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HVAC to Home Performance - A Quick Business Case
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HVAC to Home Performance - A Quick Business Case

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HVAC to Home Performance - A Quick Business Case HVAC to Home Performance - A Quick Business Case Presentation Transcript

  • HVAC-2-HP WHY SMART HVAC COMPANIES ARE MOVING TO ’S G OOD HOME PERFORMANCE HINT: IT S!! BUSI NESA MIKE ROGERS VANTAGE POINT© 2012 Mike Rogers
  • Hey, HVAC Contractor…
  • WHAT IF YOU COULD MAKE MONEY?
  • WHAT IF YOU COULD MAKE MONEY? AND MAKE YOUR CUSTOMERS’ HOMES BETTER?
  • WHAT IF YOU COULD MAKE MONEY? AND MAKE YOUR CUSTOMERS’ HOMES BETTER?AND MAKE THEIR LIVES BETTER!?
  • WHAT IF YOU COULD MAKE MONEY? AND MAKE YOUR CUSTOMERS’ HOMES BETTER?AND MAKE THEIR LIVES BETTER!?AND HELP OUR COUNTRY INCREASE SECURITY AND INCREASE ENERGY INDEPENDENCE?
  • AND AS A BONUS,REDUCE POLLUTION ANDFIGHT CLIMATE CHANGE?
  • AND AS A BONUS,REDUCE POLLUTION ANDFIGHT CLIMATE CHANGE? e part e chang climat ve it! et the ’t belie O K, forg ou don if y
  • AND AS A BONUS,REDUCE POLLUTION ANDFIGHT CLIMATE CHANGE? g makin on the focus art? anna ney p W mo
  • YOU CAN!
  • HOME PERFORMANCE IS A GAME CHANGERFOR THE HVAC CONTRACTOR
  • LEADERS AREN’T WAITING!
  • WOULD YOUR BUSINESS WORK WITH HIGHER MARGINS?
  • WOULD YOUR BUSINESS WORK WITH HIGHER MARGINS?HIGHER REVENUES AT HIGHER MARGINS?
  • WHAT IF YOU COULDDIFFERENTIATE BETTER?
  • WHAT IF YOU COULDDIFFERENTIATE BETTER? REDUCE CALLBACKS?
  • WHAT IF YOU COULDDIFFERENTIATE BETTER? REDUCE CALLBACKS? REDUCE SEASONALITY?
  • WHAT IF YOU COULD DIFFERENTIATE BETTER? REDUCE CALLBACKS? REDUCE SEASONALITY?TAKE CUSTOMER SATISFACTION TO MUCH HIGHER LEVEL?
  • YOU CAN
  • I know I’m repeating myself, but HOME PERFORMANCE IS A GAME CHANGER FOR THE HVAC CONTRACTOR
  • AND THE HVAC CONTRACTOR IS VERY WELL-POSITIONED TO THRIVE
  • Taking liberties with the word order of the acronym,HVAC is:HEATINGCOOLINGVENTILATING
  • Done well,HVAC is NOT:JUST A BOX
  • Done well,HVAC is NOT: Even shap if it’sJUST A BOX ed, s ized, yo u r favo rite or co lored box
  • It’s time to movebeyond “box only” solutions
  • LET’S TAKE A LOOK AT WHERE YOU CAN GO
  • HOME PERFORMANCE MEANSBIGGER JOBS HVAC     HVAC  +  HPC     Average Ticket Size $5,500-­‐7,500     $8,000  -­‐  $15,000  
  • HOME PERFORMANCE MEANSBIGGER JOBS HVAC     HVAC  +  HPC     Average Ticket Size $5,500-­‐7,500     $8,000  -­‐  $15,000   Gross Margins 38%  -­‐  45%     45%  -­‐  50+%  
  • HOME PERFORMANCE MEANSBIGGER JOBS HVAC     HVAC  +  HPC     Average Ticket Size $5,500-­‐7,500     $8,000  -­‐  $15,000   Gross Margins 38%  -­‐  45%     45%  -­‐  50+%   Close Rates 35%??   As  good  or  be*er!  
  • HIGHER REVENUE, MARGINS, AND CLOSE RATES…quickly boil down tohigher profitability!
  • “but that’s not all!”
  • HOW DO YOU DIFFERENTIATE? –  Fully Insured? –  Bonded? –  Licensed? –  Experienced Techs? –  Free estimates? –  Emergency service? –  Guaranteed low prices? –  Better Business Bureau
  • HOW DO YOU DIFFERENTIATE? –  Fully Insured? So is your competition –  Bonded? So is your competition –  Licensed? So is your competition –  Experienced Techs? So does your competition –  Free estimates? So does your competition –  Emergency service? So does your competition –  Guaranteed low prices? So does your competition –  Better Business Bureau So does your competition
  • HOW DO YOU DIFFERENTIATE? –  Fully Insured? So is your competition –  Bonded? So is your competition –  Licensed? So is your competition –  Experienced Techs? So does your competition –  Free estimates? So does your competition –  Emergency service? So does your competition –  Guaranteed low prices? So does your competition –  Better Business Bureau So does your competition OK, not all of your competition, But many, and this isn’t enough!
