HVACR Businesss APRIL 2020 by HVACR Business

Communicating During a Pandemic Pete Grasso 5

Why Your Press Release Isn’t Working Melanie Rembrandt 15

Build Your Maintenance Program Ruth King 17

Do You Want to Make Friends, or Money? Keven Prather 18

A Healthy Garden Jodie Deegan 20

HVACRBUSINESS.COM APRIL 2020 / VOL.15 / NO.4

SURVIVING COVID-19

How to lead your team and keep your business afloat during a time of crisis. pg 7 ALSO INSIDE » Executive Roundtable: Residential Cooling ….. 10 Product Focus …......................................................... 21 20 Questions with Rob Minnick, President and CEO of Minnick’s in Laurel, Md. …................ 22

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CONTENTS

APRIL 2020 / VOL.15 / NO.4

F E AT U R E S

Surviving COVID-19

D E PA R T M E N T S

How to lead your team and keep your business afloat during a time of crisis. By Chris Hunter

Executive Roundtable: Residential Cooling

Why Your Press Release Isn’t Working

Driven by efficiency and comfort, residential cooling systems offer your customers a multitude of options. By Pete Grasso A press release is part of the whole public relations process, but it will only help your business if you keep a few things in mind. By Melanie Rembrandt

C O LU M N

21 22

Editor’s Notebook During uncertain times, it’s important to communicate openly and honestly with your customers. By Pete Grasso

Product Focus 20 Questions with Rob Minnick President and CEO of Minnick’s in Laurel, Md.

Profit Law No. 3: Build Your Maintenance Program Maintenance programs are the seeds that you plant “in the spring” to help your company have a great harvest for years to come. By Ruth King

Do You Want to Make Friends or Make Money?

A Healthy Garden

With success come enemies, so get comfortable with others resenting you or viewing you negatively. By Keven Prather Like tending a garden, you need to be focused, dedicated and single-minded when it comes to improving your company. By Jodie Deegan

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THE HVACR MANAGEMENT MAGAZINE

EDITOR’S NOTEBOOK

BY PETE GRASSO TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

ADVERTISING STAFF EAST COAST/SOUTHEAST JIM Clifford Regional Sales Manager Tel 201-362-5561 Fax 201-334-9186 jclifford@hvacrbusiness.com MIDWEST ERIC Hagerman Regional Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com WEST COAST TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 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©2020 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 ©2020 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440731-8600. 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 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

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Communicating During a Pandemic

s the coronavirus quickly became a pandemic, affecting all of us in some way, the amount of information also quickly became overwhelming. Governors around the country had to make some tough calls and everyone has had to adjust to the “new normal” for an undetermined period of time. Communication comes from seemingly everyone. I know my inbox received an onslaught from any company to whom I’ve ever given my email address, informing me of the precautions they’re taking amidst the COVID-19 outbreak. It’s a must-do for companies during a time like this.

Customers who visit Goettl Air Conditioning & Plumbing’s website (goettl.com) immediately see messaging — and a video — explaining safety measures being taken. “We explain our safety measures whenever a call is booked,” says Ken Goodrich, CEO of Goettl. “And we ask if anyone in the home is sick with every call that is dispatched.” Goodrich says they also track customer responses, concerns and cancellations daily, and compile a report. In addition, Goettl holds meetings every morning with senior leadership to review Centers for Disease Control and Prevention (CDC) requirements and recommendations, implementation strategy and employee concerns.

During uncertain times, it’s important to communicate openly and honestly with your customers.

Michael Rosenberg, president of Rosenberg Indoor Comfort in San Antonio, is using the email addresses they’ve collected from customers. He says they’ve sent out three emails: one educating them about indoor air quality, one informing them about the safeguards the company is implementing to protect against the virus, and another to remind clients that HVACR is an essential business and that they’re open. The world is in crisis management mode and people need to hear from someone they can trust … and right now, that’s you. Ronn Torossian, a crisis management expert with more than 20 years of experience working with national and international brands, has some thoughts regarding what businesses are going through today. “It goes without saying that the human impact and health concerns of the outbreak are the biggest priority,” he says. “But as the uncertainty surrounding this pandemic continues, the way brands approach this crisis is top of mind for many CEOs.” The sheer amount of information — and misinformation — available every day has been fueling panic and distress for many. “Fear and uncertainty breeds mass hysteria” Torossian says. “Right now, people need a voice of reason, and brands and their leaders have an opportunity to be that voice. First and foremost, communication is key. Now is not the time to stay silent with employees, customers, stakeholders, etc.” Regular communication alleviates concerns and provides reassurance.

While putting together the 20 Questions interview for this issue (pg. 22), I visited Rob Minnick’s company website (minnicks.com) and was immediately greeted with the following pop-up message: We Have You Covered! At Minnick’s, the safety and wellbeing of our team and our customers is of the utmost importance. For this reason, we have taken the following steps: Our technicians can enter your home through a separate entrance that is used less frequently. Technicians will refrain from handshaking and remain six feet from all persons at the work location. Work sites will be cleaned both before and after completing work. We are developing a new system for forms and information to be completed on your personal device. Enhanced cleaning procedures have been implemented including sanitation stations and the distribution of cleaning supplies so that our technicians, the equipment they use, their vehicles, and our office can be cleaned frequently. We look forward to talking with you, The Minnick’s Team

Brian Stack, president of Stack Heating Cooling & Electric in Avon, Ohio, says they have a company meeting every day with technicians about sanitation procedures. “We’re letting our customers know what precautions we’re taking as a company, and also asking customers if anyone is or has been sick in the home,” Stack says. More than ever, during uncertain times it’s important to communicate openly and honestly with your customers. Your business is essential. This industry is essential. Be sure your customers and community know what precautions you’re taking to ensure both your safety and theirs. u

HVACR BUSINESS APRIL 2020

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SURVIVING COVID-19

How to lead your team and keep your business afloat during a time of crisis. BY CHRIS HUNTER

unter Super Tech Cody Baetz was dispatched to a home without air conditioning. In the process of performing diagnostics — amidst the coronavirus outbreak — Cody asked the young mom if she was running low on any supplies. Turns out, her baby was out of diapers and she’d been frantically looking all over town, but to no avail. Like toilet paper, diapers had vanished from the store shelves. Since the AC unit needed a return trip, Cody told the customer to hang on and he’d see what he could do when he came back. He went directly home, loaded up some extra diapers from his house and returned. You can bet Cody saved that customer’s day.

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Now, more than ever, is the time to lead from the front. Be physically in front of your people. If you cannot, then get in front of them digitally every day. Although Cody’s actions sound heroic — and make no mistake they are — it’s simply who Cody is and how all our employees interact with customers every day. We put people first.

LEADING IN TURBULENT TIMES Business as normal is anything but normal today. Normal has changed. Will it be for the better or worse once we beat the coronavirus? That depends on you, the leader. My dad used to tell me that nothing great happens in your comfort zone.

Our leadership was forged through education, by pursuing our vision through our mission and living our core values. That’s our comfort zone. To transcend it and to specifically address key leadership points, I use the Go Time formula. Years ago, we studied many successful companies. Each and every one of them had a variation of a common formula: create a series of steps that help lead, innovate and solve problems. The Go Time formula is not only a

prescription for success, it’s a rally cry at Hunter Super Techs! I loved it so much that we named our training company after it too, The Go Time Success Group. As you look for guidance in these troubling times, to lead your team through this crisis, you can use the Go Time formula. Although we don’t know how long the coronavirus outbreak will take, we will persevere and get through it. We are an essential industry and this is our time to do what we do best. It’s time to serve.

