HVACR BUSINESS APRIL 2024

FEATURES

6 Updating Your Business Model: The Magic of Messaging

Unifying Your Company’s Messaging

By Pierre Barbeau

8 Electrification: Is It Here to Stay?

Unraveling the Complexities of Electrification

By Kristy Welson

11 Do You Really Know if Your Customers Are Satisfied?

It’s time to consider implementing ongoing customer satisfaction surveys

By Paul M. Berman

12 HVAC Success: Navigating the Summer Surge

Surviving the Shoulder Season With a Plan

By Ryan Kalmbach

14 4 Secrets to Outpacing Your Competitors

Beating the Competition Starting NOW

By David Dombrowski

16 What are SEO and SEM?

SEO vs. SEM and Why it Matters for Small Businesses

By Will Merritt

COLUMNS

19 Building Value Outside the Business

1. Know Your Business’ Real Value 2. Diversify Investments 3. Minimize Taxes

By Keven Prather

20 Achieve Your Freedom with Your Financially Fit Business | Part 6 Review Timely, Accurate Financial Statements Each Month

By Ruth King

DEPARTMENTS

5 Editor’s Guest Column | Contractors: Sell the Advantages of Service Agreements

Learn how to use them to help customers plan for replacements.

Francis J. Dietz

4 MRS | Tom’s Top Pick For Making the Sale

21 Product Focus

22 20 Questions with Gene LaNois

Management Resource Shelf

EDITOR’S CHOICE

“On Selling,” by Mark H. McCormack, is the best book on selling I’ve ever read. His kernels of wisdom and insight are timeless. Don’t let the copyright date dissuade you. He demonstrates the long curve in selling works (even in this digital age). It’s not about the sale now but the sales of tomorrow. And that, in the end, is what most salespeople really want. Repetitive sales.

The Ed Mylett Show Host Ed Mylett

Do you want to be a Peak Performer? Is there a way you can inch forward or blast ahead if you just change how you’re doing things? That’s where host Ed Mylett comes in. He probes unrelentingly with top performers about how they got that way. A recent interview, for example, with Deion Sanders revealed the coach’s battles with suicide, depression and lifethreatening issues and his fight for survival. Listen to the podcast and learn about “Coach Prime’s Success Game Plan.”

https://www.edmylett.com/podcast

The Daily Stoic Host Ryan Holiday

If you’re an HVACR owner or manager, you’ve been stoic sometimes, wondering what to do next, even when things seem to be at a dead end. But you don’t cry to anyone. Instead, you suck it up and get on with it. This podcast with Ryan Holiday says there is a way to use the teachings of famous stoics like Marcus Aurelias and adapt them to modern life. He talks to notable figures from sports, academia, business and more to understand how a stoic attitude helped them and how it can help you.

https://podcasts.apple.com/us/podcast/the-daily-stoic/id1430315931

How I Built This, With Guy Raz

Host Guy Raz

The show’s host, Raz, is unrelenting about his podcast featuring successful entrepreneurs. In every episode, Raz reveals “deep, intimate moments of doubt and failure” while exploring the road to ultimate success. Some have described the podcast as a “masterclass on innovation, creativity, leadership and how to navigate challenges of all kinds.” For example, a recent podcast with Gene Berdichevsky suggests that he and his team could make lithium batteries about 40% more efficient, driving a burst of possibilities for batterypowered products.

https://podcasts.apple.com/us/podcast/ how-i-built-this-with-guy-raz/id1150510297

On Selling

Mark McCormack

Mark McCormack proves in “On Selling” that he knows something about sales. He started International Management Group(IMG) and would represent some of the top athletes in the world. He started IMG with $500. After he died in 2003, his family sold the business for $750 million. His most famous book was probably “What They Don’t Teach You at the Harvard Business School.” McCormack, a legend in sports marketing, never got an MBA from Harvard. He didn’t need it, nor will you after reading this book.

https://www.amazon.com/McCormack-SellingMARK-H-MCCORMACK/dp/0712675973

Get Different

Mike Michalowicz

OK, we all know we should differentiate or, in plain speak, be different. The dilemma is how to do it. Mike Michalowicz, a best-selling author and top marketing expert, shows the way. He offers a simple and actionable formula: It’s the DAD formula: different, attract and direct. His approach favors a small, low-cost, low-effort method that will work for virtually any business. He doesn’t hesitate to criticize himself in a chapter entitled “The Magic of Mistakes.”

https://www.amazon.com/Get-DifferentMarketing-That-Ignored/dp/B08TLXKJT4/

Impact Players

Liz Wiseman

We all want to make an impact. It usually helps the business and, yes, we all have an ego, and making an impact is how you measure your effort. Liz Wiseman’s “Impact Players, How to Take the Lead, Play Bigger, and Multiply Your Impact” is a fresh dose of advice to significantly improve your HVACR organization. Wiseman talked to 170 leaders and even more managers and employees to get to the nut of things: What differentiates impact players from everyone else? She boils it down to the sacred five tips you can implement after finishing the book.

https://thewisemangroup.com/books/impact-players/

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker

Publisher ttanker@hvacrbusiness.com

TOM Perić

Editor in Chief tperic@hvacrbusiness.com

MEGAN LaSalla

Art Director mlasalla@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net

BARBARA Kerr

VP Operations bkerr@hvacrbusiness.com

ADVERTISING STAFF TERRY Tanker

Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com

EDITOR’S GUEST COLUMN BY FRANCIS J. DIETZ

Promote service agreements for their traditional – all important – advantages and add another benefit to help keep your customers comfortable, loyal, and happy for years to come.

the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information.

Copyright©2024 by JFT Properties LLC.

No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees.

This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication.

The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the

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Web site: www.hvacrbusiness.com (ISSN: 2153-2877) HVACR

reporters – both trade and mainstream – all the time, and one of the things I push, over and over, is the importance of service agreements. The advantages are manifold and include identifying issues before they become larger problems within the system, being on the priority list of service calls when your system craps out on the hottest or coldest days, and being able to discuss comfort issues with your contractor are all important to customers. And maintenance contracts are equally important to contractors, helping improve revenue during shoulder seasons – most important – enabling contractors to have serious conversations about planning for future replacements.

spring and fall tune-ups that come with a service agreement. After the tech has completed the system tune-up, it’s the perfect time to discuss what tasks were completed and what future maintenance issues lie around the corner, along with options and pricing.

When I take my car into my mechanic for an oil change and tire rotation, the tech completes a multipoint inspection with video. Brakes, exhaust and belts. That video is then texted to my phone. And, no sales pressure when I pick up the car, just a simple question. Did you have questions about the video we sent to you?

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039

Tel: (440) 731-8600

It is no secret to anyone who has been around this industry for a while that customers make the vast majority of replacement decisions during an emergency.

No heat. No AC. No hot water. And while these examples can certainly make life uncomfortable for a few days, they could represent real emergencies for the elderly or those with health conditions.

The larger concern with emergency replacements is that neither customers nor contractors have the luxury of time to ask questions and discuss new and improved technologies that can save energy, money, or both while increasing comfort. Instead, the new system is generally a like-forlike replacement or a system the contractor has in stock or can easily get from the distributor. Bing, bang, boom, done. Options often go out the window at this point, and there’s little time for good-better-best comparisons or for suggesting accessories like zone controls, IAQ options or humidification systems. And there definitely isn’t time to discuss more complicated hybrid heat pump systems and if they might make sense.

