HVACR BUSINESS DECEMBER 2023 by HVACR Business

A Touch of Class

Terry Tanker 5

Creating Exceptional Customer Experiences Aaron Lee 6

The Top Trends Set to Drive the HVACR Industry in 2024 David Budzinski 12

5 Ways Too Much Inventory Is Costing SMBs JG van Graan 14

Do Your Prices Need Revisions in the Coming Year? Rodney Koop 16

HVACRBUSINESS.COM DECEMBER 2023 / VOL.18 / NO.12

FROM FAIL TO FARE WELL Navigating Common Mistakes on the Entrepreneurial Journey Page 10

ALSO INSIDE » Management Resource Shelf .................................... 4 ‘The 12 Week Year’ Brian Moran ............................... 8 Improvements for Success Keven Prather.......18 Financially Fit Business – Part 1 Ruth King... 19 Product Focus ......................................................................... 20 20 Questions with Richard Lewis CEO & Founder of Redwood Services ..................... 22

YOU’LL NEVER RUN ALONE. FOR US, IT’S NOT JUST ABOUT BUILDING THE MOST TRUSTED1 SYSTEMS IN THE BUSINESS. IT’S ABOUT TAKING CARE OF THE DEALERS WE RELY ON. WE’RE STRONGER TOGETHER BECAUSE WE RUN TOGETHER.

Trane received the highest numerical score in the proprietary Lifestory Research America’s Most Trusted® HVAC Brand study for years 2015, 2016, 2017, 2018, 2019, 2020, 2021 & 2022. Study results are based on experiences and perceptions of people surveyed. Your experiences may vary. Visit www.lifestoryresearch.com.

Learn how to become a Trane dealer.

CONTENTS

DECEMBER 2023 / VOL.18 / NO.12

F E ATU R E S

6 Creating Exceptional Customer Experiences

D E PA RT M E N T S

Former CTO of Home Depot talks about what makes a customer experience exceptional. By Aaron Lee

8 ‘The 12 Week Year’ – Keys to Consistent Execution and Success

Brian Moran explains to HVAC owners how to make this goals system work for them. By Brian Moran

Who are you when the world is not watching? Is that who you want the world to know? Terry Tanker

4 MRS | Standing Out

10 From Fail To Fare Well

A brilliant look at why the road to success is always driven by small failures along the way. By Bryan Banek

Six new podcasts and books on how to stand out from the crowd.

21 Product Focus

12 The Top Trends Set to Drive the HVACR Industry in 2024

President – Global Residential & Light Commercial at Johnson Controls, delivers a thorough review of trends set to drive the industry in 2024. By David Budzinski

14 5 Ways Too Much Inventory Is Costing SMBs

The first in a series from ThermoGrid – How does too much inventory affect the bottom line? By JG van Graan, Director of ThermoGrid, ECI Software Solutions

16 Do Your Prices Need Revisions in the Coming Year?

Is it always better to raise prices? Understanding the balancing act of price revisions. By Rodney Koop

CO L U M N S

18 4 Improvements That Can Position Owners for Greater Success Ensure a successful succession plan by improving your business now. By Keven Prather

19 Achieve Freedom with Your Financially Fit Business – Part 1

Is your business financially fit? There is more to it than simply making a profit! By Ruth King

COMMUNITY MODE. Delivering thoughtful innovation coast to coast. As we expand our brand to include more specialty companies under the Modigent name, we’re able to offer a comprehensive suite of capabilities that create safe, intuitive, future-proof workplaces. With more sustainable solutions, we’re helping each of the communities we serve to flourish.

Infrastructure + Technology + Energy

5 Publisher’s Page | A Touch of Class

MODIGENT.COM

22 20 Questions with Richard Lewis Chief Executive Officer & Founder of Redwood Services

Management Resource Shelf

STANDING OUT We close out the year with our final MRS in 2023, this one with podcasts and books about standing out. What sets you apart from other leaders? What makes you different than the competitors? How do you stand out in a saturated industry? Better yet, how do you reach your potential and surpass your goals to achieve even more than you ever imagined? We have chosen three podcasts and books that will have you feeling ready to tackle that very issue and reach exponential growth in the coming year!

Duct Tape Marketing Podcast Hosted by John Jantsch Standing Out from the Crowd Episode with Mike Machalowicz We have featured Duct Tape Marketing before, but I wanted to revisit it because this specific episode is about standing out in a crowded market. In this episode of the Duct Tape Marketing Podcast, John interviews Mike Michalowicz, a speaker and bestselling author, and creator of Profit First. They talk about standing out and his latest book called – Get Different: Marketing That Can’t Be Ignored! https://ducttapemarketing.com/standing-out-crowded-market/

Leadership Mindset 2.0: The Psychology and Neuroscience of Reaching Your Full Potential by R. Michael Anderson **2023 Pinnacle Book Award Winner for Leadership** Leadership Mindset 2.0 is the seemingly counterintuitive, yet most effective approach to quickly becoming a top-tier leader. The kind of leader that is truly confident, strategically effective, and creates highly engaged, skilled, and productive teams in any organization lucky enough to have them. Better yet, this leadership “system” empowers leaders to do all of this WITHOUT unsustainable, unhealthy, or unethical bully tactics, micromanaging, or 24/7 work schedules. https://www.amazon.com/LeadershipMindset-2-0Psychology-Neuroscience/dp/0990660540/

Imperfect Action Hosted by Steph Taylor How do I grow my business faster? What’s the secret to success? How can design a business that serves me, not the other way around? Your host, Steph Taylor, asked all of these questions right before she built a milliondollar online business from the ground up in just a few short years. But she made every mistake along the way. Now, Steph’s sharing the strategies she wishes she’d known when she was dreaming up her business plan from her corporate cubicle. https://link.chtbl.com/9S6Gedc_

Stand Out: How to Build Your Leadership Presence by Carol Kinsey Goman WINNER: Independent Press Awards 2021 Business: Motivational

DISTINGUISHED FAVORITE: NYC Big Book Award

2021 - Leadership Leadership presence is that elusive “we know it when we see it” quality. You may have a leadership title or tremendous leadership potential, but that alone does not give you presence. Your leadership presence is evaluated by others based on how you show up and contribute in meetings, how well you project confidence and keep poise under pressure, and whether you can engage others in ways that are authentic, empathetic, and motivational. Stand Out walks you through achieving this presence so you get that next promotion and give your career that extra boost. https://www.amazon.com Stand-Out-Build-Leadership-Presence/dp/1789665817/

Jocko Podcast Hosted by Jocko Willink A different choice among the six options this month, Jocko Willink dishes out winning strategies like no other. If your goal is to rise above the rest, he is the man. Jocko is an American author, podcaster, and retired United States Navy officer who served in the Navy SEALs and is a former member of SEAL Team 3. This podcast is from Jocko Underground 82. This is a must-listen! YouTube offers free excerpts or visit Jocko Underground to subscribe for full episodes. https://www.youtube.com/watch?v=Fs_hRKsoAP8 https://jockounderground.com/subscribe/

Scaling Up: How a Few Companies Make It...and Why the Rest Don’t (Rockefeller Habits 2.0 Revised Edition)

By Verne Harnish Winner of the International Book Awards for General Business Winner of the Readers’ Favorite International Book Award for Non-Fiction Business This is the first major revision (2022) to Scaling Up since it was published in 2014. With over 500,000 copies in print, it’s become the standard for scaling any for-purpose or for-profit organization. In Scaling Up, Harnish and his contributors share practical tools and techniques for scaling an industry-dominating business while enjoying the journey. This book is written so everyone — from frontline employees to senior executives — can get aligned in contributing to the growth of the firm. https://www.amazon.com/Scaling-Up-MasteringRockefeller-Habits/dp/0986019593/

HVACR BUSINESS

DECEMBER 2023

www.hvacrbusiness.com

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker Publisher ttanker@hvacrbusiness.com HEATHER Langone Managing Editor hlangone@hvacrbusiness.com

BY TERRY TANKER

PUBLISHER’S PAGE

ADVERTISING STAFF TERRY Tanker Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com

MEGAN LaSalla Creative Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net BARBARA Kerr VP Operations bkerr@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©2023 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 ©2022 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.

