HVACR BUSINESS JUNE 2023

VMH UltraV Series

VMH-V Series

Our new UltraV Series will heat or cool when outdoor temperatures reach -22o F. Multi-zone units run at 100% capacity at 5o F. Single zones maintain 100% capacity at 0o F!

This makes these units well suited to installations requiring year ‘round conditioning, both residential and light commercial. Operating range:

Cooling -22o to 122o F

Heating -22o to 86o F

SINGLE/MULTI ZONE MINI-SPLITS

6,000 to 48,000 BTUH

Advanced inverter technology means the room will reach the preset temperature quickly and that the temperature will be constant without the fluctuations that occur in other systems due to on-off cycling. Energy usage is kept to a minimum as units run at low frequency most of the time. However, when required the unit ramps up automatically to reach and maintain the comfort level.

FEATURES

7 The Compensation Equation™ Part 3: Recruitment, Retention, and Company Culture

The third in the series is on how The Compensation Equation™ affects profitability.

By Chris Crew

8 Why Fleet Management Technology Can Help Heat Up Your HVACR Business

The smallest investment in fleet management technology can make a big difference in profitability.

By Kevin Aries

10 Tops in Trucks Fleet Design Contest 2023: The Winners

We announce the winners of our annual Tops in Trucks Fleet Design Contest, 2023 edition.

By Heather Langone

16 7 Steps to Instilling Business Development in Service Techs

Seven areas management must focus on to instill a strong, customer-focused, business-development culture.

By Jim Baston

18 Employee Performance Mapping Ensures Competitive Edge

Use management by objectives to achieve organizational goals.

By Ursula Mannix

COLUMN

20 Share the Wealth

Long-term HVACR Business financial columnist advises how to determine bonuses and profit sharing for employees.

By Ruth King

DEPARTMENTS

5 Publisher’s Page | Tops in Trucks

Fleet Design 2023

An in-depth explanation of all that goes into choosing a good fleet design and how we choose the winners.

Terry Tanker

6 MRS | Financial Strategy

This month we have chosen four books and two podcasts to help you strengthen your financial acumen.

22 20 Questions with Chad & Veda Terrinoni, President and CEO of Hummingbird Heating and Cooling

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

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

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(ISSN: 2153-2877)

Tops In Trucks Fleet Design Contest 2023

elcome to our 2023 Tops-

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

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. My “educated guess” is approximately 85 percent of our readers carry some type of signage on their vehicles. Others I’ve spoken with who don’t, point almost exclusively to theft as the single reason for passing up this opportunity. Most of those contractors have told me they do most of their business in major

What Does Good Fleet Design Cost?

OUR WINNERS THIS YEAR ARE…

Jay’s Heating, Air & Plumbing, Jamie Vaughan Owner, Mt.Airy, NC

Hummingbird Heating and Cooling, Chad & Veda Terrinoni Owners, Syracuse, NY

ECO Plumbers, Electricians and HVAC Technicians, Aaron K. Gaynor Owner, Hilliard, OH

OUR RUNNERS UP ARE…

Peppy! Heating & Cooling, Brett Shannon President, Boise, ID

Ahoy! Cooling & Heating, Adam Washburn Owner, Tampa, FL

Dugan Air Heating & Cooling, Dan Dugan Owner, Franklin, IN

OUR HONORABLE MENTIONS ARE…

Lee’s Air Plumbing & Heating, Tom Howard Owner, Fresno, CA

AC Plus Heating & Air, Matt Postoian President, Victorville, CA

Can Do Crew Plumbing, Heating & AC, Douglas Oakes Owner, Bakersfield, CA

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.

Anchor Heating and Air LLC, Stephanie & David Postell Owners, Charleston, SC

the field. 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 — yes, that’s right, eight! Sure, it would be easy to simply go through the submissions and say, “I like this one; I don’t like this one ... and so on.” But that’s not how we do it.

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 eyecatching? 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?

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.

Tops in Trucks 2024 Entries

Again, this year, we had a record-breaking number of entries. Our judges had two extra rounds of judging to narrow

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 2024 Tops in Trucks Fleet Design Contest. u

Financial Strategy Management Resource Shelf

If you had to give yourself a financial intelligence grade, would it be an A+? The following books and podcasts are a collection of six that we think can get you there no matter what your education is or level of business experience. Whether you are a seasoned contractor or just moving from service tech to business owner, if you want to strengthen your financial acumen, we have chosen four books and two podcasts to help you improve your financial intelligence.

Financial Intelligence, Revised Edition: A Manager’s Guide to Knowing What the Numbers Really Mean

By Karen Berman (Author), Joe Knight (Author), John Case

Inc. magazine calls it one of “the best, clearest guides to the numbers” on the market. Readers agree, saying it’s exactly “what I need to know” and calling it a “must-read” for decision makers without expertise in finance. Since its release in 2006, Financial Intelligence has become a favorite among managers who need a guided tour through the numbers – helping them to understand not only what the numbers really mean, but also why they matter. www.amazon.com/dp/1422144119

Profit with Presence: The Twelve Pillars of Mindful Leadership

By Dr. Eric J. Holsapple and Greenleaf Book Group

WALL STREET JOURNAL BESTSELLER It’s time for leaders to join the mindful business revolution and find true success.Although the world is currently abuzz with the term “mindfulness,” some believe mindfulness is a fringe activity to be practiced before or after the workday, if at all. Too few business professionals take the time needed to be present and aware throughout the workday, which is counterproductive. Dr. Eric Holsapple, successful developer and entrepreneur has realized the value of mindfulness as not only a path to personal success, but as a sound business strategy.

www.amazon.com/s?k=Profit+with+Presence%3A+

The+Twelve+Pillars+of+Mindful+Leadership

The Blue Collar Proud Show

Hosted by Carter Hawkins and Taylor Hill

THE WEEKLY SHOW FOR BLUE-COLLAR BUSINESS OWNERS. Plumbing. HVAC. Electrical. Remodeling. Roofing. Painting. Concrete. Chimney. Masonry. Fencing. Flooring. Pest Control. Landscaping. Janitorial. If you’re in a truck-based, home services industry of any kind, you’re in the right place. Listen every week as hosts Carter Harkins and Taylor Hill interview experts in your industry and find the gold nuggets that will help you build the dream business you have always wanted to have.

https://bcpshow.com/

The 10X Financial Advisor: Your Blueprint for Massive and Sustainable Growth Paperback

By Scott Winters (Author), Melissa Caudle (Editor)