G IS FOR GOALS Outline and set goals that tackle your present day-to-day realities head on. Make continued on page 8

HVACR BUSINESS APRIL 2020

remain calm. Your team needs a leader who is emotionally strong. Take action after thoroughly confronting the facts.

continued from page 7

Create a clear plan of action, keep people informed and visually, verbally and physically demonstrate care and concern. You cannot over-communicate with your team and customers.

sure they’re congruent with your vision and mission. And make them crystal clear.

O IS FOR OBSERVE Observe means to learn from others. As the coronavirus was striking, I knew the impact could be catastrophic. The first thing I did was to seek wise counsel. Proverbs says, “plans fail from lack of advice, but wise counsel brings success.” At Go Time Success Group, we put together a webinar with seasoned leaders who had navigated crises before. It included: Larry Taylor, who was the chairman of ACCA during 9/11; Ben Stark, a 40-plus year seasoned entrepreneur in this industry; Jim Batson; a long-tenured businessman whose company was founded in 1884; Matt Michel, who leads Service Roundtable, the largest contractor best practice group in the nation; Tyler Kime, whose company was founded in 1934 and was one of the first contractors to publicly communicate measures his company was taking during the crisis; Tom Howard, an HVACR contractor who is also VP of Customer Experience for Service Titan;

and Dave Rothacker, an industry thought leader and leadership expert.

gathering data and facts to help you make intelligent decisions.

The seasoned and level-headed advice is the type of proven, action-oriented items contractors need at this time. There’s no reason to reinvent the wheel when we can take this advice and modify it for our own companies.

• Coworker and customer safety are a priority.

T IS FOR TAKE MASSIVE ACTION Here are action-oriented items gleaned from our panel: • Define reality but remain optimistic. Larry Taylor says, “Open your heart, open your mind, then and only then, open your mouth.” Open your heart by listening to those who are in pain, scared or suffering. Get a feeling for what is going on. Open your mind by

• Handle as much office work remotely as you can. • Create a clear plan of action, keep people informed and visually, verbally and physically demonstrate care and concern. You cannot over-communicate with your team and customers. Use social media and other methods. Reassure them your company will prevail and together you’ll get through it. Remind your team — every day — of good safety practices.

• Be open and transparent with your banker. If needed, take action on securing capital; use your line of credit. Apply for SBA emergency loans. Defer as many payments as possible. • Consistently get updates from the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO) and your local government. • Communicate pertinent updates to your team and customers. • Prepare for contingency actions regarding your building’s power and communication technology. • Do not penalize coworkers and companies due to items that arise because of the coronavirus.

• Demonstrate and exhibit hope, compassion, stability and trust.

• Your field personnel are on the front line. Get out on the frontline with them. Support, reassure, re-supply and lead.

• Don’t overreact. Look at the data and

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Our leadership was forged through education, by pursuing our vision through our mission and living our core values. this leadership advice on the actions of Franklin Roosevelt and Abraham Lincoln: • Outline the difficult problem ahead. • Exhibit confidence that we would come through in the end. • Confront it head on. Didn’t try to minimize it. • State that you demand a lot from your leaders and a lot from the people. • Proceed to live up to it.

I IS FOR INSPECT Inspect the results of action taken. Dave Rothacker recommends keeping an organic learning document or journal. Make note of items to be addressed when business returns to normal. Pay special attention to your KPIs, especially your cash flow.

M IS FOR MODIFY Things are changing, not only daily, but hourly. Review action steps that have been inspected and modify accordingly. Communicate the adjustments to your team immediately.

E IS FOR ENGAGE Now, more than ever, is the time to lead from the front. Be physically in front of your people. If you cannot, then get in front of them digitally every day. They need to know that you are putting their safety first and that you care. Never send someone into a situation they aren’t willing to go in or one you wouldn’t go in yourself. Be an inspiration. Inspire and serve your people. Instill hope.

VISION AND VALUES I began here with a story of how Cody Baetz went the extra mile to serve the customer. Some companies would admonish their technician for doing what Cody did — but we created a vehicle, designed to serve customers and coworkers, many years ago when we defined why we are in business (mission), where we are going (vision) and how we serve (core values).

Cody brought these to life with his actions and it certainly makes a good story: In turbulent times, a company and technician rise to the occasion and rescue a customer. But this heartwarming story is, in reality, simply another day for us at Hunter Super Techs. Years ago, along with my leadership team, we harnessed our “why” and used it to guide us. Our vision is to get really good, develop leaders and expand to neighboring areas. With our people in mind, we concentrated on creating, nurturing and developing leaders. Through inspiration, example and action, we influence our leaders to think, speak and act in such a way that makes a positive difference in their life and in the lives of those they lead. Equipped with a positive spirit and in order to achieve the vision, our leaders teach and live the company mission. Our core values govern how we behave on the way to accomplishing our mission.

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Trying and turbulent times have a way of prioritizing what is really important. They also pull the curtains open to our consciousness, pouring light forth on our faith, health, family, friends, employees and home. We become awakened and thankful for what it reveals. Remember what’s important. Remember why you started in this service business. Be a leader for your team through this crisis and come out a stronger business on the other side. u

Chris Hunter is the owner of Hunter Super Techs in Ardmore, Okla. and co-founder of the Go Time Success Group. For additional information, visit huntersupertechs.com or gotimesuccessgroup.com.

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HVACR BUSINESS APRIL 2020

EXECUTIVE ROUNDTABLE: RESIDENTIAL COOLING Driven by efficiency, comfort and affordability, there are a multitude of residential cooling options for your customers.

Todd Nolte Carrier

Bryan Davenport Oxbox

Steve Scarbrough Mitsubishi Electric Trane

Quan Nguyen Lennox Residential

Chris Day Rheem

Randy Roberts Rheem

BY PETE GRASSO

e’re living in an entirely new landscape, with safety of the utmost importance. As an essential service, HVACR contractors play a vital role in the well-being and comfort of everyone. As temperatures heat up, during a time when many are staying in their homes, you will need to assure your customers that you’re taking proper precautions to protect their safety during cooling season. I recently spoke with a handful of manufacturer executives to get their thoughts on the residential cooling market and what challenges that lie ahead. This Executive Roundtable panel included Todd Nolte, senior director of product and brand marketing at Carrier; Bryan Davenport, general manager of Oxbox; Steve Scarbrough, vice president of residential business for Mitsubishi Electric Trane (METUS); Quan Nguyen, vice president and general manager for Lennox Residential; and Randy Roberts, vice president of sales and marketing and Chris Day, vice president of product strategy and engineering at Rheem.

HVACR BUSINESS APRIL 2020

“Not only is it an efficiency increase of about 10 percent across the board, it’s also a chance in the key metrics” — Chris Day

How has residential cooling category evolved? Davenport: It certainly has changed with regards to efficiency and refrigerant, and over the past, really, 10 years. Certainly, as efficiencies creep up and the thoughts about comfort change, we see many consumers are opting for more affordable solutions. And that’s why we introduced Oxbox in February of 2019, to make sure we’re providing customers who are looking for affordable HVACR solutions that they can get from a brand that they know and trust. Day: It continues to evolve quite a bit with multi-stage and variable speed products, and much more of a system approach. New technologies are being used quite a bit more, and communicating systems are becoming more and more popular.

