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HVAC-2-HP
              WHY SMART HVAC COMPANIES
                         ARE MOVING TO
            ’S G OOD HOME PERFORMANCE
    HINT: IT S!!
       BUSI NES

A 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 AND
FIGHT CLIMATE CHANGE?
AND AS A BONUS,
REDUCE POLLUTION AND
FIGHT 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 AND
FIGHT CLIMATE CHANGE?
                            g
                       makin
                on the
           focus art?
       anna ney p
      W
           mo
YOU CAN!
HOME PERFORMANCE
   IS A GAME CHANGER
FOR 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 COULD
DIFFERENTIATE BETTER?
WHAT IF YOU COULD
DIFFERENTIATE BETTER?
  REDUCE CALLBACKS?
WHAT IF YOU COULD
DIFFERENTIATE 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:

HEATING
COOLING
VENTILATING
Done well,




HVAC is NOT:
JUST A BOX
Done well,




HVAC is NOT:
                Even
             shap     if it’s
JUST A BOX       ed, s
                       ized,
                              yo u r
                                     favo
                                         rite
                              or co
                                     lored
                                           box
It’s time to move
beyond “box only” solutions
LET’S TAKE A LOOK AT
 WHERE YOU CAN GO
HOME PERFORMANCE MEANS
BIGGER JOBS

       HVAC	
  	
                        HVAC	
  +	
  HPC	
  	
  
                        Average Ticket Size

   $5,500-­‐7,500	
  	
                  $8,000	
  -­‐	
  $15,000	
  
HOME PERFORMANCE MEANS
BIGGER JOBS

       HVAC	
  	
                                 HVAC	
  +	
  HPC	
  	
  
                                Average Ticket Size

   $5,500-­‐7,500	
  	
                           $8,000	
  -­‐	
  $15,000	
  

                                  Gross Margins

    38%	
  -­‐	
  45%	
  	
                           45%	
  -­‐	
  50+%	
  
HOME PERFORMANCE MEANS
BIGGER 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 to
higher 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 Crowd

Contractor I   Contractor X   Contractor L
Contractor A Contractor G     Contractor S
Contractor M Contractor H     Contractor C
Contractor Z Contractor B     Contractor F
Contractor J   Contractor R   Contractor K
Home Performance Separates
       You From the Crowd

Contractor I   Contractor X   Contractor L
Contractor A Contractor G     Contractor S
                Home
Contractor M Performance
             Contractor H     Contractor C
              Contractor
Contractor Z Contractor B     Contractor F
Contractor J   Contractor R   Contractor K
Diagnostics help you find root problems



Solutions deliver results you can count on



    And customer satisfaction soars!
“Finally our family room is
comfortable. It’s like I have a
completely 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 up
Volume (Revenue)




                      your mileage may vary,
                   but the same HVAC	
  
                                principles apply
HVAC Seasonality
 There are peaks, when
 it’s tough to keep up
Volume (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 MORE
THINGS TO MAKE
THE PHONE RING
•    Furnaces
•    Air-Conditioners
•    Insulation
•    Windows
•    & More
THERE ARE MORE          w/ COMPREHENSIVE
THINGS TO MAKE          SOLUTIONS TO
THE 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 is




MOST 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 & Mildew



Noise 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 BACK
AND 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 & Mildew



Noise 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 every
problem in the home with an
HVAC solution, BUT…
Have you ever installed really good
equipment as well as possible…
Have you ever installed really good
equipment as well as possible…

and still neither fixed the problem?
Have you ever installed really good
equipment as well as possible…

and still neither fixed the problem?

nor made the customer happy?
And in the customer’s
eyes, you become the
      problem?
that hurts
callbacks cost money
and unhappy customers
don’t give good referrals
TO BE ASSURED OF RESULTS
(AND PROFITS AND HAPPY CUSTOMERS)




