is still with the company today! He was very methodical and his dispatching knowledge expanded as time went on. Although Ted had never previously worked in an office he knew air conditioning repair, grew up in Tempe, and dispatched the technicians efficiently. Ted has been a loyal and key employee in the Hendel’s success story. Ted’s oldest son Scott now works for Hendel’s as well.

Many a time Linda and I discussed various aspects of managing the business at our dinner table, including: purchasing, product, marketing, store appearance, and buying new equipment and vehicles. She always encouraged and supported me and said that she knew that we could handle the additional new challenges that come with growth and success.

We always discussed how other companies handle similar situations that we were facing and decided to research and copycat the same principles that other companies used at Hendel’s.

Hendel’s Warehouse

Annual Commitment for Better Pricing

If we assigned some hard and fast policy for a competent employee there would be less room for a supplier to negotiate. We decided Ted would be the company’s purchasing agent. We came up with a new and revolutionary idea and instructed Ted to make purchase commitments for a full year’s supply of air conditioning products. Ted’s performance surpassed our expectations.

Linda’s accounting was meticulous and she always paid the bills the day they were due and we had a very good credit history with our suppliers. The suppliers trusted Hendel’s and knew that if we agreed to purchase products on a schedule that we would keep the commitment. This gave Hendel’s a pricing advantage. We received pallet-sized shipments rather than buying parts one at a time from local distributors, as most of our competitors did.

We were able to make huge purchases direct from manufacturers compared to buying from local distributors. Most other companies send employees to pick up parts each time they make a sale, but Hendel’s now has a large inventory of parts ready for immediate use. The concept has been very successful and purchasing efficiency has given Hendel’s a competitive advantage.

In 1981, with an expanded work force, we decided that we were ready to increase our service area to include the entire East Valley. We began to sell and install new air conditioners in addition to evaporative coolers. This was a big step for us. Most of the air conditioning units in the Tempe area were still fairly new and they seldom needed to be replaced. People generally wanted to repair their air conditioners rather than to replace them; even it they needed an expensive repair, such as replacing the compressor. Compressors typically cost $500 to $600 at the time.

Unlocking Compressors-Building Credibility

Frequently people called Hendel’s and inquired about the cost of compressor replacements. The customers were always asked “How do you know your compressor needs to be replaced?” We offered our customers a free second opinion. Many times our technicians found the compressors had not failed but were just “locked up.”

Repairing the compressor for just the cost of a service call instead of paying $500 to $600 made our customers very happy. They told their friends and the word-of-mouth advertising was far-reaching. We also changed our Penny Saver ads to read, “YOUR COMPRESSOR MAY NOT BE BAD. Just call Hendel’s for a free second opinion.” Our credibility increased and we gained many new customers.

Hendel’s Showroom

Antique Collections Enhance the Showroom

One day Linda and I took the kids to the Miner’s Camp Restaurant in Mesa. I noticed a large potbelly stove in the lobby of the restaurant. I mentioned to Linda that because we were in the heating and air conditioning business it would be nice to display that old stove in our store window. I asked the owner if the stove was for sale and he said he would take $1800 for it. Linda and I didn’t have that kind of money but a few weeks later I found a similar one at a neighborhood garage sale and purchased it for $250. I put the stove on display and then thought that it would be appropriate to have something to represent the cooling end of the business.

Every Saturday morning on the way to work I stopped at a few garage sales. Not only did I collect old electric fans, I began collecting other things like antique tools, radios, toys, bicycles, flashlights, cameras, and many other items!

After several years I had quite the collection. I decided to enhance the showroom by intermixing all the different air conditioners in the showroom with antiquated objects. So I brought my various antique collections into the showroom and put them on display. The collections have brought a surprising amount of attention to Hendel’s Air Conditioning showroom. The displays became so popular that I appointed one of the employees to conduct tours.

We currently have a desert botanical garden under construction that is nearing completion. Here again we used our unique marketing philosophy to dedicate a portion of the floor space in order to draw people’s attention. In addition the various displays at Hendel’s creates a very soothing atmosphere.