Fortunately, technicians can prevent all of this by taking the time to sit down and talk with customers during the

As systems age, customers know maintenance is going to increase. Think about a conversation you could have regarding a 410A system whose repairs are about to get much more expensive. Whatever the circumstance, these are the opportunities for selling technology and comfort during an unhurried time – when you can sit down and talk about what’s good and not-so-good along with other equipment or system options. And whether this is likely to be in the near future or five years from now. These conversations also get customers thinking about how they ultimately will budget and pay for that all-important replacement.

Thinking about costs is especially important right now because federal tax incentives will reduce the cost of certain equipment, and although many customers are aware of those incentives, many are not. Discussing these incentives during a service agreement visit is the perfect timing.

Meeting with customers when they are not desperate is smart for so many reasons. So, promote service agreements for their traditional – all important – advantages and add another benefit to help keep your customers comfortable, loyal, and happy for years to come. u

Francis J. Dietz is Vice President, Public Affairs, Air-Conditioning, Heating, and Refrigeration Institute.

UPDATING YOUR BUSINESS MODEL: THE MAGIC OF MESSAGING

BY PIERRE BARBEAU

In the fast-paced world of Heating, Ventilation, and Air Conditioning (HVAC), the importance of effective and swift communication cannot be overemphasized. As technology strides forward, HVAC contractors find themselves at the cusp of a revolutionary opportunity: the shift to unified messaging. This isn’t just a tech upgrade; it’s a game-changer that transforms how businesses operate, enriches customer interactions, and gives companies a leg-up in the competitive market.

Imagine an HVAC contractor’s day-today without unified messaging: a chaotic mishmash of phone calls, an endless stream of emails, the need for immediate text responses, and staying on top of social media. This disjointed approach to communication is not only overwhelming but also fraught with inefficiencies and errors. Unified messaging shines as a solution, merging these disparate channels into one cohesive platform. It creates an environment where messages, no matter where they come from, are centralized, and address customer queries promptly and effectively.

The benefits of unified messaging go way beyond streamlining communication. For HVAC contractors, time is as precious as their technical expertise. Juggling between different platforms to manage communications eats up valuable time and diverts focus from the business’s primary goals. Unified messaging eliminates these inefficiencies, freeing up

In a world where everyone expects instant gratification, customer demands for quick, seamless communication and service delivery have evolved.

time for serving clients and growing the business. The jump in efficiency results in fewer missed opportunities and fosters a service culture that is both responsive and reliable — qualities that customers appreciate, remember and value.

In a world where everyone expects instant gratification, customer demands for quick, seamless communication and service delivery have evolved. Unified messaging enables HVAC contractors to easily meet these heightened expectations, building a reputation for reliability that fosters loyalty and encourages positive word-of-mouth, an invaluable asset in today’s competitive environment.

Adopting unified messaging reflects a commitment to technological advancement and a forward-thinking approach. It sets a contractor apart, providing a solid base for scalable growth and exploring new service areas. It’s also pivotal for collaboration in HVAC projects, which often require concerted efforts from teams spread across different locations. Unified messaging ensures seamless information exchange and decision-making, supporting expansion without added complexity.

A key component of unified messaging

is text-based marketing, which utilizes the directness and personal touch of SMS to deliver essential messages like service reminders, emergency alerts, and promotions directly to clients. This method achieves an immediacy and level of engagement that other channels can’t, deepening client connections.

Integrating text-based marketing into unified messaging allows for automation and personalization of communications, ensuring consistent engagement without manual effort. This customization increases customer satisfaction and loyalty, while the promptness of text responses improves service, enhancing the overall customer experience.

Moreover, text-based marketing’s costeffectiveness and wide reach ensure a significant return on investment, making it an appealing strategy for contractors of all sizes. This approach makes communication more efficient and strengthens customer relationships, establishing a strong digital market presence.

Transitioning to unified messaging requires strategic planning and execution. The first step is choosing a platform that fits seamlessly into the current

operational setup and accommodates the various communication channels used by customers. Comprehensive training for the team in using the new system effectively is essential, as is establishing clear communication protocols to ensure consistency and reliability. Continuous monitoring and openness to feedback are crucial for refining the strategy over time.

In summary, unified messaging marks a strategic advancement for HVAC contractors, leading to improved operational efficiency, better customer engagement, and distinct competitive advantage. This method doesn’t just meet the demands of the digital age; it harnesses its potential to push HVAC businesses toward greater success and sustainability, heralding a new chapter in industry communication. u

Pierre Barbeau is Moblico’s co-founder and CEO. Since 2010, Moblico has provided mobile communication, marketing, and commerce solutions to the HVAC industry in the US, Canada, Latin America, and Europe. Moblico is best known for its attentive and responsive client support, focus on the needs of wholesale distributors, best-in-class single-source mobile engagement platform, and raving fan customers. Visit www.moblico.com.

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UNRAVELING THE COMPLEXITIES OF ELECTRIFICATION

BY KRISTY WELSON

Electrification: Of all the decarbonization measures, it’s the one that keeps me up the most at night. Carbon experts tend to agree that electrification of our existing building stock is a critical step toward decarbonizing the built environment. However, the journey is fraught with roadblocks, from strained electrical grids to the paradox of adding grid emissions (operational carbon) while still aiming for overall decarbonization.

Electrifying existing buildings can feel counter-productive for these primary reasons:

Electrical capacity is low

Heat pumps are the likely solution when converting from onsite combustion to electrical equipment, because of their

REFLECTIONS ON CHALLENGES, SOLUTIONS AND TIMELINES

Every project team should pause and intentionally determine if electrification at this time, on this grid, and in this region is the right thing to do.

improved coefficient of performance (COP) over typical equipment. This is all great until you realize that no matter how efficient your new heat pumps are, they still require some electricity to operate. This adds to the building’s existing electrical demand.

The grid isn’t ready

An overburdened grid results in brownouts, blackouts, and, on really bad days, even wildfires.

The grid is dirty

Every project team should pause and intentionally determine if electrification at this time, on this grid, and in this region is the right thing to do. It may be better to wait until some appropriately extrapolated number of years in the future.

Increased Refrigerants

As we consider greenhouse gases (GHGs), we need to acknowledge that

adding heat pumps means we’re also adding refrigerant to the building systems (because heat pumps rely on refrigerants). This, again, increases global warming potential (GWP) through GHGs, which both industry organizations and regulatory bodies are also working to reduce or eliminate. Increased refrigerants are especially prominent when the building requires a large amount of heating capacity, such as in a cold climate.

Currently, options for cold climate heat pumps that use low-GWP refrigerants don’t exist for the everyday consumer. The earliest we’re likely to see this cold climate HVAC equipment coming on the market is the end of 2024, per manufacturers’ timelines, and even further down the road for lowGWP HVAC equipment. We now find

ourselves in the precarious position of implementation being contingent on manufacturers’ developmental time frames. Given the urgency of our global situation, none of this really feels great.

How to electrify today, tomorrow and into the future

When it comes to electrification, there are three main steps to consider:

1. Assessment

2. Load reduction

3. Implementation

Step 1: Assessment

Begin with these fundamental questions:

• Will this increase the building’s peak electrical demand?

• Does the building’s current electrical service support added demand?

• Is additional service available from the utility provider?

• Most important: How can we minimize the increased demand resulting from electrification?

Full electrification today may not be possible or beneficial, but by answering these questions, we can begin to lay out a plan for load reduction and implementation.

Full electrification today may not be possible or beneficial, but by answering these questions, we can begin to lay out a plan for load reduction and implementation.