YOU HAVE TO TAKE CONTROL
TAKING CONTROL OF
THE HOME MEANS YOU
 DON’T RELY ON LUCK
TAKING CONTROL OF
THE HOME MEANS
•    Tight, well-insulated enclosure
•    Tight ducts
•    Efficient lighting & appliances
•    High-performing windows
TAKING CONTROL OF
THE 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 with
current standard practice


 That’s why the homes
   don’t work now!
Fortunately, you can
turn standard practices
     on their head
Fortunately, you can
turn standard practices
     on their head
From the diagnostics
    to installations,
the skills are teachable
for example…
Using diagnostics and
Involving 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 them




Consultative
Selling Works

           LISTEN, LISTEN, LISTEN
       and Educate Along The Way
Present a report that reminds
     and reinforces




Report	
  example	
  used	
  by	
  permission,	
  Chicago	
  Home	
  Performance,	
  www.ChicagoHomePerformance.com	
  	
  
HVAC Contractors
have 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 PERFORMANCE
IS NOT MAGIC!
YOU MAY HAVE GUESSED…




HOME PERFORMANCE
IS NOT MAGIC!

GET HVAC FUNDAMENTALS
RIGHT 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 CRAWL
THROUGH THE BROKEN GLASS?


OR GET SOME HELP FOR
FASTER SPEED TO MARKET?
DO I BRING HOME PERFORMANCE
IN-HOUSE, OR DO IT WITH SUBS?

    These are much longer answers—and
    ultimately YOU have to answer them!
DO I BRING HOME PERFORMANCE
IN-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.

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HVAC to Home Performance - A Quick Business Case