Hendel’s Applied Computer Technology Early

At the rate Hendel’s was growing Linda and I decided to purchase a computer. We went to a Radio Shack store and purchased a model # TRS-80 with an 8 inch monitor. Our banker thought we were loony when we borrowed $7,000 for computer equipment. That early-model computer was a great investment as it allowed us to become computer literate. It helped manage the company’s inventory and customer records at that time.

In the mid-1980s our son Robert was attending Arizona State University and studied computer programming. One day Robert advised us that our computer we were so proud of was a “piece of junk” and he recommended a new Apple Macintosh computer. Robert became interested in the company and began developing the databases that eventually became a central management tool and a major factor in our ongoing success.

Robert’s programming skills have helped the business maintain inventory control, handle all the accounting functions including payroll, general ledger, receivables, payables, track advertising dollars, maintain customer records, record mechanical measurements, cross reference files, etc. Over the years the company has downloaded and stored on its hard drives the equivalent of the white pages of the Phoenix phone book.

Linda Hendel | Laurie Hendel

Sophisticated Computer System

The advanced computer system now runs on a series of networked Macintosh computers throughout the building. Hendel’s salespeople can generate a complete and professional proposal package in less than a minute. Robert also developed systems for dispatching technicians, storing mechanical measurements and customer records. He even developed a system for tracking the source of customer inquiries.

Hendel’s knows exactly where every new customer comes from. Currently 19% of new business comes from Yellow Page ads, 6% from the Internet, and 37% from people who drive by and see the new building, 16% from referrals, 18% from radio advertising, and 4% from other sources. The system developed by Robert has brought a level of efficiency and customer service not seen in the air conditioning industry.

Comparison Shopping Increases Sales

The original 1,200 square foot retail space in Tempe was later expanded to 4,500 square feet. One day Doug Bahr, a sales rep for Central Distributing, visited me. Although it was never my practice to accept supplier invitations to lunch, he insisted that I visit him to see a revolutionary new product. It was about 1988. Doug showed me an old air conditioning unit alongside a new one. He handed me an amperage meter and I measured the amount of current being used by both units. I was amazed to see that the new unit used about half the energy of the old one! Clearly there had been a major design improvement in the way the compressors operated!

Coincidentally, that same week Linda and I were shopping for a new refrigerator. We visited an appliance store and noticed about twenty refrigerators side by side. I looked at Linda and said, “Why don’t we display air conditioners like this? We’ll be the first company to offer our air conditioning customers comparison shopping.”

Again we copied an idea and set up two air conditioners in our small showroom at Baseline and Price. The display compared an old unit and a modern high-efficiency unit. We invited customers to come in and see the savings they could realize by converting to modern day air conditioning. Overnight our new air conditioning unit sales increased! The concept was so successful, that almost everyone who came to the showroom purchased a new unit.

A/C Product Comparison | Hendel’s Crane

Hendel’s Buys a Crane to Improve Efficiency

We had to hire crane service to lift air conditioners onto rooftops. I noticed a lot of time was wasted while our employees waited for sub-contracted crane service. Sometimes the crane was delayed several hours before it arrived at the job site even though our employee had been there on time. In 1996, Linda and I decided it was time to buy our own crane.

The crane was very expensive but we knew it would be a sound investment. This has helped increase our efficiency a great deal! We schedule the crane to get to the job site at the same time as our employees. Currently we are able to install as many as nine new air conditioning units per day.

Hendel’s Again Needs More Space

By now we had met our challenges and everything was rolling along smoothly except for one thing, we needed more space. One day I was driving through an industrial area I noticed a flooring company had just moved into a new building. Next door was an auto repair shop that owned their building. I also noticed that a paint supplier had its own building too. I thought, ‘If these companies can afford their own buildings, why can’t we?’

Linda and I set out to look for land. I remembered the type of location that worked well for gas stations. We wanted a place on a busy street so that we would enjoy a great amount of exposure. One day, on our way to our accountant’s office, we noticed a for sale sign on Arizona Avenue right on the Chandler-Mesa border. The location was centrally located in our service area and on one of the busiest streets. I inquired and learned the seller was asking $370,000 for the property. We negotiated the price and purchased the land for $300,000. We then began making plans to construct our own building.