It’s definitely ideal, where the indoor unit and the outdoor unit are talking and communicating with each other, for not only maximum efficiency, but homeowner comfort. We see that continually growing. Nguyen: What we’re seeing with the residential cooling category is equipment just getting smarter and more efficient and delivering greater air. And it’s broader than just cooling … customers are more conscientious about the quality of the air in their homes. Our goal, within all of our products, is to deliver perfect air. We’re seeing a lot of innovation in the cooling category. Greater capabilities on control over humidity is one example. And all this is contributing to the growth of the smart home technology sector. Nolte: Two things immediately come to mind. The first is the introduction of

the ductless and ducted hybrid combination, which consists of a ducted indoor unit paired with a ductless outdoor unit. We have a proprietary kit for this combination that allows the homeowner to use a conventional 24V thermostat to operate the system, while also accommodating variable speed operation. The second is digital connectivity. A number of digital features recently introduced in HVAC equipment provide homeowners with enhanced features and benefits. Scarbrough: Residential cooling has become much more focused on energy-efficiency and personalized comfort in recent years. It’s no longer enough for cooling units to be durable and high performing, but they must offer smart comfort that matches how homeowners use each zone in their home. They should also operate in a way that has a positive, lasting impact on the environment and homeowners’ pockets. Across the board, we’ve seen a shift in the types of products that are developed to meet consumer demand and environmental need.

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What regulations should contractors be aware of?

What are some new solutions in this space?

Davenport: We’ve known refrigerant change is on the horizon in the years to come. At Oxbox, we’re focused on evaluating the options that are out there and making sure we’re providing our contractors with options that are really designed for a sustainable future. That’s very important to us, and so we’re working with our experts internally and with other industry associations to weigh all the options available and make good decisions for our customers.

Davenport: We have a very focused portfolio of products designed for the residential heating and cooling market. We want to make sure we provide our distributors and our contractors solutions, really, for the consumers and customers who are looking for affordable options. With Oxbox, you’ll find a complete line of 13, 14 and 16 SEER heat pumps and air conditioners where appropriate, to make sure we’re serving the largest segment of the marketplace at, really, those entry level and move up efficiencies.

Day: The regulations that are already on the books — coming at the beginning of 2023 — that’s the most significant regulatory change to happen in the industry in decades. Not only is it an efficiency increase of about 10 percent across the board, it’s also a change in the key metrics. How the industry talks about products, and how contractors are going to spec products and sell the homeowners … all of that nomenclature changes. So, CR moving to CR2, HSPF moving to HSPF2. That’s a big thing. Not only will products change, but all of the way that we talk about it. Nguyen: We had a lot of heating regulation over the last 12 to 24 months. On the cooling side, we don’t see any major regulations until 2023. And when those regulations come, we’ll have a full cooling lineup to support that. But for the balance of 2020 going into 2021, not a lot of changes on cooling regulation. Nolte: We have the minimum efficiency changes that go into effect in the U.S. on January 1, 2023, which will increase the baseline efficiencies of outdoor equipment. The North will go from 13 to 14 SEER, and the Southeast and Southwest will go from 14 to 15 SEER*. In addition, heat pumps will go to 15 SEER nationwide. Another regulation is from the California Air Resource Board and it will limit the GWP of refrigerant to 750 or below, which will require a new refrigerant for stationary HVAC equipment. Scarbrough: While not specific to residential cooling, contractors should pay attention to legislation, codes and incentives geared toward reducing the use of fossil fuels. This trend is part of the strategic electrification and decarbonization movement, which is encouraging more homeowners to consider all-electric heat pumps as their sole system for both cooling and heating.

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Nguyen: There is a high correlation between efficiency and quality of air. We continue to launch new products in that space. We have more products that are available at two-stage and variable speed than we’ve had in the past. And we also have our smart home thermostat, the iComfort S30, which allows customers to control that system perfectly. Consumers are able to manage that system with the thermostat, and the thermostat has the ability to monitor system performance, detect errors, communicate those errors to not only them but their HVACR contractor. Nolte: This spring, we’re introducing a new Infinity Series air conditioner and heat pump with Greenspeed Intelligence, which will achieve industry-leading efficiencies, dehumidification and sound levels. These new units will boast a number of innovative diagnostic capabilities. The enhancements showcased in these products will also introduce several features to ease serviceability and the installation process. Roberts: Consumers are demanding and asking for their HVACR systems to have some of the same features they’re seeing with other products in their homes, and we’re bringing that to them, and really looking at expanding that to where it’s not only operationally, but it’s also just convenience features … to where they know their system’s operating properly, and they can be able to control it from any handheld device, or remotely, or whatever they need to do. Scarbrough: Contractors can offer indoor units with innovative sensors for more responsive and personalized comfort. Also, manufacturers like METUS are offering products and supporting expertise, so contractors can offer hybrid systems continued on page 12

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continued from page 11

to customers. As homeowners continue to show interest in zoning solutions, hybrid systems that use both ductless and ducted units allow for greater flexibility and specific targeting to provide customizable comfort in each zone of a home.

What impact has connected homes had in this space? Davenport: A smart home is part of many people’s lives today. We’re focused on making sure we’ve got solutions that provide really affordable heating and cooling options. We don’t have connected options in our portfolio today. Instead, we know there are many solutions available, and our Oxbox product — they are a 24volt solution — will work with many of the connected thermostat options in the marketplace today. Nguyen: Homeowners’ equipment is smarter and more reliable and we’ve led that push. Of those that have recently purchased an HVACR system, we’re seeing that 25 percent of them have home thermostats that are smart, Internet enabled and programmable. That’s up from just 14 percent in 2016. There’s a conscientious effort by the consumer to want more and more connected systems and they see the value of that smart technology. We continue to invest in those areas and develop a suite of products like our iComfort. Our leading iComfort thermostats, they’re compatible with Amazon’s Alexa, Google Home, Apple HomeKit and If This Then That, so the ITTT, which means they can command it by voice. They can command it remotely. Nolte: The impact has been that controls now need to work with various platforms and connected products throughout the home. For Carrier, we will continue to focus on making our products compatible with other connected systems and products. Roberts: The real value in connectivity isn’t the homeowner being able to see their unit or control their unit, it’s the use of data throughout the upstream part of the channel. The unique position Rheem is in with our contractors, is we have the ability for air and water to be a part of it. If you start looking at energy usage in a home, and you take the water heating and the air conditioning, you’re looking at 65-70 percent of the total energy in that home is coming through those products.

HVACR BUSINESS APRIL 2020

“It’s critically important that contractors are more informed, better trained and are able to talk about what those different products can bring to the market.” — Quan Nguyen Scarbrough: Connected homes aren’t connected just so homeowners can have another device or piece of equipment with internet-connectivity. Useful connectivity improves the performance of equipment and gives homeowners more options for control and personalization. To keep pace with homeowner expectations, our industry needs to enable cooling products, and residential HVAC systems more generally, to be more responsive to occupants. This can be achieved through the use of variable-speed equipment and innovative sensors, like our 3D i-see Sensor. At METUS, we’ve worked to develop a series of home controls to make automation of our residential cooling and heating systems seamless for both contractors and homeowners alike. Our kumo cloud software offers Apple, Amazon and Google integration plus it allows users to manage indoor comfort levels even when they’re not home.