Most Financial Advisors fail to run their practice like a business and consequently never live up to their full potential. Even worse they find themselves trapped by the demands of their clients and unable to lift the proverbial ceiling on their income. This book will take you on a journey through the proprietary Quantum Leap Success Model built to help financial advisors achieve massive and sustainable growth. If you want to build a house, you would be out of your mind to proceed without a blueprint. If you want to build a business, you can build a plan emulating the world’s most successful companies. www.amazon.com/10X-Financial-Advisor-BlueprintSustainable/dp/1951028503/

AI Marketing Playbook: Mastering the Game of Customer Acquisition and Engagement with Artificial Intelligence

By Mark W Lamplugh Jr (Author)

Looking to revolutionize your marketing strategies? Look no further than “AI Marketing Playbook” – the definitive guide to leveraging the power of artificial intelligence to optimize your marketing campaigns. In this comprehensive guide, you’ll learn how AI can help you personalize your messaging, target your ideal audience, and predict future trends with unprecedented accuracy. You’ll discover proven tactics for leveraging data-driven insights to drive conversions and increase ROI, and explore cutting-edge technologies like machine learning, natural language processing, and more.

www.amazon.com/Marketing-Playbook-AcquisitionEngagement-Intelligence/dp/B0C1J7X6JV/

Best Financial Strategies to Run A Profitable Contracting Business

Hosted by Igor Trninic

Financials – the one word that can have even the most seasoned contracting leader running for the hills But, sorry to break this to you, mastering a budget is a bedrock skill for your entire career as a business owner. Business owners who have a strong and solid financial plan (and a well thought-through budget) can be more decisive and end up with financial freedom. Well, can’t you just hand it over to your bookkeeper or accountant, and be done with it? Afraid not...if you want to grow and succeed longterm. It’s really not as scary (or dry/yawn-inducing/grey hair encouraging) as it may seem. So, where do you start?

https://podcasts.apple.com/us/podcast/ contractor-evolution/id1541384174

BY CHRIS CREW

One of the things that we know as an owner/ operator of a home service company, is that you must focus on team members. Nothing in your business happens without them. Though they may not be listed on your balance sheet, your people are your greatest asset. As with everything else in business, you want to leverage your assets.

In our previous two articles, we explained the concept of The Compensation Equation and how it affects profitability. In this last installment, we’d like to dive a little deeper into how your compensation plan affects recruitment, retention, and company culture.

Recruitment, Retention & Company Culture

The Compensation Equation was created to help home service businesses map out custom compensation structures for each unique role. The goal is not just to pay a competitive wage, but to incentivize profitable behavior and attract/retain top talent. How you pay going forward will affect the way your team views their roles. However, the first mindset that may need to change is your own.

It’s been a standard practice in the trades to lean on bonuses, commissions, and spiffs to reward or motivate results. However, these methods often exclude the majority of team members and can be difficult to administrate. Also, they do little to elevate your company’s culture.

THE COMPENSATION EQUATION

Recruitment, Retention, and Company Culture

PART THREE OF A THREE PART SERIES

Utilizing performance-based pay to incentivize each role is what will take your business to the next level and beyond. Here’s an example using the role of CSR:

If your company charges a service fee to go on calls, but you waive the service fee to book appointments when business is slow, there’s no incentive for CSRs to book the call with a fee. That policy negatively impacts profitability.

Valuable Incentives

When I ran my electrical services business, we added incentives for our CSRs that paid them on a per-booking call basis in addition to their base. We paid $1 for every booked call and $2 for a call with a fee. As a result, the fee call became more valuable. Additionally, I’d ask my CSR to make outbound calls during slower times, perhaps selling service agreements or putting an appointment on the board. For successful outbound calls, I paid $5 per. That’s when I could see my CSRs’ mindsets change. They learned they can earn more than just their salary based on their performance. As a result, more revenue was generated through their efforts than what it cost the business – a win/win for the company and team. Remember, the main goal of compensation is to change and motivate behavior through performance-based pay.

How you pay directly affects retention, performance, recruitment, and company culture.

There are multiple variations of this concept that The Blue-Collar Success Group® uses to help our members. The success we’ve had with the Compensation Equation has come from it being both customizable and scalable, based on both the market and the size of the operation. Change, even if it’s positive, can create disruption, so when it comes to implementation, we advise starting slow. If a business tries to change all the compensation plans at once, you’re asking for a lot of buy-ins. As an example, if I change the compensation plan in my call center, I can do it one of two ways.

Good Pay Equals Top Performance

The first way is to sell all team members at one time on the new compensation plan. The second would be to pick top performers as the test subjects and let them know you’re looking at allowing them to earn more income. Once that gets tested and you’ve evidenced that it works, they now become your cheerleaders in rolling out the compensation program to the entire department.

Once that is successfully in place it moves to another department, using the previous department as social proof, not just individuals. This is more of a global approach to the entire organization and helps keep your plan scalable.

Lastly, remember that it’s also a training opportunity. You’re training them to develop habits that not only make your company more profitable, but that give your team opportunity and a stronger sense of value. If you pay average, you get average. If you pay well, you get top-performing people. Therefore, the results are always going to be that you get what you pay for. And don’t think for a minute that this doesn’t trickle down to your customers and your reputation in the marketplace. This is the key to ongoing profitability.

Your team members all need to feel that no matter what role they have in the business, they matter. u

After a journey in the HVAC industry that began when he was sixteen, Chris Crew went on to coach a large electrical company helping franchisees achieve success. Later, he shifted to owning an electrical business, growing it in a four-year span to 60 trucks, five locations, and generating $18 million. Ultimately, he sold his shares to join The Blue Collar Success Group® where he now serves as President. Chris Crew offers extensive knowledge about every facet of in-home services.

www.thebluecollarsuccessgroup.com

Utilizing performance-based pay to incentivize each role is what will take your business to the next level and beyond.

WHY FLEET MANAGEMENT TECHNOLOGY CAN HELP HEAT UP YOUR HVACR BUSINESS

BY KEVIN ARIES

HVACR fleet managers already face many challenges to keep their vehicles and busy drivers on the road. The dramatic increase in fuel costs, part, and labor shortages, general inflation, and lingering supply chain issues have only added to the list of challenges.

The advent of technology such as GPS and fleet management software, however, has changed the formula for how HVACR fleet managers accomplish their fleet goals. Software solutions that use GPS for location-based information are being used for proactive preventative maintenance, more thorough pre-trip inspections, enhanced driving routes, and improved safety programs and driver monitoring.

Research shows that fleet managers regularly see the benefits of these technologies to accelerate their growth. According to a recent Verizon Connect Fleet Technology Trends report, 70 percent of fleet companies surveyed said they already use GPS tracking technology. Overall, 96 percent of fleet managers using GPS fleet tracking software said they found it beneficial to decrease fuel costs, lower accident costs and reduce labor costs.

