HVACR BUSINESS AUGUST 2023

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Your customers have enough problems. But with a reliable, easy-to-use heating and cooling system from American Standard, they (and you) have one less thing to worry about.

FEATURES

6 Remaining A Small HVAC Shop in A Large Market

Remaining a local, small business can be an advantage. Hoover examines ways to leverage staying small.

By Martin Hoover

8 Team Building Tips to Prepare for the Busy Season

Part 1 of a 2-Part Series

Team building during the busy season boosts morale and leads to success.

By Justin Carrol

11 HVAC Industry & Product Trends Into 2030

Understanding industry trends today leads to future success.

By Heather Langone

16 Conflict Isn’t a Threat. It’s an Opportunity.

Training managers in conflict resolution and how viewing conflict as an opportunity can lead to growth.

By Laura Sukorokoff

COLUMNS

19 Preparing Employees for Ownership Strengthens Business

Strengthen the core foundation of your business to prepare for sale.

By Keven Prather

20 Don’t Recognize Sales as Revenue

In this month’s column, King stresses the important distinction between sales and revenue.

By Ruth King

FORWARD MODE.

Bringing thoughtful innovation forward to every community.

From coast to coast, we’re delivering sustainable solutions. With a growing number of specialty companies under the Modigent name, we offer a comprehensive suite of capabilities and provide solutions that create safe, intuitive, future-proof workplaces, and enable each of the communities we’re in to flourish.

DEPARTMENTS

5 Publisher’s Page | Man in the Mirror

Terry Tanker asks you to go back to the beginning and examine what excited you about going into business for yourself.

Terry Tanker

4 MRS | Success Secrets

The month is about success. It includes more books and podcasts and features our own Colleen Keyworth and Keven Prather.

21 Product Focus

22 20 Questions with Jamie Vaughn

Owner of Jay’s Heating, Air & Plumbing

Management Resource Shelf

SUCCESS SECRETS

The idea of success, wherever you sit on the spectrum, can seem like an inside job especially as you strive to reach the next level. To help, we sifted through a list of excellent books and podcasts to find you this month’s top choices. And, we struck gold! Not only are there three books, an audiobook, and two podcasts for your learning and enjoyment, but we included a 2023 podcast for HVAC owners that featured one of our columnists Colleen Keyworth, Director of Sales and Marketing at Online-Access, and a brand new book by our resident legal expert, Keven Prather.

True North: Leading Authentically in Today’s Workplace, Emerging Leader Edition

Bill George and Zach Clayton

In True North: Emerging Leaders Edition, renowned leadership expert Bill George and Millennial tech entrepreneur Zach Clayton issue the challenge to emerging leaders― from Gen X to Millennials and Gen Z―to lead their organizations authentically through never-ending crises to make this world a better place for everyone. Emerging leaders do so by discovering their “True North”―who they are―and then finding their “North Star”― their leadership purpose.

https://www.amazon.com/True-North-AuthenticallyWorkplace-Emerging/dp/1119886104/

Atomic Habits

James Clear

James Clear is a writer and speaker focused on habits, decision-making, and continuous improvement. He is the author of the #1 New York Times bestseller, Atomic Habits. The book has sold over 5 million copies worldwide and has been translated into more than 50 languages.

https://www.amazon.com/AtomicHabits-James-Clear-audiobook/dp/ B07RFSSYBH/

The Tim Ferriss Show

Hosted by Tim Ferriss

Part entertainment, part business, The Tim Ferriss Show is often the #1 business podcast on all of Apple Podcasts, and it’s been ranked #1 out of 500,000+ podcasts on many occasions. It is the first business/interview podcast to pass 100,000,000 downloads, it has been selected as “Best of” Apple Podcasts for three years running, and readers of Fortune Magazine‘s Term Sheet recently selected The Tim Ferriss Show as their top business podcast. It has now surpassed 900M downloads. https://tim.blog/podcast/

Introducing “The Keys to Authenticity: Unlocking the Code to a Fulfilling Life and Business” with Jack

Canfield

Keven Prather (Contributing Author)

“The Keys to Authenticity” provides you with a practical roadmap to help unlock your personal and professional growth. Discover ways to align your values with your actions, amplify your strengths, and overcome obstacles. You can embark on a transformative journey towards living an authentic life and achieving sustainable success.

https://www.amazon.com/Keys-Authenticity-Nick-Nanton/dp/ B0C4MFJ8D9/

The Personal MBA: Master the Art of Business

Josh Kaufman (Author, Narrator), Worldly Wisdom Ventures LLC (Publisher)

Getting an MBA is an expensive choice - one almost impossible to justify regardless of the state of the economy. Even elite schools like Harvard and Wharton offer outdated, assemblyline programs that teach you more about PowerPoint presentations and unnecessary financial models than what it takes to run a real business. You can get better results (and save hundreds of thousands of dollars) by skipping business school altogether.

https://www.amazon.com/Personal-MBA-10th-Anniversary/ dp/0525543023

HVAC Success Secrets: Revealed

Hosted by Thaddeus Tondu & Even Hoffman

This very popular podcast hosted by Thaddeus Tondu & Evan Hoffman, HVAC Success Secrets: Revealed, offers valuable insights into maximizing your HVAC business. The podcast covers culture, business growth, and strategy to help companies thrive in a competitive marketplace. The episodes cover various topics, from business culture to field management software integration, each through the lens of true HVAC professionals. Anyone looking to maximize their business should subscribe. One of the most recent episodes in June features one of our favorite featured columnists, Colleen Keyworth.

https://open.spotify.com/ show/5r9OMrXzAZWLmhZEoBOGBs

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker

Publisher ttanker@hvacrbusiness.com

HEATHER Langone Managing

Editor

hlangone@hvacrbusiness.com

MEGAN LaSalla Creative Director mlasalla@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net

BARBARA Kerr VP Operations bkerr@hvacrbusiness.com

BY TERRY TANKER

ADVERTISING STAFF TERRY

Tanker

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

Man in the Mirror

Remember the year you became your own boss?

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.

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(ISSN: 2153-2877)

The anticipation, the excitement, and the list of things you wanted to accomplish, and probably have? Now think about today. Still feel the same way? Maybe some of you do, some of you don’t. Experiencing those peaks and valleys is human nature and, quite naturally, over time we return to our neutral baseline. A lot has been written about motivating employees – but how do we, as business leaders, motivate ourselves? I’ve been reading a lot about that lately, and there are thousands of answers to that question.

Is This the Company I Envisioned?

