Acquisition-related expenses impact XPEL’s second quarter results

The San Antonio Business Journal highlights Expel’s second quarter loss here.

Madico Applied Window Films Receive NFRC Certification

A bronze medal is not all that bad… Madico Inc. is now the third window film manufacture to receive NFRC Certification. We reported the enormous significance of NFRC Certification and window film here. Who will be next to jump on board?

We anxiously await:

Johnson Window Films

3M

Geoshield

Global

Hanita Tek

SunTek

and the rest of the gang to do the right thing…

-vc

CPFilms focuses pan-European activities: Kevin Bryer is made new Business Operations Director for Europe

In the last two years CPFilms has undergone a radical change. In 2006, in order to standardise the European and global brand presentation, including all sales offices, and to strengthen their leading position in the premium sector for special films, CPFilms combined all product areas under the umbrella brand name LLumar.After the successful, strategic re-design, Kevin Bryer will in future be in charge of Business Operations in Europe. His areas of responsibility will be S&OP, Logistics, Purchasing and Supply, Storage and Facilities and Order Processing. Kevin Bryer therefore holds an important executive position in which he will concentrate on improving the efficiency of business operations and customer service. A business’ success all depends on the service it provides and the ability to supply goods. “My main goal is to continue strengthening and consolidating customer satisfaction and confidence in LLumar”, says Kevin Bryer. In addition to the expansion in the automotive sector, Bryer also sees enormous potential in the sheet glass sector. The idea of saving energy using shades and UV protection films has never been more relevant than it is today. In the coming months LLumar will position itself more strongly than before as a competent solutions provider. Arthur Bowyer, who as Managing Director of CPFilms Europe was extremely successful in developing and building up the European market in the past, will take voluntary retirement at the end of the year. His successor has not yet been named. Markus Kaules will assume responsibility for the entire European market immediately as Commercial Director. In his role he is responsible for Sales, Marketing, Services and Market Development in the established European markets and in the expanding Eastern European markets. Under Kaules’ direction, the LLumar brand will continue to be promoted as a synonym for innovative and high-quality glass films. Intensive brand communication is given highest priority within the partner network, to give weight to LLumar’s claim to market leadership in Europe and to promote the brand more clearly than before. As the new Sales Director for Europe, Volker Reichert is responsible for sales offices in Germany, the UK and France, as well as for distributors in other European countries. Volker Reichert reports directly to Markus Kaules. In his role he supports the branches with relevant sales activities, and ensures the sales partner network continues to grow, especially in the sheet glass sector. Christopher Tapley is the new Marketing Manager for Europe. As a marketing professional he is responsible for the further development of marketing measures and for using them for a pan-European brand presentation. He is also tasked with promoting active communication in all areas. Notice for editors: LLumar® is a registered trademark of CPFilms Inc., unit of Solutia Inc. CPFilms Profile Solutia’s CPFilms Inc., is the world’s largest producer of high-quality, aftermarket window films and a leading supplier of high-value precision-coated film and film components sold to a variety of businesses. The business manufactures films that provide comfort, aesthetics, energy savings, safety and security when applied to glass. Our LLumar films are designed to meet worldwide standards, carry a factory-backed warranty, and are professionally installed. For more information about LLumar products, log on to www.llumar.com. CPFilms Inc. is a subsidiary of Solutia Inc. Corporate Profile Solutia Inc. uses world-class skills in applied chemistry to create value-added solutions for customers, whose products improve the lives of consumers every day. Solutia is a world leader in performance films for laminated safety glass and after-market applications; chemicals for the rubber industry; heat transfer fluids and aviation hydraulic fluid; and an integrated family of nylon products including high-performance polymers and fibers. For more information about Solutia log on to www.solutia.com. Solutia… Solutions for a Better Life. For publication: CPFilms Solutia UK Ltd 13 Acorn Business Centre Northarbour Road Cosham, Portsmouth, PO6 3TH Telephone: +44 (0) 23/92 21 91 12 Telefax: +44 (0) 23/92 21 91 02 E-Mail: marketing.cosham@cpfilms.co.uk Internet: www.llumar.co.uk Press contact: public touch - Agentur für Pressearbeit und PR GmbH Sigi Riedelbauch Marktplatz 17, D-91207 Lauf Tel.: +49 (0) 91 23/97 47-13 Fax: +49 (0) 91 23/97 47-17 E-Mail: riedelbauch@publictouch.de

