HVACR BUSINESS JUNE 2024

SPLIT CONDENSERS

• AC: Min. 13.4 SEER2 and 14.3 SEER2 Models (R 410A)

• HP: Min. 14.3 SEER2 Models (R 410A)

• 1.5 – 5T models with quiet operation and ECM fan motors

• Painted, louvered steel cabinets provide superior durability

CASED A-COIL

• 1.5T – 5T with complete ratings

• Multi-position installation

MULTI-POSITION AIR HANDLER

• Available with PSC or CT motor

• 2T – 5T models with all aluminum coils

• Certified less than 2% leak rate

• Optional field installed heat kits available

MULTI-POSITION GAS FURNACE

• Single-stage 80% AFUE or two-stage 96% AFUE

• Aluminized steel tubular primary heat exchanger

• Stainless steel secondary heat exchanger

• Quiet, multi-speed ECM blower

• LP kit included

• Fully insulated cabinet prevents sweating

RESIDENTIAL PACKAGED UNITS

• Gas/Electric: 13.4 SEER2 and 81% AFUE

• Heat Pump: 13.4 SEER2

• Horizontal or downflow discharge

Bezon

By Tom Perić

By Will Merritt

By Keven Prather

By Ruth King

Editor’s Choice: Management Resource Shelf

I dislike negotiating but I also don’t want someone to take advantage of me when I’m negotiating. Roger Dawson’s Secrets of Power Negotiating is your first stop at understanding what negotiating means and how you can develop your own framework and approach to a relationship that occurs every day in our business and personal lives.

Secrets of Power Negotiating

Roger Dawson

Dawson’s book takes on the common situations we see when negotiating, from “Never Say Yes to the First Proposal,” to “Never Offer to Split the Difference.” You can get closer to what you want when negotiating by reading and then applying the numerous tips Dawson suggests.

https://www.amazon.com/SecretsPower-Negotiating-25th-Anniversary/ dp/1632651963/

Leading Change

John P. Kotter

Let’s face it, no one really likes change, and yet that is one thing we can expect. Kotter offers an eight-step process for managing change with positive results. His book shares a realistic alternative for how to confront and adapt to changes that are sure to come.

https://www.amazon.com/LeadingChange-New-Preface-Author/ dp/1422186431/

Seth’s Blog

Seth Godin

Seth Godin is one of the best-known marketers in the modern era, and of course, he runs one of the most famous business blogs. Throughout his career, Seth has served as a high-ranking marketing consultant for Yahoo! and other major companies. This business blog is rich with articles and tutorials on digital marketing, motivational quotes, and advisory pieces for startups. Seth personally runs the blog and posts daily updates. Seth’s entrepreneurship blog is the right choice for companies looking to develop their digital marketing campaigns. He offers countless solutions for startups and small businesses on how to manage and grow their income and increase sales.

https://seths.blog/

The First 90 Days: Proven Strategies for Getting Up to Speed Faster

Michael Watkins

Transitions are a critical time for leaders. In “The First 90 Days,” Michael Watkins offers proven strategies for conquering the challenges of transitions--no matter where you are in your career. Whether you’re starting a new job, being promoted from within, embarking on an overseas assignment, or being tapped as CEO, how you manage your transition will determine whether you succeed or fail. Use this book as your trusted guide.

https://www.amazon.com/First-90-Days-Strategies-Expanded/ dp/1422188612/

HBR’S 10 Must Read on Mental Toughness

Harvard Business Review

Come back from every setback a stronger and better leader. If you read nothing else on mental toughness, this book offers ten articles by experts in the field. The editors combed through hundreds of articles in the Harvard Business Review archive and selected the most important ones to help you build your emotional strength and resilience, and to achieve high performance. Learn how to thrive on pressure like an Olympic athlete and plan short-term goals to achieve long-term aspirations.

https://www.amazon.com/Toughness-interviewPost-Traumatic-Building-Resilience/dp/1633694364/

First Round Review

First Round Capital

First Round Review is a business blog operated by the VC firm First Round Capital. The blog focuses on highquality content marketing and startup management advice given out by Camille Rickets and her group of experts. The newest affairs and events are posted twice a week for their half-a-millionstrong audience. First Round Review is the perfect learning source if you’re having difficulties acquiring new customers, recruiting talent, and building brand awareness.

https://review.firstround.com/newsletter/

BY TERRY TANKER

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

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S.

The editorial focus and mission of HVACR Business is to provide business owners and managers with 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 accuracy or completeness of such information or for loss or damage caused by any use thereof.

Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions:

1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www. hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com.

HVACR Business (ISSN 2153-2877) Copyright ©2024 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440-731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431)

POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600

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

2024 Tops In Trucks Fleet Design Contest

Welcome to our 2024 Tops-In-Trucks Fleet Design Contest issue. Sixteen years ago, we introduced this contest because we understood the large investment a fleet represents to a contractor. Whether you have one vehicle or one hundred, your fleet offers a great way to turn a large liability into a very large asset.

FLEETDESIGN CONTEST

I know many of our faithful readers have heard the story but it’s worth repeating especially for our new subscribers. We started the contest back in 2007 because as I traveled around the country making sales calls on advertisers, I saw too many white service vans with orange ladders driving around. To me, it seemed like a huge opportunity for us to help contractors market their products and services more effectively. I thought an issue about fleet design would be a great source of editorial content for the publication, and a natural fit for a large advertising category – automotive.

We believe the easiest place to start this process is with a great design for your fleet. We’ve shown you many examples over the years, and this year is no exception.

What Does Good Fleet Design Cost?

The cost to wrap a vehicle can vary from $1,500 to $5,000. Let’s use the $5,000 figure which would include all costs including design. Let’s further assume the life of the vehicle is 5 years – for most, that would be on the low end. The math would show a daily cost of just $2.74 per day. According to the Outdoor Advertising Association of America (OAAA), a single service vehicle can generate between 30,000 and 70,000 impressions in a single day, depending on the size of the city. (The average American travels about 300 miles each week and sees an average of 20,000 unique vehicles during that time). These types of statistics are hard to ignore. Most owners realize that their service fleet represents their single largest marketing opportunity to generate brand recognition as well as sales leads.

There are several options for the fleet design ranging from a full wrap to simple lettering with your company name and contact information. Correctly implemented, any strategy can work, providing you’re clear on brand awareness, brand recognition, and, in many cases, the all-important sales lead. Every year, we receive many questions regarding the contest and how the winners are chosen. So, to give you a better understanding of our judging process — and tips as you create your next fleet design — I thought I’d share some advice as well as how we judge an entry. Each entry is judged on eight different criteria using a five-point scale (1 being “poor” and 5 being “superior”), the judges score the following categories.

Graphic Appeal: Is it attention-grabbing and eye-catching? Does it stand out? Is it industry-specific and unique?

Quality Logo: Is the logo interesting and appropriate? Does it pop?

Information: Is there enough information, but not too much?

Information should not be overwhelming. Does it include the company name, phone, website, and services?

Lettering: Is the lettering legible, clean, and memorable?

Color: Are the colors bright, vibrant, and bold? Are they complementary, or do they clash?

Legibility: Is the design crisp and readable from a distance?

Creativity: Does the design create interest? Does it appeal emotionally? Does it stand out as unique?

Consistency: Is the theme used on all four sides of the vehicle and for all vehicle body types?

If you’re thinking about wrapping your vehicles for the first time, or perhaps you’re ready for a refresh — or even a complete rebranding, keep this criterion in mind. It will help you not only come up with a great design for your fleet but also a brand that will stand out.