Obviously, this article is intended for those who have lost a little spring in their step. Becoming focused, inspired, and motivated isn’t very hard, but you do have to ask yourself a few key questions. What will keep me engaged short- and long-term? Is the company I envisioned the company I have today? What do “I” want? Yes, it’s okay to ask that question. Maybe the best summary of the questions to ask yourself is contained within a quote by Dale Carnegie, who said, “Success is getting what you want. Happiness is wanting what you get.”

Rediscovering ‘The Edge’

Recently, I found a wonderful book in my office, given to me years ago, called, “The Edge – The Guide to Fulfilling Dreams, Maximizing Success, and Enjoying a Lifetime of Achievement”, by Howard Ferguson. Unfortunately, it’s been out of print for some time. I did do a little research and, if you’re interested, you can still find a few of them on eBay. The book has a lot of great sayings and quotes. Ferguson’s motivation and inspiration were his daughters, Lee and Jackie. The opening paragraph of the dedication page says, “People are inspired by different things and/or different people for different reasons. For me, it was a desire to be

someone special to my two daughters – to be able to stand for principles that would be important to them and to be the type of person they could be proud to call their father.”

In the coming months, I’d like to share more on this topic. I believe the poem, “The Man in the Glass” is an appropriate opener to the series.

This poem was first published in 1934 by Dale Wimbrow.

The Man in the Glass

When you get what you want in your struggle for self, And the world makes you king for a day, Just go to the mirror and look at yourself, And see what the man has to say. For it isn’t your father, or mother, or wife, Whose judgement upon you must pass. The fellow whose verdict counts most in your life, Is staring back from the glass.

You may be like Jack Horner and “chisel” a plum, And think you’re a wonderful guy, But the man in the glass says you’re only a bum If you can’t look him straight in the eye.

He’s the fellow to please, never mind all the rest, For he’s with you clear to the end, And you’ve passed your most dangerous, difficult test If the man in the glass is your friend.

You may fool the whole world down the pathway of years, And get pats on the back as you pass, But your final reward will be heartache and tears If you’ve cheated the man in the glass.

It’s never too early or too late to address your original drive for going into business. It’s also okay to ask yourself, “Do I still want the same things, and do I like the man in the glass?” u

‘Success is getting what you want. Happiness is wanting what you get.’

REMAINING A SMALL HVAC SHOP IN A LARGE MARKET

BY MARTIN HOOVER

Over the years I have seen many companies come and go. Some folded because they never put in the effort that it takes to get a business off the ground. Others worked very hard but didn’t have the discipline to make the tough choices required to survive as a small startup. Still, others grew their companies fast, expanding regionally, only to see it all fall apart as fast as it grew.

From the very beginning, I didn’t want to be a big shop as far as revenue goes. I was more concerned with delivering the best service and developing a strong team. I had the privilege of working for both a great company and a not-so-great company early in my career. Also, I gained the unique perspective of having worked both for companies that treated their people well and for some that didn’t view that as a priority.

A Grassroots Effort Leads to A Strong Following

Like so many others, my wife and I started our company with barely any resources. As small as we were, we believed that we could still treat people well and stay local. We also believed that with enough hard work, business would find a path to our door. It took a bit more effort than originally expected, but we put in the time. We spent many evenings and weekends working the phones and walking neighborhoods canvassing with door hangers along with many other low-cost grassroots marketing ideas to get a small following. Perhaps without realizing it, we were creating a tight little market that has

served us well to this day. After a while, we grew our business to a point where we were comfortable and could provide a good living for ourselves and our little team. We continued to market in our small area within a large HVAC market and have been able to grow steadily albeit modestly within that area. Along the way, we have developed a solid reputation and referral network that has proven to be reliable in good and difficult times.

10 Reasons Why Staying Small Leads to Big Success

Why am I letting you know about my humble beginnings? Many start-ups focus on expansion rather than building a solid

foundation locally. I think that strategy isn’t always the smartest course of action. There are many advantages to remaining a small shop and keeping the service area tight. Incidentally, I am not knocking the big guys or the idea of expansion as a long-term goal, just pointing out why being local can work well for some business owners. Below are 10 examples of just a few advantages to staying small.

1. Windshield time is lower than most companies that service a larger area Our technicians can accrue more billable hours simply by not having to drive all over town. That opportunity is compounded when you have a warranty or return to complete calls. The cost of a warranty call is much less if you don’t have to add an extra hour of drive time and faster to complete calls where parts needed to be acquired to complete a repair. Even something as simple as returning to the shop to pick up materials is less when your jobs aren’t scattered all over town.

Many start-ups focus on expansion rather than building a solid foundation locally. I think that strategy isn’t always the smartest course of action.

2. Establish Your Business as the Local Favorite. Establishing yourself as the local favorite and bolstering that with your presence, has a lot of advantages. I’m sure this strategy can work for a larger market as well, but it seems easier in a smaller territory. Homeowners see each other at the PTA, church, and community events. They talk and many times, ask for referrals. I do realize how valuable digital reviews are but there is something special about good oldfashioned word-of-mouth. Having a constant presence – our trucks are seen around the neighborhood or in the neighbor’s driveway or a resident might see a sticker on their unit – and high visibility, doesn’t hurt either.

3. For the most part, a small established company doesn’t need financing. This is an advantage because you are not giving away a portion of your profit off the top, to the bank. You may need some financing for vehicles and substantial assets in the beginning. However, if you live within your means, in a relatively short amount of time, you can pay for your vehicles as you go. I do realize one of the universal truths is “don’t spend current cash on longterm assets,” but vehicles are not that long-term. And the fact is you will be hard-pressed to earn interest equal to the interest you pay for financing.

4. Marketing is easier in a small market, even if it’s a small territory within a large market. These days you can dial in on a specific geographic area for digital marketing with search, Nextdoor, streaming radio, cable TV, YouTube, Patch, a local publication, or whatever your media of choice is. Compound this with your trucks constantly being seen, your guys eating at local restaurants, or getting gas at the local station, and results will follow.

5. Profitability is easier for smaller companies. I know you have heard there are “economies of scale”, and the big companies, get the best price, but the bottom line is there are principals, investors, and possibly shareholders in the large companies who have very definite ideas on how much they should receive from their investments. If they don’t get what they think is their due heads will roll so no matter how much they save on costs the burden of maintaining that cash outlay is bigger. Which rolls right into the next issue.

6. Small companies often have an advantage in the labor market. Sure, some guys want to work for the big company but I can assure you there are plenty that want nothing to do with that game. The multiple managers and monthly and quarterly forecasts that must be fulfilled at all costs, for many, are a turn-off. The constant push for profits and moment-by-moment sales quotas is not what is going to drive a great technician to feel accomplished and satisfied. Don’t mistake what I am saying – you must track productivity, keep up with your KPIs and run an efficient shop, but a technician who prefers a small operation, wants to know that sales quotas and high-end forecasting are not the be-all-end-all of their value with a company. Being appreciated for skill and character as well as being personally acknowledged for your contribution goes a long way.