How do you see this category changing? Davenport: It’ll certainly be a dynamic time. As the economy changes this year, which we certainly don’t know what will happen, and with the impact of the coronavirus there could be the potential for the economy to soften. And what we know is in economic times of hardship or a recession that consumers opt for more affordable HVACR. And that’s where I think Oxbox really provides a great opportunity for our distributors and our contractor partners to offer those consumers with an affordable solution from a name they know and trust. In addition, having ways for consumers to be able to pay for those products through financing options will be critically important. Nguyen: Consumers are increasingly more informed than ever before and they’re also incredibly environmentally conscientious, so they’re doing their research on our products more and more online. It’s critically important that contractors are more informed, better trained and are able to talk about what those different products can bring to the market.

There’s a change on the consumer side in terms of their knowledge. We’re getting to Millennials as homeowners, so it’s critically important that folks are aware of the online channel and how to operate in that online channel with regard to cooling products and HVACR as a whole. Nolte: First off, I think we’ll see a continued movement towards electrification that will drive more heat pump usage. Another trend that will be important to consider is that with the evolution of cooling and testing standards, the size of condensing units will increase unless new technologies are introduced to offset that need. Therefore, we expect new innovations to proliferate the industry that will help combat the need to increase the size of the units. Roberts: We’re launching some really neat products around the world of ductless versus ducted … and blending them together. We have a full line of ductless solution products, but we’re also launching ducted air handlers going into ductless applications, to where they work together, and they’re communicating together. Integration of ducted and ductless solutions is definitely the future. Also, connectivity in the base efficiency products is coming sooner than later. New technology that’s out there, for these applications as well, is on the horizon. It’s an exciting time. Scarbrough: Consumers will demand more hybrid options for their cooling needs. Zoning with hybrid type multizone systems will grow in popularity. Energy efficiency, health and comfort will continue to drive their cooling solution decisions. Home automation will become more mainstream along with the integration of cloud-based controls functionality with ITTT capabilities. There will be more attention to sustainable options, like high-performance heat pumps that work well powered by renewable energy.

What do contractors say is their greatest challenge? Davenport: I’ve seen two things … the first is that they need more leads and

the second is finding qualified help. Those seem to be the most critical items for most contractors I’ve talked to in my recent years in my experience in the industry. How can we help educate the industry, and train the industry, and make it attractive, knowing that there’s many jobs available in the HVACR industry? I think there’s some awareness that’s out there to ensure that people that are coming out of high school or trade schools know that HVACR is a great industry to be a part of. Nguyen: It’s the age-old challenge of recruiting talent. The economic environment today may change that situation, but overall, the folks that have done well on the talent side are the companies that become a preferred employer of choice. Our goal is, as they recruit that talent, to provide the right programs, the right products to help train them, as well as innovating on products to make them easier to install, ease of service and much more reliable. Nolte: Lead generation is always a challenge for contractors. As a result, we are constantly working to provide new tools to contractors to help keep them informed and to achieve their sales goals. Digital tools are an especially important area of growth. There is also an urgent need for technicians in our industry and it’s something we need to address as a collective group. It will be critical for our industry to recruit young adults. We’ve been formulating a plan to reach these individuals and will be launching a program called Tech Up later this year. Tech Up is a new initiative that seeks to address the shortage of HVAC technicians entering the workforce by raising awareness of the many benefits of this rewarding career path — such as competitive starting salaries, great benefits and entrepreneurial opportunities — and connecting industry professionals with the skilled technicians they need. Roberts: The biggest challenge is finding qualified technicians and getting people into this field. It’s crazy to think, in the environment and the economy that we’ve been in, that it’s been hard to pull people in. This is a huge area of focus for us. Our online training, all of the tools we’re bringing out are really trying to help contractors, as well as distributors, to improve the quality of their teams. We’re partnering with trade schools, local institutions continued on page 14

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From About-to-Quit to $6.6 Million Chris and Emily Cunningham have been running their business, Service Plus, since 2002. They used to be miserable – they worked endless hours, struggled to hire good people, and weren’t making any money. They almost shut down the business. But in the last 5 years, they’ve hit their stride, adding plumbing, sewers, and drains, purchasing a $1M new building, and leading their 40+ employees to a 2019 revenue of $6.6M with 11% net profit.

How did they do it? They called on their network. Chris and Emily’s business turnaround isn’t based on luck. Their successful, fast-growing company is the result of training, coaching, follow-through, and hard work. They joined Nexstar Network in 2010 and worked closely with their coaches to begin implementing the processes that would turn their dying business into a healthy, profitable company.

“Nexstar has helped Emily and me become true leaders. We’re happy, our people are happy, and our work-life balance has never been better. Nexstar is a network of smart people – help for your business is always just a phone call away.” -Chris Cunningham Service Plus –Member since 2010

888-240-STAR (7827) www.NexstarNetwork.com membership@nexstarnetwork.com

continued from page 12

and utilities, and people that are ahead of the curve, as well as trying to pull students into the programs. We’re also looking at things that we can do to partner with our local distributors in all those trade schools.

Scarbrough: Contractors are still having issues with training and retention. As manufacturers, we can help ease some of that tension by making resources and training opportunities more accessible, so the entire team feels comfortable and

confident when going into the field. They’re also looking at all this innovation and technology coming into the market, especially on the controls side, and want more training and information to stay current.

What type of education & training do you offer contractors? Davenport: We’ve got a variety of resources, not only on Oxbox HVAC, but also through our Oxbox distributors, that can provide education and training on our products as they become a new customer. Things such as installation practices and service practices, we offer those through a variety of different means, whether that’s a PowerPoint communication or training manual or through even on-site training, and then many of our distributor partners. Nguyen: We provide more than 600 opportunities to learn through our Lennox Learning Solutions program. It has e-learning resources, instructor-led courses and 59 career paths. We have training on technical skills, selling skills and how to run a business, creating a strong work culture … all these things. And all that’s available both online and in person through our Lennox Learning Solutions program. Nolte: Training is an area of focus for us in that we want to make sure our channel has the most current and effective training tools. Our technical training catalog continues to grow and is provided in several formats which are easy to access anytime, anywhere so that the technicians can learn on their schedule, and in short, interactive formats so the learning sticks. We use cutting-edge methods and delivery platforms including new custom virtual reality (VR) training modules. Carrier has been working with Interplay Learning to create these custom VR training modules, which feature product-specific content exclusive to Carrier and its network of dealers and distributors. Roberts: We’ve been opening training centers around the country — we’re up to six now, and we’ve got plans to open another this year. We’re trying to bring the products and tools right into their offices, as well as giving them and having product available for them to be able to train on. Scarbrough: We have robust residential contractor programs. They offer participating contractors access to various resources, exclusive trainings and business development tools. We also have 11 training centers nationwide that allow contractors to gain valuable, hands-on experience continued on page 21

HVACR BUSINESS APRIL 2020

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WHY YOUR PRESS RELEASE ISN’T WORKING A press release is part of the whole public relations process, but it will only help your business if you keep a few things in mind. BY MELANIE REMBRANDT

our phone is silent. Your email is empty, and there are no text messages from your sales team. You carefully crafted a press release announcing your new HVACR service and distributed it to the media, but all you hear are crickets. What happened? Why is it so quiet? Shouldn’t reporters be contacting you? Well, first of all, congratulate yourself for taking the initiative to promote your news and venture into the world of public relations. These communications can give you a competitive edge and boost sales, awareness and credibility cost-effectively. But remember, a press release is only a part of the whole public relations, or “PR,” process which involves planned research, strategy, execution and follow-up. It’s a communication tool that works with your overall marketing, promotion and business plan. In fact, a press release will only help your business if you keep a few things in mind. Here are three questions to ask before you write a press release.