Step 2: Load reduction (today)

In a world where deferred maintenance is the rule, not the exception, there are always plenty of present-day opportunities to address. Start with the existing envelope conditions and electrical capacity. We use mostly onsite combustion for space heating, which puts the building envelope front and center when it comes to minimizing added electrical demand.

Chances are, there’s an opportunity to improve the insulation values and increase tightness of the building envelope.

Address current limitations at the electrical service via a utility bill analysis to identify existing peak demand and current available electrical service. Then, if needed, contact the utility provider to determine whether increased electrical service is available.

Step 3: Implementation (tomorrow)

It wouldn’t be embodied carbon–friendly to replace heating equipment well before its end of life, so the “today” in Step 2 might not be the right time for equipment replacement. This, combined with the fact that cold climate heat pumps won’t be widely available until at least the end of 2024, means that electrification of your heating systems may make the most sense in the range of 2025 to 2028. Since you’ve already reduced loads in Step 2, your building is in a great place for an

HVAC upgrade and will still be eligible for the associated Inflation Reduction Act funding.

This is also a great time to install rooftop solar if it wasn’t viable in Step 1. In theory, the roof has been replaced recently with the envelope upgrades, so adding solar makes sense from a life cycle standpoint and as a means of offsetting the newly electrified system’s energy consumption. Solar is less likely to impact peak electrical demand in a heating-dominated climate, because peak heating demand and peak solar exposure are unlikely to occur simultaneously. In conjunction with the HVAC upgrade, we should also explore incorporating timeof-use controls, peak load sharing, and thermal energy storage.

It’s also difficult to make a strong business case for batteries today due to the high upfront cost. However, we hope battery storage continues to progress and becomes a viable technology for the average building owner in the nottoo-distant future. Combining onsite renewables with battery backup both

continued on page 10

contractor dispatching software for HVAC-R, plumbing, and electrical businesses.

continued from page 9

increases a building’s resilience and continues to reduce the peak demand even further in a way that supports a stable grid as we electrify.

When to implement mindful electrification

Electrification is critical to decarbonizing the built environment because there is no viable renewable energy system for offsetting onsite combustion. As the electrical grid transitions toward renewable energy at the utility scale, electrification will support decarbonization and resilience at the building scale.

Regulatory updates and various utility, municipal and federal incentives are coming online to make near-term electrification feasible. The most recent Title 24 update effectively requires allelectric heating systems up to a moderate capacity, the Inflation Reduction Act has prioritized electrification via many of its available incentives, states are taking refrigerant regulations into their own hands absent a more federal push, and initiatives like the U.S. Department of Energy’s Cold Climate Heat Pump Challenge have been pushed out to the industry to bridge the current technology gap.

New Construction Case Study

Working with ZGF Architects and the city of Boulder, Colorado, our Building Performance Modeling team helped assist in design strategies for a net zero emissions goal. A fully electric building is a huge part of the strategy toward zero emissions. By first starting with thoughtful envelope design and extraordinarily low energy usage, we got the predicted EUI down in the low-20s. This helped reduce the electrical capacity

A holistic and integrative approach is our most impactful lever for electrifying existing buildings. Electrification is not a straightforward path, nor is it a fad. Rather, it is a nuanced, exploratory journey through challenges and opportunities that exist now, in the short term and in the near future.

required for both heating and cooling loads. As we embark on phase two, actually designing the project, engineers at BranchPattern are utilizing air-sourced heat pumps to achieve the goal of an all-electric building. To meet additional decarbonization goals, the project will also have ample PV panels, which will generate more electricity than is required, and there will be batteries onsite for energy storage in case of a climate-related disaster.

Existing Building Case Study

WP Carey approached BranchPattern to do an energy audit and electrification study for a 274,000 sq. ft. steel fabrication and distribution center. Most of the building’s square footage, initially constructed in 1964, is used for metal processing and production, an energyintensive process. During our facility assessment, we reviewed every piece of equipment for the HVAC, hot water, lighting, and building enclosure systems.

We made recommendations for each respective system, along with rough order of magnitude costs and payback information. BranchPattern looked at renewable energy production via onsite roof-mounted PV panels, showcasing the opportunity to cover the monthly electricity consumption with renewable energy. It was essential to first look at energy savings before electrification. The study’s final recommendations found a

60 to 80% potential energy savings, the bulk of which were related to the building envelope, which had seen few upgrades over its life. There were a few takeaways from this case study:

• Not all energy-saving measures result in reduced carbon emissions. For example, depending on the location and the supporting utility grid’s emissions factor, electrification may not result in carbon emissions reduction.

• Even where the grid emissions factor does not support direct electrification, prioritizing passive (envelope) and active (building energy users) load reduction first can ultimately support electrification that leads to reduced carbon emissions.

• In cold climates, where roadblocks to full electrification exist for the building’s heating system, consider partial electrification as a viable step along the path to a full transition away from onsite combustion. This could look like heat pumps as the primary heating source with natural gas backup for extremely cold days.

Conclusion

A holistic and integrative approach is our most impactful lever for electrifying existing buildings. Electrification is not a straightforward path, nor is it a fad. Rather, it is a nuanced, exploratory journey through challenges and

opportunities that exist now, in the short term and in the near future. The key lies in mindful planning, addressing current limitations and charting a course that aligns with the evolving landscape of decarbonization.

As we traverse this terrain, we must remain mindful of its complexities, adapt our conversations and strategies, and stay optimistic and inquisitive, while keeping our eyes on the ultimate goal of a sustainable, low-carbon, electrified eventuality.

More resources

• Embodied Carbon in U.S. Industrial Real Estate study from BranchPattern

• Emissions and Generation Resource Integrated Database from the U.S. EPA

• Data sets from the National Renewable Energy Laboratory

• Zero-emission building ordinances in the U.S. from the Building Decarbonization Coalition

• Issue brief on beneficial electrification from USGBC’s Advocacy and Policy team

For more information, please visit www.branchpattern.com. u

Kristy Welson, a LEED Fellow and Principal at BranchPattern, is a mechanical engineer by trade who focuses on decarbonization strategy and sustainable design within the built environment. Over the last 15+ years, Kristy has provided decarbonization strategy and sustainability consulting, LEED and other sustainable rating system facilitation, energy modeling and auditing and commissioning on several projects throughout the United States. Contact Kristy at kristy.w@branchpattern.com or visit www.branchpattern.com.

BY PAUL M. BERMAN

You have good Google reviews and a few positive mentions on Yelp. Is that enough? No, particularly if the reviews were solicited from a handful of your best customers and acquaintances. You need better information that allows you to quantify customer satisfaction levels, what drives them, and how to adjust your business to improve them. An HVAC contracting business is a service business, which means it will thrive or die based on the experiences it creates in customers’ minds. So, measuring how satisfied your customers are over time is crucial to ensure you deliver a consistently positive service experience for continued loyalty and future referrals.

Before discussing how to measure HVAC customer satisfaction, first consider what you are trying to measure. In 2023, Chick-fil-A’s average per-store sales were more than $8 million compared to about $3.5 million for McDonald’s, and their market share grew from 38% in 2022 to over 45% in 2023. All of this success has been the result of focusing squarely on creating an outstanding customer experience: from how employees greet customers to the speed of service and the quality of the food. Last year, Chickfil-A was ranked #1 on the American Customer Satisfaction Index for the ninth year in a row. And Chick-fil-A is not the low-cost option for fast food.