Linda and I had never designed a building before so we drove around until we found a building that we liked. We also looked at various interior designs. We copied ideas from car dealerships and other ideas from commercial buildings. We requested bids from various contractors but were not satisfied with the proposals that we received.

One day we received a proposal in the mail from JCI Construction that was professionally prepared. We were so impressed we hired the company to construct the building. The contractor was good to work with but we experienced many problems with our architect. He insisted the building we wanted would be too tall, didn’t like the rounded corners that we wanted, and had many other conflicts with our ideas. The architect wanted to design it his way and only his way.

We applied for a City of Chandler building permit. It took a full year to get the plans approved by the city’s planning department. At times I would sit outside the planning and zoning offices and wait for hours to get the approval that I needed. However, once the building was under construction it took only 5 months to complete. Once we had our new 13,000 square foot building we now had the capacity to expand our showroom concept.

Hendel’s New Location | Hendel’s New Showroom

Hendel’s One of a Kind Beautiful New Showroom

Now we are able to display every brand of air conditioner. A lot of time was spent designing and decorating the showroom with the many antique collections including a tool collection, old fans, historic bicycles, and several operating toy trains.

Again we dedicated a portion of our floor space to gain our customers’ attention. We combined a new building with a highly efficient operation and the result was that the business blossomed. Although the building was expensive it has proven to be one of the best investments Linda and I have ever made.

In conjunction with the new building the employees of Hendel’s developed a new approach to receiving and preparing new air conditioning units for installation. Instead of uncrating them at the customer’s home Hendel’s employees set up an area within the warehouse they called the “prep” station. Units are removed from their crate and inspected to make sure they’re properly assembled and not damaged. Then all necessary electrical components–high voltage, low voltage wiring, and disconnect–are pre-installed to save time during installation. Everything possible is done in the warehouse and this substantially shortens the installation time.

After seeing the movie “Top Gun” we dedicated a portion of our warehouse as our “ready Reserve Flight Deck.” A substantial stock of fully prepped units is ready for immediate installation. If a customer needs a new air conditioner as late as 3:00 p.m., our crews can install it and be finished in a couple of hours. To the best of my knowledge no other competitor can compete at this level.

Our son Robert has worked hard developing and constantly upgrading our computer systems. We have a network of ten computer stations and are able to communicate efficiently between offices. Our daughter Laurie came to work at Hendel’s as well. Laurie caught on very quickly and then she became the number one sales person, outselling all others. After a little over a year at Hendel’s Laurie has taken charge of the office staff. She sets the work schedule, is responsible for payroll and handles the business accounting. Laurie has become one of three managers who direct the company.

With a beautiful new building, a bulging warehouse, a new crane, the prep station, our exclusive ready reserve flight deck, a second-to-none computer system, an all-star cast of conscientious employees, Hendel’s is poised to greatly increase its level of business. With this goal in mind I began to explore new ways to advertise and market the business.

Radio Ad Studio

One day I made arrangements with a radio station to play an ad I had written. I wanted to continue our advertising strategy of using about half of the ad time speaking on a subject unrelated to air conditioning, somehow tying the subjects together. I was surprised when the recording engineer asked me to voice the message. To my amazement I didn’t sound too bad! So I continued to write new ads and voice them myself. It would take several hours to write the ad, drive to the radio station, voice the ad, and then wait until the technicians edited it.

To more efficiently produce radio ads we purchased editing equipment and set up our own sound studio within the new building. Today we can create a new ad, voice, edit and compress it, and then e-mail it to the radio station all within one hour. As with other forms of advertising we used up to one-half of the ad time talking about an unrelated subject in order to get people’s attention. The radio ads have been successful and our studio has provided me a platform to express my views on topics of interest. The radio stations tell us we are the only company that has this type of technology.

The business has gained more than substantial recognition within the air conditioning industry. Manufacturer’s representatives from all over the country regularly visit Hendel’s. They consistently agree that Hendel’s is the most extraordinary air conditioning company they have ever visited!