A Touch of Class

ears ago, you may recall Nike’s famous “Just Do It” ad campaign, launched with Bo Jackson. That campaign was about getting into shape: no excuses, just get up and “do it.” That promotion was — and is — brilliant on a number of different levels. Because of its simplicity, everyone can relate to it. As a leader, you’re often faced with difficult decisions. Much like Nike’s campaign theme, you can choose to “just do it,” or you can opt to stay on the couch. Leaders who have established a set of criteria to lead by, manage, and live by are often able to make those tough decisions more quickly and easily. As those criteria are practiced, shared, and exercised, they become part of a company culture. And that’s what this series is all about – helping you establish leadership guidelines and decision-making criteria. Back in the day, when that campaign was running, there were some infamous executives who were in the news. To name a few – Ken Lay, Enron; Dennis Kozlowski, Tyco; Jon Corzine, MF Global; Bernie Ebbers, Worldcom and Bernie Madoff, Madoff Investment Securities. (Okay, I realize I’m dating myself.) None of these individuals had a set of rock-solid guidelines by which they managed. If they had, they wouldn’t

have made the mistakes that landed them in the news for all the wrong reasons. If only they had considered one of the gems from Thomas Jefferson’s A Philosophy of Life: ....and never suppose that in any possible situation, or under any circumstances, it is best for you to do a dishonorable thing. Whenever you are to do a thing, though it can never be known but to yourself, ask yourself how you would act were all the world looking at you, and act accordingly. Had they followed Jefferson’s philosophy, their futures, as well as the futures of their employees and their companies, would have been much different. Just like The Man in The Mirror and Thomas Jefferson’s A Philosophy of Life, What is Class, offers a set of principles – a way of thinking, acting, and doing – that will set you apart from others and establish you as a leader people will want to follow. Share these ideas, thoughts, and philosophies with others. Ingrain them in all you do. It won’t be easy, and it will take time, but, like all great challenges, the journey is often more exciting than the destination. u

What is Class? Class never runs scared. It is sure-footed and confident in the knowledge that you can meet life head-on and handle whatever comes along. Jacob had it. Esau didn’t. Symbolically, we can look to Jacob’s wrestling match with the angel. Those who have class have wrestled with their own personal ‘angel’ and won a victory that marks them thereafter. Class never makes excuses. It takes its lumps and learns from past mistakes. Class is considerate of others. It knows that good manners are nothing more than a series of petty sacrifices. Class bespeaks an aristocracy that has nothing to do with ancestors or money. The most affluent blueblood can be totally without class while the descendants of a Welsh miner may ooze class from every pore. Class never tries to build itself up by tearing others down. Class is already up and need not strive to look better by making others look worse. Class can ‘walk with kings and keep its virtue and talk with crowds and keep the common touch.’ Everyone is comfortable with the person who has class because he is comfortable with himself. If you have class, you don’t need much of anything else. If you don’t have it, no matter what else you have, it doesn’t make much difference. From Howard Ferguson’s book The Edge

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

www.hvacrbusiness.com

HVACR BUSINESS DECEMBER 2023

CREATING EXCEPTIONAL CUSTOMER EXPERIENCES TIPS FROM FORMER HOME DEPOT CTO

BY AARON LEE

n my previous role as CTO of Home Depot, I was honored to work alongside the great Frank Blake, former CEO and president. Under his leadership, I learned many valuable lessons – most notably around the area of customer service, especially between small business owners/ contractors and their customers. Today, my company works with thousands of HVACR small business owners across the country. One common thread I discovered is how much they value and want to continue their company’s exceptional customer service. Yet, most feel constrained by how many hats they wear and not enough time each day. Whether you manage these customer interactions yourself, have a full-time receptionist, or use a third-party answering service, making sure you meet

HVACR BUSINESS

First, know your FAQs and have your answers prepared. The companies with the best customer interactions will be the ones who are ready and decisive when a customer reaches out. customer expectations will ensure your business is set up for success long-term.

customer reaches out. You can’t delegate what you haven’t documented.

The Prep Work

Common questions to address in a FAQs List:

Before you make that first interaction with customers, the groundwork must be set for positive engagement. This is true whether you are just starting the business, or you are overhauling a customer service department. How do you do that? First, know your FAQs and have your answers prepared. The companies with the best customer interactions will be the ones who are ready and decisive when a

DECEMBER 2023

1. Can I schedule same-day or next-day service? While some

businesses can get by with a patchwork system of a notebook, post-it notes, and incoherent scribbles, you may want to consider using an online scheduling system to manage your availability. The benefits are that you can have consistency and visibility across multiple employees, with analytics to help you prepare for

seasonal scheduling needs, and automatic reminders for employees and customers to reduce no-shows. 2. Which specific services do you offer? If you can’t provide a definitive

answer over the phone, you have a high likelihood that the customer calling will call a competitor who can offer them a more concrete answer. Customers like the assurance that the person they are calling can help them with their specific needs. Have a detailed list of all the services available in an online shared document, so anytime you expand offerings, everyone answering calls, emails, and chats has the latest information. 3. How much will it cost to have my heating/cooling system installed/repaired? As you know,

there’s no easy way to put an average cost on HVACR installs or repairs. There are so many variables, from the

www.hvacrbusiness.com

existing systems and parts (if any) to a customer’s needs and budget. Make sure that whoever answers the phone or responds to your customers, knows the specific questions to ask to arrive at a more accurate price range or help the technician prepare for an onsite estimate. Anyone answering customer questions should also understand how you charge, such as if you charge hourly or by the job, which often depends on the type of work.

But keep in mind, that their knowledge level of these systems will be nowhere near yours. Furthermore, continue the customer service onsite with professional attire standards. It doesn’t need to be fancy branded uniforms, but attire should demonstrate attention to detail, cleanliness, and consideration for the customer’s home or office space. Nobody wants to deal with muddy floors after their HVACR service appointment or unclean professionals in their home. Train your staff to operate under a “leave no trace” policy.

4. Is my unit under warranty?

Heating and cooling system repairs can be costly, so many customers will ask about the status of their warranty or service plan when they need an issue fixed. If you are the one who sold them the system, it should be easy to explain whether they’ve still got time on their warranty as well as the type of existing coverage. Make sure anyone answering customer inquiries can guide them to find their serial number, which is required for most warranty lookups. An online help document in a shared knowledge base can be useful to them, and it’s also a handy link to share with customers who text, chat, or email their questions.

panicked customers needing a reply. And when they don’t get it, it only takes a few one-star Google reviews to affect your business.

24/7 Wind, Sleet, or Rain

The First Contact

Now that you have all this information prepared, make sure that your team is available to respond to customers 24/7 through your website, via text, and by phone. In the heating and cooling world, things can – and often do – go wrong at inconvenient times. A customer’s home A/C unit breaks down over a record-hot July 4th weekend. A refrigeration system at a hospital fails in the middle of the night. There are countless stories we could all tell. Whatever the situation, your business will always be judged on your level the perceived level of urgency based on your response. You don’t want to be the person fielding those customer calls 24/7, so it’s a good practice to conduct an audit of your business to see what system you have in place to ensure that someone is available to respond to emergencies. Maybe you have your team switch off responsibilities each week, or you outsource to a third party – whatever you decide, make sure that your system for 24/7 coverage is foolproof. I cannot tell you how many of my customers thought their call systems were working well only to see calls and customers fall through the cracks. Reputations that took years to build up can be lost in an instant with

www.hvacrbusiness.com

Maybe you have your team switch off responsibilities each week, or you outsource to a third party – whatever you decide, make sure that your system for 24/7 coverage is foolproof.

The most critical thing you can do to foster positive customer experiences is to practice emotional intelligence. Remember that some people will be emotionally distraught when they call you, and in those moments, the best thing you can offer is empathy. They may be frustrated that their relatively new system is malfunctioning, nervous about the financial toll this repair may cause, anxious about how their elderly parents, young children, and pets are faring, or something entirely unrelated to the HVACR issue at all. Demonstrate empathy when navigating those challenging conversations. Show them that you understand their concerns and frustrations and have sympathy for their situation. If necessary, turn the conversation back to the issue at hand and how you can fix it. That way, you can keep the situation productive while still demonstrating that you care. In all interactions, but especially ones where customers may be feeling stressed, be transparent about the services you offer and the cost of those services. People prefer a business that they find reliable and trustworthy. Even if you cannot give an exact answer, a ballpark estimate followed by an explanation of how you

arrived at that number, can help build trust. You should also be definitive about timing when speaking with any customer – give them a clear understanding of when you can arrive to help. Finally, log every interaction, including that very first call, in your system of record. This is important so you can track referral sources to thank, customer sentiment, and other key data points over the customer’s “lifetime.” Recalling those smaller details demonstrates that you care and are willing to take the extra step to show appreciation. It also makes sure that whoever is dispatched to address the issue has the full context of what the customer needs and can anticipate their state of mind. After all, compassion matters just as much for your employees as your customers.

During the appointment & After Service is Complete Many of the same tenets of effective customer service apply during the appointment. Be empathetic, communicative, and transparent about the work you are doing and how much it will cost. Arrive on time and opt to over-educate your customers so they understand the scope of a problem and how you arrive at an exact cost of service. Through all these interactions, make sure you use language that is easy for them to understand. These customers rely on you because you have years of HVACR experience and training.

Now that the service is complete and your customer’s problem is fixed, make sure you continue the conversation. Show your commitment to your work with a followup asking your customer to complete a satisfaction survey. These can provide you with valuable feedback for when you are engaging with future customers, and you’ll identify your best referral sources from happy customers. If the interaction went well (which it most often does) encourage reviews with online services – they go a long way in building trust and sourcing new customers. With their permission, enroll customers in a newsletter and keep them informed of company updates. Heating and cooling customers have products from you that need long-term maintenance, upgrades, and replacements. You can even offer your customers an incentivized referral program. The HVACR industry is competitive, but satisfied customers are more likely to return for future services and recommend your business to others. Exceptional customer service builds trust and a positive reputation for your HVACR business. By understanding what each part of the customer cycle entails, you and your staff can anticipate and exceed expectations every time. u

Aaron Lee is the CEO and co-founder of Smith.ai, the 24/7 customer engagement platform for businesses that combines the best of human agents and AI tools. Formerly CTO of The Home Depot and co-founder of Redbeacon, he also played a pivotal role in Google Video’s inception.