WHAT DO YOU WANT TO ACCOMPLISH? This may seem simple but it’s important. Stop and think about your message. What do you want to convey and why? While you want to promote your news, remember that your messaging should stick to your overall business model, tone and style.

When written and promoted correctly, a single press release can catapult sales and give your HVACR business a competitive edge. a specific goal, how will you know if your press release was successful or made any difference? For example, you can use a specific website link, phone number, email and more that is unique to the release to track responses. It’s also wise to create a database of the media members, potential customers, new partners, and more that respond immediately after your release goes out. Then, you can communicate with them in the future and grow positive relationships.

The official press releases on CISION PRNewswire and BusinessWire provide great examples and give you a good idea of where to start.

responses from your release last time). Also, remember to keep it simple. People are inundated with thousands of news items every day so stick to one key message that is easy to understand. For samples, conduct online searches and see what your competition, businesses you admire and others in the industry

These usually follow the Associated Press Stylebook for structure, punctuation, grammar, style and more. Note that many of today’s press releases, however, are written in a more relaxed, story-like style to capture attention. It all depends on your products and services, target market and continued on page 16

Decide on the best way for you and your team members to track results and how you will define success for your press release.

WHY WILL PEOPLE CARE ABOUT YOUR NEWS? When developing your news message, think about your audience. Why will your audience care about what you have to say? It’s essential to provide value rather than a sales pitch or just a news announcement. Whether you are ready to introduce a new product or service, discuss an acquisition, invite people to an upcoming event or something else, talk about the benefits for others. For example,

Think about your end goal. Once you know what you want to communicate, figure out whom you want to hear it and how you will get your specific message to them. Are you going to send out emails, use a press release distribution service, post on social media, etc.?

• Will you help your audience solve a particular problem?

It’s also important to decide how you are going to monitor results. This is a key step that many businesses forget. After all, if you don’t have anything to track to reach

If you send out a sales message that doesn’t provide value, your press release will probably be deleted immediately (maybe this is why you didn’t get any

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are doing. What kinds of press releases do they distribute?

• Are you assisting the local community in some way? • Does your news mean something to the HVACR industry as a whole?

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continued from page 15

create and promote it.

are more likely to see better results. But

the message you want to convey.

Yes, this costs money, but it’s well worth the expense. When you leave your PR strategies and tactics to the experts, you can focus on your core responsibilities and

most important, you avoid making a bad

Now, if you simply have no idea how to write a good press release (or distribute it), hire an experienced publicist to help you

impression, losing potential customers to the competition and wasting valuable time and resources.

WHAT DO YOU DO AFTER YOUR RELEASE GOES LIVE? After you distribute a press release, you can learn a lot from your data. Look at the tracking mechanisms you set up in advance: • Did a lot of site visitors click on your link to obtain more information? • Was there an increase in calls from the media or potential customers?

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• Were there more comments and shares on your social media accounts? The answers will tell you how, when and where people reacted to your press release. You can see what worked best and what didn’t work at all. This is valuable information you can use the next time you plan a news announcement; you’ll know what to focus on, where to make improvements and how to get your message across more effectively. For example, if you received new orders from the unique landing page link that was in the press release, you’ll see that this process was successful. If a lot of site visitors clicked on this page but didn’t make a purchase, you can edit your content or use a different offer next time for better results. Also, if the media talked about your news, you know that you provided valuable information to reporters at just the right time. If you didn’t get any media coverage, you’ll need to conduct more research and develop a better message for your next release.

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PART OF THE WHOLE PROCESS Press releases are a communication tool you can use to get the right message out to the right people at the right time.

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To be a positive part of your overall public relations’ process, develop specific goals, tactics and tracking mechanisms for each news announcement you have. Then, you can see exactly what works best, make the appropriate changes and create future press releases that help you reach your overall business goals. u

3/13/2020 10:39:05 AM

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FINANCE

BY RUTH KING

Wealth Rule No. 3: Build Your Maintenance Program

ecurring revenue, i.e. maintenance plans, is critical from both a profit and a wealth perspective.

Building a loyal customer base is critical for building wealth. Most HVACR and plumbing customer bases are built using maintenance programs. These programs tie your customer to your company. You give them reasons to use your company year after year. Maintenance programs give you predictable revenues, expenses, and cash flow. This allows you to budget. Increasing your sales can be accomplished through increasing your number of maintenance customers.

SAD AND TRUE STORY A business owner asked me to value his heating and air conditioning business. He had been working for more than 30 years and he was tired. He wanted to sell the business. Unfortunately, the business had low profits and very few maintenance plans. The business was worth less than $100,000. Not much value for 30 years of hard work. The owner was disheartened that his business was worth so little. It’s what happened because he only paid attention to profit and not building wealth. The wealth of your business is in customers who buy from your company year after year. Your maintenance customers provide a stable revenue stream for a purchaser. When your maintenance customers stay with your company year after year and they provide positive cash flow, the purchaser can be reasonably assured that he is investing in something that will also provide value and wealth to him as he operates the company.

FOUR PRINCIPLES TO FOLLOW Principle 1: Maintenance agreement

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then revenue and cost are accounted for on your profit and loss statement.

Maintenance programs are the seeds that you plant “in the spring” to help your company have a great harvest for years to come. MARCH Est

APRIL

Act

Est

MAY Act

Est

If your maintenance clients pay your company monthly or annually and your company provides the services/products at a different time than the monies are received, then your company has deferred income. This means that a customer has paid your company in advance for work not yet performed.

TOTAL Act

Est

Act

John

In these cases, your company has a liability to perform. It has gotten money for work not performed for your customer.

Jeff Jim

The monies that come in from the customer go in a savings account. The offsetting entry in your accounting package is deferred income — a current liability account on the company’s balance sheet.

Jane Totals Table 1. Sample Contest Diagram revenues should cover the overhead of your company. If the company’s total overhead is covered, then you can breathe easier when slower times come. Many times it takes several years to accomplish this. Do it and you’ll sleep better at night. Principle 2: Have at least 1,000 recurring revenue customers for every $1,000,000 in residential service and replacement sales. Not there? Set the plan in place to have at least the minimum number of recurring revenue customers within a specific time frame. Principle 3: Be your own bank. If you want to decrease your dependence on a line of credit, get the discipline to deposit all of the recurring revenue monies you receive in an interest bearing account. These funds accumulate quickly and can be your source when you are short of cash. Pay the interest to yourself rather than the bank! Principle 4: Set a contest with your employees to reach a recurring revenue goal. Make sure that everyone has bought into the need for recurring revenue. Then, start small with a three-month contest period.

Take a piece of poster board or put a chart on a white board (see Table 1). Along the X-axis should be the months. For example, March, April, May. Underneath each month should be two columns, one labeled “estimated” and one labeled “actual”. Along the Y-axis should be everyone who is in contact with customers and has the opportunity to enroll recurring revenue customers. Ask each person how many they think they can enroll during that three-month period. Put that estimate in the “estimated column” for each month. After you get everyone’s estimates, total the estimated enrollments for the company. This is your three-month goal. At the end of each month, record the actual numbers on the chart. At the end of the three-month period, determine the results. Did the company reach the goal or not? Is there a bonus or a penalty?