August 21st, 2008 Source: CPFilms

Advanced flat glass products’ market in U.S is estimated to augment by 2012

Bharatbook.com added a new report that provides information on paints and coatings industry forecast in U.S Market penetration and the increasing acceptance of a variety of advanced flat glass products are forecast to be reflected by the growing demand for advanced flat glass, 5% annually. The demand is expected to reach $7.2 billion by 2012 in U.S. The advanced flat glass products include laminated glass used in glide vehicle sidelites and sunroofs, and antiburglary or ballistic glass; smart glass for solar control applications; self- leaning glass; and heads-up display glass. Smart glass, which has been held out the most promise among the advanced flat glass products, can automatically change its light transmission qualities as a means of saving energy and reducing heat gain in structures. While the expected impact of these products has been slow to develop, it appears that commercialization is finally beginning to materialize. Laminated glass products, used in a variety of applications, including safety glass, ballistic glass, anti-burglary glass and hurricane glass, are increasing their share of total flat glass demand. These products possess much greater strength than competing tempered or annealed glass, offering performance advantages to a variety of flat glass users, including builders and manufacturers of motor vehicles, aircraft and other transportation equipment. Although motor vehicles will remain the largest single market for advanced glass products, more rapid gains will be posted in architectural markets. This will derive from a recovery in new home building activity, albeit from a weak 2007 base, coupled with the wide variety of new advanced flat glass products which are now penetrating the market. On the motor vehicle side, growth will be driven by the increasing inclusion of laminated sidelights, electro-chromic mirrors and heads-up display screens, offset in part by slow growth in vehicle production and competition from plastic film products, particularly in solar control applications. Bharatbook.com has included a new report titled “ Advanced Flat Glass forecasts for 2012 & 2017” which presents historical demand data and forecasts for the years 2012 and 2017 for security and safety glass (tempered and laminated vehicle safety glass, fire-rated glass, ballistic glass, burglary resistant glass and hurricane glass); solar control glass ( lowemissivity glass, reflective glass and smart glass ); and other advanced flat glass products (heads-up display windscreens, ultra clear and colorless glass, self-cleaning glass and miscellaneous products). In addition, the study considers market environment factors, evaluates company market share and profiles leading competitors. About Bharatbook.com: Bharat Book Bureau facilitates companies to take the lead of their industry with best practice business strategies and intelligence, through a unique combination of published reports, databases, country reports, company profiles and customized research services. Bharat Book Bureau provides strategic information tools to the executives, business analysts, and knowledge managers that will help them to probe into and support critical, timely business decisions and strategies. For further information kindly visit: http://www.bharatbook.com/detail.asp?id=18027

August 20th, 2008 Source: Bharatbook.com

Desperation -Cause and Effect

I received a call from a customer that I left a window film bid with the other day. No, she wasn’t calling to schedule the job… darn! Rather, she was calling to find out why my price was so much higher than the other company that bid on the job. I really appreciate it when a consumer calls back wants to know “why” in this case. The last thing I ever want to do is put pressure on a potential customer in order to close a sale, no way! To the contrary, I want to give this person answers, not just fluff but genuine answers to their questions so that she can continue in her decision making process.

So before I could answer this question I had to find out what I was being compared too. To my stupefaction I was not prepared to be totally blown away by the statement I was about to hear. “I had another company come out and the salesperson said ‘All window film does the same thing so you should just go with the cheapest price you can find‘” she tells me. “He said that?” I thought to myself… unbelievable! In all my years in this business I have heard a lot of desperate and utterly ignorant comments from my competition in hopes of closing a sale but this one ranks among the classics and one of the most concerning. I will explain why in a minute.

Now I had to ask what film was it that came in at the cheapest price, so I inquired and come to find out she was shown two different brands of metalized film with a dyed layer that did cost much less than the metal-free dye free film that I had quoted her. So I explained that the differences in film technology often affects the price of the job because some films cost us more to buy than others. I offered to come out and install the competing samples on her window next to mine (the competition did not offer to do that for obvious reasons) so that she could see the difference of one film technology compared to another. I went on to assure her that I do not want to pressure her into buying the film that I am selling, I just want her to see the difference and understand why I am so ashamed to hear that another window film professional has lowered himself to the level of teaching a consumer that all films do the same thing so really the only thing you need to be concerned with is finding the lowest price which he just happened to offer (-Btw it was really low).

Let’s break down his statement. “All window film does the same thing so you should just go with the cheapest price you can find.” There is a little bit of truth here that is surrounded by a lot of vagueness.