7. Another advantage of the labor market is a small company’s ability to offer some great benefits. Using a Professional Employment Organization (PEO) is an easy way to do that if you have five or more employees. Sometimes a contribution to health insurance or some extra PTO or just some consideration in scheduling to allow for family time can make all the difference.

8. Small companies can be more flexible. This means management is apt to be open to change or adding additional services without having to jump through hoops or go through lots of red tape. Want to get into duct cleaning or heat pump water heaters or add attic tents to your offering? It is pretty simple for a small shop to experiment with these things. In the mortgage crisis, we saw our service revenues dramatically increase and our new equipment sales drop. At the end of it all, we kept our revenues right on target with little adjustments here and there. Profits were great. Some in the new construction side folded quickly or had to recover from huge losses as builders went bust because they couldn’t pivot easily.

9. Small companies can deliver more personable customer service. A simple note of appreciation from the owner to key customers or the owner dropping by a work site can make a huge impression and it’s something the larger companies just can’t do. The momand-pop, old-fashioned, personal touch, often goes a long way these days.

10. Small companies can make decisions immediately. Typically, there is no bureaucracy. In most cases, technicians and managers are empowered to make decisions without consulting management as there is usually only one level of management, and most situations have already been seen and handled before.

So, if you want to go big then by all means do it. However, if you choose to remain small don’t feel like you are at

a disadvantage. Recognize the unique opportunity you have to offer your customers and your team members personalized, local service. It’s not about how much revenue you generate. It’s about delivering the best service that allows you to keep the most money and offers the most fulfillment and satisfaction while on the journey of building your own strong and profitable company. u

Martin Hoover is the Co-Owner of Empire Heating & Air Conditioning, an Atlanta-area business that he co-founded in 1985. The company specializes in heating and cooling sales, service, design, and installation for residential and light commercial applications. Martin has served in several industry leadership positions at the local and state levels in Georgia. He was the president of both the Metropolitan Atlanta Air Conditioning Contractors Association and the Conditioned Air Association of Georgia. He is currently serving on the Board of Directors for the Air Conditioning Contractors of America (ACCA) and currently serves on the Executive Committee. Learn more at www.empirehvac.com

Windshield time is lower than most companies that service a larger area. Our technicians have the opportunity to accrue more billable hours simply by not having to drive all over town.

TO PREPARE FOR THE BUSY SEASON TEAM BUILDING TIPS

PART 1 OF THE SERIES

BY JUSTIN CARROL

Please allow me a moment to preface what you’re about to read. I know there are a fair amount of home services businesses that buy popsicles, water, chips, and electrolyte drinks for the busy season, and feel like they’ve earned the right to expect their team members to put in sixty or more hours per week for several weeks in a row. While those incentives are nice, I wouldn’t put them on the list of the most impactful actions we can take to build team morale during the busy season. Instead, let’s talk about the things that I believe have a significant and authentic impact. Lastly, a whole book could be written on some of the individual topics below. I’ll only be able to scratch the surface on most of them

The busy season for home service companies is one of the most important times of the year to be intentional about team building and creating healthy morale. This is the time of year when our team members are under the most physical and mental stress.

but hopefully, throughout the series, I can deliver enough on the topic to allow you to pick up where I left off. I hope you find this insight effective and use the ideas to improve your business.

Being Intentional, Empathetic, & Transparent

The busy season for home service companies is one of the most important

times of the year to be intentional about team building and creating healthy morale. This is the time of year when our team members are under the most physical and mental stress. When employees feel stressed, the odds are much greater that they will allow negative paradigms about the company or their team to fill their minds. Remember, they’re not only stressed

about what’s happening at work, but if they have people who love them outside of work, those people are likely feeling disappointed at their lack of presence during this highly demanding time which compounds the stress. Negativity is infectious. What sometimes starts with just one person’s complaints, over time can spread like wildfire through an entire organization. During a sensitive time like this, given that the highest productivity is expected, that can be damaging. If we do a good job leading our team through the busy season, we’ll likely end up with a healthy surplus of cash, as well as team member and client satisfaction. If we don’t, we risk the opposite outcome. Part of that preparation and my advice begins here, beginning with making sure the

entire leadership team is empathetic to the stressors of the season and to the work we do as leaders to keep the company healthy. Be transparent about this, especially during very stressful times at least until demand gets back to normal.

How do you make sure this intentional work is effective? There should be planning meetings with the leadership team in preparation for every busy season, every year where the things below are discussed as well as any other relevant topics.

It Starts with Why

As Simon Sinek says, “It Starts with Why”. Your home service company should have a compelling mission in place that motivates your team. A mission that speaks to serving other humans in some way is the most appropriate place to start, especially for our industry. Any mission with this type of focus is usually something that teams will get passionate about. Hopefully, your company has a compelling mission already. If not, it’s something that I suggest getting in place ASAP. There are plenty of great articles and books on this subject including in this publication (https://www. hvacrbusiness.com/news/2022/apr/01/ why-should-customers-do-business-withyou/). Assuming you have a compelling mission, remind the team of the mission

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regularly and use it as the reason why you’re all working so hard.

Teams will rally together around a mission that they believe in, especially when the going gets tough. If written and communicated properly, the mission can play a huge role in giving your team the motivation they need to push through the most difficult time of the year.

The Morale of Each Team Member

A team is a group of individuals choosing to work together to accomplish a common goal. If the individuals each love the company they work for, they’re far more likely to be motivated to behave like team players (selfless thinking), which is what we need from everyone during this time. Therefore, it’s important to regularly consider how the individuals in the business feel about the business they work for and constantly work at improving that morale if we want to have remarkable teamwork and good retention. I won’t be able to give this deep topic any justice here, but the bottom line is, if your morale isn’t in good shape, everything you do in your business is going to feel a lot harder than it should be – that is true, regardless of the season. The busy season will simply amplify any

continued on page 10

Your home service company should have a compelling mission in place that motivates your team. A mission that speaks to serving other humans in some way is the most appropriate place to start, especially for our industry.

The Bluetooth® word mark and logos are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by Rheem® is under license. Other trademarks and trade names are those of their respective owners. Rheem

morale issues that may exist. The most important piece of advice that I can give on this topic here is to try to resolve any individual morale issue that you become aware of immediately (the same day you learn about it). Don’t let it fester. Like cancer, the longer it’s left unattended, the stronger it grows.