HVACR BUSINESS DECEMBER 2023

‘THE 12 WEEK YEAR’ – KEYS TO CONSISTENT EXECUTION & SUCCESS BY BRIAN MORAN

his article by the best-selling author of “The 12 Week Year”, Brian Moran, was originally published years ago. But it is more than fitting now, so we brought it back for those who have not read about his incredible system.

barrier to high performance. This doesn’t mean annual goals and plans don’t have a positive impact. They do. There is no question you will do better with annual goals and plans than without any goals or plans. However, this annual process inherently limits performance.

Shorter-Term Planning & Execution Yields Success

The trap is referred to as annualized thinking. At the heart of annualized thinking is an unspoken belief that there is plenty of time in the year to make things happen. In January, December looks a long way off. We mistakenly believe that there is plenty of time in the year, and we act accordingly. We lack a sense of urgency, not realizing that every week, day, and moment is important. Ultimately, effective execution happens daily and weekly — not annually.

Most companies and HVACR professionals are on a never-ending search for new ideas and strategies to better their processes and systems. They seek out new marketing techniques, sales ideas, cost-cutting measures, and customer service enhancements hoping that these new approaches will deliver better results. And some of these will and can increase productivity. However, the number one factor holding business owners back from achieving their full potential is not a lack of knowledge, intellect, or information. It’s not some new strategy or idea. It’s not additional training. It’s not a larger network. It’s not hard work, natural talent, or luck. What is the key market differentiator? Execution is the single greatest market differentiator. Great companies and successful individuals execute better than their competition. So, the barrier standing between you and the life you are capable of living is a lack of consistent execution. How do you improve on execution? The best and fastest way to consistent execution is to eliminate “annualized” thinking. One of the things that gets in the way of individuals and organizations effectively executing and achieving their best is the annual planning process. As strange as this might sound, annual goals and plans are often a

HVACR BUSINESS

Redefine 12-Month Calendar Planning Let’s redefine a year: A year is no longer 12 months – it’s 12 weeks. There are no longer four periods in a year. That’s an old way of thinking. Each 12-week period stands on its own — it is your year. Now you have a new end-game date to assess your success (or lack thereof ). It narrows your focus to the week and more to the point, the day, which is where execution occurs. The 12-week year brings that reality front and center. When you set your goals in the context of a 12-week year, you no longer have the luxury of putting off critical activities, thinking that there is plenty of time left in the year. Once 12 weeks become your year, then each week, day, and moment, matters more. The results can be profound. Most people who use this method experience about a 30% improvement in the first 12 weeks.

DECEMBER 2023

Here are three steps to help you achieve more in the next 12 weeks than most will in 12 months: • Set a 12-Week Goal Annual goals are helpful, but they lack immediacy and urgency. Twelveweek goals create focus and urgency. Focus on what you want to happen over the next 12 weeks. The goal should be an outcome: income, sales production, and dollars saved, pounds lost. It should represent significant progress towards your longer-term vision. Limit your goals to a maximum of three and make certain each goal is specific and measurable. • Build a 12-Week Plan Twelve-week planning is much more effective than traditional planning because it is more predictable and focused. The key here is less is more. A 12week plan embraces the notion of being great at a few things versus mediocre at many. For each goal, identify tactics. Tactics are the daily and weekly actions that drive the accomplishment of the goal. If the goal is the “where,” then the tactics are the “how.” Again, less is more. Focus on the critical few. Identify the four or five actions that you need to take daily and weekly to accomplish your goal. These are your tactics. • Apply the Weekly Routine Having a goal and a plan is helpful, but it’s not enough. The key to your success is executing your plan. To ensure you execute at a high level, adopt the Weekly Routine. Those are the steps. Now follow these three things weekly and you can’t help but get better!

The Weekly Routine 1. Plan your week Take a few minutes at the beginning

of each week to plan your week. Use your plan to identify the tactics that are due this particular week. The plan is not a glorified to-do list; rather, it reflects the critical strategic activity that needs to take place this week to achieve your 12-week goals. 2. Score your week At the end of each week you will want to score your execution. In the end, you have greater control over your actions than you do your outcomes. The most effective lead indicator you have is a measure of your execution. You are scoring your execution, not your results. Calculate a weekly execution score by dividing the number of tactics completed by the number due. 3. Meet with a peer group Did you know that you are seven times more likely to be successful if you meet regularly with a group of your peers? Find two to three other people who are committed and willing to meet for 15 to 20 minutes each week. In your meeting, report on how you’re doing against your goals and how well you’re executing. Encourage and challenge one another. That’s it! Three simple steps. Plan your week, score your week, and meet with a group of peers. Do them, and you will improve. Here’s the catch – the steps are easy to do, and even easier not to do. So, commit to engage with them for the next 12 weeks and watch what happens. u

Brian Moran, President and Founder of Strategic Breakthroughs, has more than 30 years of expertise as an executive, coach, and consultant. His best-selling book, “The 12 Week Year” is a powerful guide to creating results To learn more about Brian Moran, please visit https://academy.12weekyear.com/ shop/.

www.hvacrbusiness.com

THE DEALERS’ CHOICE. WE’RE PROUD TO MAKE THE BEST, MOST TRUSTED1 SYSTEMS IN THE INDUSTRY—AND EVEN PROUD ER TO BE WORKED ON B Y T H E B E S T DEALERS IN THE WORLD. WE’RE STRONGER TOGETHER BECAUSE WE RUN TOGETHER.

Learn how to become a Trane dealer.

FROM FAIL TO FARE WELL Navigating Common Mistakes on the Entrepreneurial Journey

BY BRYAN BANEK

ntrepreneurs in the HVACR industry know the inherent challenges of balancing technical skills with business acumen. As businesses grow and mature, the road is often fraught with pitfalls and hard-learned lessons. Here, I share some common “fails” I see that can paradoxically help pave the way to business success.

Chasing Down Work vs. Developing Business Goals Southern Home Services serves as the parent company to dozens of local HVACR, plumbing, and electrical business units across the Southern and Eastern regions of the United States. When we evaluate companies to acquire

HVACR BUSINESS

As businesses grow and mature, the road is often fraught with pitfalls and hard-learned lessons. Here, I share some common “fails” I see that can paradoxically help pave the way to business success. and operate as a business unit, I often observe a common misjudgment that technicians-turned-owners make in the industry. Someone decides they no longer want a boss telling them what to do, so they branch out on their own, only to realize they haven’t built a sustainable business but rather an unforgiving job for themselves. While chasing down work is an important part of launching a successful

DECEMBER 2023

business, being shortsighted about the future of the company comes at a cost. Entrepreneurs should ask themselves this very important question, and answer honestly.

Those who want to create enduring value and equity should approach their business with a long-term vision. This requires taking a break from turning wrenches and consistently setting aside time to look at the business from a strategic perspective. Ask and answer the next set of questions: • What has been successful? • What didn’t work?

Did I start the business to build equity down the road, or am I in it for the paycheck?

• Where do we go next?

The answer to this question is pivotal. It can influence every strategic move made once reaching the conclusion.

Asking and answering these questions will help set your business up for future success.

• How do we get there?

www.hvacrbusiness.com

Master of All vs. Master of Niche In the initial stages of entrepreneurship, there’s an understandable temptation to grab every opportunity that comes your way. The allure of accommodating every customer with a plethora of services, products, and flexible pricing can seem like the fast track to success. But herein lies the risk of overextension.

Successful demand generation strategies can be scaled up to amplify results, leading to revenue success. While name recognition is a solid long-term marketing effort, demand generation takes precedence as you start your entrepreneurial journey.

Overextension, in relation to business, is like a rubber band stretched too far. Not only is there a risk of snapping, but it loses its inherent strength and functionality. For a budding business, overextending equates to diluted brand identity, reduced service quality, and a strain on resources. Juggling too many offerings often leads to subpar performance across the board. Trying to be everything to everyone is a surefire strategy for mediocrity. This is especially true in specialized fields like HVACR, where expertise and focus make or break a company. Instead of becoming a master of all trades (and possibly a master of none), business owners should concentrate on the services that guarantee a healthy profit margin and consistent demand. For HVACR entrepreneurs, the goal should be to identify and hone in on the services that not only are in demand but also yield substantial returns. By anchoring their business model around these core services, they can then gradually branch out, ensuring that each new service addition aligns with their brand’s strength and the market’s needs. This strategic approach allows businesses to grow sustainably, ensuring longevity and success in a competitive market.

Customer Concentration vs. Customer Diversification Customer diversification, while necessary for long-term growth, can often be difficult for a new entrepreneur. Most business owners start focused on a specific customer segment, limiting their customer base from the start. While this approach is not recommended longterm, it could yield early benefits for the company. I saw this tactic play out personally. My father worked for ARA Services for many years before starting his own business

www.hvacrbusiness.com

that competed with them. He had two great business relationships – 80% of his business was these two customers – but the problem is that if you get sideways with one, your business disappears overnight. Anchoring most of your business to one customer segment is risky. While steeping yourself deeply within a customer segment may lead to early wins, diversification is crucial to ensure long-term sustainability.