MAINTENANCE REVENUE If your recurring revenue clients pay your company monthly and your company provides the maintenance monthly,

When the work is performed or products/services provided, the amount of the revenue for the maintenance is transferred from the liability section of the balance sheet and put into the revenue section of your company’s profit and loss statement. Nothing has to be done with the savings account. The money can stay there unless your company needs it to provide maintenance work. In this case, the savings is transferred into your company’s operating bank account. Take the smallest amount that is needed. Savings will help build wealth. Maintenance programs are the seeds that you plant “in the spring” to help your company have a great harvest for years to come. 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.

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ESTATE TAXES

PROVIDED BY KEVEN PRATHER, CFBS

DO YOU WANT TO MAKE FRIENDS – OR MAKE MONEY?

s an entrepreneur, what do you care about most: being liked by others, or becoming financially successful?

Here’s what we know about self-made millionaires who built their wealth through business ventures: They are much more focused on making money in their dealings with others than they are on establishing social relationships and friendships in their professional dealings. In stark contrast, business owners who are less successful—even those who say they want to become highly successful— regularly act in ways that are socially rewarding but financially costly. They do things mainly to be liked, not to be wealthier. Of course, it’s entirely possible to build wealth and friendships. But the fact remains that the millionaires among you, in work contexts, aim their arrows squarely at the money. For example: • Negotiating. Self-made millionaire business owners approach negotiations with a clear and passionate determination to win. This in no way means they are not looking for ways for the other side to come out well. If both parties walk away as winners, all the better. But that is not always a possibility, and these entrepreneurs understand and accept that. In contrast, most people want everyone to walk away from the negotiations happy, which all too often results in making bad deals. • Networking. Another area where the desire to be liked can easily interfere with becoming wealthier is networking. A large percentage of self-made millionaires can attribute a substantial portion of their success to their ability to connect with others and leverage those relationships. They concentrate on building relationships that have the capacity to open doors as well as supply

HVACR BUSINESS APRIL 2020

• Millionaire entrepreneurs make a point to act in ways that fill up their wallets—not their social calendars. • For these top business owners, negotiating and networking are two areas where “playing nice” takes a backseat to getting the desired financial and business-building results. • With success come enemies—maybe many of them—so get comfortable with others resenting you or viewing you negatively.

Of course, it’s entirely possible to build wealth and friendships. But the fact remains that the millionaires among you, in work contexts, aim their arrows squarely at the money. resources and clients. There has to be some minimal chemistry between the parties, of course, but the people in self-made millionaires’ networks are the ones who can deliver results—not necessarily people they are looking to for long-term friendships. The fact is, most business relationships are situational and will dissipate once the business connection is gone. And yet, many people want everyone they are dealing with to like them—an attitude that is frequently, if not habitually, antithetical to making money. Think about it: Consider your own history. It’s probably pretty easy to identify more than a few situations where you were being needlessly nice to other people—staff,

vendors—and it cost you monetarily.

it. As self-made millionaires create personal fortunes, they’re very likely to have more and more people approach them with demands, requests and proposals. The logic behind this is straightforward: The wealthy person has financial and professional resources these other people want to access and leverage. As the demands, requests and various proposals multiply, the self-made millionaire is not going to have the bandwidth to deal with them all. (The triage process alone is sure to annoy or anger some of the people making requests.) The result: enemies. When self-made millionaires discount or disregard others’ requests, the rejected commonly see this as evidence of the entrepreneurs’ self-centeredness, callousness, arrogance, insensitivity, conceit and haughtiness. Other factors also may result in people seeing those with wealth in a disparaging light, of course. But often the very process of personal wealth creation perpetuates and enhances their negative image. So what do you do—especially if you’re not prepared to accept a lower level of success simply to be liked more?

ADVICE: GET COMFORTABLE WITH MAKING ENEMIES

ANSWER: PREPARE TO BE VILIFIED. IT’S PROBABLY INESCAPABLE.

Sometimes your journey up the financial ladder goes beyond simply not making friends—it means making enemies along the way. This is often an outcome of significant success, so be ready for some new enemies if you pursue big business results intently.

As you take actions that put you on track to make a lot of money, you’ll encounter hostility—sometimes even hatred—from a good number of people. As you succeed in achieving your financial goals, you’ll certainly make enemies. In fact, as you become more accomplished, it’s highly likely you’ll make a lot of enemies.

Indeed, proportionately more people who are wealthy make enemies. As you accumulate more wealth, it’s very likely you’ll make more enemies than the average (less wealthy) person. This makes sense when you think about

Keep in mind that you should be prepared to make enemies, and some of them may very well be close friends and professionals you’re currently working with. For example, as you conduct negotiations that pay off well, your time becomes an ever

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more precious asset. Simultaneously, your success acts as a magnet to people who want to pitch you an idea or a company or, better yet, show you a way you can become more successful by teaming up with them. What tends to happen is that you end up pushing a lot of people away. These people will, in turn, attribute certain personal characteristics to you—and they’re not likely to be complimentary. The upshot: If what other people—especially people you don’t have a strong relationship with—say about you matters to you, that will seriously curtail your success and your ability to become wealthy. Never let them determine your self-worth. Get used to being the villain fast and concentrate on achieving your professional goals.

Keven Prather specializes in serving the complex needs of business owners through Financial Planning and Business Transition/ Exit Planning. Using a Total Wealth Planning approach, Keven’s objective is to turn complex problems into actionable, understandable and manageable steps, by collaborating with business owners, their family, and strategic partners.” Keven can be reached at (216) 592-7314 or kprather@financialguide.com. www.TransitioNextAdvisors.com.

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In fact, as you become more accomplished, it’s highly likely you’ll make a lot of enemies. PREPARE TO DEAL WITH FOOLS—GLADLY! Another inescapable aspect of entrepreneurship is dealing with fools. You’ll often deal with a plethora of fools who are not on your side—such as when you look across a negotiation table, for example. Now, most business owners feel frustrated, anxious and mad at having to deal with fools. This tends to work against them and in favor of the fools. But most self-made millionaires expect the business world to be populated

Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. www.SIPC.org. TransitioNext AdvisorsTM is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. Supervisory Office: 2012 West 25th Street, Suite 900 Cleveland, OH 44113. 216.621.5680. This report is intended to be used for

by fools—and use that to their advantage. Fools can be wonderful for your professional and personal financial success, so long as you don’t try to change them and you learn to turn their foolish traits to your advantage. With the appropriate skills, intent and practice, you also can capitalize on the dysfunctional nature of fools to win at both negotiating and networking.

GET CLEAR ON YOUR GOALS— AND WHAT IT TAKES TO MAKE THEM HAPPEN Keep in mind, it’s not intrinsically good

informational purposes only. Neither MML Investors Services nor any of its employees or agents are authorized to give legal or tax advice. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters. CEG Worldwide, LLC. is not a subsidiary or affiliates of MML Investors Services, LLC or its affiliated companies. VFO Inner Circle Special Report By Russ Alan Prince and John J. Bowen Jr.

or bad to focus on money over friendships (or vice versa). Ultimately, it comes down to your personal goals. Some people prefer being liked to being wealthier. For other people, the reverse is the case. But remember: If your preference is to become seriously wealthy, make sure the pull of social acceptance—the desire to make friends—doesn’t get in the way of making those careful, calculated business decisions that can boost your bottom line. The wealthiest entrepreneurs generally don’t put limits on their potential financial success by dealing only with people they like or with whom they share key values. If you want to join the ranks of the wealthiest, you probably should follow their lead.