Leaders Lead by Example

During the busy season when the field teams are out doing grueling physical labor, the entire leadership and office team should be as committed (internally) and available to help. Few things will kill team morale faster than knowing the leadership/office side of the business isn’t matching the frontline commitment. Many companies make this fatal error whether it be in outside sales departments, customer service, or this case, field service. During this time, find ways to ensure that everyone on the team is giving a similar level of support to the business – that means both within their departments and as a team. The first step to achieving this level of synergy is to talk about how you’re going to accomplish this goal in your planning meeting.

A few ideas that can get you started on brainstorming on this topic:

• Open Door Policy – Leaders are available by phone at all times when they have direct reports in the field.

• Check-Ins – Call or text team members that are out late.

• Provide and Communicate Support – Regularly ask how they’re doing or if you can help them in any way. This must be done genuinely. Your tone of voice and body language should be such that it says you truly care to know and are looking for an answer. When done properly this simple action is extremely powerful and validates team members who are working hard.

• Be Ready with Inventory – Grab things from supply houses for team members to save them time.

• Address Systems and Inefficiency – Look for opportunities to get your teams home sooner or to make their day go more efficiently.

• Review Schedules Daily –Leaders look for calls on the call board that could be pushed to another day or could be a waste of time.

Long story short, when the team feels supported and they can tell through your words and actions that you care about them, they will scale mountains for you. u

Justin Carrol is an esteemed entrepreneur and visionary. His professional journey is characterized by a dedication to personal and business growth, and a mission to elevate lives. Carrol began a career in the HVAC and plumbing industry in 1999 and by 2006, he had founded his own HVAC and plumbing company, Perfect Home Services. In November 2021, driven by an ambition to expand his mission in a more impactful way, Justin made the strategic decision to bring a private equity partner on board. This partnership infused the company with capital and paved the way for further growth and nationwide expansion. In 2023, fueled by his unwavering dedication to the mission of elevating lives, Carrol made the courageous decision to step down from his position. This year he embarked on a new chapter by launching Elevating Lives, a family and team memberowned venture based in Naples, Florida. Carrol’s commitment to his mission, coupled with his strong belief in the power of faith, is reflected in the exceptional reputation of the businesses he manages.

During the busy season when the field teams are out doing grueling physical labor, the entire leadership and office team should be as committed (internally) and available to help. Few things will kill team morale faster than knowing the leadership/office side of the business isn’t matching the frontline commitment.

HVAC INDUSTRY & PRODUCT TRENDS INTO 2030

BY HEATHER LANGONE

As a magazine focused on industry leaders and HVACR management, we continuously tackle change, trends, and product popularity. However, the latest trends, while not all new, are being hailed as significant because of the explosive growth projected in the HVACR industry. What was once considered fads or more niche, based on region or affluence – are now becoming mainstream customer demands. And according to all projected forecasting, there is no expected slowdown in growth into 2030.

HVACR Global Market Growth Sees $367 Billion by 2030

could reach $367.5 billion by 2030. Given this rapid growth, let’s explore what you can expect as small business owners in terms of trends and projections, into 2030.

As You Change, Communicate the Changes

products or technology to them. Remind them that your company is always one step ahead.

1. Smart Homes are Smart Businesses

According to statistics cited by MediaBoom and originally published by Statista, the HVACR industry will continue to experience a boom over the next 10 years with no expected slowdown. In fact, according to an article titled, Trends

in the HVAC Industry – Prediction

Data Driven in June1 , Statista2, projected growth in the HVACR global market

As HVACR owners, it is expected that you stay one step ahead of the latest products. You probably already work with the most innovative vendors and distributors to get the best and newest to your customers. However, it’s important to know what the typical HVACR customer is now trending toward and also, not take for granted that your customers are already in step or that they know what you now offer. Think as your customer might and then communicate any improvements or upgrades in

Make sure that your technicians educate and communicate regularly, especially to your long-term customers. As the industry grows, be transparent with your loyalists so they know of changing popularity, increased demand, and most importantly, your reasons for changing products or prices, especially when it comes to a move toward energy efficiency or the implementation of IoT.

Following are some of the top industry predictions about how HVACR business owners can take advantage of the projected industry expansion and product demand expected to continue into 2030.

According to the SBE and as reported as of June 20233 Smart HVAC Homes are the number one trend. Smart home systems are the first words on homeowners’ lips these days. As the standout want, smart “everything” is the one trend that isn’t expected to slow down. As smart gets smarter and IoT works in tandem with smart home systems, smaller businesses are struggling to stay ahead of this trend. Homeowners now demand security systems, HVAC, and HVAC monitoring all in one centrally controlled app. That leads to the next very popular trend.

2. Internet of Things (IoT) – Making Smart Homes, Smarter

It’s no surprise that with 33M homes using smart thermostats in the U.S. that the trend is growing with 20% of spending increasing on climate control4

continued on page 14

Smart home systems are the first words on homeowners’ lips these days. As the standout want, smart “everything” is the one trend that isn’t expected to slow down.

...not middlemen

It’s about You having the best, most advanced products in the industry. You, with direct access to solutions. It’s You, backed by nearly 130 years of experience.

We are in the Business of You.

and hasn’t slowed down since 2016.

IoT – enabled HVAC units and remote access allow homeowners and residential managers to operate connected systems through Wi-Fi and mobile applications. But specifically, for the HVACR business, IoT allows real-time information about the condition of the systems, alerting techs and customers of potential issues and reducing long-term costs. If you are an HVACR owner, you can utilize this added benefit if you have the technology

by upselling any smart thermostat option. Again, it may require an investment upfront (both for you and the client) but it will add savings over the long term for the homeowner and profit for business.

3. Geothermal HVAC Systems - Commercial Popularity Exploding

Geothermal HVAC is another system that requires a little finessing to convince the dyed-in-the-wool type of customer. There is a significant upfront cost to install Geothermal HVAC, but that is why your intention should always include educating as well as sales. Customers, especially for commercial heating and air, are increasingly discovering and demanding geothermal for its energy efficiency and significant long-term savings. According to The Hill5, and author Charles Copeland, president and CEO of New York City-based Goldman Copeland Consulting Engineers:

Heat waves are more common, longer lasting, and more extreme. That puts added pressure on the electricity grid in America and requires us to think about underutilized sources of renewable energy.