And, of course, don’t forget to send us your photos and entry form for the 2025 Tops in Trucks Fleet Design Contest.

OUR WINNERS THIS YEAR ARE…

Cardinal Heating, Cooling, Plumbing & Electric

Rick & Sharon Ouimette, Founders, Sun Prairie, WI

King’s Heating, Air & Electric

The Pollard Family, Lynnwood, WA

MaCawsome Heating and Cooling

Maynor Gutierrez, CEO, Ontario, CA

OUR RUNNERS UP ARE… Affordable Air Experts

James Weeks, Founder, Greer, SC

All Weather Heating & Cooling

James Stone, CEO, Copiague, NY

Great Bison Heating & Cooling

Chris Neal, Owner, Newfane, NY

OUR HONORABLE MENTIONS ARE... Climate Experts Air Plumbing & Electric

Derek Cormier, Owner, Melbourne, FL

Old Coast HVAC

Zachary Friedman, Founder, Savannah, GA

Quality Comfort Air Conditioning and Heating Inc.

Sol Goodwin, President, Melbourne, FL

Trademasters Heating & Cooling

Joey Urban, Founder, Swansboro, NC u

FUELING SUCCESS: UPGRADING FLEET SPEND MANAGEMENT WITH SMART FUEL CARDS

BY DANIEL SIMON

In the HVACR industry, reliable transportation is essential. Wellrun fleets empower technicians to respond quickly to service calls, an important part of maintaining customer satisfaction and operational efficiency.

But keeping these fleets running effectively can be expensive, and managing and tracking purchases like fuel can be time-consuming. Employees need the ability to pay for essential purchases, but without careful monitoring, this can lead to mistakes, mismanagement, or even fraud.

Fortunately, new technology provides solutions that streamline payment processes and improve expense tracking, making fleet spend management easier and more effective than ever. If you haven’t explored new offerings in this area, including smart fuel cards, you’re likely spending too much time and money when managing your fleet. Here’s how smart fuel cards help boost your security, provide data accuracy, and integrate

Designed to meet the needs of modern fleet management, smart fuel cards are an innovative alternative to traditional cards.

with your existing tools – boosting your bottom line along the way.

The Problem with Traditional Fuel Cards

Traditional fuel cards have been a mainstay in fleet management for decades, but they come with significant drawbacks. They often don’t connect to other fleet tools, like telematics systems. They can be lost or stolen, as can the personal identification numbers (PINs) they rely on. They also often use magnetic stripe technology, which can be “skimmed” with illegal devices installed on fuel pumps or point-of-sale terminals. Bad actors can use these devices to capture data that can be used to replicate

the cards and steal from victims.

The repercussions are serious: A study commissioned by Shell shows that 57% of fleet managers believe fuel-related fraud is a major concern, and two out of five drivers have witnessed fraudulent activities firsthand. Even without fraud, simply following up on expenses costs both time and money; one study found that, on average, processing just one expense report takes 20 minutes and costs $58.

Introducing Smart Fuel Cards

Designed to meet the needs of modern fleet management, smart fuel cards are an innovative alternative to traditional cards.

They incorporate advanced technologies that streamline expense tracking and enhance security while allowing technicians the independence they need to work efficiently.

In particular, upgrades in security, integrations, and data accuracy are revolutionizing the ways businesses manage their fleets.

Enhanced security

through card and software upgrades

With a modern card platform, fleet managers can add the employee’s mobile phone and other identifying information and assign it to their card within the fleet card’s software portal. This means that the card is useless unless the employee has checked in via their mobile device. This also effectively means that if the card is stolen or picked up off the street, it cannot be used or skimmed. These cards also utilize chip technology, which significantly reduces

the risk of skimming and cloning.

When used in conjunction with telematics applications, smart fuel cards can also alert managers to irregular fuel consumption patterns. If employees fill up too much, fuel at unapproved gas stations, or spend outside of geofencing boundaries, automated alerts will let you know.

By enabling fleet managers to set spending limits, restrict where, when, and how often cards can be used, and specify the types of purchases permitted, fuel management cards reduce mismanagement and save money.

Automated processes through software integrations

Older fuel cards weren’t always built to handle real-time transaction reporting, or connections to other software. Smart fuel cards provide more than just a payment method. By seamlessly connecting with standard software applications, these cards let HVACR companies automate time-consuming processes and collect more accurate data.

Detailed purchase data can be easily imported into accounting software such as QuickBooks, for example, for better accounting and more accurate job costing. Integration with fleet management software and telematics applications allows managers to automatically import fuel transactions, enable more accurate vehicle tracking and routing, and block transactions that happen away from company vehicles.

Easier, more accurate data collection

Collecting data manually is both time-consuming and susceptible to error. But with a smart fuel card, managers or accounting personnel can match card usage accurately to the correct driver and vehicle, allowing administrators to correctly categorize transactions and spot any potential card misuse.

By passing identifying data through the SMS on driver phones, the driver no longer has to memorize a vehicle code and can check in at the pump through their own phone. With the workflow on an employee’s mobile device, the system automatically captures which card is being used and matches it to the right driver

When used in conjunction with telematics applications, smart fuel cards can also alert managers to irregular fuel consumption patterns.

and vehicle, then applies the correct spending rules.

Managers can get more accurate odometer readings and tie fuel usage data to specific users and vehicles. This level of transparency helps them quickly identify discrepancies or unusual patterns that may indicate fraudulent activities.

Fast, accurate data also provides better visibility into expenses, fuel usage, vehicle performance, and more. These insights help HVACR companies identify inefficiencies and make more accurate predictions about job costs and budgets.

Key Features to Look for in Smart Fuel Cards

When selecting smart fuel cards for your HVACR company, it’s important to choose one with features that make life easier for both fleet managers and technicians. Look for the following capabilities:

• Flexibility to cover expenses beyond just fuel

• Real-time alerts and the ability to block transactions

• Integration with telematics, fleet management, and accounting systems

• Ability to set spending and purchase category limits

• Rewards such as discounts or cash back

With advanced features like these, smart fuel cards reduce costs, simplify reporting, and enable better decisionmaking. Even better, they save time and make life easier for managers and technicians alike. With improved safeguards and optimized workflows in place, you can focus on delivering quality service and driving business growth. u

Daniel Simon is the CEO and founder of Coast, a modern fleet card and expense management platform that helps companies govern their fuel and fleet spending. To learn more about smart fuel cards, visit coastpay.com.

THE CRITICAL CONSIDERATION OF VAN SAFETY

BY JON BEZON

In the realm of commercial vehicles, safety isn’t just a priority; it’s a necessity. Every year, thousands of workers rely on vans and trucks to transport goods, tools, and consumables to job sites. Adrian Steel, a leader in van and truck upfitting solutions, is at the forefront of enhancing safety in these mobile workplaces. Van and truck safety is a critical consideration when upfitting these mobile workplaces because safety affects business problems such as high inventory costs, low margins, missed revenue goals and high insurance premiums. When upfitting your fleet, look for a company that offers innovative designs and has a commitment to delivering quality products.

Assessment

Safety starts with assessing each van or truck. Understanding what is being carried and how frequently tools and

Safety isn’t just about protecting against accidents; it’s also about preventing injuries.

consumables are being used helps uncover challenges, opportunities, and safety risks.

Understand that every job and technician is different. This is why customizing solutions tailored to the specific job responsibilities of each technician is critical.