Apple is another great example of an organization that has flourished by creating an unmatched customer experience. Not unlike successful HVAC dealerships, Apple has succeeded by selling products that build strong, sustainable relationships with customers. It’s not a one-and-done with Apple. The purchase of an iPhone is just the first bite off a long-term, highly profitable customer journey that seldom results in

DO YOU REALLY KNOW IF YOUR CUSTOMERS ARE SATISFIED?

If you are simply relying on a few online reviews, it’s time to consider implementing ongoing customer satisfaction surveys to really understand what experience you are creating for customers and how to improve to grow your business.

low satisfaction. This should be the model of every ambitious HVAC dealership. Like Chick-fil-A, Apple’s products are higher priced than most of their competitors.

A great customer experience in HVAC is straightforward and, for the most part, universal. During a recent research project, we talked with homeowners about what they expected from a quality HVAC dealership. The vast majority said, “easy to contact,” “comes out that day,” “has a courteous and professional staff,” “conveys a sense of trust,” “has a good reputation,” “is recommended by friends or family,” “is transparent about the job and pricing,” “does excellent work,” and “follows up after the work is done.” These variables provide an excellent foundation for measuring and assessing customer satisfaction.

But how do you go about accurately measuring customer satisfaction levels? There are many methods, with the most effective being direct phone calls from your company to customers shortly after you’ve serviced, maintained, or installed their HVAC system. Other options are leave-behind surveys that can be completed online or a follow-up email with a survey link. Create the survey with some knowledge or research into how to construct effective questionnaires. All questions should be easy to complete and structured to generate quantifiable metrics (the percentage who were extremely or

very satisfied). The questions should be consistent over time to allow for tracking and trending. You will likely make slight alterations to the survey as you adjust your business, but the fundamental questions should not change.

Hiring an agency to construct, conduct and manage your customer satisfaction surveys is a great option, particularly for larger businesses or those short on resources. However, a few options allow you to manage the process in-house. If you have a Google account, they offer “Google Forms,” which can be used to create, disseminate (via email or online) and analyze surveys. “Survey Monkey” is an online software for creating and conducting surveys, but it requires a license. There are also software packages such as “Qualtrics” but cost more. While measuring customer satisfaction is essential, you want to avoid overwhelming customers with too many questions. At a minimum, a good satisfaction survey for HVAC customers should include questions that measure overall satisfaction, likelihood to recommend the dealership to friends and family, and ratings on ease of communications and scheduling, professionalism of staff, explanation of work, price transparency, quality of work, and follow-up.

A common misconception from dealers is they know their customers so well, they

don’t need a survey. We recently helped a large regional HVAC dealership in Florida implement a satisfaction survey, and to their surprise, customers were not happy with the professionalism of the staff and technicians, which caused them to give low ratings on “overall satisfaction” and “likelihood to recommend to a friend or family.” Knowing this allowed them to change their hiring and training to improve these ratings and ultimately optimize their customers’ experience. This will more than likely translate into increased sales and accelerated growth.

So, if you are simply relying on a few online reviews, it’s time to consider implementing ongoing customer satisfaction surveys to really understand what experience you are creating for customers and how to improve to grow your business. Remember that if you ask questions, you must be ready and willing to act on the responses. If your customers tell you there’s a problem, listen and respond. Whether it’s chicken, apples or HVAC, all customers want a consistently great experience. u

Paul M. Berman, President & CEO of Commerce Health Business Consulting, holds an MS in Experimental Psychology from the State University of New York and an MS in Business Management from Rensselaer Polytechnic Institute (RPI). Before starting his consultancy, Paul worked in leadership roles at Carrier Corp., Johnson & Johnson, and Stryker. He specializes in providing business and marketing consulting to HVAC manufacturers, distributors, dealerships, and companies in consumer goods and health care. Contact Paul at (561) 609-5082 or www.CommerceHealthConsulting.com.

HVAC SUCCESS: NAVIGATING THE SUMMER SURGE

BY RYAN KALMBACH

Summer is coming, and you are in the business of selling a perishable product.

That’s right, just like fruits and vegetables at the grocery store, you sell a product that is perishable. Your perishable produce is labor instead of bananas. Like bananas, labor hours have a shelf life. Each hour lost is irretrievable, just like spoiling fruit. Summer can either be the time to maximize those precious hours or squander them as pig feed.

Here is a checklist to help you maximize the opportunity for a profitable summer and rewarding year.

Pricing Precision

My dad was an HVAC contractor in Arizona in the 1970s. He sold his contracting business to open his first Johnstone location in 1984. After he and my mom had grown the company into a flourishing business, he finished up

As a rule of thumb, if less than 5% of your service calls are diagnostic only, you have room to raise your service prices.

his career and retired. It was then that I asked him, “What do you wish you knew when you first went into business (as a contractor) that you know now?” His answer floored me: “I wish I understood my own value and charged accordingly.” He provided a remarkable service and great value to his customers. If he had charged what he was worth, he would have been able to provide his employees with better benefits and better trucks and probably would never have felt the need to sell his contracting business.

The crucial question this raises is, are you pricing according to your value? This is probably the No. 1 mistake I see contractors making. It is crucial to get

the pricing right before peak season. The HVAC industry saw tremendous inflation from 2020 to 2023: 40% plus or minus on many of the products we sell, especially on equipment. Have you adjusted your prices to account for this inflation AND labor inflation? In addition, we typically see that service labor rates are too low – driving profits down. As a rule of thumb, if less than 5% of your service calls are diagnostic only, you have room to raise your service prices. Don’t fumble your opportunity to have a profitable summer and a rewarding year. If you are losing money now, it will be like fueling a bonfire with dollar bills come summer.

In the back of your mind, you are probably worried about being perceived as a price gouger and damaging your reputation. Yet, if you’re here, it’s likely because you value your customers and have exceptional quality in service and installation. Remember, fairness isn’t just about the price tag; it’s also about value. Charge what reflects your true worth.

Maintenance Agreements

High-performing contractors get 50% of their leads from existing customers. This makes maintenance agreements their best source of leads. The KPI is 1,000 agreements per $1 Million in residential revenue. With summer’s peak demand, it is prime time to add more maintenance agreement customers. Are maintenance agreements integrated into your business model? Do your Techs and CSRs know how to sell them? Is your team incentivized to sell them?

Referral Programs

Top-tier contractors gain 23% of their leads from referrals. The increase in seasonal volume makes summer prime time for building a referral network. Are you happy with your referral program and process? Does everyone in your company know how to ask for referrals?

Efficient Material Management

First-call completion is crucial for maximizing profitability. Streamline your service operations by maintaining a standardized inventory list for service trucks, and replenishing items after each use. We train our partners to utilize our app to scan items as they use them. We also upload a custom truck stock inventory list that makes selecting used items a breeze. We organize these replenishments by technician to make it seamless. Remember, there’s room for customization in this process, so don’t hesitate to consult with your distributor partner to tailor it to your specific needs.

Similarly, we offer an “install bin” service where all the small materials needed to complete a job are in a reusable tote that installers use and return after the job. This cuts down on time overages, aids in job costing, and simplifies the material handling process for the install crews.

Distributor Forecasting

2024 may prove to be another challenging year from a supply chain perspective. The transition to A2L beginning this year will undoubtedly cause some supply chain hiccups. In addition, the current shipping disruption in the Red Sea will most likely create potential impacts that we have yet to realize fully.