Brand Building vs. Demand Generation Navigating the marketing landscape as a new entrepreneur can be challenging, especially for owners who focused solely on operations before opening their business. A natural inclination is to focus on building a well-known brand via brand recognition and loyalty. Setting up billboards, wrapping your fleet, and sending out postcards are often marketing tactics we see new businesses rely upon early on. This is an excellent first step. But you must also adopt a solid marketing strategy. Utilizing direct marketing strategies is crucial, especially for startups with tight budgets. Begin with generating immediate demand. Investing in digital advertising and email marketing to drive leads should be the highest

marketing priority for new business owners. Successful demand-generation strategies can be scaled up to amplify results, leading to revenue success. While name recognition is a solid long-term marketing effort, demand generation takes precedence as you start your entrepreneurial journey. The smart move for new entrepreneurs is to first establish a foothold with demand generation tactics. Once the revenue stream stabilizes, then begin building brand recognition in the market to craft a lasting brand legacy.

out. Even if they’re not meticulously documented, consistent processes keep chaos at bay and help businesses scale smoothly. Otherwise, as you grow, you’re not going to be able to keep up with the chaos.

Fail vs. Flourish In the narrative of business, it’s the mistakes we make that often shape the path toward success. Understanding the nuances of the HVACR industry, from pricing to process, can mean the difference between fleeting success and building a legacy. As with any journey, the road to business success is filled with learning, failing, evolving, and consistently aiming for excellence. If your HVACR company is ready to flourish, consider contacting Southern Home Services to discuss a future of success. u

Bryan Banek is the CEO of Southern Home Services, he has displayed exceptional skills in enhancing revenue, and EBITDA, and overseeing successful mergers and acquisitions. His tenure at companies such as Terminix, American Residential Services (ARS), and Service Experts is marked by transformative leadership, where he improved profits, increased revenues, and played a crucial role in the turnaround and growth of these organizations. www.southernhomeservices.com ph.: 407-519-3265

Friends vs. Foundations The last significant insight I’ll share touches on processes. Small businesses often romanticize a ‘family atmosphere.’ While it can foster a positive environment and help to build a great culture, it can also blur professional boundaries, leading to inefficiencies. Entrepreneurs must learn to strike a balance. When you get too close to your staff, it can make things difficult. Decisions made with the heart are commendable, but they don’t always align with what’s right for the business. The antidote? Processes. Ensure that you have created and are setting repeatable routines, or processes, that are consistent - day in and day

HVACR BUSINESS DECEMBER 2023

THE TOP TRENDS SET TO DRIVE THE HVACR INDUSTRY IN 2024

BY DAVID BUDZINSKI

everal key trends are driving the HVACR industry as we head into 2024. Each trend provides HVACR professionals with several opportunities while addressing their own set of unique challenges as well. These include regulatory changes, advances in technology, and an ever-growing focus on sustainability and electrification. Industry professionals must understand how to best take advantage of the opportunities each trend presents. Understanding the current state of HVACR and where the industry is heading, will empower continued success in the new year and beyond.

Electrification, Decarbonization & High-Efficiency Systems The HVACR industry has faced notable regulatory changes in 2023, but it has also been a year of significant growth and innovation. Advancements

HVACR BUSINESS

responsible practices.

Industry professionals must understand how to best take advantage of the opportunities each trend presents. Understanding the current state of HVACR and where the industry is heading will empower continued success in the new year and beyond. in technology and a growing focus on sustainability have enabled the production of more efficient, digitally connected solutions for both residential and commercial spaces. The push toward decarbonization and electrification continues to accelerate, driven largely by unstable energy costs, legislation, and climate change. As a result, we’ve seen an emphasis on renewable energy sources and demand for high-efficiency HVACR systems, including the adoption of heat pumps across all sectors. Additionally, the integration of smart technology has become an undeniable

DECEMBER 2023

expectation for both homeowners and building managers. Controls and thermostats enhanced by the Internet of Things (IoT), connectivity, and artificial intelligence (AI) have become a mainstay, providing increased insight into system performance, energy efficiency, and customized comfort.

Customers Expect More Than Comfort How is the industry changing? Both residential and commercial customers now expect more than comfort from their HVACR systems — they want healthy, energy-efficient homes and buildings that are aligned with environmentally

A shift in focus from simple comfort to IAQ and energy efficiency is driving an investment in systems and technologies that can enhance indoor air quality (IAQ) and optimize energy use. Options like zoning and smart controls are musthaves for homeowners and building managers who want to easily manage energy use and air quality improvements. Additionally, within the commercial sector, building managers are now being tasked with accessing the carbon footprint of the building and providing proof of progress toward net-zero goals. Advanced digital platforms can connect and digitally automate diverse data sets from multiple systems to optimize building performance, manage emissions, and analyze results.

Leverage Opportunities for HVACR in 2024 What opportunities lie ahead for HVACR in the coming year?

www.hvacrbusiness.com

The HVACR industry operates within a complex regulatory landscape, with evolving codes and standards. Being able to understand and stay ahead of these changes while balancing consumer demands presents a huge opportunity to drive growth and industrywide sustainability. As an industry, we can expect to see a continued emphasis on decarbonization, electrification, and renewable energy sources, which will also open up many opportunities for the HVACR industry in both product development and digitalization. What challenges are expected for the HVACR industry? The industry is facing back-to-back regulatory changes. DOE’s 2023 energy efficiency regulations are now closely followed by the EPA transition to lowGWP refrigerants going into effect in 2025. Distributors and contractors that have developed solid phase-in/phase-out plans have an advantage. The phase-out of high-global warming potential (GWP) refrigerants poses a significant challenge for the HVACR industry. Adapting to new refrigerants and ensuring compliance with evolving regulations can require investment in research, development, and technician training.

Hybrid System Heat Pumps are ‘Hot’ Which innovations have the potential to make the biggest impact? With the industry’s focus on electrification and decarbonization and its extensive investment in technology, heat pumps are solidly positioned to make a huge impact. Innovation in heat pump technology is unfolding rapidly and the space is incredibly dynamic. As a result, heat pumps are being leveraged to address an increasing share of heating loads. However, it’s important to note that most air-source heat pump systems need to include some form of backup or supplemental heat that is utilized when heating demands exceed capacity, such as when the outdoor temperatures are too cold for the heat pump to run efficiently. Hybrid systems provide a solution to maintain efficiency in very cold climates. In a hybrid system, a heat pump is connected to a high-efficiency gas furnace and can seamlessly adjust

www.hvacrbusiness.com

The push toward decarbonization and electrification continues to accelerate, driven largely by unstable energy costs, legislation, and climate change.

between heating sources depending on the heating demands. This will often result in lower operating costs and source emissions compared to electric resistance for space heating, but results will vary on a building-by-building basis.

Integrated Building Systems Get Smarter Adding to the increased focus on IAQ and energy efficiency, it’s also important to understand the revolutionary impact of data and digital technologies. There is a growing demand for smart building solutions from which the HVACR industry can benefit. Integration with other building systems, such as lighting and security, offers opportunities for improved energy management, occupant comfort, and overall building performance. Digital technologies give building operators a comprehensive suite of apps to monitor and improve energy efficiency, tenant satisfaction, asset performance, maintenance operations, space performance, and, ultimately, the comfort of all occupants. Additionally, as climate disclosures become mandatory for many building managers, digital services leverage data collection to assess the carbon footprint of the building, track progress toward decarbonization goals, and provide clear reporting on emissions and building performance.

Regulatory Changes: R-410A & A2L What does the regulatory landscape look like? The American Innovation and Manufacturing (AIM) Act, which mandates an 85% reduction in hydrofluorocarbon (HFC) gases by 2036, has remained top-of-mind for contractors, dealers, and manufacturers alike. The initial phase of the policy had a negligible impact on refrigerant availability, but the next phase — taking effect in January 2024 — dictates the most significant step-down to date and will reduce HFC production by 30%.

This next phase is poised to create a significant impact on the availability of common HVACR refrigerants, including R-410A. However, contractors and dealers who prepare now can minimize disruptions and the risk of stranded equipment. All involved parties must understand the safe handling, storage, and transportation of mildly flammable (A2L) refrigerants and have a plan in place for R-410A recovery and reclamation. Ensuring all levels of the industry are educated, informed, and empowered will help make the transition as successful and seamless as possible, but it remains a pressing issue for the industry at large. How are organizations prioritizing sustainability? As sustainability becomes a global corporate mandate, organizations are making bold commitments to decarbonize building operations and conserve resources. In a recent study1 conducted in conjunction with Forrester Research, 2,348 business leaders were surveyed to better understand how organizations are prioritizing and investing in sustainability. The survey revealed that 80% of respondents cited implementing or maturing sustainability efforts as their top priority and, for most, 2024 was the target date for achieving these goals.

personnel about building and room conditions such as temperature, lighting, and occupancy.