Crash-tested Designs

Safety starts with design, and the vendor you select shouldn’t cut corners when it comes to crash testing. Products have to undergo rigorous testing to ensure they meet or exceed industry safety standards. From shelving units to partitions, each component requires engineering to withstand the forces of a

collision, protecting both the driver and passengers in the event of an accident. In a recent customer testimonial, a technician stated that “the partition saved my life.” While transporting 1,500 pound pallets of cargo to a construction site, he suddenly had to slam on his brakes to avoid oncoming traffic. In doing so, the pallets stored near the tail end of the vehicle (for easier access) flew forward, slamming into the partition. Because the partition met product safety standards, the driver was unharmed.

Quality

Durability is a critical consideration to safety. Look for vendors that only

use the highest quality materials in their products. Whether it’s high-strength steel shelving or impact-resistant partitions, the equipment you install in your fleet vehicles has to be built to last. By investing in quality products for your fleet, you’ll help ensure that they can withstand the rigors of daily use without compromising safety for years to come. Fleet vehicles are one of the largest investments HVAC firms make. There is a lot to consider: Vehicle brand, insurance, maintenance, wraps and choosing the correct shelving units for tools and consumables such as refrigerant canisters as well as ladder racks for ladders and other materials.

Ergonomic Design

Safety isn’t just about protecting against accidents; it’s also about preventing injuries. Products designed with ergonomics in mind make it easier

Additional customization considerations include a wide range of integrated safety features to further enhance protection. From backup cameras to emergency lighting, many products help drivers stay aware of their surroundings and respond quickly to potential hazards.

and safer for workers to access products, tools and consumables. A critical safety consideration is to assess the type of ladder rack on the van or truck. Understanding the type of ladder or other materials that may be carried on the roof as well as how often they are accessed can help determine the type of ladder rack needed to reduce risk or injury. You can significantly reduce back and shoulder injuries with the right type of ladder rack.

Secure Storage

Keeping valuable tools and consumables secure is essential for both safety and peace of mind. There are a wide range of storage solutions, including lockable cabinets, drawers, portable parts cases, and storage bins. You’ve heard the old saying, “a place for everything and everything in its place.” Storage solutions create efficiency by allowing the technician to find and access what they are looking for quickly, allowing them to save time on each job. Tools and consumables stored in the proper place also reduces the risk of sprains, strains and lacerations.

Integrated Safety Features

Additional customization considerations include a wide range of integrated safety features to further enhance protection. From backup cameras to emergency lighting, many products help drivers stay aware of their surroundings and respond quickly to potential hazards.

Continuous Improvement

Safety is an ongoing process, and as an owner you should be committed to a continuous process of improvement. You should regularly solicit feedback from your service techs to identify additional areas of improvement. Small investments in integrated safety, storage and security far outweigh serious injuries and loss of product that can occur within your fleet.

In conclusion, your most reliable resource for van and truck safety is to partner with a firm that has experience in providing upfitting solutions that protect your workers and enhance efficiency. With crash-tested designs, durable materials, ergonomic features,

and integrated safety technology, Adrian Steel products set the standard for safety in the industry. By prioritizing safety and innovation, you can help your businesses operate with confidence, knowing that their mobile workplaces have the equipment to handle whatever challenges come their way. u

Jon Bezon, with a career starting in 1987 as a cellular sales pioneer at Cellular One of Northeast Ohio, has excelled in B2B sales and management roles. Joining Adrian Steel Co. in 2007, he significantly boosted sales in the Northeast region. His versatile career includes owning a chain of pizza shops and advancing in telecom and event development at Adrian Steel.

TOPS IN TRUCKS THE 2024 WINNERS ANNOUNCED!

FLEETDESIGN CONTEST

BY TOM PERIĆ

It’s June, it’s summertime, business is about to burst, and our readers’ fleets will be rolling regularly throughout their territories. Let’s celebrate the winners of the 2024 Tops In Trucks Fleet Design Contest for their creativity and strategic thinking. They deserve it. And while they extol the message, personality and style of the companies they represent, allow me one more description that I believe is fitting: They are moving works of art that make us pause, appreciate and remember.

Each year, we recognize and celebrate the industry’s most striking and effectively branded service vehicles. HVACR Business magazine proudly announces the winners, runners up and honorable mention entries for 2024. These companies not only shine in functionality, they also excel in aesthetics, making them stand out on the roads and in customers’ minds.

As in past years, we evaluated candidates based on our eight-point

“I can’t drive for five minutes without seeing a Cardinal van.” “We love hearing that!”

– Keith Ouimette, Cardinal Heating, Cooling, Plumbing & Electric

criteria – graphic appeal, quality logo, information, lettering, color, legibility, creativity and consistency. We first considered color and aesthetic appeal, as these elements make the first impression as vehicles travel on the roads or pull up to a service call. Vibrant colors and eye-catching designs not only distinguish these fleets from competitors but also enhance the professional image of the companies they represent.

The judging criteria are the starting point for every contestant. And their application ultimately leads to the success of our three winners, runners-up, and four honorable mentions.

Our editorial team considers itself fortunate to have so many entries each

year. We realize fleet vehicles are the main – if not only – investment many contractors make in marketing. It’s an important line item in the budget and one you don’t want to leave to chance. The best contractors know how to make the most of their rolling billboards. And, our contest is our annual opportunity to pore over entries, evaluate, and to measure the best of the best. Great fleet design is a perfect balance between imagery, vibrancy and legibility.

Over the years, we’ve seen more and more contractors investing in creative, eye-catching designs to set their fleets apart from the competition, which consistently elevates the quality of entries, and this year is no exception.

The following are our top choices for the 2024 Tops In Trucks Fleet Design Contest! We’ve selected three winners, three runners-up, and four honorable mention selections.

WINNERS

Cardinal Heating, Cooling, Plumbing & Electric

Sun Prairie, WI | 110 Vehicles

In the heart of Sun Prairie, Wisconsin, stands a beacon of service excellence and innovative marketing—Cardinal Heating, Cooling, Plumbing & Electric, winner of our Tops In Trucks Fleet Design Contest. Founded in 1984 by Rick and Sharon Ouimette, Cardinal has grown from a small HVAC operation into a full-service contractor with offerings in plumbing and electrical work. The company’s COO, Keith Ouimette, is spearheading a dynamic transformation

of their fleet of service vehicles, marking a new era in the company’s branding and visual impact.

Cardinal’s fleet boasts 110 vehicles, a diverse collection featuring Ford Transits, GMC and Chevrolet Express vans, GMC Acadias, and several pickup trucks. This selection not only ensures operational efficiency but also aligns with the company’s robust service requirements. The fleet expansion and redesign coincide with Cardinal’s 40th anniversary, celebrated on April 1, 2024, a fitting milestone as they rolled out a fresh, new look.

To achieve the complex process of rebranding, Cardinal wanted to revamp the company logo and vehicle wraps while integrating the company’s heritage with a modern twist. The final design features a patriotic red, white, and blue color scheme, symbolizing the company’s American roots and echoing the Cardinal name.

Implementing the new design was a significant investment, nearing $600,000, aimed at enhancing brand visibility and

recognition. Nearly 50% of Cardinal’s fleet now sports the latest design, with ongoing efforts to complete the transition. Reflecting on the initiative’s success, Keith Ouimette says that while the return on investment isn’t quantifiable on paper, the community’s response speaks volumes. Residents frequently recognize and appreciate the distinctively wrapped vehicles, reinforcing brand presence in the local market.