These modern advances and new technology have drastically improved vehicle quality and performance, lowered

The advent of technology such as GPS and fleet management software, however, has changed the formula for how HVACR fleet managers accomplish their fleet goals. Software solutions that use GPS for location-based information are being used for proactive preventative maintenance, more thorough pre-trip inspections, enhanced driving routes, and improved safety programs and driver monitoring.

costs, and improved safety. When looking for a fleet management software solution for your HVACR business, there are four ways this investment can ultimately help your business.

Start with Better Maintenance

With GPS tracking software that is part of an overall fleet management solution, you can help keep your fleet vehicles in top condition. These solutions allow you to schedule preventative maintenance proactively, which helps reduce urgent repairs and prevent drivers and vehicles from getting stuck on the road or at a job. By tracking data on engine use and mileage and setting automated alerts, you’ll be reminded when preventative maintenance is coming due, so you can be sure every vehicle is maintained properly.

As we all know, getting ahead of maintenance helps reduce issues from happening in the first place. You can also maintain a detailed record of all preventative maintenance activities performed on a vehicle within a fleet tracking system to prevent any work from being done that isn’t required, which can help decrease your overall fleet costs.

The time you spend now to develop your fleet’s preventative maintenance plan could save your company a considerable amount of lost time in the future. In addition, the money you spend on implementing a preventative maintenance plan will be small in comparison to maintenance costs associated with unscheduled, preventable repairs. In this case, a dime of prevention is worth a dollar of cure.

Boost the Capabilities of Pre-Trip Inspections

Although typically associated with long-haul trucking, pre-trip driver vehicle inspection reports (DVIRs) are becoming another important factor in ensuring the safety of drivers and vehicles. Drivers should be provided a training guide with imagery and case studies for pre-and post-trip inspections. You can also give drivers a comprehensive list of potential risks for failing to complete an inspection and have them sign off on it, that way they understand the consequences. For HVACR companies specifically, ensuring workers check that ladders are secured, external storage doors are locked and more, can prevent potential risks and help keep drivers prepared for pre-and posttrip inspections.

Using electronic DVIRs, specifically, can help establish and enforce a standard driver procedure for pre-trip inspections. DVIRs can be completed electronically using a smartphone or tablet with features that force drivers to physically inspect the vehicle rather than just speeding through the form. DVIR walkaround features enable you to monitor the probability that a driver spent enough time walking around their vehicle for a thorough inspection.

Increase Efficiency with Better Route Planning

GPS tracking with fleet management software also allows you to cut down on vehicle wear and tear, thanks to optimized routing and better driver oversight. By improving your routing, you can reduce mileage, which can prolong the life of tires, belts, and other key vehicle components. At the same time, you’ll be able to identify hard stops, starts, speeding, and other poor driving habits which cause poor fuel economy and could be sending your vehicles to the shop causing higher than-expected fleet operating costs.

And with truck GPS navigation software, drivers have hands-on tools to reduce the stress of safely maneuvering a large vehicle through unknown territory. The benefits of optimized routing speak for themselves, fleet vehicles stay on the road longer, and items like fuel costs and tire costs are reduced, helping lower your fleet operating costs.

Improve Driver Behavior by Reviewing Data

Monitoring and modifying driver behavior with tools such as dashcams can also help reduce your fleet maintenance costs. With driver management software you’ll be able to identify hard stops, starts, speeding, aggressive driving behaviors, and other poor driving habits which could be sending your vehicles to the shop.

Data from driver management software can be used to help prevent crashes, which in turn can help lower repair costs due to accidents, prevent injuries and fatalities, improve fuel efficiency, and reduce insurance premiums. Fleet management software streamlines maintenance costs and processes in a variety of ways to help keep your HVACR vehicles on the road where they belong regardless of your fleet size.

Accelerating HVACR Growth with Fleet Management Techology

From increased productivity and better customer service to better routing and lower maintenance and fuel costs, there are many reasons why fleet management software is becoming the norm for fleets of all sizes. As complex challenges continue to strain budgets, fleet managers know they must not only

maintain operations but improve them. Fleet management technology offers a powerful way forward, giving HVACR business owners and fleet managers the data they need to make better decisions, navigate challenges, and help improve fleet performance. u

Go

Kevin Aries leads Global Product Success for Verizon Connect, helping build software solutions that optimize the way people, vehicles and things move through the world. Working predominantly with field service businesses, Kevin spends his time understanding the problems and solutions of the service industry to improve customer experience. For additional information, visit verizonconnect.com.

FLEETDESIGN CONTEST

TOPS IN TRUCKS:

THE 2023 WINNERS ANNOUNCED!

BY HEATHER LANGONE

The 2023 Tops in Trucks Fleet Design Contest winners are here! If you are a loyal reader, then you know that the June Tops in Trucks issue caps off our biggest publication of the year. Once again, we received a record number of entries, but the 2023 race was tight! Obviously, from the looks of it, HVACR owners recognize the importance of fleet wraps as the biggest part of their marketing budget because WOW, these designs are some of the best entries we have seen. When I say we had a tough time deciding, I mean it. There were so many amazing choices – a great problem to have – and if you didn’t win, just know that ultimately the win is in the recognition that a good fleet design is the wisest investment you can make in your business. And we recognize all the entrants for moving past the white van syndrome into high marketing visibility!

This year, the range of entrants was expansive. Not only did we have entrants from all over the country, but at least one who just wrapped their fleets less than a year ago and they made it to the winners’

Since launching our new brand, the feedback was immediate and amazing! The local community has been reaching out to let us know that they noticed our vehicles on the streets and have expressed how the logo has brightened their day.

– Hummingbird Heating and Cooling

circle. In all cases, hearty congratulations are due to all of you! The win is in your company’s recognition that there is no better marketing tool for HVACR owners. And, it’s very rewarding for us to team up with you and celebrate excellence in design and marketing. If you wonder what set apart the winners, you should know it’s not a purely subjective decision. As you may have read in this month’s Publisher Page on page 5, we have a stringent checklist of must-haves which includes in part: color and aesthetic, brand awareness and story, messaging, legibility, and cohesive design. While all the designs this year delivered excellence

within those parameters, a handful of entries rose to the top. One interesting note this year, many of the selected had similar responses, saying, “It will be interesting to see who won because I think our design is the best!” And, I say that to point out, a good design will give your company a boost in pride as well as brand recognition. Well played, contestants!

Following are our top choices for the 2023 Tops in Trucks Fleet Design Contest! We’ve selected three winners, three runners-up, and four honorable mention selections.

WINNERS Hummingbird Heating and Cooling

Syracuse, NY | 5 Vehicles

Hummingbird Heating and Cooling stood out from the very first day we glanced at the entries. Owners Chad and Veda Terrinoni said that while they only implemented the new design in December 2022 and launched it a couple of months ago, as part of an overall rebranding strategy, the Hummingbird design has already become a local favorite.