A regional manager of the American Standard Trane Co. said, “There’s no other air conditioning company that even begins to approach what you and Linda have done here.” The president of Lennox Industries International recently visited Hendel’s and stated, “I’ve visited air conditioning companies all over the world. With your beautiful building, your warehouse, showroom and computer system, Hendel’s is the finest air conditioning company I have ever seen.”

Hendel’s New Showroom | Joe and Linda Hendel

Joe and Linda Retire

In January 2002 Linda and I announced our retirement. Linda and I realized that a full retirement will take some time but we are confident that with the leadership of Ted Janssen as the service manager, our daughter Laurie and her husband Rob managing the office staff and handling the business accounting, and with our son Robert developing more sophisticated computer software, that the company will continue to grow and prosper.

Robert Hendel

I started working at Hendel’s when I was 16 years old. I cleaned up the back of the shop after school. I gained some retail experience and then attended Arizona State University, majoring in finance.

I helped a friend of the family make a database template in Filemaker 2.0 to prepare some proposals that they were typing. In 1994, when I was 22 years old, I obtained a copy of Filemaker 3.0 and figured out how to set up a relational database.

Originally I set up a database to handle all the service calls and estimates. I replaced a manual schedule system with computer system based on an Apple Localtalk network. No one wanted to give up the reliable manual system but one night I made the change. The next day everyone was forced to use the computer system that I had set up.

I worked for Hendel’s for six years and continued to improve the computer system. I also designed computer programs. I worked in sales, marketing, handled the newspaper ads. I set up the computer programs to handle the inventory control, payroll, and Internet access. I developed a referral rebate program that grew 300% per year for the first three years.

Now the system is so sophisticated that once a day it summarizes everything that has happened and sends an email to Mom and Dad, at any desired location, anywhere in the world! We have taken mechanical measurements from thousands of homes and downloaded the data. Frequently we can access the data on a job site before our estimator arrives.

I was one of the top salespeople while working at Hendel’s. For a while I worked in the sheet metal shop and I really enjoyed that. I obtained a certain satisfaction from actually making something tangible.

In 1998 I left Hendel’s for 1-1/2 years. I sold my home and traveled around the world. In 1999 I came back for a year. But my heart was not really in it so I took a job at a consulting company that used the Filemaker database. I really learned a lot about database design. I now have my own computer consulting company, Rob Hendel Consulting.

Hendel’s Air Conditioning is successful because we do things right and we do things efficiently. This includes being fair to everyone, both customers and employees. The long duration of hard work by my parents was more critical to Hendel’s success than the matter of timing. But starting an air conditioning in Arizona was a very good decision because it is one of the hottest places in the country.

One of the challenges in this business is that it is very difficult to budget. You make money for one-half of the year, during the summer, and then you lose money for one-half of the year during the winter.

I greatly admire my parents for who they are and for what they have accomplished. They are very good at budgeting money. For a long, long time they did not take money out but kept putting it back in the business.

As far as the future is concerned, I think that five years from now Hendel’s will be at the same location. It has always been a family business. The family is continuing to grow and the business will continue to grow.

One day in June 1993 when it was 122 degrees our answering machine had 60 incoming calls. I went to the shop at the end of the day and the schedule was completely full. People came to the front and the back of the store and knocked on the door trying to get in the store because they needed service. I realized that you couldn’t live without air conditioning in Arizona and how important air conditioning is here.

Laurie Hendel

I started working at Hendel’s in January 1998 when I was 22 years old. I had worked as a waitress and wanted to get out of the restaurant industry, so I came to Hendel’s and starting answering phones and helping with the bookkeeping.

I started at a very low wage, worked 50 hours per week. I opened the store every morning. I didn’t know anything about the equipment so I just started watching and listening. I kept my ears open. Sometimes I would go near a salesperson and a customer while pretending to be dusting just so I could hear what was being said. In this way I actually learned how to sell air conditioning equipment.

By listening and watching I learned a lot and found that I could frequently answer customers’ questions when they came to Hendel’s. After two years I began to sell. I became successful because I acquired a lot of product knowledge.