Preparing for a Successful Year In 2024, regulatory changes, sustainability, and new technology will continue to influence the HVACR industry. HVACR professionals who understand and plan for changes while balancing consumer demands are best positioned for success. And, together, as an industry, we can move closer to a world that is built on smart, healthy, and sustainable buildings. u

President of Global Residential and Light Commercial for Johnson Controls – David Budzinski is responsible for the global ducted and ductless HVAC businesses. He manages all aspects of the business and drives the growth of this global portfolio. Notably, during his 16-year tenure, he has grown the channel network exponentially and built the third-party channel organization and distribution operating model. Previously, he served as a vice president and general manager in the Digital Solutions business and before that, as the vice president of Distribution and Channels in the Middle East and Africa across controls, chillers, air systems, and DX. www.johnsoncontrols.com 1

The Race To Decarbonization (Forrester Research 2021)

https://www.johnsoncontrols.com/-/media/jci/openblue/ forrester/forrester_jci_study.pdf

Are there other pressing issues facing HVACR right now? Indoor air quality receives significant attention due to its impact on occupant health and well-being. Ensuring optimal IAQ requires advanced air filtration, ventilation, and air purification technologies, as well as regular maintenance and adherence to industry standards. For many building professionals, simply enhancing or replacing the HVACR system may not be enough to bolster occupant confidence and satisfaction. Smart building technologies that utilize occupant-facing apps make building data transparently available and enable communication with facility

HVACR BUSINESS DECEMBER 2023

5 WAYS TOO MUCH INVENTORY IS COSTING SMBS BY JG VAN GRAAN, DIRECTOR OF THERMOGRID, ECI SOFTWARE SOLUTIONS

ne of the most significant mistakes small HVACR business owners make is carrying too much inventory. Overbuying is typically a result of using manual inventory and warehouse management systems that are clunky, inaccurate, and costly. The costs to purchase, transport, and store excess stock can take a massive bite out of your operating budget and, eventually, your profits. Effective inventory management is a crucial aspect of running a successful business. Carrying excess stock in your warehouses and trucks can have significant financial repercussions. Overbuying often occurs when outdated and inefficient inventory management systems have a negative impact on your purchasing, transportation, labor, and storage costs, leading to lost profits. This article outlines the five ways excess inventory costs small businesses and how an automated inventory management system can fix the situation.

Prevent Inflated Item Costs One of the primary costs associated with excessive inventory is the item cost. Without real-time insight into inventory, outdated data forces businesses to rely on educated guesses to determine stock levels, which can lead to inaccurate

HVACR BUSINESS

Overbuying often occurs when outdated and inefficient inventory management systems have a negative impact on your purchasing, transportation, labor, and storage costs, leading to lost profits. assumptions about when to reorder products. Unfortunately, the perception of urgency leads to the practice of placing orders at inflated prices. That leads to overspending which could have been averted by using precise, current inventory information.

pressure on already stressed supply chains. As a result, efficient inventory management and streamlined transportation strategies are crucial for businesses to navigate volatile economic conditions efficiently and maintain a competitive edge.

An automated HVACR inventory management system takes the manual guesswork out of ordering. Inventory can be tracked in real-time, ensuring new orders are placed only when they are truly needed. This can not only bring substantial cost savings, but it can also prevent the increase of your item costs.

By automating inventory management, transportation costs are reduced through accurate demand forecasting and inventory control. Transportation expenses can be minimized, and overall supply chain efficiency can be improved by reducing the practice of overpurchasing and striving toward timely restocking.

Streamlined Transportation Strategies are Crucial

Reduce Labor Costs

Transportation costs are a sizeable factor contributing to your inventory costs, especially when faced with escalating fuel prices and disruptions in the supply chain. When a company overbuys inventory, it inadvertently incurs unnecessary expenses related to transporting goods. This inflates operational costs and puts further

DECEMBER 2023

When surplus inventory arrives at your warehouse, someone must unload trucks and organize the incoming goods. Labor costs associated with these tasks can accrue swiftly, especially when handling large or heavy orders. The time and effort expended by employees to reconfigure the warehouse layout to accommodate the excess stock would be better directed to

more productive areas of your operations. This misallocation of labor and time resources hinders overall operational efficiency and diminishes the productivity potential of your team. These processes can be streamlined with automated inventory management, which will provide precise inventory control. By eliminating overstocking, you can reduce labor costs, improve warehouse efficiency, and ensure employees’ time is utilized more effectively.

Excess Stock is Costly Excessive inventory also leads to increased storage costs. Each item lingering in the warehouse carries maintenance and security costs, which can become a substantial financial burden. Nobody needs inventory sitting in a warehouse, incurring costs, instead of contributing to immediate revenue. In an industry that experiences rapid technological advancements, excess stock can swiftly become obsolete, leaving you stuck with outdated products that are difficult to sell or liquidate, further denting profitability and your bottom line. With modern inventory management solutions, warehouse space can be optimized and storage costs can be reduced. Management software can track www.hvacrbusiness.com

the shelf life and demand for each item in inventory, enabling HVACR businesses to make informed decisions about storage and potentially avoid costly obsolescence.

In an industry that experiences rapid technological advancements, excess stock can swiftly become obsolete, leaving you stuck with outdated products that are difficult to sell or liquidate, further denting profitability and your bottom line.

Lost Profit Cost When a business carries too much inventory, it has to sell more to clear out space. Discounting items can help to offload excess stock and reduce carrying costs, but it comes at the expense of profit margins. Lowering prices to move excess inventory can erode your profit potential, which can be especially problematic for small businesses or those with limited capital. When cash is tied up in excessive stock, it becomes unavailable for investment in other critical areas of your business, such as marketing or acquiring new equipment. This can hinder growth and limit your competitiveness in the market. Implementing an automated inventory management system is necessary to combat the five costs associated with excess inventory. Modern contractor management software1 and similar tools provide real-time visibility into a business’s inventory, ensuring orders are

placed only for what is needed when it’s needed. These systems offer features such as: • Demand Forecasting Demand forecasting allows you to track ebbs and flows so you can predict demand and stock inventory more accurately. •

Order Optimization Optimize every facet of performance, productivity, and protection to ensure that the inventory is maximizing your profit, performing well, and keeping you competitive.

• Shelf-life Tracking Shelf-life tracking allows you to keep track in real-time of how long

inventory is sitting before it moves. This ensures product safety, quality, and better inventory management. Management software solutions can empower SMBs to make informed decisions to reduce costs thereby enhancing overall operational efficiency and profit margins. Excessive inventory is a serious issue that can impose a significant financial burden on businesses. It results in increased item costs, transportation costs, labor costs, and storage costs, and can lead to diminished profits. However, by adopting modern contractor management software solutions specifically designed for the HVACR industry, inventory management processes can be transformed, and costs can be mitigated, positioning businesses

for greater success. Effective inventory management is not only about reducing expenses but also about optimizing resources and ensuring a business remains competitive in a rapidly evolving market. Investment in an automated inventory management system will secure a brighter future for your business. u https://www.ecisolutions.com/products/

thermogrid-contractor-management-software/

JG van Graan is the Director for ThermoGrid, ECI Software Solutions. JG’s deep HVAC industry roots began as an installation helper and then grew through roles as a technician, service management, and even residential sales. Today, JG is a Director at ECI ThermoGrid , where he helps HVAC companies implement business management software to simplify the management of their businesses by streamlining functions like dispatching, invoicing, and inventory management.

E E R F B Tool Bag!

TP4 Rebate O T VE il-In a M via

Testo’s Fall Promo is Back in Black... and Orange! Check out testo’s HOT Fall Promotion on Combustion Analyzers! Free VETO TP4B Via Mail In-Rebate! Now through December 31st!

www.hvacrbusiness.com

For more info visit: www.testo.com/en-US/promo

HVACR BUSINESS DECEMBER 2023

DO YOUR PRICES NEED REVISIONS IN THE COMING YEAR? The Ever-Evolving Market and Your Pricing Strategy BY RODNEY KOOP

n the HVACR industry, like in life, the only constant is change. As we stand on the brink of another year, the question that looms large for every contractor is: Do your prices need revision? It’s a good question. Let’s review this topic by separating it into four categories: Pricing Philosophy u Working Smarter Not Harder u Your Customers’ Needs u Pushing Your Company Toward Excellence.

1. Pricing Philosophy Balancing Costs and Value: The Price Paradigm Your prices are more than just numbers on a bill; they reflect the value you provide, the costs you bear, and the profit that fuels your growth. It’s a delicate balancing act – raise your prices too high, and you risk alienating your customer base; too low, and you’re undercutting your sustainability. This is a common battleground where cost-covering meets value-making. Profit or Bust: The Price of Doing Business Profit isn’t a dirty word; it’s the lifeblood of your business. Yet, achieving it doesn’t always mean hiking up your prices. It’s about smarter business. How can you do business smarter? Optimize

HVACR BUSINESS

Proﬁt isn’t a dirty word; it’s the lifeblood of your business. Yet, achieving it doesn’t always mean hiking up your prices. your marketing strategies to improve operational efﬁciencies. Upgrade your software and data integration. Do an audit to find inventory inefficiencies.

2. Work Smarter, Not Harder Material Costs: To Absorb or Not to Absorb? When the price of copper wires spiked, we all wished we’d hoarded rolls. Yet, did every contractor raise their prices in response? Not necessarily because sometimes, absorbing a cost increase is a strategic move, especially if it keeps your phone ringing with service calls that lead to bigger jobs. The Combo Meal Strategy: Upselling Without Upscaling McDonald’s didn’t supersize their burgers – they supersized their fries and drinks. The lesson? Find your ‘fries and drinks’. Upsell the ancillaries where the proﬁt margin is high and the customer resistance is low. That’s where your hidden proﬁts lie.

DECEMBER 2023

3. Your Customers’ Needs Loss Leaders: A Calculated Risk Again, McDonald’s sold a 99-cent hamburger for years, not because they couldn’t charge more, but because it lured customers through the door. For us in the HVACR world, loss leaders use a discounted service call similarly. They’re not about immediate profits, they’re about the long game, about customer retention and the lifetime value they bring. Definition | Loss Leaders: A product sold at a loss to attract customers. It sets the stage for future gains by establishing trust and rapport with your customers. When you offer a service at a price that doesn’t immediately turn a profit, you’re investing in customer loyalty and opening doors to potential upsells. It’s akin to the introductory chapter of a novel where you entice the reader with a compelling start, promising more value in the chapters to come. In HVACR, this might mean offering a seasonal maintenance check at a can’t-miss price for HVACR contractors, knowing it could

lead to a full system upgrade down the line. These strategic decisions can transform a one-off service call into a lifelong customer relationship, turning a modest investment into a substantial return.