Quoting Veda, “Since launching our new brand, the feedback was immediate and amazing! The local community has been reaching out to let us know that they noticed our vehicles on the streets and have expressed how the logo has brightened their day.” We love it. The Hummingbird design is beautiful with vibrant colors. And Chad added that It’s instilled a sense of pride in the team. “Our employees are excited about driving around our fleet and tell us that heads

turn when the vans roll by! We have become the talk of the town in such a short time. It is exciting.” We agree – the design is worthy of a double-take, but more than that, it works so well together with its inspired branding and messaging. Note the logo tag, “Hum’s the Word,” and the speedy inference of the hummingbird mascot – it’s a winning combination.

Located in Syracuse, NY, the team of eight and the fleet of five exploded onto the Tops in Trucks list of winners. One of the pluses that sets them apart, aside from the beautiful design, is the integration of the brand messaging throughout –with messaging like, “We keep comfort humming along,” and the creation of their Early Bird Maintenance Club – it’s a smart example of design and messaging working in tandem. www.callhummingbird.com

Jay’s Heating, Air & Plumbing

Mt Airy, NC | 19 Vehicles

Jay’s Heating, Air & Plumbing, formerly operated under J’s HVAC Unlimited, LLC. “J’s” represented the family’s names, Jamie, Joanie, Jackson, and Julianna. When they rebranded, they decided on the Jaybird mascot.

Jay’s is another example of a company that just launched its rebranding effort and it’s already paying off. Marketing Specialist, Jamie Vaughan said, “Our journey of rebranding and creating a new logo began in the Spring of 2022. Our first truck with the new logo went on the road in August 2022. All nineteen of our vehicles that service the field are wrapped with our new logo design.”

When asked if he felt the investment is paying off, Vaughn replied. “The expense of rebranding was significant. This is an investment that we feel will pay off going forward. And yes, we are starting to see a return on the investment. We

track our marketing, as well as ask our customers how they heard about us. If they use the tracking number, it populates with the call. We like hearing how they heard about us. Some will tell us they have seen our vehicle on the highway or in their neighbor’s driveway. Our former design was fire and ice, and it was a very busy design. We had people in our community that didn’t know what HVAC represented. They would tell us they could not read our phone number. While they noticed us, the fact they could not relate to the service we offered was a big issue. Our customers love the new design. Some of our staff have been stopped at other businesses within the community explaining how much they love the new design. Other customers have also expressed the same thing.” www.jayisontheway.com

Eco Plumbers, Electricians, and HVAC Technicians Hilliard, OH | 211 Vehicles

The entry for Eco Plumbers, Electricians, and HVAC Technicians, was submitted by Eva Rhode, Marketing Manager for the company that has been thriving since 2007. The fleet design was part of a rebranding when they added new trades to the business, expanded the service areas in Ohio, and achieved planned growth goals.

We realized that the existing branding felt dated. Said Rhode, “It was the correct time to update our brand and tell our brand story better. Our dominant brand

colors from the old logo and branding were green and blue. These two colors were updated to contemporary hues that continued to capture our eco-friendly brand story, and related to the services, plumbing (water/blues), heating (warm air/yellow greens), cooling (cool air/ blues), and electrical (energy/yellowgreens). All eight specified colors in our palette come from the rich gradients used in the logo. Additionally, the darkest blue was used in the design to feature the tradespersons wording situated under the “eco” logo and give weight to the bottom of the truck from the side and back views. This put a focus on the tradespeople, whom we are very proud of, and allowed the best legibility from a distance.

The strategic thinking that went into our new name, logo, and fleet design is

that competes for viewers’ attention, like those in the grocery store laundry aisle!

We’re very excited by the improvement in weekly impressions we get from the improvement in readability. Our simple, unique design disrupts the traditional thinking of what a plumbing, electrical,

subconsciously. By scale, the design also suggests a big mission, and that is to help people all across Ohio with their homes. The company wants to be the household name in home service, and you get that feeling from our bold design! Our new design feels like a big consumer brand

and heating and cooling company typically looks like with contemporary flair. The design is successfully being extended to all our marketing and is a consistent part of our brand story!”

One aspect our team liked was the simplicity of the design – no cartoons or mascots – but still it conveyed the perfect brand messaging for the company. www.geteco.com

continued on page 12

continued from page 11

RUNNERS UP Ahoy! Cooling & Heating Tampa Bay, FL | 5 Vehicles

Adam Washburn said Tampa was definitely an influence on the design of his fleet. “Being in Tampa Bay, we are surrounded by year-round sunshine and of course, the ocean. We incorporated the most enjoyable parts of Tampa living into our look and the feedback has been wonderful.”

Ahoy is another company with a brand-new design, and this team knocked it out of the park to make it on our list. Launching its entire renaming and rebranding early in 2023, Washburn has a fleet of five. When asked about the investment and if it’s delivered a return, he answered, “One thousand percent-yes. Not only has it helped us make an impact on new customers, but our existing customers and employees love the look. We have seen a 25% increase in sales revenue over last year, YTD.

We have seen a 25% increase in sales revenue over last year, YTD. Customers love it. Not a day goes by that we don’t receive a compliment on the look of our vans or our technicians.

Ahoy! Heating & Cooling

Customers love it. Not a day goes by that we don’t receive a compliment on the look of our vans or our technicians. Employees are proudly standing behind the new look. They love the compliments that they receive from customers and strangers as they spend their days traveling and working around the city. One reason we think it works is because it reflects Tampa Bay in the design. We are proud to be a Tampa Bay-based company and when you see the name associated with the water and color palette, there’s no confusing us for another HVAC company. It’s sticky and relevant to our market. We represent the area we work in extremely well and are disrupting what the conventional HVAC contractor looks like.”

www.airexpressllc.com

Dugan Air Franklin, IN | 11 Vehicles

With their “Premium Service No Shenanigans” tagline, Dan Dugan said of the recent rebranding, our name “Dugan” is an Irish name, so the colors and Tartan Plaid made sense. It makes you think Irish and we made the Dugan our mascot.” He explained, “We went from a blue and white cloud theme to the tartan colors of Ireland. It makes us unique. As far as the investment – we’ve grown. Last year we grew 40% and we are looking to grow by another 35% this year.” As far as branding, I liked the throughline of the messaging – it’s on point. Since the rebranding, Dugan Air offers a membership in the Premium Clover

Club for greater savings on maintenance, exclusive perks and benefits like priority service, and discounts. In addition to the “No Shenanigans” tagline, they speak of standing out as a four-leaf clover in a field of ordinary providers.