4. DeVAP HVAC – Don’t Assume Customers Know

DeVAP HVAC is the slow-burn trend. As a business owner, you will be well aware of DeVap systems. It’s not new, but don’t make the mistake of assuming customers know. While DeVap has exploded in popularity in the last ten years, it is in the last two years that it is being billed as the Future of Air Conditioning because of the pressing customer and regulatory demand for environmentally safe systems. Still, some customers are just now leaning in. Take the chance to educate and upsell if you know a trend like this is heating up. Mention it within the context of the new zeitgeist, i.e., energy efficiency,

environmentally safe products, etc. Let customers know that DeVap uses no environmentally harmful fluids, only water, and concentrated salt water, and then remind them of the added benefit of cost savings.

We know that regionally, the South and California are the biggest markets for HVACR because of the climate. But recent heat waves everywhere are requiring more attention to energy efficiency. Stay ahead of the growth and be more competitive by educating your customers on the options, given that this trend is projected to grow in popularity.

5. Construction Growth Forcing HVACR VR Training & Innovative Recruiting

Speaking of getting ahead, the industry is facing an even more critical labor shortage in the future with construction growth purported to boom in the next ten years. Smart business owners will recognize the opportunity in this crisis.

According to the report titled, HVAC System Market Size [2023-2030] worth USD 228.74 Billion | Fortune Business Insights6, the global HVAC system market size is projected to reach USD 228.74 billion by 2030 from its value of 157.71 billion in 2023, at CAGR of 5.5% during the forecast period. But also, according to the report...

Growing construction activities that include the construction of theme parks, sports, hotels, government, and private offices… renovation of buildings and the low availability of skilled labor may restrain the HVAC system market growth.

At HVACR Business, we have talked a lot about training and specifically Virtual Reality training. And apparently, we should keep talking about it because according to experts, more and more owners are being forced to take note.

The industry must adapt and start to recruit and train differently if we are to keep up with the demand. While VR training isn’t new, a lot of HVACR companies are legacy companies and still functioning on pen and paper. While the industry is slow to change, this is an

Speaking of getting ahead, the industry is facing an even more critical labor shortage in the future with construction growth purported to boom in the next ten years. Smart business owners will recognize the opportunity in this crisis.

opportunity for newer companies, or legacy heirs who are rebranding, to jump in the gap and make a difference.

In 2022, House Call Pro, said, “New technology, such as artificial intelligence and virtual reality, is changing the heating and air conditioning industry in every way. To keep up, HVAC professionals need to understand how customers are using this new technology.” And we also wrote about the need for the industry to come up with new ways of training in an article by Dan Clapper, Effective Innovative Training to Combat the Labor Shortage, where he talked about VR and emphasized, “Not only is this kind of flexible, customized online training the most efficient way to match educational material with the range of experience and learning styles, but it is also a critical tool for connecting with young talent.”

1 MediaBoom, Trends in the HVAC Industry –Predictions Data Driven in June https://mediaboom.com/news/hvac-industry-trends/

2 Statista, Projected market size for heating, ventilation, and air conditioning (HVAC) worldwide from 2019 to 2030 https://www.statista.com/statistics/414960/globalmarket-for-commercial-and-residential-hvac-systems/

3 SBE, HVAC Industry Trends You Need To Know in 2023, (June 2023)

4 IPropertyManagement, Home Improvement Industry Statistics (May 2023) https://ipropertymanagement.com/research/ home-improvement-industry-statistics

5 The Hill, Charles Copland, (Sept. 2022) https://thehill.com/opinion/energy-environment/ 3661392-growing-heat-waves-make-geothermalenergy-vital-to-reducing-grid-demand/

6 Fortune Business Insights | HVAC System Market Size [2023-2030] worth USD 228.74 Billion | Fortune Business Insights, (June 2023)

https://www.globenewswire.com/newsrelease/2023/07/12/2703405/0/en/HVAC-System-MarketSize-2023-2030-worth-USD-228-74-Billion-FortuneBusiness-Insights.html

For any information in this article or more on any past HVACR Business articles, you can find it all in our digital archives. And be sure to subscribe now to get all this and more and to gain exclusive access to more industry news and product information in our monthly newsletters. u

HeatherLangone is Managing Editor at HVACR Business Magazine.

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There is a significant upfront cost to install Geothermal HVAC, but that is why your intention should always include educating as well as sales.

CONFLICT ISN’T A THREAT. IT’S AN OPPORTUNITY TO LEARN.

BY LAURA SUKOROKOFF

Poor managers – and I’m not rolling my eyes as I type this— for I believe managers have one of the toughest jobs in leading people. One of the tough things they must do is lead their team members through and to conflict resolution. Most are not particularly good at it. After all, they don’t even like giving negative feedback never mind dealing with existing conflict. But dealing with it can result in so much worse. Seldom do conflicts ever just disappear. Ignoring them isn’t the trick. Rather, they must be faced, head-on, and dealt with. Ugh…

Who Among Us Likes Conflict?

Raise your hand—do you like dealing with conflict? Nope? Not a surprise. But managers can’t fear conflict. Why? Because it’s a fact of life within a work environment no matter how healthy and synergetic the culture. Important to note, conflict doesn’t always present itself as a big fight or blow-up between team members.

Let’s look at what conflict is, and then we can start figuring out ways to deal with it.

Types of Conflict

Conflict can arise based on a difference of opinion, pushback, or disagreement. Anywhere there is feedback and human interaction, you will find conflict – attributes inherent in day-to-day management. Learning key management resolution strategies is key to maintaining a better company culture.

Consider the following key responsibilities which will almost always elicit some type of conflict, hopefully not every time, but at least occasionally.

• Employee evaluations

• Budgeting and resource allocation

• Scheduling

• Task allocation (i.e., who does what, and why they were chosen)

• Accountability

• Feedback and corrective action

While managers can’t avoid these tasks as a general rule, the ability to successfully resolve conflict is paramount to effectively managing a team. How well conflicts are resolved depends on your ability to:

• Manage stress quickly while remaining alert and calm. By staying calm, you can accurately read and interpret verbal and nonverbal communication cues.

• Control your emotions and behavior. When you’re in control of your emotions, you can communicate your needs without threatening, intimidating, or punishing others.

• Pay attention to the feelings being expressed as well as the spoken words of others.

• Be aware of and respect differences. By avoiding disrespectful words and actions, you can almost always resolve a problem faster.

All conflict mediation and resolution management involves a certain amount (more is better) of EQ (Emotional Intelligence). Managers must be able to manage their feelings but also understand the feelings of others, or at least try. This begins with being aware of their own emotions and triggers. Managers who react without thinking first, risk escalating conflicts into areas they’d rather not visit. By being calm and focused, and staying in control of emotions and reactive behavior, managers can better communicate in a way that leads to resolution, versus escalation.