Cherry-Picking Clients: A Luxury or a Necessity? An overﬂow of customers is an excellent problem to have, but it begs the question – which clients do you serve ﬁrst? The answer lies in cherry-picking. Select the customers that align with your business values, can afford your rates, and will become your brand ambassadors. Every customer is not your customer. Marketing Missteps: The Price Conundrum The number one mistake many contractors make is focusing solely on price. High prices might boast of quality, but if they’re not matched by customer perception, they can turn away more business than they bring in. Your closing ratio is the canary in the coal mine – it tells you when your prices are hitting the mark or missing it entirely. In the narrative of quality, there’s a tale my contracting business knew well. Customers would repeatedly ring up, saying, “I heard about you from So-and-So. They mentioned you’re a little expensive but top-of-the-line and wouldn’t dream of calling anyone else.” This word-of-mouth reputation is the

www.hvacrbusiness.com

gold standard in service industries. If your prices are set above the rest, they must reﬂect the superior quality and unmatched expertise your company consistently delivers. It’s not just about being good. It is about being the best and ensuring every job reafﬁrms that truth. What truly set us apart was providing our customers with choices that empowered them to select higher-quality solutions with more robust warranties1. This approach didn’t just meet their immediate needs, it offered them a stake in the quality and longevity of the repairs, cementing trust and establishing our reputation for excellence.

4. Pushing Your Company Towards Excellence Quality and Customer Experience: The Unseen Costs What if a competitor with shiny new trucks and eager technicians moved into your neighborhood? It’s not just about revising your prices. It is about revising your quality and customer experience. As a contractor, try secret-shopping your own company. It can be an eye-opening exercise in customer empathy.

into the new year, let’s do so not with trepidation but with conﬁdence, armed with a pricing strategy as dynamic as the market in which we thrive. Your prices are more than the figures on an invoice. They are the signature of your business’s narrative. They tell a story of value, quality, and excellence.

If you need help, let us know. The New Flat Rate helps contractors pinpoint their prices to reﬂect their vision and goals. 706.259.8892 | info@thenewﬂatrate.com u 1 What is Menu Pricing (The New Flat Rate, 2023) https://thenewflatrate.com/

Rodney Koop, CEO and founder of The New Flat Rate, is a motivational speaker, author, entrepreneur, and solutions-based enthusiast. Over the last three decades, Koop has founded and sold HVAC, electrical, and plumbing service companies.

Go Green. Get Rewarded. INTRODUCING We want to reward you for purchasing Taco products. Open to all contractors, this FREE Rewards Program enables you to earn reward points on hundreds of eligible Taco residential heating & plumbing products that can be redeemed for thousands of items from tools and electronics to live events and vacations.

Looking Inward: The True Path to Price Revision Look inward before you put pen to paper and start revising your price list. Can you make internal adjustments that could offset the need to raise prices? Sometimes, a better purchasing strategy or a new operational efficiency can be the buffer you need against market ﬂuctuations. Preserving the Core: Where’s the Beef? As you navigate through your pricing strategy, ask yourself, “Where’s the beef ?” It’s a metaphorical question pointing to the core of your pricing strategy. Preserve the pricing on your main offerings. These are essential to cover your costs. But play with the ancillaries to enhance the customer experience and your bottom line. You may be surprised.

ENROLL

Scan QR code below, Sign up at ContractorRewards.com, or call toll-free 1-877-286-7064

UPLOAD

Use your phone or computer to upload receipts for purchases of Taco products

Download the Contract Rewards APP

The Final Verdict: To Revise or Not to Revise As we look to the coming year, it’s not just about whether you should revise your prices but why, when, and how. Revisions should be thoughtful, data-driven, and customer-focused. It’s not just a ﬁnancial decision, it’s a strategic move that speaks volumes about your business philosophy. Ultimately, the decision to revise your pricing isn’t merely a reﬂection of external market pressures. It will be a testament to your business acumen. It’s about understanding your operation’s heartbeat and your clientele’s pulse. As we march

Enroll today to earn 200 BONUS POINTS! BONUS CODE: GreenRewards (Use ENTER CODES tab during sign up at ContractorRewards.com)

For questions or more information on this program, send an email to: contractorsupport@ContractorRewards.com or call 1-877-286-7064.

HVACR Business_ContractorRewards_TwoThirds_6.875x9_031623.indd 1

www.hvacrbusiness.com

GET REWARDED

Shop the extensive online REWARDS Catalog

5/22/23 11:33 AM

HVACR BUSINESS DECEMBER 2023

FINANCE

PROVIDED BY KEVEN PRATHER, CFBS

4 Improvements That Can Position Owners for Greater Success

uccess is rarely linear. As a business owner, it’s important to both acknowledge that fact and create plans that can provide short-term results while having long-term impacts. The following are four areas in which strong planning and realistic goals can position you to achieve more success in the coming year.

it (e.g., family, employees) aren’t left scrambling for solutions? The answer lies in creating business continuity instructions. Business continuity instructions can serve a dual purpose. Most obviously, they provide guidelines for how to keep the business running in your unexpected absence. But just as importantly, they can create measures and processes that make the business less reliant on you even if you’re never unexpectedly absent.

Building Strong Management Teams Strong management teams implement your tactics and strategies, which determine your success and often, your company’s value. Frankly, when buyers purchase a company, they’re often buying the management team foremost. Having a strong management team is the mother of all value drivers. This means that having a management team that can position you and your company to perform well is critical to your success. There are three things you should consider focusing on related to your management team to help them provide short-term results while still having long-term impacts. • Setting goals. Unreasonable goals can cause burnout. To perform well, your management team needs documented goals that are realistic. Many business owners find value in calling on their advisor team to help them create goals that are both ambitious and realistic. • Providing resources. What the management team believes they need may surprise you. However, if you trust them, it’s important to deliver those resources. Figuring out what they need to succeed can help them drive performance and pursue solutions more effectively.

When you document your systems and processes, you provide your management team (current and future) and potential buyers with a playbook for your success. incentive plan at the outset of your planning is a key to motivating your managers.

maximize value and reduce post-sale risks. This is valuable even if you never intend to sell your business.

For many successful businesses, management teams drive short- and longterm success. Keeping them focused, on track, and motivated often translates to better performance.

No matter what, everyone exits their business someday—by choice, death, or otherwise. Documenting your processes can give the people on whom you depend guidance on how to keep the business running in your absence, which is just as important to owners who want to die at their desks as it is to owners who intend to sell their business during their lifetime.

Have Documented Systems and Processes Regardless of whether you plan to sell your business soon or never, maximizing business value is important. In addition to your management team, having documented systems and processes can position your company to be as valuable and stable as possible.

• Rewarding performance. Don’t give them the rewards you value most – give them what they value most when they perform well.

When you document your systems and processes, you provide your management team (current and future) and potential buyers with a playbook for your success. This often means you don’t need to reinvent the wheel with each new initiative, which can increase efficiency and create more time to innovate.

When your management team achieves its goals, it’s crucial to reward them appropriately. Creating a written

Likewise, because many buyers will pay a premium to buy turnkey businesses, documenting your processes can help you

HVACR BUSINESS

DECEMBER 2023

Creating a Business Continuity Plan Remember: The most valuable businesses are those that have a dispensable owner. In other words, if your business relies on your presence, it may not have as much value as you hope for without you. While being needed might provide an ego boost, it also makes it challenging to control your business destiny. That can be a huge problem if you ever become unexpectedly absent. For example, if you were to die or become incapacitated unexpectedly, how could you position the business to continue running so that the people who rely on

Use Success to Beget More Success Developing a plan to achieve success can create success in other realms. For instance, if you successfully implement the three elements above, it could give you more time to create a more wellbalanced personal balance sheet. That could increase your access to additional resources, which you could then use to supplement business performance or other interests, creating a virtuous circle of personal and business successes that play off one another. While success may not be linear, proper planning can better position you to address the natural ebbs and flows of your business experiences. We strive to help business owners identify and prioritize their objectives with respect to their business, their employees, and their families. If you are ready to talk about your goals for the future and get insights into how you might achieve those goals, we’d be happy to sit down and talk with you. Please feel free to contact us at your convenience. u

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

www.hvacrbusiness.com

FINANCE

BY RUTH KING

Achieve Freedom with Your Financially Fit Business – Part 1

A FIVE-PART SERIES – IS YOUR BUSINESS FINANCIALLY FIT?

s your business financially fit? And why do you need to examine if your business is financially fit? Does it matter if it’s all running smoothly? The quick answer: It gives you freedom. It’s the tool that gives you the ability to do what you want to do.

Most of you keep your field personnel out of the supply houses. Here’s the breakdown and a reminder of why that is financially prudent: Assume: • Travel to the supply house: 30 minutes • Pick up parts/equipment/load into truck: 1 hour • Travel to the job: 30 minutes

Financial Freedom 101 First, let’s go over the types of financial freedom. It’s not just about freeing up liquidity. The benefits are more wide-ranging.

A total of 2 hours of unbillable time per person. Your billable percentage just went down to 75%.