  • Home Performance Separates You From the CrowdContractor I Contractor X Contractor LContractor A Contractor G Contractor SContractor M Contractor H Contractor CContractor Z Contractor B Contractor FContractor J Contractor R Contractor K
  • Home Performance Separates You From the CrowdContractor I Contractor X Contractor LContractor A Contractor G Contractor S HomeContractor M Performance Contractor H Contractor C ContractorContractor Z Contractor B Contractor FContractor J Contractor R Contractor K
  • Diagnostics help you find root problemsSolutions deliver results you can count on And customer satisfaction soars!
  • “Finally our family room iscomfortable. It’s like I have acompletely different home.”
  • EVER HAVE A SLOW DOWN,OR HAVE TO LAY PEOPLE OFF?
  • Volume (Revenue) HVAC Seasonality HVAC  
  • Volume (Revenue) HVAC Seasonality your mileage may vary, but the same HVAC   principles apply
  • HVAC Seasonality There are peaks, when it’s tough to keep upVolume (Revenue) your mileage may vary, but the same HVAC   principles apply
  • HVAC Seasonality There are peaks, when it’s tough to keep upVolume (Revenue) And there are valleys when you worry about paying the bills HVAC   and sending everyone home
  • (Seasonality hits other trades, too) Volume (Revenue) HVAC Insulation Windows
  • Home Performance Reduces Seasonality! Volume (Revenue) HVAC Insulation Windows HPC
  • Home Performance Reduces Seasonality! Volume (Revenue) THERE ARE A COUPLE GOOD REASONS FOR THIS HPC HVAC Insulation Windows
  • THERE ARE MORETHINGS TO MAKETHE PHONE RING•  Furnaces•  Air-Conditioners•  Insulation•  Windows•  & More
  • THERE ARE MORE w/ COMPREHENSIVETHINGS TO MAKE SOLUTIONS TOTHE PHONE RING APPLY EACH VISIT•  Furnaces •  Furnaces•  Air-Conditioners •  Air-Conditioners•  Insulation •  Insulation•  Windows •  Windows•  & More •  & More
  • And it all comes together and works in part because
  • And it all comes together and works in part because HOMES SUCK!
  • OK, the more politically correct way to say that isMOST HOMES DON’T PERFORM AS WELL AS THEY SHOULD, AND THEY HAVE SOME PROBLEMS
  • AND IF HOMES HAVE PROBLEMS, HOMEOWNERS HAVE PROBLEMS Poor Air Quality High CO Wet Crawlspace Hot Rooms or Basement Condensation on Cold Rooms Windows Drafts Mold & MildewNoise from Outside Ice Dams Excessive Dust UV Damage High Energy Bills Old HVAC
  • If you understand the problems,And if you can offer REAL SOLUTIONS , You have a REAL OPPORTUNITY!
  • BUT LET’S GO BACKAND LOOK AT THE PROBLEMS
  • WHAT CAUSES THESE PROBLEMS? Poor Air Quality High CO Wet Crawlspace Hot Rooms or Basement Condensation on Cold Rooms Windows Drafts Mold & MildewNoise from Outside Ice Dams Excessive Dust UV Damage High Energy Bills Old HVAC
  • Most Houses Don’t Work
  • Air leakage Robs You
  • Poor Insulation Doesn’t Maintain
  • Leaky Ducts Don’t Deliver
  • Inefficient Lighting and Appliances Fight HVAC and Raise Bills
  • You can try to fix everyproblem in the home with anHVAC solution, BUT…
  • Have you ever installed really goodequipment as well as possible…
  • Have you ever installed really goodequipment as well as possible…and still neither fixed the problem?
  • Have you ever installed really goodequipment as well as possible…and still neither fixed the problem?nor made the customer happy?
  • And in the customer’seyes, you become the problem?
  • that hurts
  • callbacks cost money
  • and unhappy customersdon’t give good referrals
  • TO BE ASSURED OF RESULTS(AND PROFITS AND HAPPY CUSTOMERS)YOU HAVE TO TAKE CONTROL
  • TAKING CONTROL OFTHE HOME MEANS YOU DON’T RELY ON LUCK
  • TAKING CONTROL OFTHE HOME MEANS•  Tight, well-insulated enclosure•  Tight ducts•  Efficient lighting & appliances•  High-performing windows
  • TAKING CONTROL OFTHE HOME MEANS•  Tight, well-insulated enclosure•  Tight ducts•  Efficient lighting & appliances•  High-performing windows and•  Efficient, well-installed, and properly-maintained HVAC equipment
  • Fixing these problems can’t happen withcurrent standard practice That’s why the homes don’t work now!