Speak to Motivation

Once they have a clear picture of what is truly important to the person or people involved – what motivates their actions –managers can then use that information to form a strategy for interesting and

Learning key management resolution strategies is key to maintaining a better company culture.

influencing others to listen to their ideas. EQ is not about giving others everything they want. Sometimes that is not what’s best for an organization or team, or even the individual. EQ is about hearing and understanding them, and then about doing what’s best. Bear in mind, this may mean being open to what an employee proposes rather than what the manager originally thought was best. Hence, the idea of being open and aware of feelings, and respecting differences in opinion should include being open to those being managed.

Put On Your Oxygen Mask First

Okay, that’s the prework. Managers – the key is to always first get control of emotions before working with others to find the solution to the conflict.

Now let’s look at how to address the conflict itself.

Here are some great tips for managing conflict and driving toward resolution:

(Source: Clarke University)

• Accept conflict. Conflict is a natural part of life, never mind business. It happens in every relationship and offers us an opportunity to grow, reach new understandings, and improve communication.

• Be a calming agent. Your response to conflict can make it better… or worse. Therefore, be calm. Provide an objective or neutral view when working with others in conflict. Plan how you will work with the other party (parties) to resolve this.

• Use your active listening skills. Pay attention and focus on the other party. What are they telling you? How do they feel? What is the impact of actions taken? What would they like to come out of it?

• Analyze the conflict. Clarify what the specific problem is. Ask about what triggered it and what is causing anger or confusion. Dig into key issues and listen to what is being said or what isn’t being said.

• Watch your language. This doesn’t necessarily mean profane language—although that might apply—but also refers to accusations, name-calling, and exaggerations that make things worse. Rather than sinking into this type of dialogue, state what you need to state in a more objective way that communicates information useful for future discussions.

• Focus on the problem, not the person. Viewing the problem as a specific set of circumstances will

help to avoid the accusatory language mentioned above. This approach can also help to manage the problem and reduce feelings of “not being able to stand that person any longer”.

• Move away from blame and toward working together. Each person must take ownership of their share of the problem. Making commitments to working together and listening to each other can help to solve the conflict.

• Accept differing points of view. Demanding “the truth” or one right way can lead to ongoing battles. Truth is relative to the individual’s point of view. Rarely do people agree on every single detail.

• Share your WHY. Sharing interests and whys behind each party’s position can lead to working together to find common solutions that satisfy those interests.

• Be creative. Sometimes finding a resolution means being creative and thinking beyond what is usual.

continued on page 18

Clarify what the specific problem is. Ask about what triggered it and what is causing anger or confusion. Dig into key issues and listen to what is being said or what isn’t being said.

continued from page 17

• Be careful not to just give in. After all, agreements reached too quickly usually don’t last and might lead to resentment. Also avoid the “my way or the highway” approach that managers so often employ, unless it’s truly the last resort. Do some brainstorming to come up with creative solutions that will work for everyone, including the company.

• Be specific. Clarify anything ambiguous and subject to interpretation. You want everyone on the same page.

• Create a plan for the future. Don’t dwell on what has happened in the past. Be future-focused and create a plan to address this specific conflict and others that could arise in the future.

Here are some more ideas taken from an amazing TED talk given by Nadia Lopez, who is a middle school principal in Brooklyn. It’s a short talk and well worth a listen.

Following are Lopez’s ways to dial down conflict:

• Be vulnerable. Being open and honest with your team or the person you’re in conflict with demonstrates you are open and trustworthy. Sharing where you struggle fosters a sense of understanding and support. This is far more impressive than pretending you’re a fearless, all-knowing manager and your way is the only way.

• Be aware. Stop and ask yourself why your idea isn’t working. Face-to-face conversations are important here. This isn’t something to handle via email or Slack. Hold yourself accountable to do what it takes to move forward.

• Center yourself. Leaders deal with challenges from all sides. It’s important to be a calm and rational mediator. Writing things down and/ or taking time to reflect before acting helps put things into perspective and can help you decide if something is

worth the fight.

• Manage mediation. If you’re put into the role of managing the conflict, lay out what you expect from others in the conflict i.e. protocols and rules of engagement. Create a safe space for open and honest communication. View the problem as a specific set of circumstances.

• Listen deeply and actively. It’s really important to acknowledge the feelings of others. Show that they’ve been heard by using active and reflective language. Be compassionate and empathetic.

• Acknowledge, respect, thank, repeat. Thank the people involved for their willingness to work things out. Acknowledge their part in the resolution and show how much you respect their contributions. Recognizing a person’s dedication and skills in conflict calms troubled waters.

Finally, as leaders, we must understand managers need help with all aspects of managing people—including conflict. Support the soft skills development of your people-leadership team with training and coaching. There is a slew of resources available, and we’re happy to help. u

Laura Sukorokoff has always had a passion for soft skills and what they can do to transform business. Her company, Take Charge Learning, takes the message of soft skills (or, as she prefers to call them, power skills!) to businesses everywhere, with a special focus on the world of skilled trades. Laura is an entrepreneur, an author, an inspiring and engaging facilitator and speaker. Her book, It’s Not Them, It’s You: Why employees break up with their managers and what to do about it, explores the subject of connection and its transformative power in the workplace.at HVACR Business Magazine.

Leaders deal with challenges from all sides. It’s important to be a calm and rational mediator.

PROVIDED BY KEVEN PRATHER, CFBS FINANCE

Preparing Employees for Ownership Strengthens Business

No matter how you define business success, one thing is constant: When everyone is rowing in the same direction, it’s much easier to reach the destination. As you grow your business, you’ll likely find that the stronger your internal people and processes are, the more options you have to achieve success.

Today, we’ll examine some of the potentially positive consequences of preparing your key employees for an ownership stake. Whether your longterm plans are to sell your business (to employees or a third party) or stay forever, prepping your key people for possible ownership can position you for greater success.

An Ownership Stake Can Increase Motivation

Key employees are often drivers of sustainable and scalable business success. A key employee is someone who tangibly contributes to the success of the business above and beyond expectations. By nature, they tend to be ambitious and take immense pride in their work.

Keeping these people focused and motivated is a crucial first step in strengthening your business now and for the future. An ownership stake can encourage that focus and motivation.

However, not all key employees are interested in ownership. They may be more interested in incentive plans for taking on elements of ownership. It’s therefore essential that you identify what will best motivate your key employees as you train them to take on more responsibilities.

Once you’ve identified key employees and confirmed their interest in some kind of ownership, you can begin enticing them to commit to your company in the long term.

For example, you might offer them an actual slice of ownership. You could tie their compensation to written, ambitious,

realistic performance standards. If you offer them something like potential future ownership that keeps them committed to your company, it can improve processes and create alignment in how everyone defines company success.