Here are three types of freedom: 1. Money Freedom 2. Time Freedom 3. Location Freedom

Which of these do you have? A financially fit business gives you all three. If you don’t have all three, it’s time to look at getting fit. • Money. Yes, you love your business. You’re generating revenue and profit and have enough recurring revenue, enough so that you don’t worry about money business-wise or personally. It’s even true that you can buy what you want. So, good for you, you may have achieved money freedom. Check this box. • Time. But, do you have time and freedom? Can you work when you want? Are you a slave to your business? Does it control you or do you control it? Do you have a great management team that runs the business on a day-to-day basis? Is the business at a place where you can come and go, only there to oversee – look at the metrics – and make sure the business stays headed in the right direction? Many contractors I know have achieved money freedom, but have not quite mastered the freedom of time. They ARE slaves to their businesses. • Location. Location freedom is the third. Do you have the choice to live where you want to live or go where you want to go? Money and time freedom usually give you location freedom.

www.hvacrbusiness.com

How much did this really cost you?

Your field labor hours are perishable! If you don’t use all eight hours today, you cannot save the unused hours and use them tomorrow. Over the years, I have worked with business owners who live in one area and manage their businesses in a different geographic area. How do they do this? They have the metrics and oversight and hire excellent managers – all of whom are well compensated on bottom-line performance. And yes, they do visit the business but usually once a quarter. To be financially fit, you need to be able to check all three boxes.

Your Business is a Valuable Tool Start thinking about your business as a tool. How can you use this tool to get what you want? How can you use this tool to give you things in life that you want to do? Over the next few months, I’ll write about five simple, easy-to-implement things you can do to sharpen your business tool so you can achieve freedom – and usually be able to do it in less than 10 minutes a month. But here is the first step.

Step 1 - Know how you generate revenue and maximize it! It’s not just service, project, replacement, etc. These are the results of

how you generate revenue. So, how DO you generate revenue? It’s about billable hours. Your revenue production is based on how efficient your field labor is. If you pay your field team members for eight hours per day, can you bill a customer for those 8 hours? If not, how many hours are actually billable? If you are paying for eight hours and only billing for four hours, then half their time is unproductive. Decide if it is training, meetings, or something else that can help them do their jobs better. If your labor is wandering around in the warehouse, spending time at a parts house, stopping at the gas station and getting food, drinks, etc., or stopping at the donut shop on the way to a job, you’ve squandered the ability to generate revenue for that time. Your field labor hours are perishable! If you don’t use all eight hours today, you cannot save the unused hours and use them tomorrow. They are gone. Tomorrow, you start fresh with another eight hours. Your labor hours are like that empty airplane seat when the plane took off…or that hotel room that wasn’t booked by the end of the day. Once the day is over, the opportunity to bill them is over too.

Assume: • Labor cost per person: $30 an hour • Overhead cost per person: $40 an hour • Net profit per hour that you lost per person: $75 an hour This two-hour trip to the supply house costs you $145 an hour or $290 per person. If a two-person crew went to the supply house, the crew cost you $580 for that trip. Put your company numbers into the equation. It might be even more than $580 for that trip. Step #1 to your financially fit business – know how you generate revenue and maximize it per day. If you would like a tool to help you achieve freedom, go to https:// financiallyfit.business. Using this tool usually takes less than 10 minutes a month. 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.

AVAILABLE ONLINE Visit: www.hvacrbusiness.com/documents/

HVACR BUSINESS DECEMBER 2023

BEST of 2023

PRODUCT FOCUS »

ADRIAN STEEL, PROLIFT™ DROP-DOWN LADDER RACK Built on Adrian Steel’s new flagship Profile™ rack system, the ProLift™ drop-down ladder rack is low profile, lightweight, and built to last. The easiest and safest dropdown ladder rack system on the market, it offers patentpending mechanical advantages and high-performance spring assist struts. ProLift™ raises and lowers ladders with an almost effortless pull, saving time and energy while reducing potential injuries. Adrian Steel continues to upgrade its products, always ahead of the curve for innovation, safety, efficiency, and ease of use. we chose Adrian Steel, ProLift™ as one of our picks for HVACR Business Best of 2023 Product Focus. www.adriansteel.com/

Here are our 12 selections for the HVACR Business Best of 2023 Product Focus

AMERICAN STANDARD PLATINUM 20 ACCUCOMFORT™ American Standard’s products have been award winners for consecutive years and a reliable choice for our readers. Rated their most efficient model, the American Standard® Platinum series includes innovative American Standard Link technology to control all of the system components. The Platinum 20 AccuComfort™ Variable Speed unit is one of the industry’s most efficient variable speed air conditioners offering up to 21.50 SEER2 and available in 2, 3, 4, and 5-ton models. This year we have chosen the American Standard Platinum 20 AccuComfort™ for HVACR Business Best of 2023 Product Focus for its reliability, consistency, and owner feedback.

CLIMATEMASTER THE TRILOGY QE WITH IGATE2 The Trilogy QE with iGate2 is a variable system that exceeds 45 EER while providing heating, cooling, and domestic hot water needs of a typical residence, while also providing today’s homeowners more transparency into their system’s daily operations and energy consumption data. Winner of the 2022 Integrated Home Competition, it is our choice for smart home integration for HVACR Business Best of 2023 Product Focus. ClimateMaster’s iGate2 Communicating Thermostat provides intelligent recommendations based on user behavior for maintaining top performance. www.climatemaster.com

www.americanstandardair.com/products/ air-conditioners/platinum-20-air-conditioner/

CARRIER, INFINITY® 24 HEAT PUMP WITH GREENSPEED® INTELLIGENCE

Infinity® 24 Heat Pump With Greenspeed® Intelligence ran in our August Product Focus. Another choice that tops every ‘best of ’ list in 2023, we can now add it as one of HVACR Business Best of 2023 Product Focus. Known for its focus on energy efficiency and clean climate design, this innovative brand is known for its next-gen technology. Greenspeed intelligence pairs adaptable-speed technology with the Infinity® System Control. The unique, variable-speed compressor adapts its output to the needs of the home. With tiny adjustments, it outputs only the amount of cooling or heating necessary, offering incredible energy efficiency, quiet operation, and temperature control. www.carrier.com

HVACR BUSINESS

DANFOSS OIL-FREE CHECK VALVE The Danfoss Oil-Free Check Valve (OFC) brings even greater functionality and efficiency to Danfoss Turbocor® compressors. We chose the Danfoss OilFree Check Valve for HVACR Business Best of 2023 Product Focus for a commitment to pioneering oil-free technology and ways to reduce energy consumption. Designed specifically for an oil-free environment, the valve delivers a discharge solution that improves the performance and reliability of oil-free centrifugal compressors. Because the oil management system can be removed when using the OFC valve, the Turbocor compressor allows for a more energy-efficient chiller that will last throughout the lifetime of the compressor with minimal maintenance and no performance degradation. www.danfoss.com

DECEMBER 2023

JOHNSON CONTROLS YORK® YH2F 15.2 SEER2 1- AND 2-STAGE HEAT PUMP Recognized in Good Housekeeping’s 2023 Home Renovation Awards, we just ran this product at the end of the year, but we would be remiss to exclude it from the list. Like the other top products in this product focus, it has been named as the ‘best of ’ nearly everywhere that recognizes HVAC products. So, we include the YORK® YH2F 15.2 SEER2 1- and 2-Stage Heat Pump as one of HVACR Business Best of 2023 Product Focus. These YORK® YH2F heat pumps are recognized for their superior performance in energy efficiency, improved (IAQ), quiet operation, and durability. www.johnsoncontrols.com

www.hvacrbusiness.com

As the year ends, we wanted to recognize some of the great products that we have highlighted throughout 2023 in our Product Focus section. While we wish we could choose all the incredible products, our list includes selections that we thought warranted a recap.

LENNOX SL28XCV AIR CONDITIONER, DAVE LENNOX SIGNATURE® COLLECTION Lennox is consistently named the best and this year again named in the top ten by Bob Vila, Forbes – the list goes on. So, we are adding Lennox to our HVACR Business Best of 2023 Product Focus. Known for customer rating, price, energy efficiency, and design, this brand consistently makes the best in every category. This year our pick is the SL28XCV air conditioner from the Dave Lennox Signature® Collection and part of the Ultimate Comfort System™. The Ultimate Comfort System works seamlessly together to deliver nothing short of perfect air. www.lennoxair.com

MALCO’S ANDY™ OFFSET SNIPS 12”

2023 Pro Tool Innovation Award Winner, Malco’s Andy™ Offset Aluminum Handled Snips 12” was introduced in early 2023 and ran in our August Product Focus. As one of our only tools choice, trade pros choose it for its ability to make longer, tighter, higher-quality straight and left-curve cuts in many types of materials, including sheet metal, metal roofing, aluminum, stainless steel, steel siding, vinyl, and more. That is why Malco’s Andy™ Offset Snips 12” is our choice trade tool for HVACR Business Best of 2023 Product Focus.