A best practice is to sit down with your supplier partner and share your sales strategy for the summer. What is your sales lineup? What do you forecast your sales to be by product? What are their plans to handle the A2L transition? This is a key part of a supplier partnership. By understanding your sales projections, your supplier can ensure they have the right products in stock to meet your needs, avoiding lost sales and making operations smoother for both parties.

A best practice is to sit down with your supplier partner and share your sales strategy for the summer.

Labor Forecasting

Let’s be honest. The truth is, without a skilled workforce, growth and profitability are just not possible. Ensuring you have the skilled workers to meet your goals is essential. Typically, around this time of year, customers ask me if I know about any available techs or installers. Frankly, by the time this article goes to press, it is TOO LATE. If you don’t already have the people you need for your summer forecast, I can’t offer any tricks here.

With that said, there is a way to get ahead of your constant labor crisis. It’s a long plan and deserves its own article –stay tuned in an upcoming issue.

Summer’s arrival doesn’t just bring heat waves – it brings a surge in demand for HVAC services. By fine-tuning your pricing, capitalizing on maintenance agreements, boosting referrals, optimizing truck stock management, and engaging with distributors, you can turn the summer rush into a season of success.

Special thanks to experts

Gary

Elekes,

CHECKLIST

3 Adjust install prices (In the last 30 days)

Ruth King, Kevin Dier, Mark Schulert, Hector Jimenez and William Efird, for their valuable insights and contributions. Stay cool, and make this summer your most profitable one yet. u

Ryan Kalmbach is the CEO of Johnstone Orion Distribution with 12 locations and 125 employees located in California. He has over 20 years of experience in operating a family distribution business. The core passion at The Orion Group is to partner with its customers and employees to help them to grow. Ryan can be reached at ryan.kalmbach@johnstonesupply.com

3 Raise service prices if your service diagnostic only rates less than 5%

3 Integrate maintenance agreements into your business model

3 Train or retrain your techs and CSRs on how to sell maintenance agreements

3 Create and implement an incentive program to sell maintenance agreements

3 Create a referral program

3 Train or retrain your team on how to offer referrals

3 Standardize service truck stock

3 Document, train and implement a service replenishment process

3 Standardize install truck stock

3 Document, train and implement an install material handling process

3 Discuss with your supplier partner(s) your replenishment processes and needs

3 Meet with your supplier partner(s) to have a forecasting conversation

4 SECRETS TO OUTPACING YOUR COMPETITORS

BY DAVID DOMBROWSKI

Your success does not depend on beating your competition. It depends on your ability to create an organization where people go out of their way to seek you out to perform their service needs. Here are a few suggestions for developing a roadmap for success.

1. The simplest way to outpace your competitors is to not let them in the race.

If you receive a call for service, you need a system where you respond immediately. When a customer’s AC breaks, they will typically call several companies, and whoever is able to arrive first gets the business. We spend a lot of money on advertising, and then when the phone rings, sometimes we drop the ball. I understand when the first heatwave hits, it buries us. I am referring to normal times when we might be booking out one or two days. You can usually pick up at least one extra call a day by being organized. Basic strategies include:

a. Have a highly trained dispatcher with good software. Cut your windshield time to a minimum. By the way, one extra call a day could add up to $100,000 in extra service revenue per truck per year.

The simplest way to outpace your competitors is to not let them in the race.

b. Stock your trucks fully so you don’t waste time going to parts houses.

c. Dispatch the right tech to the job. Don’t send rookies to repair complicated systems.

d. Be sure your techs understand they don’t have to prove they can fix everything. It is often in your customer’s best interest to say don’t spend $1,000 on a 20-year-old unit, let’s discuss replacement options instead.

There has been an old adage in replacement sales that says “I want to be the last person in to see the customer. Let them get all of their bids, ask all their questions, then I can come in and do whatever it takes to get the deal.” For most people, this means dropping your price to rock bottom since they have you over a barrel. I have always wanted to be the first person in the door. I get to maintain control and set the narrative. Customers make buying decisions based primarily on who they trust. If

you ran the perfect sales call (which has been addressed many times in this publication), you would have provided the basis for the customer to make the informed decision that you have the best VALUE package. This doesn’t mean the lowest price but the best combination of guarantees, reputation, professionalism and a proper investment for the unit.

Customers may tell you they have more bids scheduled. However, I have used the technique above for years and once they agree you are the best choice for them overall, you’ve won the job. I also offer to contact the other companies to cancel their appointments. This removes the final issue in most cases.

2. Always make it easy for them to do business with your company.

Anyone younger than a boomer is used to getting what they need with minimal effort. Be sure you have the following items in place.

a. Have multiple financing options.

Not everyone has great credit. You need at least three levels of financing. Level 1 for high credit people (scores over 750). They will care about the interest rate and other terms; Level 2 for midlevel (675 to 750). They will focus on the monthly payment and extended terms typically; and Level 3 is for poor credit people. We often overlook them because it takes effort to find second-look financing. However, they are often your best sales since they need HVAC and are not as concerned about the interest rate as much as they can make the monthly payment. Many low credit customers live in $800,000 homes and are house poor but have good incomes. There is no such thing as a bad customer. Take credit cards and look at Apple Pay and other options.

b. Have enough CSRs so that you handle and book their calls quickly. People have little patience with being put on hold or having an unanswered call.

c. Have a great website. People want to be able to verify that you are a real company. Every website says they have the best HVAC in town. No one ever says, “Call me because we are

pretty average.” Ask for reviews on each call and provide the customer with the links. If a customer sees two companies, and one has 30 4-star reviews and the other 300, it becomes an easy choice. Post testimonials. This is an investment that requires a person with specialized knowledge to do this correctly.

3. Differentiate yourself. Think about why people would want to do business with you and not others.

a. Have extended hours. People don’t have problems from 8 to 5 during the week. They often realize the issue in the evening when they get home from work. Identify your team as the group that is there for them when they need you, not just when it is convenient.

b. Monitor social media. Assign one person to review all social media for both good and bad comments. Areas like Nextdoor and Facebook can

destroy your reputation. Respond immediately to all comments and go overboard in fixing the bad. You will gain an identity as the expert.

c. Do not identify with one brand. This now becomes herd mentality, and you are all the same. Talk about your company, your team, your licensing and certifications. Emphasize that you service all brands and do not get locked into a group identity.

4. Do Not Compromise.

Build a culture in your company based on the Ron Smith teaching of WINWIN-WIN. Everyone must understand that the customer must always win first if you wish to keep them long

term. This means we must always act as advisers and never as salespeople. Techs need to understand that, at times, the right decision is to not sell something to a customer if it’s not in their best interest. If we make an error, don’t hide it, do the right thing to correct it. The second Win is the coworker. If you have a company built on honesty, integrity and professionalism, you will be the employer of choice, and people will want to work on your winning team. Design your programs so people are encouraged to develop their skills both technically and professionally with other people. The third WIN for the company happens automatically; since you have happy customers and happy coworkers, you will be successful. Remember,

people deal with companies they trust, and if you focus on being honest and straightforward at all times, you will win over customers.

These may seem simple and obvious, but it takes daily enforcement to ensure that the entire team has the proper focus. Bottom line is you will never go wrong by being the most professional, honest company in your market. u

David Dombrowski began his career not in the HVAC business but with the international transportation division of GE, controlling operations in seven states and South America. He was one of the first members of the consulting team with Ron Smith as he started Service America. He has worked for the past 32 years for the 1997 contractor of the year and is a Master license holder for a large HVAC/plumbing company in Raleigh, NC.

SEO VS. SEM AND WHY IT MATTERS FOR SMALL BUSINESSES

What are SEO and SEM?