When everyone’s aligned on how to define company success, it can make your company stronger and more stable, which can increase its value.

Sweeten the Deal, A Bigger Slice of the Pie

Preparing your best people for more responsibilities can also give them more opportunities to reap bigger benefits. For example, as your company grows, your key employees’ stake in it may also grow. That can lead to more money, prestige, and opportunities for all.

Even better, it can give you the option to sell your business directly to them in the future. For many owners, keeping the business in the hands of people they trust is

important. When the people you trust can run the business and still put you on the path to financial independence, it can give you more options to pursue success, inside and outside the business.

When your key people are successful in growing the company (the “pie”), you are likely to feel good about sharing some of that with them.

Focus on Fundamentals

Finally, preparing key employees for ownership can increase the likelihood of stronger outside offers to purchase your business. Because your key employees have taken on more responsibilities, and because they essentially run the business, you may be able to entice third-party buyers to purchase your business on your terms.

To third-party buyers, the best kind of business is one that doesn’t rely on any single person for its success. If your company functions well without you— due to preparing your key employees for

ownership—it may become more valuable. That can open up new possibilities for you to define and pursue success— financially, professionally, and personally.

But, if your key employees financially can’t or simply don’t want to own the business, you can still reap the benefits of preparing them for that scenario.

Adopting an Ownership Mindset

You need to understand what motivates your key employees to stay with your business in the longer term. Once you’ve established those motivators, you can begin training them to prepare for the responsibilities of ownership, or something that looks a lot like it.

Whether those responsibilities manifest as actual ownership, phantom (synthetic) ownership, lucrative compensation plans, or something else, preparing your people to operate from a mindset of ownership can strengthen your company, now and in the future.

We strive to help business owners identify and prioritize their objectives concerning their business, their employees, and their family. 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.

Whether your long-term plans are to sell your business or stay forever, prepping your key people for possible ownership can position you for greater success.

BY RUTH KING FINANCE

Don’t Recognize Sales as Revenue

Sales and revenue are different but unfortunately are used interchangeably. If you report sales instead of revenue on your profit and loss statement, it might be wrong. Why?

A Sale is a Sale is A Sale

A sale is a sale. Revenue is that portion of the sale that is billed and accounted for. If your company collects all sales COD, then revenue equals sales each month. Most companies have maintenance revenues and maintenance sales which are upfront payments for future work and not revenues at the time the maintenance plan is sold.

Here are examples where sales and revenues are not equal.

1. Example A – A project that takes 4 months to complete

You sell a $1 million project which is to be completed over 4 months. The sale is $1 million. The entire $1 million does not appear on your profit and loss statement the month that it is sold unless the entire project is completed in a month. If the entire job is completed in a month, sales and revenues are the same.

If the project is performed over a period of months, generally the project is billed over several months.

The revenue, which appears on your profit and loss statement, is the amount that is billed for that month. The total revenues, over the period that the project is completed, equal the sale amount. If the project takes 4 months from start to finish, and a quarter of the project is completed each month, then the revenues that are accounted for on your profit and loss statements are $250,000 a month… not $1 million. The expenses incurred to produce those revenues are also in the same month.

2. Example B – A maintenance program paid in advance (or on monthly billing)

Assume your customer pays you $250 each January for their maintenance plan. The maintenance is performed in April and October.

The sale is $250. It is NOT revenue. The sale is recorded as a $250 deferred income on your balance sheet rather than a $250 sale on your profit and loss statement.

Financial Fruit Salad

So, if we look at that example again, in it we can see that you received money for work you have not performed yet. This is a liability to perform work.

When you do the first maintenance in April, your liability to perform is cut in half. $125 is now recognized as revenues on your P&L and your deferred income is cut in half.

In January you have revenue with no matching expenses. In April and October, you have expenses with no offsetting revenue.

If you were to account for the maintenance sale in January, then in all three months you would have a financial

statement fruit salad. January’s profit and loss statement would look better than it should (higher profits because there are revenues and no expenses incurred in producing those revenues). April’s and October’s profit and loss statements would look worse than they should (lower profits because there are expenses and no revenues to offset those expenses).

You must recognize the revenue in the month you performed the activities. If you don’t match revenues with the expenses incurred producing those revenues, you have financial fruit salad. This is where you account for revenues in one month, the apple month, and expenses in another month, the orange month. When you job-cost those jobs and analyze your financial statements you have apples and oranges, i.e. fruit salad.

With financial fruit salad, your gross margins are not consistent. They can be negative in the months that you purchase a lot of material and equipment which is not considered inventory and has not been used on jobs. Consequently, you have no idea whether the company is truly profitable.

In addition, counting sales as revenues is why I often hear the complaint, “We’re busy and losing money.” If the maintenance program is priced and accounted for properly, you’ll be busy and at least breaking even because the revenue and expense are accounted for properly.

Accounting for Maintenance Service Properly

Here’s how to account for maintenance properly. You’ll need a maintenance savings account in current assets and a deferred income maintenance account in the current liabilities section of your balance sheet.

Looking again at Example B above:

• January: Debit your savings account for $250 and credit deferred income maintenance for $250

• April: Debit your deferred income maintenance account for $125 and credit maintenance revenue for $125

• October: Debit your deferred income maintenance account for $125 and credit maintenance revenue for $125

Your balance sheet should always show the maintenance savings account amount equal to or greater than the deferred income maintenance account. Make sure that revenues, not sales, are recorded on your profit and loss statement. This will help ensure consistent gross margins and help avoid financial statement fruit salad. 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.

You must recognize the revenue in the month you performed the activities. If you don’t match revenues with the expenses incurred producing those revenues, you have financial fruit salad.

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GOOGLE

The Nest Learning Thermostat is the first thermostat to get ENERGY STAR certified. It learns what temperature you like and builds a schedule around yours. And independent studies showed that it saved people an average of 10% to 12% on heating bills and 15% on cooling bills. So in under two years, it can pay for itself. The newest thermostat works with 85% of systems. Some systems, including heatingonly, cooling-only, zone-controlled, and heat pump systems require a Nest Power Connector or C wire. store.google.com/us/product/ nest_learning_thermostat_3rd_ gen

CARRIER

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COPELAND

The all-new E3 controller builds upon the foundation of the industry standard E2, adding a built-in touchscreen display and integration with Emerson’s supervisory control software. This significant upgrade delivers a userfriendly, web-accessible interface that enables control over critical building and refrigeration systems, including compressor groups, condensers and walkin units, HVAC and lighting systems — all while giving end users a true, drop-in replacement for their E2. The powerful supervisory control platform is the realization of decades of innovation and ongoing customer collaboration. It’s designed to deliver the control you need to fine-tune your operations today and a flexible, open architecture to scale with your future business needs.