The standout elements of the fleet— its vibrant colors and friendly Cardinal logo—are more than just aesthetic enhancements. They are strategic tools that differentiate Cardinal from its competitors, capturing attention and fostering brand recall.

The redesign has not only elevated Cardinal’s market presence but also bolstered internal pride and morale. Initial hesitation from some employees soon turned into enthusiastic support for the refreshed brand identity. Customers and employees alike have expressed overwhelming approval, often reporting the ubiquitous presence of Cardinal vans throughout the community.

The company’s strategic investments in branding and design are not just about looking good—they are about being visible and memorable in a crowded

“We take great pride in being third generation in our family-owned and -operated business. We are also one of the few HVAC & Electric companies in our area that a private investment company has not bought out.”

– Erin, Gary, Michaela, and Josh Pollard, Kings Heating Air & Electric

marketplace, driving forward with confidence into the future.

If feedback says it all, a comment captures the essence of the company when a friend told Keith Ouimette, “I can’t drive for five minutes without seeing a Cardinal van.” “We love hearing that,” Ouimette said.

Kings Heating, Air & Electric

Lynnwood, WA | 12 Vehicles

Kings Heating, Air & Electric, a family-owned business based in Lynnwood, WA, has been named a winner of the prestigious Tops In Trucks Design Contest. Founded in 1973 by the Pollard family, the company has been a staple in the community, providing exceptional HVAC and electrical services. Today, Erin, Gary, Michaela, and Josh Pollard run the company and continue to

continued on page 12

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uphold the family legacy with dedication and innovation.

The company’s fleet of 12 vehicles, including Chevy Silverados, Ford F-150s, Ford Transit Vans, and GMC Savana Vans, now sports a vibrant new look. Michaela Pollard, the Operations Manager, and her brother Josh led the collective design process as they took charge of creating a fresh, modern image with their rebranding initiative.

Michaela Pollard told us the creative process involved deep introspection about the company’s identity and values. They made a final choice, selected through surveys of employees and customers, featuring bold, eye-catching colors and three jewels in the crown, symbolizing the three generations of the Pollard family involved in the business.

Implemented on Sept. 7, 2023, they currently feature the new design on three of their 12 vehicles. This change is part of a broader branding initiative that includes updating their website, employee merchandise, and even the company building’s signage. The investment of more than $50,000 into this campaign is already paying off, with first-quarter numbers showing a significant increase from the previous year and more customers reporting they found the company through their distinctive trucks.

Customer response to the new look has been overwhelmingly positive. “Our

“Employees have embraced the new design enthusiastically, feeling proud to be part of what they refer to as their “flock.” This sense of belonging and pride has not only boosted morale but also enhanced the way customers perceive and interact with the staff, fostering trust and a welcoming atmosphere.”

– Maynor Gutierrez, Macawsome Heating and Cooling

customers love our new brand! Many of our longtime customers said it looked awesome and some even asked for some of our company swag,” said Michaela Pollard. Initially, there was some hesitation among employees, but once they saw the design on company swag and vehicles, their excitement grew, and they proudly wear the new branding even in their personal time.

The standout element of their fleet design is the crown with three jewels, a subtle yet powerful nod to their family heritage and commitment to excellence. Unlike many competitors, Kings Heating, Air & Electric remains independently owned, a testament to their enduring dedication to quality and community. “The one element of our fleet design which not many know about is the three jewels in the crown representing three generations of family in the business,” Pollard said.

“We take great pride in being third generation in our family-owned and

companies in our area that a private investment company has not bought out.”

Macawsome Heating and Cooling

Ontario, CA | 5 Vehicles

Macawsome Heating and Cooling, led by CEO Maynor Gutierrez, has been named one of our three winners of our Tops In Trucks Fleet Design Contest. Established in 2015 and based in Ontario, California, Macawsome has demonstrated exceptional creativity and strategic thinking in the design of its fleet of five vehicles, which has significantly enhanced its brand visibility and market presence.

Initially operating under the name My Air System with a modest visual identity, the company embarked on a transformative rebranding journey to change the visual image of the company. The rebranding process was deeply personal, drawing inspiration from the lifelong partnership of macaws to symbolize the enduring commitment between the company and its customers. The result was a vibrant new name, “Macawsome,” blending ‘macaw’ and ‘awesome,’ which resonates with the values of loyalty and excellence.

The fleet showcases a striking color palette of deep blue, yellow, and orange, mirroring the beautiful California sunsets. These colors are not only eyecatching but are also symbolic of the

warmth and energy that the company brings to every customer interaction. This choice of colors has proven effective, attracting attention from community members and even amusing children who mistook the brightly colored trucks for ice cream vans—a testament to their visual impact.

Implemented at the end of October 2023, this design overhaul cost $60,000 but has already started paying dividends. Transitioning from reliance on home warranty insurance leads to generating organic leads, Macawsome has seen a noticeable increase in customer engagement. This change is a significant marker of their successful rebranding and strategic marketing initiative.

Employees have embraced the new design enthusiastically, feeling proud to be part of what they refer to as their “flock.” This sense of belonging and pride has not only boosted morale but also enhanced the way customers perceive and interact with the staff, fostering trust and a welcoming atmosphere.

The standout element of Macawsome’s fleet design is undoubtedly its bright colors accompanied by the tagline “Paradise in every room!” This slogan encapsulates their promise to deliver exceptional service, reinforcing their goal to stand out and make a lasting impression. Additionally, the macaw mascot underscores the family-oriented nature of the business, making the brand approachable and memorable.

Reflecting on the journey, Maynor Gutierrez said that if he were to do anything differently, it would simply be to have embarked on this rebranding initiative sooner. The success of their campaign not only justifies their victory in the Tops In Trucks Fleet Design Contest but also highlights the importance of aligning business operations with powerful, cohesive branding that communicates a company’s core values and mission to its community.

RUNNERS UP

Affordable Air Experts

Greer, SC | 3 vehicles

Founded in 2017 by James Weeks, Affordable Air Experts prides itself on delivering high-quality air conditioning and heating services. It has distinguished itself through an innovative approach to fleet design, which played a crucial role in the Greer, SC-based company’s recent runner-up finish in our Tops in Trucks Fleet Design Contest.

The company’s fleet comprises three vehicles, with a fourth on the way, including a Dodge Promaster Highroof, a Nissan NV1500, and a Dodge Ram 1500. The idea for the fleet’s unique design originated from Weeks’ collaboration with graphic artist Mary Sarlo-Carmichael. They chose a striking color scheme of red and blue set against black vehicles, ensuring the designs are both bold and elegant without being ostentatious.

This choice of colors was intentional; red represents heat, and blue signifies cold, colors typically used in the HVAC industry but often lost in a sea of similar designs. By using a black background, Affordable Air Experts’ vehicles make a memorable impression that is both sophisticated and noticeable from a distance.

The company invested between $8,000 and $10,000 in its fleet marketing campaign. This investment has paid off, not just in compliments from locals and peers but also in tangible business inquiries and customer interactions.

“I have gotten this email many times and I never took the step, figuring we are a small fish in a very large pond, but this year, I took the step. … We are just as good if not better than our competitors, and our trucks/vans represent the care and class we provide day in and day out. We stand out in our field even though we are small.”

– James Weeks, Affordable Air Experts

Employee feedback has been overwhelmingly positive, with staff appreciating the modern and professional look of their vehicles.