A fun side-note – our team was truly excited to make the call announcing Dugan as a runner-up since they have entered several other years. Perseverance pays off.

www.goduganair.com

Peppy! Heating and Cooling Boise, ID | 8 Vehicles

When I spoke with Brett Shannon, owner of Peppy! Heating and Cooling, he said that originally, he’d decided on the design and rewrapping of the fleet, but not on a full name and rebranding effort. However, it soon became apparent that since they were moving more towards a residential home service company, their former name Shanco, wouldn’t fit anymore.

Brett said, “We wanted a color scheme that was bright and playful! We wanted people to feel comfortable calling us knowing that we would be upbeat, cheerful, and ready to help! There are no other HVAC companies in our area that use these same bright colors. We hired a marketing firm that helped us with the name and the brand design. We were looking to put a pep in our step, and we feel like the new name and truck

designs did that perfectly!” When we asked if he has seen a significant uptick in business, he said, “It has only been a few short months, but we have already received customers calling in saying that they have seen our trucks on the road, liked the branding, and felt like calling us because they liked the truck wraps and would feel comfortable having us out to their homes. It’s been a big change.” As for our team, we loved the hopping rabbit on the side which makes the fleet stand out. Besides the 3-D rabbit that looks like it’s going to jump off the van, I especially liked the messaging, including “Hoppin’ Good Service,” and what they call “The Peppy Promise.” Part of the promise is an assurance by the owner that, “from the phone call to when the service tech goes out to your home, we make a promise to our customers that we’ll do whatever it takes to make it right and make sure that they’re happy customers for life.”

www.callpeppy.com

continued on page 14

It has only been a few short months, but we have already received customers calling in saying that we have seen our trucks on the road, liked the branding, and felt like calling us because they liked the truck wraps.

– Peppy! Heating and Cooling

continued from page 13

HONORABLE MENTION

Can Do Crew Plumbing, Heating & AC

Bakersfield, CA | 9 Vehicles

Can Do Crew — also known as the “crew that follows through,” was our next clear choice for honorable mention.

When I spoke with Douglas Oakes, owner of Can Do Crew, his enthusiasm for the brand was infectious. Oakes explained that he attended the Service Titan Pantheon Conference and listened to a speaker talk about the benefits of a quality brand. He talked about where most companies go wrong, and specifically, how much market share could be gained if a brand became a “top of mind” brand. That was in April and in October we were finally ready to launch the creative process. Oakes added, “It was a total rebrand, including a name change. Formerly,

known as On Time Services, we decided on Can Do Crew Plumbing, Heating & AC. It was fun (we could hardly say the name without a smile on our faces) and it allowed us to present a quality brand promise just by saying the name.”

As for the decision to make Can Do Crew one of our runner-ups, our team immediately liked the retro vibe of the serviceman who looks like an old-school door-to-door service tech. I mentioned this to Oakes and he agreed saying, “We just wanted the messaging to communicate that when we say we are going to do something, we are going to do it.” When I asked if the fleet had increased business, he said, “Well, we just launched, but the other day we had a gentleman call because he pulled up behind the van with the ‘bad-ass wrap’. I can tell you that in the two years before this fleet design, I’d never received a call like that.”

www.callcandocrew.com

AC Plus Heating & Cooling

Victorville, CA | 15 Vehicles

This is another new fleet design. So, if you have ever wondered if investing in a winning fleet design is worth it, this latest slate of winners is a true testament that it is. Matt Postoian of AC Plus Heating & Cooling just implemented this new fleet design in January 2023. Not only

is he now a finalist in Tops in Trucks but he says the investment has already shown its worth. Postoian founded AC Plus Heating & Cooling in 2001. Intending to expand in the new year and increase revenue, he knew he had to launch a rebranding initiative. As part of the initiative, he had in mind, the sole objective was to double company revenue. “And,” says the president, “the fleet design accomplished that. Since the beginning of the year, we’ve doubled our revenue each month and the community loves our new colors and branding. The employees take pride in it and people stop us to take pictures all the time.”

Editorially, I liked the double play on visuals with the messaging. When I saw the cross in the design it made me think of “rescue, help on the way, “but in their messaging and brand name it is a plus which also means extra service and their tag is, “No Fuss With The Plus!” Either way, it works to evoke the exact brand message they intended! It’s a winning design. www.acplushvac.com

Lee’s Air, Plumbing, & Heating Fresno, CA | 125 Vehicles

Nominated by operations manager, Josue Solis, Lee’s Air, Plumbing, & Heating was the logical choice to be a finalist. It stood out for its bold, clean, simple design and the memorable Lee’s

logo that is the center of the design rather than a cute character. The blues and greens elicit trust and stand out from many red, white, and blue designs that are common among fleet vehicles. Solis said, “We wanted to establish brand recognition and make our company easily recognizable to potential customers. We wanted our brand to stand out and make a lasting impression. Plus, a professional and cohesive look established our company as trustworthy and reliable in the eyes of our customers. We knew these colors of almost expired avocado green and navy would make customers feel confident in the expertise and experience of our HVAC and plumbing services in Fresno, CA. We also knew nobody would replicate the colors and we were counting on the fact our great Lee’s Air, Plumbing, & Heating logo would boost employee pride and morale. When employees see our company’s logo and design displayed prominently on their vehicles, uniforms, and promotional material, it increased their sense of belonging and commitment to the company.” I commented that I loved the masculine, bold, design and he added, “Without being macho…” And I agree. It was the simplicity of this design for me. I kept returning to Lee’s page entry which ensured for me, that it was a winner.

www.leesair.com

Since the beginning of the year, we’ve doubled our revenue each month and the people love our new colors and branding. AC Plus Heating & Cooling

Anchor Heating and Air LLC

Charleston, SC | 6 Vehicles

After speaking with Stephanie Postell, co-owner of Anchor Heating and Air LLC, it was very evident why their design made an impact. She and her husband David are co-owners of the fairly new company, Anchor Heating and Air LLC. Founded in 2021, she said they knew immediately they would have to focus on branding and fleet design. She expressed incredible passion for the brand, her community, and the thought that went into the design. Stephanie said, fleet design marketing was in the business plan. Although they opened in 2021, they only finished wrapping the fleet in November 2022 so to be one of the runners-up is quite the victory. I asked her about the anchor and pearls. She responded, “Well, not only are we female-owned – I am a coowner – but wrapped around the Anchor is a set of pearls which is my signature for over 35 years. The pearls represent the standard that we set as well as what is called our Pearl Promise. We do what we say we will do. We show up when we say we will show up. We exceed expectations

every time! So, we were excited to have the pearls on our trucks complete our brand story. There are also a few other hidden elements like the three gleams on the anchor which symbolize our faith in God as well as the orange and purple for our Clemson Tigers.