I eventually became the top salesperson at Hendel’s. Some people were reluctant to deal with a woman but I proved myself with my confidence and product knowledge.

Laurie Hendel

I am very proud of my parents for how hard they have worked, for how they have organized things, and I realize the responsibility of assuming the accounting functions from my mother, after she has handled it for 33 years. But I am hard working and it is just a matter of time until I learn all the aspects of accounting.

We hire quality people and do top notch work at a competitive price. Customers will continue to recommend Hendel’s. Hendel’s biggest challenge will be to continue to find and employ quality people. Sometimes people think that working for a family organization would be a challenge but it is not because we are here for the long haul. We will always treat our employees the same way we treat our customers, fairly.

Hendel’s is without a doubt the most unique air conditioning company in the entire world!

Ted Janssen

I have been working at Hendel’s for 22 years, as of this year, 2003! When I first came here I had just completed air conditioning school. I came to buy a part and Joe hired me to sell parts at the counter and assist with the telephone traffic and dispatch.

I didn’t know much about the equipment at first and handled the parts purchases for a while. However, I did go out in the field with the technicians and learned a great deal from them. I worked several summers in the field and learned to be an accomplished tech. This experience helped me handle my management responsibilities at Hendel’s.

I currently manage the entire service department. I make sure we have sufficient staff to handle our workload. I also maintain more than an adequate inventory of parts and supplies. My position requires me to deal with time-sensitive issues and communicate with customers. I am the “answer man” for the entire service department.

Ted Janssen

While I was in the service I learned how to deal with responsibility and once I am committed to something I continue with it! There is no reason to walk away; there is no reason to go anywhere else. I never had a father figure and Joe has, in many ways, filled that role for me. I have learned a great deal from him and he has taught me much of what I needed to know in life.

I admire Joe and Linda for their honesty. They truly care about customers and this has been instilled in me. Joe is very organized and I have learned to be organized too.

Humorous Stories

Unexpected Gift

Some interesting things have happened over the years at Hendel’s. One day, two ladies came into our showroom and they asked if Hendel’s could make a small donation to a charitable organization that helps abandoned children. The gift we offered was a small box with a roll of adding machine tape inside. The adding machine tape had $50 worth of coins and dollar bills taped to the roll. Also, at the end of the tape there were three chips from Harrah’s Casino. On top of the box there was a tab marked “pull.” As the tab was pulled a long ribbon of money could be drawn from the box. Even though Linda and I attended their social event we could not stay for the drawings to see who won our small donation.

The next day, a Mrs.Vera Janson called and said, “Oh thank you! That was such a nice and unusual gift. We enjoyed opening it.” About five months later she called back and explained that after she won the prize her husband passed away and she had been unable to drive. Finally she got a neighbor to take her to Harrah’s Casino. She said, “I inserted the first coin in one of those big slot machines and won a $25,000 jackpot.”

Hendel’s Community Works

A New Boat, by Ted Janssen

We were on a company outing at Roosevelt Lake. It was my first or second summer working at Hendel’s. Joe had a new motor home and a boat. We noticed that a summer storm was brewing so we took shelter in the motor home. It was a powerful thunderstorm.

Suddenly Joe became concerned that the boat was not properly moored and that it might break loose in the storm. He wanted everyone to go out and help secure the boat. Joe counted, “One, two, three,” and ran out the door. We laughed and just closed the door behind him. The wind was blowing and the rain was pouring down. We finally went out and helped Joe secure the boat.

Summary

Some interesting factors and ideas contributed to the success of Hendel’s Air Conditioning:

Linda and I worked hard, especially in the early years.

We studied successful businesses and copied the elements of their success.

Linda was committed to the business and made sure that we had accurate bookkeeping.

Over the years Hendel’s employees have contributed many wonderful suggestions.

Hendel’s Employees | Old Sayings

Linda and I displayed a fair measure of common sense.

We received an abundance of help from our children and they are now managing the company.

We were fortunate not to have made any big mistakes.

Strangely enough many decisions we made were based on my belief that old sayings were credible.