“We are a small family-run business; we rely solely on word of mouth, and it has done us a great justice,” Weeks told us. “It was actually another contractor I spoke with who said, ‘Man, you should enter your work trucks into the wrap contest in HVACR Business.’

“I have gotten this email many times and never took the step, figuring we are a small fish in a very large pond, but this year, I took the step. … We are just as good if not better than our competitors, and our trucks/vans represent the care and class we provide day in and day out. We stand out in our field even though we are small.”

All Weather Heating & Cooling

Copiague, NY | 20 Vehicles

All Weather Heating & Cooling, a family-owned business founded in 1969, recently achieved a remarkable milestone by being named runner-up in our Tops In Trucks Fleet Design Contest. With its fleet of 20 vehicles, including Ford Transit T250s and Ford E350s, the company has embraced a new design that resonates deeply with its dual focus on residential and commercial services.

Located in Copiague, NY, All Weather underwent a significant rebranding in January 2023. The rebrand aimed to rectify a common misconception about the company’s market focus due to its name and previous vehicle wraps. The redesign centered around a lighthouse theme, symbolizing guidance and reliability, aptly reflecting the company’s long-standing service on Long Island.

CEO James Stone, who has spearheaded the company since its inception, worked to bring this vision to life. The new fleet design features eye-catching, comforting colors chosen

to stand out and foster a sense of warmth among the local community. “I love how the lighthouse makes customers feel like home here on Long Island,” Stone told us. “I also think the city line with the houses in front gives the perception that we handle both residential and commercial and none of our competitors’ truck wraps have that.”

This initiative was part of a broader company branding campaign that cost around $150,000 but proved its worth by generating substantial returns. Within just 12 months of the new design’s implementation, All Weather saw an increase of $600,000 in revenue—a 10% growth attributed to the new branding. Moreover, the fleet itself directly brought in $67,000 from 12 leads, underscoring the effectiveness of the vehicles as mobile billboards.

Employees and customers alike have enthusiastically embraced the new design. Workers report feeling proud to represent the company. At the same time, customers have increased their engagement, drawn in by the comforting imagery of the lighthouse and the skyline, which distinctly highlights All Weather’s residential and commercial capabilities.

The success story of All Weather Heating & Cooling’s fleet design is a testament to the power of thoughtful branding and customer connection, making them a standout contender in the industry and a beacon of comfort on Long Island.

continued on page 14

“The design process, which faced several obstacles, mirrors the resilience of a bison walking headfirst through a storm. This achievement signifies a major shift in Great Bison’s operations, highlighting their commitment to innovation and excellence in the HVAC industry.”

– Chris Neal, Great Bison Heating & Cooling

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Great Bison Heating & Cooling

Newfane, NY | 2 Vehicles

Great Bison Heating & Cooling, based in Newfane, New York, has achieved a significant milestone by winning a runner-up spot in our Tops in Trucks Fleet Design Contest. Owned by Chris Neal, the company has been making waves with its innovative and eyecatching fleet design.

The company’s fleet, consisting of a 2018 Nissan NV2000 and a 2017 Chevy Box truck, features a vibrant and unique design that stands out in the HVAC industry. The idea for this striking fleet design was born out of Chris Neal’s extensive research into branding. Neal’s vision was to create a brand identity centered around the Bison, symbolizing strength and resilience, which resonates deeply with the local culture near Buffalo, NY.

The creative process for the fleet design involved collaboration with multiple experts. A local wrap shop, Streamline Designs, made the final touches, resulting in a fleet that is both visually appealing and professionally executed. The company chose a distinctive color palette of blues and greens to differentiate themselves from the conventional red, white, blue, and orange seen in the industry.

Since the implementation of the new design in October 2023, both vehicles have been fully wrapped, marking the beginning of a larger branding initiative for Great Bison Heating & Cooling. The investment of approximately $30,000 in the fleet marketing campaign is already yielding positive feedback from customers and the community. The new design has not only attracted attention but also garnered compliments at job sites, highlighting its effectiveness in making the company’s trucks easily recognizable.

Neal attributes the success of the fleet design to the collective effort and determination to overcome challenges. The design process, which faced several obstacles, mirrors the resilience of a bison walking headfirst through a storm. This achievement signifies a major shift in Great Bison’s operations, highlighting their commitment to innovation and excellence in the HVAC industry.

HONORABLE MENTIONS

Climate Experts Air Plumbing & Electric

Melbourne, FL | 21 Vehicles

If you see a penguin on a truck in Florida, odds are it belongs to

Climate Experts, which has contributed to their winning honorable mention in our Tops In Trucks Fleet Design Contest. The company’s fleet consists of a diverse range of 21 vehicles, including Nissan NV 2500s, Mercedes Sprinters, Ford Transit 250s, Hyundai Santa Cruz, Kia Souls, Chevy Box Trucks, Nissan Titans, a Nissan Frontier, a Ford Maverick, and a Nissan NV200. Each vehicle plays a crucial role in their operations, and the fleet design ensures they all stand out on the road.

The idea for their fleet design originated with owner Derek Cormier, CEO, and would eventually be redesigned three times to reflect their growth and evolution. The centerpiece of the design is Chilly the Penguin, a friendly yet muscular character equipped with a tool belt and a wrench, who looks like a friendly tech. Chilly’s cartoonish appearance appeals to the child in everyone, reminiscent of a beloved

Disney character, making the fleet memorable and approachable, according to Cormier.

The company carefully selected its colors: royal blue for air conditioning, teal for plumbing, and yellow for electrical services, representing lightning. These colors not only represent their services but also create a striking visual impact.

Implemented in 2023, Climate Experts have applied this design to eight vehicles in their fleet. It is now a part of a larger rebranding initiative as they expand their services to include plumbing and electrical work alongside their HVAC offerings. The investment of $50,000 into their fleet marketing campaign has proven worthwhile, with customers frequently calling in after spotting their vibrant vans. While tracking exact ROI is challenging,

the positive feedback from customers and the increased brand recognition are clear indicators of success, according to Cormier.

Employees have also embraced the new design, feeling a heightened sense of professionalism and pride in working for a company with a strong, recognizable brand. What helps the brand to pop are the bright, unique colors and the simplicity of the wrap, combined with Chilly the Penguin, helping them stand out from competitors in their area.

Their journey has led them to create an outstanding fleet wrap that customers recognize in their service area. The design, born from in-house and a handson approach, differentiates them from cookie-cutter brands they compete against and sets them apart with the Chilly the Penguin rolling through their territory.

OLD COAST HVAC

Savannah, GA | 11 Vehicles

Old Coast HVAC, a Savannahbased company, received an honorable mention in our 2024 Tops In Trucks Fleet Design Contest, showcasing their novel approach to fleet design. Founded by Zachary Friedman, Old Coast HVAC has a diverse fleet, including several Ford Transit and Mercedes-Benz Sprinters models, for a total of 11 vehicles sporting innovative design.

“The investment in the fleet’s visual appeal has paid off. Since the implementation of the new design, Old Coast HVAC has noted a significant increase in call volume and positive customer feedback. Customers have expressed their appreciation for the aesthetic of the vehicles, which matches the company’s uniforms, enhancing brand consistency and recognition.”

–

Zachary Friedman, Old Coast HVAC

During October and November 2023, Old Coast HVAC unveiled a new vehicle wrap design to refresh the company’s branding. The design process was a strategic endeavor that spanned more than a year and a half, during which the company explored various concepts that would reflect its mission

and local Savannah environment. The result is a captivating fleet design that stands out with a unique blend of colors that resonate with the local scenery, particularly the purple hues that represent relaxation and the beauty of a sunset over the marshlands.