Our customers love the design. We get texts and tags on social media when people see our trucks. They are big, beautiful billboards that show the standard of work we provide. Lots of our customers want to wear our swag because they love our branding!”

www.anchorheatingandair.com

7 STEPS TO INSTILLING BUSINESS DEVELOPMENT IN SERVICE TECHS

BY JIM BASTON

FField service technicians are one of the greatest businessdevelopment resources at any commercial service company. Some firms have trained their technicians on selling, but most service managers I know agree that techs could do more to boost their business-development efforts.

Almost every service company has one or more technicians who seem naturally gifted to “sell.” They make recommendations to customers and promote new services – and their customers love them. These techs don’t see their recommendations as selling, but as an enhancement of their services. They understand the customer’s processes, are aware of their customer’s goals, and know how their company’s products and services can be applied to help their customers improve operations. Most importantly, they recognize that anything that they can do to help their customers improve the operations of facilities or processes; eliminate unnecessary costs; increase energy efficiency; and contribute to overall profitably, is a tremendous service for their customer.

The real challenge for managers is to convince the rest of the service team that they should be acting like those gifted techs. This takes more than a training program on how to handle customer objections. It requires the company to instill a business development culture throughout the service organization.

Based on our consulting work with more than 1,000 techs at several

We have determined that there are seven areas that management must focus on to instill a strong, customer-focused, business-development culture that includes proactively educating customers.

top service organizations, we have determined that there are seven areas that management must focus on to instill a strong, customer-focused, businessdevelopment culture that includes proactively educating customers about how the company can help them to run their operations better. Successful companies should find that they are able to increase sales, and customer satisfaction and retention.

1. Focus on the service and not the sale

At every opportunity, repeat the mantra to your technicians that when they use their expertise to make recommendations to help the customer operate more effectively, they are providing a valued service. By focusing on how to better serve, the sales will come.

2. Encourage your techs to get to know the customer’s business and personal goals

For service technicians to truly determine if a given product or service will help the customer, they will need to understand what the personal and business goals of the customer are. These goals will help the technician determine

whether a particular product or service would be beneficial to the customer, regardless of the generic benefits. And, by showing the customer how the recommendation will help them achieve their goals, the tech will help to motivate the customer to take action.

3. Regularly update technicians on your products and services

Technicians who are unfamiliar with products or services will be reluctant to get into a conversation with the customer about them. Many of the technicians we meet complain that they do not know everything that their own company does. This is particularly true in large companies, but we have seen it in smaller ones as well. You can help your technicians maintain focus on your complete range of products and services by including a “product/service highlight of the month” at each service meeting. Identify a particular product or service, describe its features, benefits, and value to the customer and, most importantly, discuss which customers would most likely benefit. Include a discussion on what to look for to identify customers in need. Wrap up by asking your technicians

to identify and speak to customers who might benefit.

4. Develop a clear opportunity-response process with feedback to the technician

A technician who makes a recommendation that requires followup by others (such as sales person or a manager) and which is not followed up is unlikely to continue the practice. To avoid this, implement a clear process for identifying and following up on recommendations from the field. For example, is there a clear expectation of how you expect your technicians to raise the opportunity internally? What sort of follow-up communication is to take place? Is someone responsible to review each work order to ensure no opportunities fall through the cracks? The follow-up process should be clear, concise, and consistent.

5. Develop a follow-up process for quoted work

Most technicians will tell you that they have several outstanding quotes and recommendations to customers for which they have not heard back on what the customer would like to do. When pressed as to why they think that the customer has not gone forward, most would list “they forgot” as one of their top five reasons. Your customers are busy people, and the importance of the recommendation is often lost in the

By providing more value to commercial customers, technicians can give a boost to sales efforts.

urgent day-to-day activities.

Encourage your technicians to followup on quoted work. If your technician is in doubt of whether the customer would appreciate a follow-up, suggest that they simply ask the customer: “Would you have any objection if we sat down once a quarter over a cup of coffee and go through all of the proposals we have made to you during that time? That way you do not lose sight of important recommendations and you can tell me how you would like to proceed.”

This does not replace the role of the salesperson to follow up quickly on recommendations as part of their responsibility, and it presumes that there is regular communication on large opportunities between sales and the service tech. The tech follow-up goes beyond what the salesperson does and provides a value-added service for the customer. It’s also a great way to gain a better understanding of the customer’s goals and challenges so that the tech is in an even better position to help them overcome those challenges.

6. Provide communication skills training

Service is largely a knowledge business, and the true value the technician provides cannot be seen. The value they offer is in their heads. Since customers are unable to see the real value that is provided, they look for clues to that value from what they can see. They look at how the technician communicates with them. They look at how the technician is dressed and groomed, how the technician leaves the work area, the condition of the technician’s vehicle, and other tangibles.

It is important that your technicians be aware of the impact that they have on others and how that affects the value perceived in their work. Train your techs to show value in every interaction.

7. Provide ongoing coaching and support

Coaching and supporting new behaviors play a critical role in new-skills adoption. For some, taking a more proactive approach to discussing opportunities that will help the customer run their facilities more effectively is a challenging task. Without coaching and reinforcement, those technicians will revert back to their old ways. Think of coaching as a form of maintenance. You would never expect a piece of equipment to run very long or very well without maintenance, so why would you expect your service team to perform well and consistently at a new skill without coaching?

The competitive playing field is changing. This new environment requires a higher level of service than ever before,

and a key component of this enhanced service is taking a more proactive role in helping customers run their facilities and processes more effectively. Forwardlooking service firms must instill a business-development culture among their service technicians. This may not be an easy process, but the results can be worth the effort — increased revenues and profitability, higher customer satisfaction rates and retention, and a more exciting place for your employees to work. u

Jim Baston is the creator of the Proactive Service training program offered by Take Charge Learning. For more information on this highly regarded program for field service professionals in your company, contact us at opportunities@ takechargelearning.com, or visit our website at www.takechargelearning.com

The service technician who is dispatched needs to continue the goal of building trust which again comes from following an intentional and consistent process.

BY URSULA MANNIX

Employee performance mapping can help you improve your company’s competitive edge. It’s more important than ever for HVACR contractors to be savvy in the marketplace. The industry is influenced by many things, like market demand, regulatory requirements, technological advancements, and customer preferences. The best contractors deliver superior customer service and great customer experiences. To do that, you will need to align employee goals with your company’s overall strategy to improve customer satisfaction.

More specifically, managers and owners of many small and medium-sized HVACR companies may lack experience

Many organizations are helping their employees prioritize performance objectives thereby helping them to achieve organizational objectives.

in communicating and implementing performance objectives that support customer loyalty and growth.