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DANFOSS

Danfoss introduces an updated series of mechanical thermostatic radiator valve operators designed to meet demands for greater energy efficiency and customer needs. The new Aveo™ thermostatic radiator valve operators are ideal for multi-family/-tenant buildings, such as apartments. To help customers adjust room temperature more precisely, the Danfoss Aveo™ also features a tactile temperature setting, providing a subtle click feeling for every 1 °F (0.5 °C) change in temperature. The Aveo™ thermostats help customers save money in other areas as well. An anti-theft plug-in accessory offers additional protection for the Aveo™ thermostatic operator.

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GPS INSIGHT

GPS Insight offers their GPS field service management tracking product, FieldAware which digitizes every field service work order — from the time it’s created to the moment it’s invoiced to the customer. Eliminate lost jobs, delight customers, and eradicate illegible work orders, giving your business real-time visibility and accurate data. With one tap, field techs and engineers receive all the info they need to complete a job. Track jobs from anywhere, so everyone has the same data. Integrate with ERP, CRM, and accounting systems for full transparency from the back office to the field.

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HEATCRAFT

Heatcraft Refrigeration Products, a manufacturer of commercial refrigeration equipment and systems as part of Lennox Commercial, now offers expanded capacity, at up to 250 refrigerated tons, for the eCO2BoostTM Transcritical Booster System.As an integral component of Heatcraft’s suite of low global warming potential (GWP) solutions for cold storage, the eCO2BoostTM Transcritical Booster System uses natural, environmentally friendly, and energy-efficient carbon dioxide (CO2) refrigerant, delivering top performance and reliability. Compared to traditional hydrofluorocarbon (HFC) systems, the typical eCO2Boost Transcritical Booster System is expected to cause 98% less global warming impact with an energy cost 6-10% lower and a total cost of ownership 5-10% lower.

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TACO COMFORT SOLUTIONS

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Publisher, Terry Tanker sat down with Jamie Vaughn, Owner of Jay’s Heating, Air & Plumbing, to talk about early beginnings, rebranding, and expansion.

1. How did you get started in the business?

I started early (laughs). My grandfather was in business, and I have a picture of me carrying his tool bucket on a job when I was six. My father followed my grandfather, I followed my dad, and my son is now with the company. At one point we had four generations in the business which made us all very proud.

2. Congratulations on being a Tops In Trucks winner. How many vehicles are in your fleet?

There are nineteen vehicles in total. We have Chevys, Nissans, GMC, and Rams. There is an assortment of vans, pickups, and box trucks.

3. Why did you decide to rename and rebrand?

Over time, I discussed our brand with trusted associates at professional contractor events. An advisor said, “If a customer sees you, they may remember you. They may know who you are. But your current branding doesn’t portray the professionalism you bring to the market. That struck home with me, and I realized it was time to make a change.

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

We formerly operated under J’s HVAC Unlimited, LLC. “J’s” represented my family’s names, Jamie, Joanie, Jackson, and Julianna. With help from our designer, the jaybird mascot in the design allowed us to create a sleek and simple design that stands out in our community.

5. How did you choose the colors for your company logo and fleet design?

After we came up with the new logo for “Jay’s” we wanted to go with a color scheme that would enhance the blue. After combining other various color palettes with the blue, we found the orange and blue combination to be vibrant and happy.

6. When was this design implemented?

Our journey of rebranding and creating a new logo began in Spring 2022. Our first truck with the new logo went on the road in August 2022.

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

Yes, it was an entire company rebranding which also incorporated the fact we expanded into plumbing.

8. Where are you positioned in the market?

We are the leader in our market, and it’s crowded. We’re in Mount Airy NC. It’s a smaller market, probably 10k-12k people. But there are close to 80k countywide.

9. Do you have plans to expand?

We’re right at the Virginia and NC border. We service both states, within a 60-mile radius of our office. We plan to open additional offices deeper into Virginia, or maybe another location closer to Charlotte.

10. You decided to expand into plumbing – Why?

We were giving away too many customers. Customers would ask if we offer plumbing services. At the time we didn’t and would refer them to another company. The problem is that the referral came with an expectation to deliver the same quality of product and service Jay’s delivers and many times the quality wasn’t up to our standards. In the end, I decided it was a good business for us to be in. And we could deliver the 5-star service we’re known for.

11. How long did the rebranding process take?

It was one year from start to finish. We met with the design team in February, started wrapping the fleet in the fall, and finished the office integration in March.

12. What was your total investment? It’s very close to $250,000.

13. Did you have a set budget before you started?

Yes, it was a hundred thousand dollars, but as we got going, we decided to do more because we liked it so much. As I mentioned we did the office, signage, uniforms – everything.

14. How did you communicate the rebranding to your employees?

I introduced it during one of our team meetings. I explained the rationale which included wanting to make it fun and a reason for camaraderie.

15. Were the employees involved in the process?

They were. We have a chat room where we’re always going back and forth, celebrating the little wins of the day, “Hey, so-and-so sold this job. We just got a fivestar review.” I used the chat room to

showcase three designs that I thought would work. And I asked for their input. I wanted them involved in the design process.

16. How did your employees respond? We wanted them to help with the design. Allowing them input made them feel as though they were a part of the process. Their opinion matters to me. In the past, there wasn’t any excitement about putting on the uniform but now there is. Newfound enthusiasm includes not only wearing uniforms but also driving around our service area in the newly wrapped fleet, and having pride in the office.

17. What was the most challenging aspect?

Toward the end, just putting the finishing details on everything was a lot. I’m not a detailed person more of a big-picture person. And, when you do something this significant, there are so many details that must be covered. Many of them you expect, and many others that arise as the project unfolds.

18. Have you seen a return on this investment?

Yes, we are starting to see a return on the investment. We track our marketing, as well as ask our customers how they heard about us. If they use the tracking number, it populates with the call. We like hearing how they heard about us. Some tell us they have seen our vehicle either on the highway or in their neighbor’s yard.

19. How have customers responded to your fleet design?

Our former design was fire and ice, a very busy design. We had people in our community that did not know what HVAC represented. They would tell us they could not read the number. While they did notice us, the fact they could not relate to the service of our business, or read the phone number, was an issue. Our customers love the new design. Some of our staff have been stopped by community members (while at other businesses) with feedback on how much they love the new design. Other businesses have also expressed the same thing.

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

The design is simple, sleek, vibrant, eye-catching, happy, and inviting. It is more than just the name, the list of services, and the phone number on a vehicle. We are the only HVAC company in our local community with wrapped vehicles.

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