It wasn’t easy but owner Zachary Friedman said, “We dedicated a year and a half to investigating different avenues, aiming to find ones that alighted our company and reflected our mission and locale. Friedman chose the color scheme based on his favorite color, purple, and selected complementary colors that would harmonize well with the local surroundings and create a memorable visual impact. This meticulous attention to detail is part of a larger branding initiative that predates the fleet design.

The investment in the fleet’s visual appeal has paid off. Since the implementation of the new design, Old Coast HVAC has noted a significant increase in call volume and positive customer feedback. Customers have expressed their appreciation for the aesthetic of the vehicles, which matches the company’s uniforms, enhancing brand consistency and recognition.

Employees have also embraced the modern design, which has fostered a sense of pride and unity within the company. The design not only captures the essence

of the local environment but also sets Old Coast HVAC apart from competitors by offering a visual story that complements their service quality.

Old Coast HVAC’s approach to fleet design exemplifies how thoughtful branding and design can enhance business visibility and community connection, making their vehicles not just a means of transportation but a significant part of their marketing strategy.

Quality Comfort Air Conditioning and Heating Inc.

Melbourne, FL | 5 Vehicles

Quality Comfort Air Conditioning and Heating Inc., under the visionary leadership of President Sol Goodwin, recently clinched a well-earned honorable mention in our 2024 Tops In Trucks Fleet Design Contest showcasing their cutting edge fleet design. Founded in 2005 and located in Melbourne, Florida, the company specializes in providing top-notch HVAC services, as reflected in their unique fleet of five vehicles, including Dodge Ram and Chevy trucks, all adorned with eye-catching wraps. The idea behind the fleet’s vibrant design originated from a desire to evolve

continued on page 16

from their original 2005 graphics while maintaining iconic elements like their cartoonized iguana and polar bear characters. These characters, representing the warm and cool aspects of their services are particularly symbolic of Florida’s climate. The design refresh introduced in 2023 incorporates vivid orange and green colors, a strategic choice by Goodwin to ensure the vehicles stand out in a sea of common reds and blues typical in HVAC branding.

Quality Comfort Air executed the contemporary design in collaboration with a design firm, which helped modernize the characters and layout. The $60,000 investment in the fleet’s wrapping not only enhanced the visual appeal but has also significantly boosted the company’s market visibility, leading to increased customer engagement and compliments from various stakeholders.

“We have had more compliments from customers, vendors and competitors,” Goodwin said. “Standing out increases visibility, which created a brand that is recognized and promoted additional revenue from a new customer base.”

Employees of Quality Comfort Air Conditioning and Heating Inc. are excited about the new design, which they

“We have had more compliments from customers, vendors and competitors, Standing out increases visibility, which created a brand that is recognized and promoted additional revenue from a new customer base.”

– Sol Goodwin, Quality Comfort Air Conditioning and Heating Inc.

believe heralds a promising future for the company. Goodwin notes that the distinctive color scheme and characters are not just aesthetically pleasing but are crucial in differentiating the company from competitors. He jokingly told us that, “We can be seen from space.”

Trademasters Heating and Cooling

Swansboro, NC | 3 Vehicles

Trademasters Heating & Cooling, founded in 2020 by Joey Urban, recently garnered an honorable mention in our 2024 Tops In Trucks Fleet Design Contest. With a fleet comprising three Ford Transits, the company developed a distinctive branding that stands out from conventional HVAC service designs.

The design process began with a clear vision from Joey Urban to avoid the traditional red, white, and blue color style that seems so familiar in the industry. Instead, he sought to incorporate unique colors to set Trademasters apart from the competition, searching for a visual design that was both unique and reflective of the company’s ethos.

Implemented in 2023, the new design adorns two of the three fleet vehicles, showcasing a blend of modern aesthetics and old-school craftsmanship. This design not only reflects the company’s commitment to quality and reliability but also enhances community engagement and customer relations. Customers have responded positively to the design, praising its high standards and professional appearance, which they

feel reflects the company’s dedication to superior service.

Employees have also embraced the new fleet design enthusiastically, further solidifying the company’s identity and boosting its attractiveness to potential hires. The design emphasizes Trademasters’ dedication to craftsmanship, with a tagline that reads, “Some Were Made For The Trades,” paired with imagery that conveys quality, professionalism, reliability, and excellence.

This initiative is not just about aesthetics; it’s a strategic part of Trademasters’ broader branding efforts. Despite being a relatively young company, Trademasters has invested significantly in its fleet marketing, which Joey Urban sees as a critical component of the company’s strategy for sustainable growth. He attributes a tangible return on this investment to the enhanced community presence and the foundation of lasting relationships it fosters.

The new imagery has even served as a recruiting tool. “We’ve received inquiries from potential candidates, and when you hear comments like, ‘a company that takes pride in their image is a company I want to work for,’ you know you’re doing something right,” Urban said. u

FLEETDESIGN CONTEST

Congratulations to all the winners! Your hard work and dedication have earned you a place among the esteemed Tops In Trucks Winners 2024.

REDEFINING COMPANY CULTURE IN A VIRTUAL AGE

BY WILL MERRITT

What is company culture in 2024?

By definition, it’s a set of shared beliefs embraced by everyone within your organization. As a business owner, creating and maintaining a great culture is a challenge. Our company is virtual or remote like many businesses today. We work diligently to provide the best culture for our group. This is how we’ve created a great culture virtually.

How has Culture Changed Since COVID-19?

Before April 2020, most businesses had a brick-and-mortar location. Fast forward to 2024, and the landscape has changed drastically. Companies are downsizing their workspaces, going to hybrid work schedules, and many have gone fully remote. Future employees are actively seeking businesses that offer

It Starts with the Right Employees

remote job positions more than ever. So, what do you do to maintain the right culture under these circumstances? It can be a daunting task for business owners. Read on to learn some critical insights for success.

It Starts with the Right Employees

I feel, first and foremost, that it all starts with the proper team members. They must fit into the company’s set of core values and beliefs. These are the building blocks for a great culture. Everyone must buy into the fact that your company is a TEAM! For example, at our organization, our first rule is client first. If one of our team members is doing what they feel is in the best interest of our customer, then go ahead and make

the decision. If it turns out not to be the right move, that’s OK, the intent was correct. We often hire employees without ever meeting them face to face, so a lot is attributed to attitude and personality. Usually, it’s a gut decision. You feel they are just a good person and a great fit. Hire on the intangibles; you can teach the rest.

You Have to Create a Sense of Team and Family

Don’t we all want to be a part of a team? Company culture is all about feeling like you fit in and are an asset. When working remotely, we are not in a shared space together, we have to use other methods and the technology available today to maximize a team or family atmosphere. For example:

• Set monthly/weekly team meetings that employees can plan for

• Management needs to check in regularly via phone, chat, or email

• Use Chat technology

• Zoom or Google Meets

• Recognize employees in front of their teammates, evenly spaced throughout your organization

It’s all about the little things. These mean the most to your employees. We mark significant events on our company calendar. We celebrate birthdays, employee anniversaries, company achievements or milestones such as landing new clients, sales goals, and training certifications. Social interaction is a must. Our organization even attended one of our team member’s wedding. Not only did we attend, one

continued on page 18

continued from page 17

of our managers officiated the ceremony. Now that’s family.