1. Not all window films do the same thing. We have solar control films that regulate solar energy, UV, and visible light. There are security films that retain glass, anti-graffiti films that protect glass, and decorative films that enhance glass. These types of films do not all do the same thing.
2. In this case let’s go with what I think he was referring too and that is “all Solar Control Films” do the same thing. True, they all regulate solar heat gain, UV transmission, and visible light transmission. Does mean that they are all equals? No, absolutely not! If we are to state that they are all equals in what they do then we are also inferring that they will all perform the same, have the same lifespan, and look the same years after they are installed. That is totally false and completely misleading. “It would be like saying that all vehicles do the same thing so you should just buy the cheapest one you can find…” or “all couches are the same so go for the cheapest one you can get.” How many people agree with that logic? Like automobiles and furniture Window Films are constructed differently with materials that vary in quality, appearance, and longevity. For instance, is a dyed film going to look the same in ten years as a ceramic technology film that contains no dyes? One will be purple and the other will not, but they both regulate the same 3 solar bands so can we say they are the same? No, we cannot say that. Films with UV absorbers in the adhesive only will lose their low UV transmittance far sooner than films with the absorbers in the polyester and the adhesive, can these be considered the same after one loses a considerable amount of UV rejection? Cheaper polyester can be cloudy looking compared to higher quality polyester making one film hazier than the next, are they equals? Some window films outperform others in solar energy rejection and some are designed to let more visible light transmit while at the same tie rejecting as much energy as a much darker film. Clearly and much to the contrary all solar control window films are not the same and obviously not the same price for good reason.

I am blown away by the desperation and lack of salesmanship that can be found in our industry. It is truly saddening. No, I am not trying to put any manufacturer’s products in a bad light because this dealer could have been representing any one of a number of window film brands. I am simply questioning business practices and those that support such practices. What I see is desperation in a segment of this industry… from the top clear down to the retail level.

Desperation breeds falsehood and this is often accompanied with unreasonably low price points that do not allow for healthy business growth and sustainability. This translates to numerous bad consequences for the consumer. The effects are far-reaching and eventually erode the credibility of our industry. For instance, what happens if the consumer we mentioned above purchases the cheapest film they can find assuming that they “are all equals” and then several years later it turns purple, or the adhesive begins to fail, or the UV rejection goes from 99% down to 93%? When they start seeing these things happen what are they going to conclude about “all window films” because after all, they are all equal? Here where the ripple effect comes in, think about it… she has had a bad experience with window film and she believes that they are all the same because that is what she was told. So what will she tell her friends and associates? The effect of one window film dealer’s desperate attempt to close a sale is far-reaching.

In my opinion anyone that makes such statements and at the same time considers themselves to be a window film professional is nothing but a sham. Shame on them! And shame on any company that knowingly chooses to do business with such dealers. Is that how you want your products to be represented? Yes, suppliers implicate themselves by association and many of you know full well what your dealers are doing on the street. I’ve heard the excuses, “we cannot restrict trade so we have to do business with these companies…” What a crock! You guys know how to deal with it but you choose not too. And what about the rest of us? Do we do business with companies that support our shady competitors? If so, then we become part of the problem as well.

It is time to bring accuracy and relevance to the fore and to stop supporting anything that undermines the credibility of a product that can make a tremendous impact on energy saving, comfort, security, and sun damage. Our products are a green solution when it comes to upgrading the performance of glass versus manufacturing a new replacement window. Window film has a much lower return on investment when compared to other energy saving solutions and can usually be implemented for a modest cost. There are many well-made window films on the market that can meet or even exceed the expectations of most consumers so there is absolutely no ethical justification or need to propagate falsehoods in order to sell these films to the consumer. Let’s do our part and clean out the bad apples and maintain a good name and a healthy industry!

-vc

My Rep Stopped By…

So my rep comes to visit me which is something that I look forward too because I can see that he is genuinely interested in helping me grow my business. He is not the typical hat and T-shirt throwing rep, nor does he just show up to take me out to lunch or dinner (I do make sure he does not forget though!). To the contrary, he always seems to bring something that I am in need of. On his last visit he tore apart my sales presentation, not just mine but everyone in the company. After rearranging and unifying our company message, he proceeded to accompany some of my staff out on sales calls to see how they were doing. Since then I have seen more sales close company wide.

I can think of a lot of things to be critical about when it comes to my suppliers but my rep has always gone above and beyond the call of duty to help me out and for that I am very appreciative. In fact, on this last visit while I was chowing down (on my suppliers’ tab) at a restaurant that I normally wouldn’t dine at due to the expense, I had a reflective moment as my rep was picking up the tab (I do have a conscience). I thought about how much money I spend per lead to capture my customers from the initial contact all the way through the finished installation. Man… I spend a lot of money on my customers! Yellow pages, home shows, coupon books, mailers, websites, referral fees, and the list goes on. Well then I look up at my rep signing the bill on a very expensive dinner.