  • 1. HVAC-2-HP WHY SMART HVAC COMPANIES ARE MOVING TO ’S G OOD HOME PERFORMANCE HINT: IT S!! BUSI NES A MIKE ROGERS VANTAGE POINT © 2012 Mike Rogers
  • 3. WHAT IF YOU COULD MAKE MONEY?
  • 4. WHAT IF YOU COULD MAKE MONEY? AND MAKE YOUR CUSTOMERS’ HOMES BETTER?
  • 5. WHAT IF YOU COULD MAKE MONEY? AND MAKE YOUR CUSTOMERS’ HOMES BETTER? AND MAKE THEIR LIVES BETTER!?
  • 6. 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?
  • 7. AND AS A BONUS, REDUCE POLLUTION AND FIGHT CLIMATE CHANGE?
  • 8. AND AS A BONUS, REDUCE POLLUTION AND FIGHT CLIMATE CHANGE? e part e chang climat ve it! et the ’t belie O K, forg ou don if y
  • 9. AND AS A BONUS, REDUCE POLLUTION AND FIGHT CLIMATE CHANGE? g makin on the focus art? anna ney p W mo
  • 11. HOME PERFORMANCE IS A GAME CHANGER FOR THE HVAC CONTRACTOR
  • 13. WOULD YOUR BUSINESS WORK WITH HIGHER MARGINS?
  • 14. WOULD YOUR BUSINESS WORK WITH HIGHER MARGINS? HIGHER REVENUES AT HIGHER MARGINS?
  • 15. WHAT IF YOU COULD DIFFERENTIATE BETTER?
  • 16. WHAT IF YOU COULD DIFFERENTIATE BETTER? REDUCE CALLBACKS?
  • 17. WHAT IF YOU COULD DIFFERENTIATE BETTER? REDUCE CALLBACKS? REDUCE SEASONALITY?
  • 18. WHAT IF YOU COULD DIFFERENTIATE BETTER? REDUCE CALLBACKS? REDUCE SEASONALITY? TAKE CUSTOMER SATISFACTION TO MUCH HIGHER LEVEL?
  • 20. I know I’m repeating myself, but HOME PERFORMANCE IS A GAME CHANGER FOR THE HVAC CONTRACTOR
  • 21. AND THE HVAC CONTRACTOR IS VERY WELL-POSITIONED TO THRIVE
  • 22. Taking liberties with the word order of the acronym, HVAC is: HEATING COOLING VENTILATING
  • 23. Done well, HVAC is NOT: JUST A BOX
  • 24. Done well, HVAC is NOT: Even shap if it’s JUST A BOX ed, s ized, yo u r favo rite or co lored box
  • 25. It’s time to move beyond “box only” solutions
  • 26. LET’S TAKE A LOOK AT WHERE YOU CAN GO
  • 27. HOME PERFORMANCE MEANS BIGGER JOBS HVAC     HVAC  +  HPC     Average Ticket Size $5,500-­‐7,500     $8,000  -­‐  $15,000  
  • 28. HOME PERFORMANCE MEANS BIGGER JOBS HVAC     HVAC  +  HPC     Average Ticket Size $5,500-­‐7,500     $8,000  -­‐  $15,000   Gross Margins 38%  -­‐  45%     45%  -­‐  50+%  
  • 29. HOME PERFORMANCE MEANS BIGGER 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!  
  • 30. HIGHER REVENUE, MARGINS, AND CLOSE RATES… quickly boil down to higher profitability!
  • 32. HOW DO YOU DIFFERENTIATE? –  Fully Insured? –  Bonded? –  Licensed? –  Experienced Techs? –  Free estimates? –  Emergency service? –  Guaranteed low prices? –  Better Business Bureau
  • 33. 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
  • 34. 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!
  • 35. Home Performance Separates You From the Crowd Contractor I Contractor X Contractor L Contractor A Contractor G Contractor S Contractor M Contractor H Contractor C Contractor Z Contractor B Contractor F Contractor J Contractor R Contractor K
  • 36. Home Performance Separates You From the Crowd Contractor I Contractor X Contractor L Contractor A Contractor G Contractor S Home Contractor M Performance Contractor H Contractor C Contractor Contractor Z Contractor B Contractor F Contractor J Contractor R Contractor K
  • 37. Diagnostics help you find root problems Solutions deliver results you can count on And customer satisfaction soars!
  • 38. “Finally our family room is comfortable. It’s like I have a completely different home.”
  • 39. EVER HAVE A SLOW DOWN, OR HAVE TO LAY PEOPLE OFF?
  • 40. Volume (Revenue) HVAC Seasonality HVAC  
  • 41. Volume (Revenue) HVAC Seasonality your mileage may vary, but the same HVAC   principles apply
  • 42. HVAC Seasonality There are peaks, when it’s tough to keep up Volume (Revenue) your mileage may vary, but the same HVAC   principles apply
  • 43. HVAC Seasonality There are peaks, when it’s tough to keep up Volume (Revenue) And there are valleys when you worry about paying the bills HVAC   and sending everyone home
  • 44. (Seasonality hits other trades, too) Volume (Revenue) HVAC Insulation Windows
  • 45. Home Performance Reduces Seasonality! Volume (Revenue) HVAC Insulation Windows HPC
  • 46. Home Performance Reduces Seasonality! Volume (Revenue) THERE ARE A COUPLE GOOD REASONS FOR THIS HPC HVAC Insulation Windows
  • 47. THERE ARE MORE THINGS TO MAKE THE PHONE RING •  Furnaces •  Air-Conditioners •  Insulation •  Windows •  & More
  • 48. THERE ARE MORE w/ COMPREHENSIVE THINGS TO MAKE SOLUTIONS TO THE PHONE RING APPLY EACH VISIT •  Furnaces •  Furnaces •  Air-Conditioners •  Air-Conditioners •  Insulation •  Insulation •  Windows •  Windows •  & More •  & More