Trust Your Team

This has a two-fold meaning. Number one, you have to trust that your team members are getting the work done. We have a very open schedule at our company. Our group essentially works 9 a.m. to 5 p.m., but we do not micromanage anyone’s hours. Flexibility within your organization is vital to a thriving virtual culture. We understand our employees have a life, so all we ask is to be courteous to the rest of the team and put personal appointments on the company calendar. Our company culture is work hard play hard, so to speak. As long as they complete the work and the clients are happy, carpe diem! “Less stress and more free time,” says Managing Partner Dave Bowen. You also must trust your team to make decisions and ultimately make mistakes from time to time. Empower your employees and they will thrive.

Virtual Meetings

Today, virtual meetings are a must for remote companies. For example, our organization has a company meeting

Empower your employees and they will thrive.

every Monday at 1 p.m. We start it by cutting up a little and having fun. What did everyone do over the weekend? Anything exciting or funny? We try to keep it light. Then we get down to business for the upcoming week. Each member discusses what they have going on in their specific area of expertise, but we allow total interaction because we are all on the same team. So, it’s an open discussion about client business, potential challenges, and coming opportunities. Team equals culture.

Face to Face When Possible

Any organization should try to meet face to face whenever possible. We know that this may not be possible for all companies, even ours, but we try to do it as often as we can. That may mean two or three of us grabbing wings or barbecue on a Friday (ones that are local). Our company makes an annual company trip every summer. We invite all employees and their immediate families. We typically make it an easy trip to the beach or mountains. There is “fundatory” time when we all do activities together, but we also have a lot of free time. We want

it to be a vacation for everyone, too. A reward for everyone’s hard work. It really helps the cohesiveness of any company or organization.

The Benefits of Virtual Outweigh the Negatives if the Culture is Right

Think about the hours saved by working remotely. No more commuting from home to the office, wasted time chit chatting about personal stuff or money spent on gas, parking, and lunches. “As a mom with three young children, working virtually has allowed me the flexibility to have a career while still being there for my family. I can prepare dinner before meetings, get my kids off the bus, and get to after school activities on time without worrying about driving home from work,” says Project Manager Erin Watson. Your employees will say it best.

Key Takeaways

As you can see, company culture in today’s virtual world is a work in progress. It takes constant effort to keep your team engaged and moving forward. If you’re thinking about moving to a virtual

company culture or are already there, remember these key points:

• Communicate constantly

• Involve team members in decisions big and small

• Empower your team to make mistakes

• Face time as much as possible (That includes online meetings)

Virtual business is here to stay and is super productive if the culture is right. Embrace the change and watch your company prosper. 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 FINANCE

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-sized 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.

With the advent of self-service investment tools and newer asset forms

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.

(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 longer-term 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

Selling Your Business? Here’s How to Get the Most For Your Company

Whether you are selling your business or passing it to the next generation, maximize the dollars you receive for your hard work over the decades. This series discusses what you need to do to get your business in shape to sell. Your company might be in perfect shape to sell or it might take a few years to get it in shape to sell.

Here are six musts to maximize your selling price:

1. You MUST have clean financial statements.

2. You MUST have inventory on your balance sheet.

3. You MUST have a thriving maintenance program.

4. You MUST prove that you have a profitable business.

5. Your business MUST NOT be dependent on you.

6. You MUST NOT have personal expenses as business expenses.

1. Clean financial statements

My research shows that 75% of all contractors’ financial statements are inaccurate. Before you sell, your business must be one of the 25% with accurate statements. The financial statements should be accurate for at least three years before the sale.

If your financial statements are inaccurate, a potential buyer will discount the information on them and ask for tax returns and other documents to prove the numbers on the statements. The value you receive for your business will be less with inaccurate financial statements because a buyer has to “guess.” I’ll give you the 12 major inaccuracies and how to correct them later in this series.

2. Inventory

If you don’t have inventory on your financial statements, your net profit is

Buyers want to know you have recurring revenues from customers who trust your company.

lower based on the amount of inventory you have. No buyer is going to tell you this. They will estimate the value based on the profits shown on your financial statements.

If you have $100,000 in inventory and you haven’t stated it on your balance sheet, then your company profits are lower by $100,000. While this might be a tax strategy that you discussed with your CPA, it is a terrible strategy if you want to sell your business.

Here’s why: $100,000 less in EBITDA (earnings before interest, taxes,

depreciation, and amortization) translates to $400,000 to $600,000 less that you’ll receive for your business, assuming the valuation multiples are in the 4 to 6 range. Are you willing to take between $400,000 and $600,000 less for your company because you are too lazy or stubborn to put inventory on your balance sheet and accurately account for it?

3. A thriving maintenance program

It doesn’t matter whether your business is residential, commercial, plumbing and HVAC. If you want a high multiple of

EBITDA for your business, you must have a thriving maintenance program with a renewal rate of 80% or higher.

Buyers want to know you have recurring revenues from customers who trust your company. They renew their plans (or are on monthly recurring billing) every year. Then, a buyer knows what he is purchasing and can be confident of receiving those revenues on a yearly basis.

Along with the thriving program, you must have deferred income on your balance sheet and a savings account for maintenance plan receipts. If your company accounts for maintenance receipts when they are received rather than when performing maintenance work, then the company revenues are higher than they should be. A buyer will discount revenues by the amount of the estimated work that is uncompleted.

If you can show that your company puts the money received for maintenance plans in a separate savings account and uses deferred income until you complete the work, then there won’t be discounts on revenue.

Be prepared for the buyer to hold back proceeds for maintenance work sold but not performed since the buyer is taking on the liability for performing the work. The deferred income and savings account show a precise amount of holdback rather than a “guess.”

Next month, I’ll write about the following three “musts.” 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 »

FIELDPIECE

Fieldpiece Instruments announced the launch of a new line of hoses and fittings featuring two key types of premium hoses: charging hoses and vacuum hoses, with accompanying accessories and a variety of different fittings perfect for all HVACR charging, recovery and evacuation needs. Fieldpiece designed its charging and vacuum hoses in a universal black to allow each hose in a set to function as a spare for any other, removing limitations that technicians typically experience when using traditional yellow, blue and red colored hoses. Sturdy colored tags snap onto each hose for identification and customization.

www.fieldpiece.com

KWIKON

Kwikon® Electrical Nonmetallic Fittings are noncorroding and nonconducting, ensuring durability even when encased in concrete or concealed in walls. Its unique corrugated construction allows easy hand bending without special equipment, saving time and effort on the job site. The six locking tab Kwikon® couplings and connectors ensure a secure and integrated system, eliminating the need for solvent welding or tape around connections. Made of impact-resistant PVC, Kwikon® ENT is tough enough to withstand crushing and breaking, offering reliability and longevity for residential, commercial, and institutional projects.

www.Ipexna.com

INNODISK

Innodisk has launched its latest innovation, the “iCAP Air” air quality management solution. This solution integrates advanced technology, including the innovative “iAeris7” air quality detector from Sysinno, to deliver accuracy in detecting temperature, humidity, fine suspended particles (PM2.5), suspended particles (PM10), carbon dioxide (CO2), formaldehyde and total volatile organic compounds (TVOC). It can also be customized to detect NO2, SO2, CO, NH3, and other air factors. At the same time, the iAeris7 device is known for its reliability, patented technology, and various international certifications, including those from SGS and FCC/CE/RoHS/ NCC/BSMI.