©Copyright 2018 by AES Nation, LLC. All rights reserved. This report is reprinted with permission from VFO Inner Circle. Unless otherwise noted, the source for all data cited regarding financial advisors in this report is CEG Worldwide, LLC. The source for all data cited regarding business owners and other professionals is AES Nation, LLC.

HVACR BUSINESS APRIL 2020

STRATEGY

BY JODIE DEEGAN

A Healthy Garden

f you know me, you know I’m a motorcycle freak. I enjoy riding motorcycles great distances, reading about them and even working on them. What may surprise you is that I also really enjoy gardening. I appreciate eating delicious food that I’ve grown, and I love learning about ways to increase my production and quality. One of the main things I’ve learned about growing is that there’s a direct correlation between the attention you give a plant and the result it produces. If you ignore a garden, it may survive and produce some food, but if you nourish the

Like tending a garden, you need to be focused, dedicated and single-minded when it comes to improving your company. soil, water it consistently and keep bad elements away, it will produce a better result. It will also produce more consistently. If you’re over a certain age, you may remember a wonderful movie with Peter Sellers called “Being There.” Sellers played a character named Chance the Gardner. Chance was raised to be a gardener and knew nothing about life beyond that.

In the movie, Chance finds himself in the real world and his knowledge of gardening is interpreted by everyone he meets to be a metaphor for the real world. He is considered a wise and insightful genius. In reality, he only knows about gardening. I’m bringing up this movie because there are some powerful parallels of how running your business is a lot like caring for your garden. You need to be like Chance — focused, dedicated and single-minded when it comes to improving your company. So focused, in fact, that you possibly even harbor genius tendencies. Let’s break down some of the essentials for your business garden.

NUTRIENTS One of the nutrients that feeds your team is training. Without training, your team doesn’t have everything they need to prosper, and they won’t be healthy enough to overcome the obstacles that will come their way. Consistently training your team to use best practices helps them deliver a fruitful customer experience that can yield predictable results season after season. There is no such thing as being trained, as if it’s a one-time event. Training is a daily, weekly, and annual practice, just like adding nutrients to the soil.

SUNLIGHT In this extended metaphor, I think of sunlight as the energy that makes talented individuals want to be a part of your company. Said differently, this is the culture. Sunlight is warm and feels good. People flourish in warm, welcoming work cultures; prize-winning achievements are frequently the result of an ideal

HVACR BUSINESS APRIL 2020

environment. And we all respond favorably to praise and encouragement — it brings out the best in us.

PESTS What are the pests in your business garden? What are the bugs and the weeds? Most often, these are the negative people we tolerate because we think we need them to fill a truck or answer a phone. If they’re bringing the rest of the team down, they’re harming your garden. When you pull these weeds and pluck those hornworms out of your garden, the environment stays healthy and you have a lot fewer damaged plants. Other pests may be your reviews, your competition, or your problem customers. Let them wreck someone else’s garden! Yours is healthy and ready for the challenge. As an implementation coach with Nexstar, I’m lucky enough to speak with a lot of our members regularly. One of the most rewarding activities for a Nexstar coach is to help someone see where they have an opportunity. It may be a call center challenge, a production challenge, or any area of a business that’s underperforming. Most often, that area is underperforming because it isn’t getting the attention it needs. Quality training has dried up, or the wrong people have been allowed to grow like weeds. It happens, but now’s the time to put the gardening gloves back on. When you focus attention on a neglected area of your business and nurture it, you can see it start to blossom. Then it’s on to the next row of plants! u

Jodie Deegan is a Nexstar Network Business Coach. Informed by working more than 25 years in the HVAC, plumbing and electrical fields, Jodie assists residential contractors in guiding their technicians toward new processes and behaviors that stick. For additional information, visit nexstarnetwork.com.

www.hvacrbusiness.com

PRODUCT FOCUS »

CLIMATEMASTER

NORTEK

WATERFURNACE

YORK

The new ClimateMaster digital thermostat line consists of three models to match the needs of all applications.

Nortek Global HVAC introduces the W-Series of air conditioning and heat pump equipment for residential and light commercial applications.

WaterFurnace Versatec Variable Speed technology enables the building owner to replace the previous system with multiple “twinned” modular units that operate as one unit providing more capacity in a much smaller footprint.

As part of the YORK LX Series, YEE single-stage heat pumps offer 14 SEER cooling and 8.2 HSPF heating efficiency performance. YEE heat pumps provide homeowners with a lower cost solution to meet their budget and specific application needs.

While each model is designed for bestin-class user experience, the CM300 and CM500 WiFi thermostats empower facility managers to do their jobs more efficiently with advanced features and remote capability via the company’s free mobile app and web portal. With the app, users can monitor and control a virtually unlimited number of thermostats from anywhere in the world using a connected iPhone, iPad, or Android device.

The introduction completes the final phase of an overall redesign of Gibson, NuTone and Frigidaire branded 1.5 to 5-ton, single-phase air conditioning units and heat pumps. The redesign began with introductions of the premium F-Series in 2017, the mid-range E-Series in 2018 and now culminates with the economically-priced W-Series in 2019. >> nortekhvac.com

The Versatec Variable Speed units are capable of twinning up to 4 units (60 tons) and can provide the convenience of modularity and redundancy. All units are equipped with 4 row air coils that allow for improved dehumidification over standard WSHP equipment. >> waterfurnace.com

>> climatemaster.com

>> york.com

homeowners are looking for, what we need to be doing, what we’re doing as a manufacturer, as far as the steps we’re taking in our facilities.

continued from page 14

with METUS products and learn the ins and outs of each, prior to encountering them in the field.

What’s the most important thing contractors need to be aware of as they head into cooling season? Davenport: Safety of their employees and the safety of the consumers’ homes that they’re in is critically important at this time. We’re ensuring that the safety of our people and our partners is our top priority, that we’re following all the guidelines of the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), and then obviously anything local by county or by region, to make sure we’re prepared. What we do is critically important to all of our companies involved, but most importantly to consumers that we’re supporting through our products.

www.hvacrbusiness.com

The systems can provide heat down to an outdoor temperature of 0F and cooling up to 125F – making it the perfect yearround comfort solution optimized for Southern U.S. climates. YEE heat pumps are optimized to be paired with indoor equipment, such as air handlers and gas furnaces, with electronically communicated motors (ECM).