I had to ask… “How much do you spend when you come to visit us?” I inquired. He stopped for a minute and thought about it out loud. “Hmmm, let’s see… I spent about $250.00 to fly out here… 2 nights at hotel is about another $250.00… rental car is $180.00 plus gas… I eat 3 meals a day plus take you out, obviously it is not cheap (-Lol)… when I return home, I have to pay to park at the airport $36.00… then there is my salary the company pays in addition to everything else.” He sums it all up by saying “If you see me face to face, the company has invested at least $1000.00+ in the visit.”

Wow! He’s been out twice in less than 12 months and that does not include all of the other stops that he makes in the course of a year. I never thought about it but I would venture to guess that it adds up to a hefty expense. Now I can see why he is not a hat and T-shirt throwing rep. There is an investment on his part and he needs to get a return on that investment out of me. So in response to his answer (while I was finishing the last of a nice bottle of Cabernet) I made him this promise. “I will do my best to implement all of your suggestions so I can be a worthwhile customer” I told him. To that I added… “and if my sales ever drop below expectation, next time I will order the salad.”

-vc

New Lighting Techology Could be An Alternative to CFL’s & LED’s

By now everyone is becoming aware of the antiquity and inefficiency of incandescent light bulbs. Over 90% of the energy used to power incandescent bulbs is radiated as heat. Many studies have been released that show the incredible impact that Compact Florescent Bulbs can have on energy savings. Some states and even a country have gone so far as to ban incandescent light bulbs.

Two problems arise with new lighting technology. CFL’s contain trace amounts of mercury which makes them incredibly hazardous and difficult to dispose of. LED technology is very promising as there are no hazardous materials to worry about, however it still remains rather expensive to implement.

While we await the pricing of LED technology to fall to more affordable levels a new promising technology has just received its patent. ESL™ technology uses accelerated electrons to stimulate a phosphor coating on the inside of a standard glass light bulb. The technology causes the surface of the glass bulb itself to glow and emit light; this is different than incandescent bulbs, which run a current through a filament inside the bulb, and LED lighting, which stimulate semiconductors to produce light.

With a greener manufacturing process and a 6,000 hour lifespan, these bulbs have the potential to be one of the best lighting alternatives. Look for ESL™ Bulbs to arrive to market around September of 2008.

-WFO

CP Films Releases a Re-Calulation of the Solar Energy Spectrum

If you do not have CP Films’ July 2008 Technical Updates Newsletter then you had better figure out how to get your hands on a copy. The article features and in-depth look at false and misleading claims about infrared transmission and rejection. Sound scientifically based reasoning is used to help readers understand what these numbers “mean and DO NOT mean” and the value and accuracy of using infrared measurements is reasoned upon very well. The most notorious infrared rejection claim in our industry is challenged and exposed so thoroughly as erroneous, inaccurate, manufactured, and misleading that it leaves one to reconsider whether they should even be using such information to sell and market window film. The accuracy of IR lamp demonstrations and measurement readings by common metering devices is put into question because of the selective broadcasting of energy by an IR lamp and the selective measuring of that energy by a metering device not to mention the possible calibration issues. A call to cease and desist these claims was made in order to preserve the good reputation of our industry and a recommendation to use the TSER and SHGC values to asses the true solar performance of films was issued once again. Hopefully, this call to action does not fall on deaf ears.

Most noteworthy to me was the re-calculations of the solar spectrum. Traditionally, our industry has always published the belief that 44% of the sun’s energy is from Visible Light, 3% from UV, and 53% from Infrared regions of the solar spectrum. Making good use of their $80,000.00+ spectrophotometer, LBNL’s Window 5.0, good mathematics and physics, CP Films’ Technical Services was able to recalculate the energy distribution and discover that the energy content of solar UV is 1.81%, Visible is 49.26%, and IR is 48.93%. “No one ever bothered to check the facts”, they say!

The newly recalculated energy distribution across the solar spectrum.

The article states that these calculations were “made in good faith” and that independent corroboration is welcome. I would urge any companies with the capacity to verify this information to do so for it changes not only our understanding of energy distribution but more importantly, the way we should specify, design, rate, and advertise the performance of window films. It underscores the importance using of total performance measurements like TSER and SHGC to asses the true solar performance of window films rather than regional measurements such as IR rejection or transmission. It will also change the way that manufactures market their products to window film dealers and hopefully it will change the way dealers are trained to sell window film to the general public.

Lastly, whether you love them or hate them there is no denying the incredible contribution that CP Films has made to our industry. This article is another good example of that fact. The need for total solar performance measurements that are accurately verified by independent third party organizations has become clear, and a foundation for a movement to window film certification by the NFRC has been well-layed. If our industry is to gain and maintain any kind of credibility with various organizations and the general public we need studies like this one to help us all see that accurate and relevant data is essential to the marketing and sales of window film.

-vc