Here are some strategies that will help you avoid common pitfalls and outperform your competitors. The principles of management-by-objectives outlined below can help leadership ensure employees understand the company’s vision and direction, as well as their own performance objectives.

MAPPING ENSURES COMPETITIVE EDGE FORWARD MODE.

Management-by-Objectives

HVACR industry leaders help their employees prioritize performance objectives thereby helping them to achieve business goals. Management by objectives (MBO) is an employee-manager collaboration to improve customer experience through specific performance objectives. Implementing an MBO process reduces mediocre performance and offers employees a clear road map to performance

improvement.

Often goals are unclear with ambiguous language. To improve clarity, managers, and employees must set specific objectives, define outcomes, and set targets. This process involves:

• Be result-focused

• Be consistent

• Be specific

• Be measurable

• Be related to time

• Be attainable

Competitive HVACR companies communicate effectively from the top down, impacting both employees and customers. Customer-centric companies understand the importance of clear communication.

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Creating Customer Satisfaction

The most competitive and bestperforming companies utilize these elements as part of their action plan to improve customer satisfaction:

• Establish customer satisfaction metrics: Find out what metrics your business uses to measure customer satisfaction. It could include customer satisfaction score (CSAT), Net Promoter Score (NPS), or customer retention rate.

• Get baseline data: Track current customer satisfaction metrics. This establishes a baseline to measure improvements. Customers can provide feedback through surveys, feedback forms, and reviews.

• Identify areas for improvement: Analyze customer satisfaction data to see where improvements can be made. Take note of trends, patterns, and common pain points. Make sure you prioritize the things that will have the biggest impact on customer satisfaction.

• Target performance improvement: Set specific, measurable targets for each area of improvement. Define customer satisfaction success in terms of customer satisfaction metrics. These targets should be realistic, achievable, and aligned with your overall business goals.

• Plan improvement initiatives: Develop potential initiatives or strategies to address the areas for improvement. A positive impact can be achieved by changing processes, training customer service personnel, adding products, or upgrading technology.

• Prioritize improvement initiatives: Evaluate each improvement initiative for impact and feasibility. Assess whether the initiatives will drive significant improvements in customer satisfaction and the available resources and capabilities in your organization.

• Get customer feedback: Continually gather customer feedback throughout implementation to determine whether improvements are working. Gather insights from customers through surveys, focus groups, and direct feedback channels.

• Refine and improve: Review and improve results. Adjust initiatives based on feedback. Continually seek ways to improve the customer experience.

Satisfying customers is an ongoing process. Keep track of performance, gather feedback, and adjust initiatives to meet

evolving customer expectations. You can enhance customer satisfaction and build long-term loyalty by mapping out performance improvements.

Employee Performance Mapping to Share Vision

A clear line of sight between employee contributions and the company’s vision is created by mapping employee performance to the company’s vision.

As a leader, you can better facilitate this process by following these guidelines:

• Start with the company vision: Clearly articulate the company’s vision, mission, and long-term goals. Establish a clear understanding of the company’s purpose and direction among all employees.

• Define key performance areas: Determine which performance areas directly impact the vision. Depending on your organization’s strategic priorities, these could include customer satisfaction, innovation, operational efficiency, and employee development.

• Cascade objectives: Make sure every employee knows the company’s vision and strategy. Translate organizational goals into specific objectives for each team member or employee. Align these objectives with the company’s vision and make them measurable.

• Create individual development plans: Develop individual development plans for employees that support the company’s vision. Identify the skills, knowledge, and behaviors employees need to succeed. Enhance employee capabilities by providing resources, training, and mentoring.

• Monitor performance: Perform regular performance assessments against the established objectives. Provide feedback on progress, strengths, and areas for improvement. In these discussions, discuss ways to enhance performance and align personal performance with the company’s vision.

• Recognize and reward employees: Align employees’ performance with the company vision and demonstrate behaviors that support it. Identify and celebrate individuals who exemplify the desired values and contribute to the vision.

• Communicate and collaborate: Share ideas, best practices, and lessons learned among employees through open communication. Employees can learn from each other, exchange insights, and contribute collectively to the company’s goals.

• Track progress and adjust: Continually monitor progress toward the vision and evaluate effectiveness. Analyze if employees’ objectives are aligned, if performance metrics are driving desired outcomes, and if adjustments are needed.

• Updates on progress and success: Let employees know how the company is doing towards its vision. Share success stories, milestones, and positive results to reinforce their impact. Provide regular feedback on how individual performance contributes to the overall goal.

Leadership committed to managementby-objective guidelines increases employee performance and productivity, ensuring the company’s survival and profitability. Mapping employee performance to the company vision connects individual contributions to the company’s goals. u

Ursula Mannix is a customer experience consultant. In addition to CX consulting, she designs and facilitates workshops and seminars. She can also deliver keynote addresses. Visit: www.ursulamannix.com.

BY RUTH KING FINANCE

Share the Wealth

He can afford it. He’s made of money.” That’s what employees think when they don’t understand costs and profit. When you establish a bonus structure, employees learn about cost and profit. They care because it impacts their compensation.

Bonuses and Profit Sharing

Bonuses and profit-sharing plans are put in place to reward managers and employees for helping the company achieve profits. Company owners “share the wealth” with those who have helped create it.

Bonuses and profit sharing are usually distributed two months after the fiscal year ends. They can be determined according to the program described below for managers and a separate program for all other employees.

Bonuses should not be distributed at holiday time because if they are, then employees look at the bonuses as gifts and expect them - whether the company has a good year or a loss.

Bonuses are divided into two areas: manager bonuses and employee bonuses.

Managers’ Bonus Plan

The role of a good manager is to take care of customers and employees profitably. As such, all department managers participate in a program that rewards managers for the performance of his or her department.

Each manager’s department has a profit and loss statement for that department. The department manager will participate in sharing a percentage of those profits. The percentage of profits paid to each manager will be equal to the percentage of profit (relative to gross revenue) their department made (before extraordinary expenses*).

Net operating profit margin is defined as normal revenues minus those expenses that the department normally experiences before bonuses and extraordinary expenses that aren’t a normal department expense.

Example 1 – Department Manager A runs a department that nets a 10% overall net operating profit margin on gross revenues of $600,000.00. This means that

Department A had profits of $60,000.00. Department Manager A would then receive 10% of the profits for their department (in this case 10% of $60,000.00, or $6,000.00).

Example 2 – The same department has revenues of $600,000.00 and nets 15% or $90,000.00. Department Manager A would then receive 15% of the $90,000.00 or $13,500.00.

Other factors to consider for managers:

• For many companies, the accounting department manager receives 1% of the profits of each department.

• Inventory adjustments should be factored in prior to managers’ calculations and payouts.