BY WILL MERRITT

So, you’re an HVACR business owner, and everyone says you’ve got to do SEO or “Search Engine Optimization” for your website. On top of that, everyone says you need SEM or “Search Engine Marketing” to drive traffic and leads to your website. For those who did not know, SEM is also known as “Pay Per Click” advertising. Where does it end? What’s your strategy? Who do you trust? Which direction do you go?

Don’t worry. Continue reading, and we’ll explain these terms and their importance to your contracting business.

What is SEO?

SEO stands for Search Engine Optimization. In layman’s terms, it is optimizing your website so that it will rank for the search engines. Google, Yahoo, Bing, and Duck Duck Go want to see regular activity on your website. And by activity, I mean new content; such as seasonal updates, new pictures, new service pages, and new blogs.

Organic leads through SEO are some of the least expensive leads that contractors can obtain.

So, there are essentially two forms of SEO: on-page and off-page SEO. Let’s look at the differences.

Why SEO?

Organic leads through SEO are some of the least expensive leads that contractors can obtain. A click on your website costs your company nothing more than the work required to build, host, and get your site to rank. High organic rankings position your HVACR company as a trusted authority source. It is a coveted position to have these days.

On-Page SEO

On-page SEO is search engine optimization activity on your HVAC website. The search engines are looking for new information and content on your website.

Examples of On-Page SEO:

• Seasonal updates (Transitioning offers: Winter tune-up to a spring tune-up)

• Content updates to existing pages

• New service pages

• New blogs and even updating existing blogs

• Correct Alt tags for pictures (Pictures on your site are tagged with a name)

• Meta descriptions for each page on your website (This is a short description of your page that describes what it is about in search engine results)

• Proper site loading speed (the site opens or comes up fast when a user clicks on it)

And this is just the tip of the iceberg ... Hang on, there’s more.

Off-Page SEO

Off-page SEO is exactly what the name states. It is the activity related to your website that takes place in locations other than your website. The search engines are looking for activity and updates that point to or are related to your company’s site.

Examples of Off-Page SEO:

• Driving REVIEWS today is your #1 PRIORITY

• Updates to your Google Business Profile

• Posting to social media sites (Facebook, Instagram, LinkedIn, Tiktok)

• Email marketing (e-blasts linking back to your site)

• Link building

• Listing management

• Correcting broken links to your website

SEO Strategy for Success in 2024

Your SEO strategy is ever changing and constantly evolving in 2024. What worked a short time ago may not drive the same results today. A few years back, it was as simple as creating content with proper keywords to drive traffic to your website. Today, search engines are looking for well-written content that makes sense and is “relevant” to the searcher’s search query. This is where a current SEO Strategy comes into play in 2024.

Pillar-Based Content Strategy

Pillar-based content is a fairly new SEO technique that drives the best user experience. This is a long-term strategy for success for your HVACR company. Listen to what our Digital Marketing Director has to say on the topic:

The pillar-based marketing strategy works by creating exhaustive content around a specific matter and supporting it with interlinked cluster content. The cluster content serves to answer questions your visitors may have related to the pillar content and provides the impression that your site is authoritative. The cluster content also provides your site with more keyword ranking opportunities, and the link structure sends positive signals to the search engines signaling that your site is an authority on the pillar topic.

What is SEM or PPC?

SEM is Search Engine Marketing, and PPC is pay-per-click, which are essentially the same thing. They are forms of online paid marketing. These ads are generated when a consumer searches for an HVAC service online. Paid ads are a proven platform to generate leads for contractors in 2024.

Why is SEM or PPC Important in 2024?

The No. 1 reason to use online paid ads is to drive leads to your contracting business. Studies show that 80% of customers search online for a heating and air conditioning company. So, let’s look at what you see at the top of the search results.

That is a lot of information to decipher by the average consumer. No wonder they get confused.

Paid ads are a proven platform to generate leads for contractors in 2024.

PPC Platforms that Drive Leads in 2024

Local Service Ads or Google Guaranteed

Google Guaranteed ads appear at the top of the SERPS (Search Engine

Results Page), so this is the first thing a potential customer sees. Remember, a consumer does not casually shop for HVACR services. They are prone to clicking one of the top results. Below are the most important reasons to enroll in this platform:

• It’s at the top of the SERPS page.

• Backed by the check mark or stamp of “Google Guaranteed.”

It costs nothing to set up the platform; you set your budget.

LSA is a “Pay Per Lead” service, you only pay for qualified leads.

It can often cost less per lead than other paid platforms.

continued from page 17

Search or Text Ads

Display ads are exactly as the name implies. They are visual ads that will show on partnering websites, apps, or games that accept paid advertisements, such as the weather channel shown below. Display ads will drive lead generation, but they are primarily used for branding. By setting the proper demographic parameters, your ads will show to your target audience in the geography you select.

Performance Max Ads

Performance Max is one of Google’s newest platforms. It serves multiple ad types on a myriad of platforms. Google uses “machine learning” to determine

We all know that a well-executed plan gives you the best results. This applies when it comes to combining SEO tactics with SEM paid investments. The search engines crawl sites that are set up correctly for SEO.

which ad type is best, predicated upon the user’s “search query.”

Example: A homeowner searches: “Why is my thermostat screen blank?” Google may serve up a YouTube video from a contractor explaining that the batteries may be dead in the thermostat or the indoor drain pan switch has been tripped. Google will show what they deem to be the best answer to the searcher’s question.

Combining SEO with SEM Creates a Winning Combination in 2024

We all know that a well-executed plan gives you the best results. This applies when it comes to combining SEO tactics with SEM paid investments. The search engines crawl sites that are set up correctly for SEO. They also love seeing tons of traffic to websites from paid ads.

Google, Yahoo, and Bing see these as signs of an authoritative site, so they will serve it up more often in search results. Please remember that online marketing is a long-term strategy for success. Have patience and keep up with the everchanging trends; it will pay off for your HVACR business. u

Will Merritt is the Managing Partner at Effective Media Solutions, a fullservice marketing agency. With 27 years of experience in the HVAC field, 10 of that in marketing for contractors, our agency has keen insight into our industry that others do not. Contact Will at will@myeffectivemedia.com or (704) 507-7858. “We Speak HVAC.”

PROVIDED BY KEVEN PRATHER, CFBS

Building Value Outside the Business

Many business owners find the bulk of their wealth within their businesses.

However, planning for a successful future often means wrangling financials outside the business, too. This is especially important when markets may not be as favorable to small and mid-size businesses as they have been in the past. Here are three ways to consider building value outside your business.

1. Know your Business’ Real Value

Before you begin strategizing about the best way to build value outside your business, it’s a good idea to know what your business is actually worth. Business owners often use rules of thumb, comparisons to competitors, or good ol’ fashioned wishful thinking to estimate company value. And it’s not uncommon for business owners to overestimate their company’s value.

However, using inaccurate estimates of business value can make it difficult, if not impossible, to create a solid plan to build value outside the business. After all, if you think you have everything you need based on inaccurate assumptions, it’s far too easy to take your foot off the planning pedal.

By working with a professional who can more accurately estimate your company’s value—such as via a Calculation of Value—you can create a more focused plan to build value inside and outside the business.

In other words, when you know what you have now, you can carve a clearer path toward getting what you’ll need for later.

2. Diversify Investments

Any good financial advisor will tell you that diversifying your investments is one of the most essential things you can do to build value.

It’s not uncommon for business owners to overestimate their company’s value.