www.innodisk.com

MSA PARASENSE

Whether you’re an equipment owner or refrigeration contractor, refrigerant tracking and management software helps you reduce operating costs, gain regulatory compliance, and improve sustainability and efficiency. The MSA Parasense platform makes refrigerant compliance simple. With compliance requirements such as EPA 608 and CARB, it’s important to use a system that ensures compliance with the latest legislation. Learn more or request a demo from one of our experts, who can walk you through the platform.

www.us.msasafety.com

JJM ALKALINE TECHNOLOGIES

JJM Alkaline Technologies® introduces the V-200, the company’s next-generation vertical mount condensate neutralizer solution. The V-200 model is designed for wall-hung condensing installations (i.e., wall-hung boilers and tankless water heaters) in single and multi-unit residential applications with limited available floor space. Through its purpose-built design, the wall-mounted V-200 from JJM® provides installation flexibility and enables fast and easy service to help installers and service technicians move on to their next job quicker.

ww.jjmalkalinetech.com

JOHNSON CONTROLS

Available in two tiers of efficiency per tonnage, YORK® Sun™ Premier RTUs meet both stringent Department of Energy (DOE) 2023 energy efficiency standards and the Consortium for Energy Efficiency (CEE) highest tier ratings. They combine variable-speed compressor options, variable-speed drive fan options and low-GWP R-454B refrigerant with advanced airflow and heat transfer technologies to deliver a highly optimized system.

www.johnsoncontrols.com

TESTO

Introducing the Bluetooth-Enabled testo 770-3 Hook Clamp Power Meter Incorporating all the capabilities of its counterparts in the testo 770 series, the testo 770-3 stands out with its added features of real-time power measurements (Watts), power factor assessment, and Bluetooth connectivity. Utilizing the testo Smart app, users can remotely access, monitor, log data, and generate reports. This convenient application enables the creation of personalized reports, complete with images, data, and graphs, which can be conveniently saved or shared via email.

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YELLOW JACKET®

The YELLOW JACKET® Combustible Gas Leak Detector P/N 69310 detects combustible hydrocarbon gases (e.g. natural gases, LPG). Readings are digitally displayed in PPM, % Vol., % LEL, with a rapid response time. The user-selected parameter is displayed. LCD display also shows the measurements in a bar graph ranging from 0 to 100% of full scale. Includes a convenient auto-zero drift adjustment and audible and visual indication in case of alarm. The flexible 11” wand (for hard- to-reach leaks) has the gas sensor mounted at the end for detection of low concentrations of hydrocarbons in gas appliances and pipes.

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20QUESTIONS >>

with KEITH OUIMETTE

Publisher Terry Tanker sat down with Keith Ouimette, Chief Operating Officer at Cardinal Heating, Cooling, Plumbing & Electric in Sun Prairie, Wisconsin, one of our Tops In Trucks Fleet Design Contest winners. The two discussed fleet design, rebranding the company and managing a family business.

1. How did you get your start in the HVAC industry?

My father (Rick) started in the plumbing and heating business when he was a teenager, working for his father, who owned his own business.

2. Is your father still involved?

Yes, my parents, Rick and Sharon, are the founders and majority owners of Cardinal. My brother Craig and I own a small percentage. Both my parents are still involved in the business. My mom (Sharon) works two days per week, assisting with the accounting and HR team and being the heart of the company. She loves baking and sharing her great treats with the staff. Rick is the first one to the office every day. While he’s stepped back and let us take more control, he doesn’t have any plans of retiring in the near future.

3. Why was the company named Cardinal back in 1984?

We were living in Sun Prairie, WI, when my parents decided to start their own HVAC business, and they came up with “Cardinal” because the Cardinal was the mascot for our only high school at that time. Everyone recognized the Sun Prairie Cardinals, so it just made sense.

4. What is your business mix?

Seventy percent of our business is HVAC, with HVAC install being the largest. Plumbing is about 20% of the business.Electrical makes up about 10% of our business.

5. Can you describe your company’s business philosophy?

Providing exceptional customer service at a fair price. We live by our core values of teamwork, customer first, committed to excellence, forward thinking and do what’s right. This is what we’ve always done.

6. What do you find to be the most challenging aspect of managing a family business?

Family business is hard. You have to accept that this is just a business and not take everything personally. Our mindsets have changed over the past few years, and we are now all about the greater good of the company, because we have 150-plus families we are responsible for, and they are all relying on us to lead the company to success.

7. How many vehicles are in your fleet?

Currently, we have 134 vehicles in our fleet. Ford Transits are the newest vans in our fleet and will be the primary vehicle moving forward. We also have GMC and Chevrolet Express vans and cube vans. Our sales department uses GMC Acadias as well as GMC and Chevrolet pickup trucks.

8. Why have you decided on the Ford Transits to be your primary vehicles?

When GM could no longer fulfill our orders for multiple years, we started to look at other manufacturers. The Ford Transit has a very nice van, and so far, we have no issues getting vehicles when we need them. Also, living in Wisconsin, the all-wheel drive option on the Transit vans is a plus.

9. How did you come up with the idea for this fleet design?

Our fleet has changed over the years. We have used GM standard vans for service, cube vans for install, pickup trucks for parts runners, and Acadias for our sales team. We do like the idea of having a more standardized van, which is another positive with the switch to Ford Transits. Now, all our vans will be set up the same way, making it easier to order inventory, audit inventory and know up front what a new fleet vehicle will cost for budgeting.

10. When was this design implemented?

We rolled out our design on April 1st, 2024, which was also our 40th anniversary.

11. How many vehicles currently feature this design?

Close to 50% of our fleet has the new design now. We have two different wrap companies working on the balance of our fleet with the goal of having the fleet completed. The goal would be to have all vehicles switched to the new wrap by Jan. 1st, 2025.

12. Is this design part of a larger company branding initiative?

Yes, when we started we were exclusively an HVAC company, and we’ve expanded to provide plumbing and electrical services as well.

13. Which services followed HVAC and why?

Plumbing came first after HVAC. We added plumbing mainly because of all the work we were doing with solar hot water and hydronic systems at the time. Years later, we added electrical mainly because we were subbing out electricians all the time for our HVAC installs, and it just made sense to have that

in house. Shortly after adding both of these services, we had to hire more techs because once our customers found out we offered these services, we had a hard time keeping up with demand.

14. What type of investment have you put into your fleet marketing campaign?

We’ve put a lot of money into our fleet marketing. We will probably end up close to 600k by the time we get all of our vehicles wrapped.

15. Have you seen a return on this investment?

While I can’t show it on paper, we know there is a return because we hear it all the time that people see us everywhere. We also have people searching for our name on Google versus just a generic search for service.

16. How have customers responded to your fleet design?

We’ve had very positive feedback so far, and again, customers are always telling us they see our fleet everywhere. I had a friend who goes south for the winter and came back this spring and said, “I can’t drive five minutes without seeing a Cardinal van.”... We love hearing that!

17. How have your employees responded?

Some were hesitant on the new design at first, but they’ve all fallen in love with the new brand.

18. How many of your employees were involved with the rebranding effort?

This was mainly Rick, Craig & myself, but after we got through the initial rough draft designs, we included our leadership team, which is made up of six people.

19. What element of your fleet design do you feel is most important for helping you stand out from your competition?

The Cardinal logo and the colors. Creating the right brand is very important. We had a brand that people recognized before, but this new design jumps out at you.

If you could start the process over again, what would you do differently?

I’m not sure we would have done anything differently. And I honestly wouldn’t want to start again. It’s really a tough, time-consuming, expensive process. But I believe it’s all worth it in the end.