  • Fortunately, you canturn standard practices on their head
  • Fortunately, you canturn standard practices on their head
  • From the diagnostics to installations,the skills are teachable
  • for example…
  • Using diagnostics andInvolving the Homeowner
  • Air-sealing example – Plumbing Stack
  • Air-sealing– Flue Example
  •     FIX       Sign  of  a   problem  h8p://www.greenhomelogic.com/air-­‐sealing-­‐gallery.shtml  
  • Take HVAC best practices and enhance themConsultativeSelling Works LISTEN, LISTEN, LISTEN and Educate Along The Way
  • Present a report that reminds and reinforcesReport  example  used  by  permission,  Chicago  Home  Performance,  www.ChicagoHomePerformance.com    
  • HVAC Contractorshave unique advantages
  • HVAC Contractors have unique advantages(An arsenal other contractors don’t have)
  • HVAC Contractors Have:•  Large active customer base, especially Maintenance Agreement base – and the systems to track them•  Service techs - the perfect lead source•  Mechanical equipment expertise•  In-home sales experts•  A head start in licensing, permitting, and rebate processing
  • This shouldn’t be a surprise!HVAC Contractors Have:•  Large active customer base, especially Maintenance Agreement base – and the systems to track them•  Service techs - the perfect lead source•  Mechanical equipment expertise•  In-home sales experts•  A head start in licensing, permitting, and rebate processing
  • There are even state, utility, and federal programs that you can tap into
  • There are even state, utility, and federal programs that you can tap into for example…
  • Home Performance with Energy Star
  • But don’t build your business around a program
  • But don’t build your business around a program Programs change,sometimes turning on a dime
  • Fortunately, you don’t have to.Home performance makes sense without any program
  • As one of my heroes said recently, If the program disappeared tomorrow, we would keep doing it. Home performance makes sense for our business. -Jerry Unruh ABC Cooling
  • As one of my heroes said recently, If the program disappeared tomorrow, we would keep doing it. Home performance makes sense for our business. -Jerry Unruh ABC Cooling
  • Home Performance makes sense for an HVAC business
  • CAVEAT
  • ACTUALLY,A BIG CAVEAT
  • YOU MAY HAVE GUESSED…HOME PERFORMANCEIS NOT MAGIC!
  • YOU MAY HAVE GUESSED…HOME PERFORMANCEIS NOT MAGIC!GET HVAC FUNDAMENTALSRIGHT FIRST, BEFORE HP
  • •  Build service/maintenance agreement base first – active customer base is critical•  Home performance adds complexity – you need a solid CRM platform in place•  A regular, active, and ongoing in-house training program is essential•  Know your numbers! Does this fit?
  • AND YOU HAVE TO DECIDE:BUILD IT MYSELF, AND CRAWLTHROUGH THE BROKEN GLASS?OR GET SOME HELP FORFASTER SPEED TO MARKET?
  • DO I BRING HOME PERFORMANCEIN-HOUSE, OR DO IT WITH SUBS? These are much longer answers—and ultimately YOU have to answer them!
  • DO I BRING HOME PERFORMANCEIN-HOUSE, OR DO IT WITH SUBS? These are much longer answers—and ultimately YOU have to answer them! (I certainly have thoughts on what works best and why)
  • WHY HOME PERFORMANCE NOW?$ Higher revenue, higher margins, and…$ Higher profits!$ Opportunity to capture the flag$ Separate yourself from competition$ Higher customer satisfaction$ Lower seasonality & fewer callbacks$ And in some areas: exclusive cash rebates and financing options
  • Thank you for making it this far. Mike Rogers
  • WANT TO KNOW MORE?Please tell me what you think Michael Rogers, President, OmStout Consulting Mike Rogers is a nationally recognized expert in home performance contracting. Previously, he was Senior Vice President at GreenHomes America. a leading home performance contractor and franchisor. For GreenHomes, Mike led the creation of the systems across all aspects of the business. He guided the operations at the incubator location in Syracuse, NY, and led the transition to home performance at franchise locations. Prior to joining GreenHomes, Mike had an 11-year affiliation with the U.S. EPA as an employee and twitter consultant, holding various positions. In particular, he was a lead developer and primary supporter of the Home Performance with ENERGY STAR (HPwES) program jointly run by the U.S. EPA and U.S DOE. @EnerGMatters Coming from a family contracting background, he has extensive experience to home performance contracting, from individual homes to the state and federal level. For 15 years he has been a frequent presenter at national conferences and meetings in the energy-efficiency, green building, and indoor air email quality industries. Mike has a B.S. in engineering from the University of Illinois and an MBA from the Kelley School of Business, Indiana University.mike.rogers@omstout.com When not working on broader energy issues, Mike works on improving the energy efficiency of his own home, He likes to kayak, bike in the Champlain Valley and hike in the Northeast, Grand Canyon, or anywhere else he can.