With the advent of self-service investment tools and newer asset forms (e.g., cryptocurrency), diversifying investments seems more accessible than ever.

Nonetheless, it’s prudent for business owners to be responsible when diversifying their outside investments. Even as technology allows easier access to investing, you should still consider how a diverse portfolio works toward your goals in the long term.

Recent years have shone brightly as a bull run in many markets. It may be tempting to try to catch that lightning again. But history often shows that disciplined investing, especially with professional help, makes longerterm planning more successful and manageable.

3. Minimize Taxes

In addition to building value outside your business, it’s just as important to minimize how much value you lose. This often comes in the form of taxes.

For example, if your company is a C corporation, you may face double taxation (once for corporate income, once on your personal income). This could reduce the money available to build wealth outside your business.

Likewise, given the inherent complexity of the U.S. Tax Code, it’s possible that you’re simply paying more than you must by no fault of your own.

Legally minimizing your tax burden, often with the help of a professional, could give you more capital to invest outside the business. This, in turn, could help you build more value toward the

future you envision on your terms. We strive to help business owners identify and prioritize their objectives with respect to their businesses, their employees, and their families. If you are ready to talk about your goals for the future and get insights into how you might achieve those goals, we’d be happy to sit down and talk with you. Please feel free to contact us at your convenience. u

Keven P. Prather is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. Call 216-592-7314, send an email to kprather@financialguide. com or visit transitionextadvisors.com.

BY RUTH KING

FINANCE

Achieve Your Freedom with Your Financially Fit Business | Part 6

REVIEW TIMELY, ACCURATE FINANCIAL STATEMENTS EACH MONTH

I’ve written about the first three steps: Know how you generate revenue, make sure you have profitable revenue, and track your billable hours each month. Here is step four:

Step 4 - Review timely, accurate financial statements each month.

This means that by the 15th of each month, you will receive your profit and loss statement, balance sheet, aged receivables report, aged payables report, and the reconciliation reports for your bank, credit cards, and vendor accounts.

It’s like learning to read a wiring diagram.

For those of you who started in the field, the first time you looked at a wiring diagram, you didn’t understand it. You took the time to learn to read them because it was critical for you to understand them so you could do your job.

It’s like learning to drive.

The first time you got in a car, the thing that probably went through your head was, “Finally, freedom!” Then you started to learn to drive.

It was hard in the beginning. You had to pay attention to many things. You practiced, and driving became reflexive.

Financial statements are the same thing. The first time you look at them, you don’t understand them. Take the time to learn to read them because they are critical to your company’s survival.

Delegate the bookkeeping.

You have more productive things to do as an owner or manager than the day-today bookkeeping entries. A competent bookkeeper should do this.

You must review the timely, accurate financial statements your bookkeeper produces.

Financial statements …Take the time to learn to read them because they are critical to your company’s survival.

Five quick ways to tell if your financial statements are wrong:

1. Your statements are reported on a cash rather than accrual basis.

a. QuickBooks® states on the financial statements whether they are on a cash or accrual basis. Other accounting systems are usually set up on an accrual basis.

b. Cash basis accounting reports a sale when you get the money for your work. It reports an expense when you pay that bill. There are no accounts receivable or accounts payable. Your company is almost always profitable because you don’t pay bills without money in the bank.

c. Accrual-based accounting reports revenue when you bill for the work, whether or not you collect for the work. Likewise, accrual accounting reports expenses

when you receive an invoice from a supplier, whether or not you’ve paid it. There are accounts receivable and accounts payable. This is the most accurate way to account for profitability. Your gross margins should be fairly consistent with accrual-based accounting, assuming you match revenues and expenses incurred producing those revenues.

2. You have negative cash and/or negative accounts receivable.

a. It is impossible to have negative cash in the bank. You would be bouncing checks and accumulating fees, and your bank would close your account.

b. Negative accounts receivable usually happen when deposits were given for future work, and they were not accounted for as deposits (current liability on your balance sheet).

3. You have negative loans and/or negative payroll taxes payable.

a. This happens toward the end of the loan when the bookkeeper puts the entire loan payment against the principal rather than putting the interest portion as an expense on your P&L.

b. The government is unlikely to owe you money unless you’ve made a huge mistake and overpaid your taxes.

4. You have negative credit card payables.

a. These balances should be positive unless you got a refund for a purchase made in the previous month.

5. Your accounts receivable and accounts payable balances on your balance sheet do not match the accounts receivable and accounts payable totals on your aged accounts receivable and accounts payable reports.

a. This indicates that some receivables or payables are not entered through those modules and are entered as journal entries instead. Find out why.

Reviewing timely, accurate financial statements helps you spot minor issues and resolve them before they become major cash flow or other crises. u

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv or at 770-729-0258.

PRODUCT FOCUS

ABB

ABB is optimizing HVACR systems using drive control to ensure that you can take comfort for granted. The ACH580 series of variable frequency drives provides quality, reliability, and energy savings. The series includes:

Power range 0.75 to 500 kW, Voltage range 208 to 690 V, IP21 and IP55 enclosure classes for wall-mounted drives, IP00 and IP20 for drive modules, and IP21, IP42 and IP54 for cabinet drives, all hardware in one package, while supporting a wide range of communication protocols like Modbus, BACnet and I/O options. It offers an intuitive control panel with optional Bluetooth capability.

www.new.abb.com

MADGETECH

MadgeTech announces the launch of its LynxPro Series, marking MadgeTech’s debut in the realm of Bluetooth Data Loggers. For overseeing expansive warehouses, intricate laboratories, or complex HVAC systems, its LynxPro stands as the trusted companion. Operating seamlessly within a temperature range of -20°C to 60°C, its exceptional precision ensures the unerring management of temperature. LynxProRH: The Complete Solution, the LynxPro-RH seamlessly integrates ambient temperature measurement with humidity sensing, offering a comprehensive perspective of the surroundings.

www.madgetech.com

CEMENTEX

Cementex highlights its TR-9HVAC TOOLKIT, crafted to cater to the HVAC industry’s unique needs. The TR-9HVAC TOOLKIT includes a carefully curated selection of tools, making it an indispensable asset for HVAC professionals. The toolkit features a 6” Adjustable Wrench, 8” Water Pump Plier, and a set of 6” Screwdrivers, encompassing #1 and #2 Phillips tips, 3/16” and 1/4” Cabinet tips. Additionally, a set of 6” Nut Drivers, including 1/4”, 5/16”, and 3/8”, ensures that HVAC technicians have the right tools for a variety of tasks. All these tools are neatly organized in a convenient tool roll pouch for easy portability and accessibility on the job.

www.cementex

DANFOSS

New Danfoss BOCK® CO2 Compressor Offers Larger Capacity with Strong Performance. Transcritical 6-cylinder compressor ideal for industrial refrigeration and large-capacity heat pumps. The newest Danfoss BOCK compressor, the HGX56 CO2 T, provides an optimized design solution for industrial and commercial refrigeration, including cold storage and ice sports facilities, as well as for large industrial heat pumps. With the 6-cylinder capacity, customers can reduce the number of compressors in their system, resulting in lower system complexity and investment costs. The HGX56 CO2 T transcritical compressor range is designed for demanding conditions with natural refrigerant R744 in commercial and industrial applications. It is a compact and lightweight design, and a minimal oil carry-over rate.