• Owner withdrawals for owner bonuses and other expenses are taken into consideration after net operating profit. The owner’s (normal) salaries and usual expenses are part of overhead costs and affect each department’s bottom line.

A manager’s ability to manage his/ her department directly affects his/her compensation. The better the manager manages the department, the more compensation he/she receives.

Employee Profit Sharing Plan

This bonus method eliminates the question of “What bonus should I pay?” It is a structured method rather than an emotional, inconsistent method for paying bonuses.

Employees are paid based on their compensation (hourly wage plus bonus or salary) and the number of years of employment. The company owner determines the percentage of net operating profit to be distributed annually. Generally, this percentage ranges from 10% to 25%. The remainder is kept for company growth, manager bonuses, and owner distributions.

Employee profit sharing is calculated according to that employee’s percentage of the total compensation and number of years employed for all employees.

Assume the following:

• Employee 1: $20,000 total compensation; employed 3 years

• Employee 2: $60,000 total compensation; employed 1 year

• Employee 3: $30,000 total compensation, employed 5 years

If the company total compensation is: (20,000)(3)+(60,000)(1)+(30,000)(5) = 270,000

Then employee 1 receives a percentage of 60,000/270,000 = 22%

If the total net operating profit to be distributed is $10,000 then Employee 1’s share is $2,200.

Once employees understand that bonuses will be based on company profitability, they become much more interested in making sure the company is profitable.

In explaining the bonus structure, the bonus amount can be translated into a percentage of revenues if you don’t want to share the net profit number. For example, 15% of net operating profit might translate into 1% of revenue.

The percentage could be based on actual revenues with a minimum revenue before bonuses. For example, the company has to reach $2 million in revenues before bonuses are paid. The bonus will be 1% of all revenues with a minimum of $20,000. If the company reaches $2.1 million, then the bonus will be $21,000, etc.

At the beginning of the year, give each person what his bonus will be assuming the company reaches the revenue goal. Then report revenues each month so employees can see that the company is on track. If the revenues are not on track, ask your employees for suggestions. They are more likely to suggest ideas since lower revenues affect their bonus. 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.

Bonuses and profit sharing are usually distributed two months after the fiscal year ends. They can be determined according to the program described below for managers and a separate program for all other employees.

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with CHAD & VEDA TERRINONI

1. How did you get started in the HVAC industry?

I had a rental property, and I was trying to troubleshoot the furnace via YouTube, and I liked the challenge of it. I saw my buddy on TV doing a commercial for his HVACR company. When I couldn’t figure it out, I called him. He ended up selling me a furnace. I watched and even helped him install it. Then, I ended up going to work for him.

2. How did you start your company?

I’ve always been a bit of a hustler. After I had some experience, I decided I would do side jobs at night or on weekends. I got a URL called 247HVAC. I thought I could work with my buddy during the day and then do my stuff at night. That’s how I came up with the name 247HVAC.

3. What did your friend think about you doing side jobs?

I was upfront with him. He knew and was okay with it. I’d bring him with me on jobs if I thought it was going to be too much for me.

4. How long did you work for him?

I worked for about two years before I went off on my own. I wasn’t a great HVAC tech. I knew I needed to learn more which I did by hiring some great installers who taught me a lot – sheet metal work too. And I went to school and got certified and licensed. I worked for about ten years before I decided to try and scale the business because by then I thought I had all the necessary skills.

5. You recently rebranded the company, why?

Initially, it was just going to be a logo redesign of our company name 247HVAC. It was my life for many years. I was literally ready to work 24/7. If you had a problem, and you called me I’d come to you no matter what. I would leave Christmas morning, I’d go Thanksgiving, I didn’t care. If my phone rang, I was coming to you and that was my motto.

6. How did you move from a logo redesign to a rebrand?

I spoke with a lot of people. One of them was Amanda Triolo at Grasshopper one of your Tops in Trucks runner-ups from last year. I really like her design. It was so different. We hired a designer and talked through the pros and cons and available options. I decided a rebrand made sense.

7. Was it difficult to let go of your former name 24/7 HVAC?

It was an emotional transition to let go of our name. We had that name for over 10 years.

Everybody knew us by that name. Thinking back, it was terrifying to take such a big step. We realized the size of the investment to rebrand the entire company not only monetarily but in time, effort, stress, and workload. And then there are the things you don’t know. Changing information on bank accounts is a recent one we didn’t think of.

8. Can you describe the creative process for changing your name?

We had several meetings about our company, values, views, and operations. We also discussed other brands and designs we liked. The designer came up with six or seven names and designs for us to select from.

9. How did you settle on Hummingbird? During this process my wife and I bought a house, the owner had all kinds of bird feeders in the backyard, and we started watching them. It all started to make sense. The Hummingbird is hyper and speedy, and that would be a good description of my personality too! We also did a poll and found out Hummingbirds just make people happy, and the name is easy to remember. Once we decided on the name the design was developed and we loved it.

10. Congratulations on the effort! How does it feel to be a Tops In Trucks winner?

It feels like the investment, and long hours of branding work have all been worth it and are starting to pay off.

11. How many vehicles have the new design in your fleet? Currently, we have 5 wrapped, a Mercedes Sprinter, Nissan NV200, Nissan NV200, Toyota Prius, Nissan NV2500.

12. When was this design implemented?

We started to implement the design in December 2022, and it was officially launched in March 2023.

13. What type of investment did you make for the entire rebranding effort? It will be more than $100k once everything is complete. We changed everything.

14. Have you seen a return on this investment?

Not yet, it’s too early to tell, but based on the number of calls we’ve had from people noticing our fleet and now, being named a Tops in Trucks Fleet Design Contest winner, I think it’s safe to say this is going to pay off huge for us.

15. How, have customers responded to your fleet design?

The initial feedback has been amazing. There have been so many local people reaching out to us to let us know they noticed our vehicles driving to and from service appointments.

16. How have your employees responded?

They are very excited about driving around. They talk about all the heads that turn and how the vehicles stick out in traffic. We’ve become the talk of the town in a short period. It’s been very exciting to experience.

17. What do you think is the most important element of your fleet design?

Definitely the bright colors and how well people relate to the “Hummingbird” name.

18. Is there anything you would do differently?

Not one thing!!!!

19. What is the length of time this effort has taken?

It’s been about eight months in total.

20. What is the next step?

We’re going to invest in advertising the new brand. We’re just coming off a very busy heating season and we’re gearing up for the cooling season and that will include a big advertising push for the new brand.

Publisher Terry Tanker spoke with Chad and Veda Terrinoni owners of Hummingbird Heating and Cooling, Syracuse NY, one of our winning entries in the HVACR Business Tops in Trucks Fleet Design contest. The three discussed renaming the company, deciding new designs, logos and branding as well as the cost, time and effort that has gone into the project.