“This cooling season, with the impact of COVID-19, contractors need to be especially mindful about respiratory etiquette and keeping surfaces clean.” — Steve Scarbrough Nguyen: With the current situation, contractors need to be aware of consumer concerns and address them immediately, proactively. Contractors have to build confidence that when the homeowner allows them into their home, they’re going to be safe. Our industry is essential to the operation of this country, and homeowners know that. And they also want to know that contractors are doing their part to support the operation of the company as well as keeping them healthy. Nolte: With people potentially spending more time at home than ever, indoor air quality products like air purifiers and UV lamps may become more important

solutions to offer consumers. Training is a big piece of it. In my opinion, one of the wisest things they can do is invest in training. Contractors should ask what is important to the consumer and offer a few different options understanding that efficiency, dehumidification and lower noise levels are the top features customers are willing to spend more to get. Roberts: We all know our business, both HVACR and the water heating, is an essential service. It’s vital for both the manufacturer or distributor partners, and our contractors to work together. We’re providing all kinds of tools right now, and training around safe practices for what

Scarbrough: In terms of cooling technology and building science, contractors should consider staying up-to-date with manufacturer-provided training and webinars. This cooling season, with the impact of COVID-19, contractors need to be especially mindful about respiratory etiquette, keeping surfaces clean, and handwashing when on service calls or otherwise engaging with customers. Clear communication about how a contractor is safeguarding a homeowner’s health during a visit will go a long way.u

Pete Grasso is the editor of HVACR Business magazine. To reach him, email pgrasso@hvacrbusiness.com.

HVACR BUSINESS APRIL 2020

20QUESTIONS >>

with ROB MINNICK

We sat down with Rob Minnick, president and CEO of Minnick’s, a heating, cooling, plumbing and insulation contractor in Laurel, Md. Minnick discussed reinventing the business after 2008, learning to run a business and the value of home performance. 1. How did you get started in this industry? My grandfather, William Minnick, created the heating and cooling company in 1954. Then my father, Larry, took over from him. Because it’s a family business, you kind of grow into it as soon as you get an understanding of what’s going on in the world. Of course, back then there was a lot of family and relatives involved in the business. When I was growing up, we were a much larger company … we did a lot of new construction and probably had close to 200 employees.

2. What was it like growing up?

I just remember people always at the house or people always running out … it was chaos, but it was a good chaos. Everyone was just busy. Everyone got along and I just wanted to be a part of it. Whatever I could do, they would let me do.

3. What sorts of things did you get to do? Because of labor laws and so forth, I couldn’t go on job sites or anything. I’d clean up around the shop — we had a sheet metal shop back then. There was probably 25, 30 people in the sheet metal shop. We had our own gas pumps back then too, so I would pump gas when people needed to get gas and it was good times growing up.

4. Did you always want to be part of the family business?

Yes, and I knew I wanted to start at the bottom. When I was old enough to start work, I started in the sheet metal shop … putting duct work together was my summer job. And then, probably when I was around 20, the shop foreman was leaving and my boss came to me and said he wanted me to be the shop foreman.

5. What was that like?

I’m just like, “Really? I’m the youngest kid in here and I’m going to boss all these guys around? I’m not sure how that’s going to go, but sounds cool.” But it worked out. It was a rough road at first and of course, everyone just thought I had the job because I was the owner’s son. I was like, “Well, I get here on time and I do my job and I leave when it’s over.”

6. How hard were you hit in 2008?

That’s when we went from almost 200 employees down to 6 people. I have no idea — and I’ve asked my dad several times — how he pulled this off. Because there was just so much money that was lost because it was all tied up with new construction builders, that were all Chapter 11.

7. How did you build the company back up?

We kept a couple of builders that were just doing roughly 12 homes a year, and slowly we got up to 35 employees.

8. What’s your company business mix?

We got out of new construction in 2008 and have been doing existing residential homes ever since. We do probably 5 percent light commercial, like churches and strip centers, but it’s mainly all residential existing homes.

HVACR BUSINESS APRIL 2020

9. Why did you get out of new construction?

When 2008 hit, those builders that we had worked with, they went out of business. But, I was getting fed up with new construction by then anyways. A lot of superintendents out there had no idea what was going on with the house and wanted to back charge us every time if we weren’t on the job on time. And I’m like, “You don’t even have a roof or stairs in the house, how are we going to start work in the house?” He’s like, “Well, my calendar says you’re supposed to be here. I’m back charging you.” I’m like, “All right, I’m done with this.”

10. What was the turning point after that?

In 2009, we hired consultants to come in because it seemed like we were beating our head against the wall. We needed to make changes and we needed some help. That was the best thing ever because they came and really turned us around 180 degrees and got us to how we operate today. We signed them up to consult for three years, but we could get out of the contract at any time. We ended up keeping them for four years.

11. When did you get involved in home performance?

In 2005, I was introduced to that and it just clicked with me because of doing all the Manual Js and the calculations and duct designs and all of that. To me, home performance was the piece I was missing. That became our model. We look at the house as a system and we do audits all day long, every day.

12. What was your dad’s succession plan?

My dad’s goal was for myself and my two younger brothers to buy the company from him and keep it going. In 2005, I realized dad wasn’t getting any younger. I was the field foreman, doing a lot of Manual J calculation and duct design. One brother was doing service and the other was doing install work. My dad handled the office side of the business. So, I called a meeting and told my brothers that someone was going to have to learn dad’s job and they said, “Alright, good luck.”

13. So, they thought you volunteered?

Yes, exactly. I mean, I wanted it, but I didn’t want to simply say, “I’m stepping in.” So that’s when I just started learning the business. I was always involved in accounting and was always really good in math so that really helped out a lot.

14. When did you take ownership of the company?

In 2012, my dad finally sold the business to us … it was a three-way partnership with me and my brothers. I’m the oldest.

15. Are your brothers still involved?

One of them is. In 2014, my youngest brother said he did not want to deal with employees anymore and he wanted to start a consulting firm. So he decided to leave I bought his portion out and then my middle brother, around 2016, said his youngest daughter would be graduating in 2020, and that they were talking about moving to North Carolina. So we had four years to plan his exit. He sold me his share two years ago, but they’re postponing moving probably a year or two. He’s going to stay here and keep working until they decide to leave. Currently, he’s our salesperson.

16. What do you find most rewarding?

When a customer’s just so amazed by the transition of what we’ve done to their house. The way it feels, the comfort level … they’re breathing fresh air in their house and the house has never performed the way that it has. They have been in the house for years and it’s just never worked and they’re just so excited and just blown away and that is what’s so much fun and exciting and rewarding.

17. What’s your management style?

We have operation manuals for every position that we have here. That was one of the thing that the consultants brought on board and it makes it really simple. It takes away from all the, “Well, I told you this, I told you that. Why are you calling telling me this or that?”

18. So, you make everyone learn the manual?

Yes. Anyone who comes to work here, the manual tells them what to do from the time they punch in until they punch out. What they do first thing in the morning, what they do during the day and what they do at the end of the day, every single day. They’re expected to learn it and it holds them accountable.

19. Does the manual answer everything? Mostly, and that’s what I always point to when people ask me questions. I’m like, “First question is, did you check the manual?” The manual has 80 percent of everything they need. There’s always going to be the 20 percent of what ifs, and we’re not going to put the what ifs, in the manual. That’s why I’m here to help.

20. How important is training?

We built the training center and everything here, the consultants helped us do that. I’m all about training and helping people who want to learn. I’m not saying I want to grow this company to where it was before, but where it’s comfortable enough that I’m not out here doing the day to day stuff. www.hvacrbusiness.com

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HVACR Businesss APRIL 2020

Articles inside

20 Questions with Rob Minnick

Why Your Press Release Isn’t Working

Do You Want to Make Friends or Make Money?

Executive Roundtable: Residential Cooling

Profit Law No. 3: Build Your Maintenance Program

Surviving COVID-19

Editor’s Notebook

A Healthy Garden

Product Focus