  • 49. And it all comes together and works in part because
  • 50. And it all comes together and works in part because HOMES SUCK!
  • 51. OK, the more politically correct way to say that is MOST HOMES DON’T PERFORM AS WELL AS THEY SHOULD, AND THEY HAVE SOME PROBLEMS
  • 52. 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 & Mildew Noise from Outside Ice Dams Excessive Dust UV Damage High Energy Bills Old HVAC
  • 53. If you understand the problems, And if you can offer REAL SOLUTIONS , You have a REAL OPPORTUNITY!
  • 54. BUT LET’S GO BACK AND LOOK AT THE PROBLEMS
  • 55. WHAT CAUSES THESE PROBLEMS? Poor Air Quality High CO Wet Crawlspace Hot Rooms or Basement Condensation on Cold Rooms Windows Drafts Mold & Mildew Noise from Outside Ice Dams Excessive Dust UV Damage High Energy Bills Old HVAC
  • 60. Inefficient Lighting and Appliances Fight HVAC and Raise Bills
  • 61. You can try to fix every problem in the home with an HVAC solution, BUT…
  • 62. Have you ever installed really good equipment as well as possible…
  • 63. Have you ever installed really good equipment as well as possible… and still neither fixed the problem?
  • 64. Have you ever installed really good equipment as well as possible… and still neither fixed the problem? nor made the customer happy?
  • 65. And in the customer’s eyes, you become the problem?
  • 68. and unhappy customers don’t give good referrals
  • 69. TO BE ASSURED OF RESULTS (AND PROFITS AND HAPPY CUSTOMERS) YOU HAVE TO TAKE CONTROL
  • 70. TAKING CONTROL OF THE HOME MEANS YOU DON’T RELY ON LUCK
  • 71. TAKING CONTROL OF THE HOME MEANS •  Tight, well-insulated enclosure •  Tight ducts •  Efficient lighting & appliances •  High-performing windows
  • 72. TAKING CONTROL OF THE HOME MEANS •  Tight, well-insulated enclosure •  Tight ducts •  Efficient lighting & appliances •  High-performing windows and •  Efficient, well-installed, and properly-maintained HVAC equipment
  • 73. Fixing these problems can’t happen with current standard practice That’s why the homes don’t work now!
  • 74. Fortunately, you can turn standard practices on their head
  • 75. Fortunately, you can turn standard practices on their head
  • 76. From the diagnostics to installations, the skills are teachable
  • 79. Air-sealing example – Plumbing Stack
  • 81.     FIX       Sign  of  a   problem   h8p://www.greenhomelogic.com/air-­‐sealing-­‐gallery.shtml  
  • 82. Take HVAC best practices and enhance them Consultative Selling Works LISTEN, LISTEN, LISTEN and Educate Along The Way
  • 83. Present a report that reminds and reinforces Report  example  used  by  permission,  Chicago  Home  Performance,  www.ChicagoHomePerformance.com    
  • 85. HVAC Contractors have unique advantages (An arsenal other contractors don’t have)
  • 86. 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
  • 87. 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
  • 88. There are even state, utility, and federal programs that you can tap into
  • 89. There are even state, utility, and federal programs that you can tap into for example…
  • 90. Home Performance with Energy Star
  • 91. But don’t build your business around a program
  • 92. But don’t build your business around a program Programs change, sometimes turning on a dime
  • 93. Fortunately, you don’t have to. Home performance makes sense without any program
  • 94. 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
  • 95. 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
  • 96. Home Performance makes sense for an HVAC business
  • 99. YOU MAY HAVE GUESSED… HOME PERFORMANCE IS NOT MAGIC!
  • 100. YOU MAY HAVE GUESSED… HOME PERFORMANCE IS NOT MAGIC! GET HVAC FUNDAMENTALS RIGHT FIRST, BEFORE HP
  • 101. •  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?
  • 102. AND YOU HAVE TO DECIDE: BUILD IT MYSELF, AND CRAWL THROUGH THE BROKEN GLASS? OR GET SOME HELP FOR FASTER SPEED TO MARKET?
  • 103. DO I BRING HOME PERFORMANCE IN-HOUSE, OR DO IT WITH SUBS? These are much longer answers—and ultimately YOU have to answer them!
  • 104. DO I BRING HOME PERFORMANCE IN-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)
  • 105. 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
  • 106. Thank you for making it this far. Mike Rogers
  • 107. 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.