www.danfoss.us

PLATFORM PRO

Platform Pro Introduces Fixed Ladders for Enhanced HVAC Installation and Platform Design. Each ladder incorporates advanced safety mechanisms, including non-slip rungs, sturdy handrails, and a design that exceeds current safety standards. The ladders are constructed from highgrade materials to ensure longevity and resistance to the elements, making them suitable for a wide range of indoor and outdoor applications. The ease of installation and integration with existing platforms and HVAC systems has been a key focus. The design allows for seamless integration, simplifies the installation process, and reduces the time required to set up or modify installations. This efficiency is critical in fast-paced work environments where time is of the essence.

www.platformpro.net

JB INDUSTRIES

JB Industries, a manufacturer of American-made HVACR tools and equipment, has announced the launch of a wireless tool suite under the CLIMATE CLASS brand. CLIMATE CLASS tools offer technicians flexible options and the latest technology for reading and measuring systems. The A2L Compatible product line features built-in screens, so that each tool can be used independently for immediate readings or they can be seamlessly paired together for more dynamic measurements. The wireless capability of CLIMATE CLASS tools allows HVAC professionals to view readings and access diagnostics with the industry’s popular measure Quick App or JB’s free, proprietary App, JB GO V2.

www.jbind.com

QUEST CONTROLS

Quest Controls Introduces the Model 600 Lead/Lag Controller.

Quest Controls introduces the Model 600 Controller, designed as a standalone HVAC control system or work in conjunction with Quest’s TELSEC® ESB2 Environmental Controller to provide a comprehensive monitoring and control system for Telecom/Broadband facilities. The Model 600 has the flexibility to handle wall packs, rooftops and split systems plus support for single, dual stage systems and heat pumps. Multiple HVAC units can be grouped by the area they serve to provide lead/lag/ standby functionality per zone.

www.questcontrols.com

UPONOR

Uponor ProPEX EP Reducing Tees Series. Uponor’s new ProPEX® engineered polymer (EP) reducing tees allow engineers and installers to eliminate connections, work smarter and faster to meet tight deadlines, and keep projects on track. Available in ½” to 2” diameters, these new reducing tees can resist corrosion, withstand thousands of pounds of force, and handle the high temperatures found on many commercial projects.

www.uponor.com

with GENE LANOIS 20QUESTIONS >>

Publisher

1. What’s your favorite movie of all time?

I’m not a huge movie guy but I did like Wall Street and the Wolf of Wall Street.

2. What’s the best present that you’ve ever given to someone?

I would have to say it was an engagement ring.

3. What are the top three things on your bucket list.

1.) I’d love to own a cigarette boat and take it on a poker run. 2.)Drive a rally car race through the desert. 3.) Would be involving my family in the first two.

4. If you could hit the rewind button, what would you like another shot at?

I regret I did not join the armed service. That is one that I think I would’ve really liked to do, and I would have joined the Navy.

5. If you could have an unlimited supply of one thing, what would it be?

Great profitable ideas.

6. What are the three words that best describe you?

Determined, humble, competitive.

7. What would people be surprised to know about you?

I do not have a college degree. I was forced to get to work right away as a kid, but honestly owning my own business was the best education I could have ever had, there is no substitute for the “on the job training” that you experience. Some of that learning is very painful, so you learn quick.

8. Most business leaders have good mentors who was yours and what advice did they give you?

I have taken something that I thought was valuable from almost every leader I have ever worked for. I hope that I have been able to provide the same opportunity for those that have worked and do work for me today. I learned general “hard work” from both my parents, but after that I have gleaned something that I decided that I wanted to adopt from managers and co-workers throughout the years. How I operate, communicate and make decisions is really based on all of those experiences and adoptions.

9. What are the three things you do every day to prepare for business?

The first thing I do is I review my calendar. The second thing I do is scan LinkedIn because it connects me with people, companies, and industries that I like to follow, essentially my area of business. My feed will tell me a lot about what’s going on and it will give me pieces of information that I may not know about because it’s very intimate and focused on the people and areas of business that I care about. Third,

I scan through my email subscriptions from industry publications (like HVACR Business). I look through all the headlines and decide if there is anything I should spend a few minutes on to make sure I am “in the know” before I meet with people throughout the day.

10. How did you get into the industry?

My dad was a contractor and I started helping him with duct cleaning. The business grew tremendously, and I decided to sell in the first round of consolidation in the late nineties. Then I went to work for a zone controls manufacturer which was then acquired by Honeywell and held a number of roles with them over the years. I traveled a great deal and because I had a young family I wanted to be home more and I got into the wholesale distribution business with a great family business Victor Distributing. And that led me to an opportunity with the Watsco Carrier distribution joint venture where I was director of their parts and supplies business.

11. What led you to Google Nest?

At Watsco we were the exclusive pro wholesaler when Nest launched in 2011. In 2013 when they were still in start-up mode and I was offered a position with them.

12. What tools do you use to stay organized?

As simple as it is, literally my Google calendar. If it’s not on my calendar, it’s not real and it’s not going to happen.

13. What aspect of running the business do you enjoy the most?

Problem solving! Without a doubt. Every business is faced with different problems and most businesses have a lot of the right ingredients, but they don’t necessarily have a great recipe. I think looking across the business, seeing what you have and figuring out how to make a great recipe with those ingredients is probably the most interesting piece.

14. What do you do to keep your business acumen sharp?

I like reading or watching a great documentary. It could be on sports or a business icon, something that helps me stay sharp and focused, literally learning how others are applying their craft. I usually find some great take aways and inspiration. By the way it doesn’t mean you have to like them, you just need to respect and understand what and how they accomplished their success.

15. What fundamental business areas are you focused on right now?

If you look at the HVAC industry specifically, there is this inflection point where you have connected thermostats, but you don’t necessarily have connected equipment, and everything that works along with those systems is analog and not communicating. Automotive used to be this way. It’s going to require a change at the manufacturing level, and there’s a lot of software that has to be written to enable that change, but it’s really critical that it be done.

16. What do you view as your most important management responsibility? Letting my team make mistakes ... once.

17. What’s the most significant challenge facing Google Nest this year? It’s that increased availability of competitive technology. Nest has paved the way for a lot of other companies to see what they could do with technology, and that creates ideation for other people and other companies, and I think where there was more uniqueness of what Nest did at one time, that space is getting a lot more crowded. So yeah, I think the pressure is really around competitive pressures. There is still a lot of room for contractors to use connected thermostats more than they do today.

18. What ideas have you come up with to address that challenge?

The biggest focus for Google Nest is how do we utilize what we have, to help keep the homeowner connected to a contractor. We want to make sure that when a customer needs help with their system, the contractor that installed that thermostat or the contractor that put that system in with the thermostat was going to be the one who got the call. That to me is one of the bigger opportunities of the business.

19. What trends do you see in the market this year?

Efficiency changes will require more staging in a thermostat. Some manufacturers have decided that their minimum efficiency is going to be a two-stage compressor, and if that’s in a heat pump, things just got more complex. Multi-stage equipment, will require more complexity from the thermostat and will move from a four wire device to eight or more over the next five years.

What advice do you have for our audience contractor owners?

Get “ENTRENCHED.” As a business owner. I made sure that I tried to attend meaningful shows and read all my industry publications, I think being engaged is important. Follow the manufacturers, keep up with the brands you represent and stay connected with their people.

Terry Tanker sat down with Gene LaNois, Director ,Google Nest Industry Partnerships to discuss family businesses, bucket lists, preparing for business every day and upcoming industry trends, challenges and opportunities.

Brian

Williams, Founder and Visionary

Ashton Service Group

Nexstar Member since 2011

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