TRANE® PRECEDENT® HEAT PUMP PACKAGED ROOFTOP UNITS WITH SYMBIO® 700

www.yellowjacket.com

www.trane.com

www.hvacrbusiness.com

The RP 241 is the latest tool in the RIDGID Compact Press Tool family. This lightweight, lowprofile tool is ergonomically designed to help you easily work overhead and in tight spaces. The RP 241 is compatible with all RIDGID Compact Series jaws, rings, and actuators. Another company that designs for the contractors’ pain points, we chose Ridgid, The RP 241 for our HVACR Business Best of 2023 Product Focus, for excellence in design and top-rated customer feedback. www.ridgid.com/us/en/rp241-press-tool

www.malco.com

RITCHIE YELLOW JACKET® COMBUSTIBLE GAS LEAK DETECTOR P/N 69310

Always in its own lane, HVAC owners have come to rely on this brand, which is why we have chosen, Ritchie Yellow Jacket® Combustible Gas Leak Detector P/N 69310 as one of HVACR Business Best of 2023 Product Focus – known for its safety, efficiency, and proper operation of residential and light commercial heating appliances. The Ritchie YELLOW JACKET® Combustible Gas Leak Detector P/N 69310 is top-of-the-line in their line of heating season test instruments. Combustible hydrocarbon gas (e.g. natural gases, LPG) measurements are digitally displayed in PPM, % Vol., and % LEL.

RIDGID, THE RP 241

For paving the way in electrification and decarbonization, HVACR Business Best of 2023 Product Focus chose the next-generation, allelectric Axiom Rooftop Water Source Heat Pumps from Trane. The newly designed units, integrate water-source efficiency with leading Trane rooftop models in capacities between 12.5 to 25 tons. The Redesigned Trane® Precedent® Heat Pump Packaged Rooftop Units with Symbio® 700 have been upgraded to create a next-generation offering ideal for companies driving toward decarbonization goals or meeting local electrification mandates.

WEIL-MCLAIN PROTOOLSTM APP

Weil-McLain’s award-winning ProTools™ App continues to support the company’s reputation for excellence. Now available and used on both iOS and Android devices, the app allows contractors and other heating professionals to conveniently access information on Weil-McLain boiler setup, maintenance, and troubleshooting. It bridges the gap between technicians and customers, offers transparency, and allows contractors more data. Weil-McLain leads in data integration to support contractors. For those reasons, we chose to highlight the ProTools™ App this year for HVACR Business Best of 2023 Product Focus. www.weil-mclain.com

HVACR BUSINESS DECEMBER 2023

20QUESTIONS

>> with RICHARD LEWIS

Managing Editor, Heather Langone sat down with the Chief Executive Officer & Founder, of Redwood Services, Richard Lewis. The two discussed partnership, the good people of HVAC, and carving out a niche.

1. Do you have a hobby?

I play basketball. I played college basketball for four years and I’m not yet 40, so I can still get up and down the court. I play once a week at our local community center. So that’s awesome.

2. Beer, wine, or spirits?

Beer. But being from Tennessee – whiskey too.

3. Halloween just passed. What scares you? Snakes.

4. What will your memories be of 2023? 2023 was a very pivotal year for me and the Redwood team. We’ve had several years with tailwinds at our backs, this year we had to learn how to fight through adversity because of mild weather and higher interest rates. It’s been a good learning experience and we’ve adapted.

5. What is your definition of connection?

As we say in our videos, “connection is everything” It’s even our tagline. At Redwood, we understand that our value is combining what you’re good at and what a partner is good at bringing together those things. We have an expression around here – outstanding alone, better together.

6. What makes an entrepreneur stand out among the competition? What makes an entrepreneur stand out is that they’re ready to turn a chapter. Specifically, one of growth and that they care about their people, it’s part of what makes them tick.

7. As the founder of your company, why did you decide to start in HVAC investment specifically?

I’ve spent pretty much my entire career in home services. I spent two years on Wall Street right out of school and hated it. When I moved back to Memphis in 2008, I joined a group called Service Master, which at the time was one of the largest consumer services companies in the country. So this is what I know and love.

8. What is the Redwood growth model? We invest in a majority stake in the businesses that we partner with. But, unlike a lot of other groups and lots of other industries, we don’t buy 100% of a business and take full ownership. We don’t want the owner to become an employee because you just suck the entrepreneurial spirit out of the business. I don’t want to buy your business. I want to invest in a partnership, and you’re going to keep a big chunk of the business. I’m going to have a big chunk of the business, and then we’re going to do it together.

HVACR BUSINESS

DECEMBER 2023

9. You talk about laser-focused coaching. What is it?

We have people who can come in and help coach you on specific problems you may be having. It could be accounting inventory or close rates on your services, we hone in on that. Technicians like the ability to close jobs properly. We have people who can go in and help coach the technicians on how to add value and how to present options.

10. Why is the right partner more important than location?

Having the right partner and the right business always trumps whatever value a specific market provides. We never pick a market and then say we want a business there. We’re looking for good people, good stories, and good businesses. We search for the right opportunity rather than the location.

11. What common denominator do successful owners have?

They set goals for themselves. They have a goal for the year. They know what they’re trying to accomplish and are applying metrics to it. They are holding themselves and their team accountable.

12. What is a culture of accountability? We believe that our business owners should set their own goals and budgets. They all have different growth rates for top and bottom-line results. A culture of accountability is once we say we’re going to do something, we’re going to make bets around that. You have to be accountable. You have to be accountable to yourself and your team.

13. What makes a good partner for Redwood? We look for people who care about their people first. Money is important. But typically, we look for good business in a good market run by good people within a good culture. We don’t care where that takes us.

14. Do partners lose autonomy?

They do not lose autonomy which is why people have gravitated to us. And the niche that we have carved is autonomy. They run the dayto-day operations, and it’s still their brand and their management team. Certain things we do standardize like 401k and healthcare.

15. What drives the decision to partner with Redwood?

There are many driving forces but the common one is they feel like they could go farther faster with Redwood than they could on their own.

16. What is your leadership summit?

Once a year we bring all our partners and their management teams together for three days of networking, breakouts, collaboration, and best practice sharing. And they can bring their spouses and families.

17. What values drive the company?

We haven’t written out a value statement. Partly because I’m afraid that once I put something on a poster or a wall, it becomes just a poster on the wall. I’m a big believer that your vision, mission, and strategy are determined by the decisions you make. For us, it’s about putting people over profits.

18. What does a perfectly aligned partner look like?

I don’t know if I would put the word perfect in front of anything. But we work hard to make sure we’re aligned with all our partners. One of the best ways is to make sure that the financial incentives are aligned.

19. What are your top three goals this year?

To partner with more passionate, strong, likeminded entrepreneurs. But that’s secondary to our main priority, which is to support our existing partners. And I’d like to strengthen our support team. We have some of the best and brightest minds in the industry. I’d like to develop and grow the systems and processes for the team so we can continue to run the business well into the future.

20. Where do you see Redwood Services in five years?

We’re in this for the long haul. So, if we continue to have fun, make a difference, and add value to our partners, this thing can go the distance. Five years from now, I plan to have more partners, be bigger, and continue to create opportunities for the team.

www.hvacrbusiness.com

As much as

70%

lower yearly building energy use

Danfoss is helping to transform building performance by tapping into the huge potential for energy savings that can be achieved through advanced technologies, including variable speed drives, oil-free compressors and pressure independent control valves as well as envelope improvements. By using these innovative solutions we ensure buildings of today are more efficient, comfortable and meet tomorrow’s sustainability targets. Learn more at danfoss.com

WE HELP

Thousands of Contractors Improve their Lives by Helping their Business. Best Practice Group of over 20 Years Successful Contractor Coaches - Industry Leaders Peer-to-Peer Learning & Training Courses Improving Contractors' Lives for the Better.

DECEMBER 2023 / VOL.18 / NO.12

And the awardAnd goesthe to…award goes

Congratulations to the 2023 winners of o Congratulations to the 2023 winners of our Building A Higher Standard Distinguished Deale Building A Higher Standard Distinguished Dealer Award.

Scan to see their stories

Train for success and that’s what you’ll get.

Around Waterloo, Indiana, Gibson’s Heating and Plumbing is known as a business that goes above and beyond for their customers. But there’s a secret sauce behind Gibson’s not-so-secret customer service: Training. More specifically, an on-campus training center where employees can develop their technical and interpersonal skills—ensuring they communicate with customers as skillfully as they install outdoor units. At Gibson’s, they know that building up those around you is a big part of building a higher standard.

Mark Gibson Owner

Visit amsd.us to learn more about joining the American Standard Heating and Air Conditioning family.

Scan to see their stories

From the work truck to the owner’s chair.

Before David Simpson owned Spencer Heating and Air in Auburn, AL, he was an HVAC technician—working long hours and sweating more than any human should ever sweat. But those years in the trenches taught David what it means to “Spencerfy” a job: that’s to work by the book, in a timely fashion, and to the best of your abilities. Since buying the company, David has contributed immensely to Spencer’s reputation as a business that’s building a higher standard.

David Simpson Owner

Visit amsd.us to learn more about joining the American Standard Heating and Air Conditioning family.

Scan to see their stories

Success built on people-first priorities.

Ever since the Hyde family opened Hyde’s Air Conditioning in Indio, California, they’ve believed that employee success is company success. Hyde’s strategy of prioritizing their people has translated to employees in recovery getting a second chance, techs being promoted to managers, and a business that’s flourishing to this day. And while maintaining a high level of excellence is a challenge, they’ll be ready. Because a business that values its people is one that’s building a higher standard.

Barry Hyde Owner

Visit amsd.us to learn more about joining the American Standard Heating and Air Conditioning family.

Mark Hyde Owner

Mike Hyde Owner

Scan to see their stories