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6 Positive Indicators that HVAC Service Business is About to Heat-Up

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Having your own HVAC company can potentially be very lucrative. However, it can be very difficult to get started. The overhead costs of owning a HVAC company can be quite expensive. Additionally, it can be very difficult to attract clients if you have never started a business before. Fortunately, we are here to help you. If you are starting a HVAC company, then you should definitely consider contacting us. We will be able to help you attract clients and reduce your overhead costs. We will also be able to help you retain clients, which is one of the keys to running any type of successful business.

NEW MENU PRICING IS HVAC, PLUMBING & ELECTRICAL INDUSTRY GAME-CHANGER.

NEW MENU PRICING IS HVAC, PLUMBING & ELECTRICAL INDUSTRY GAME-CHANGER. 
Contractor Profits Soar with “Options-Done” Tools; New Website Details How System Works.

It’s been the bane of HVAC, plumbing and electrical work for at least two decades: Technicians pressured into being salespeople, acting outside their comfort zone and contrary to their core values. The industry has invested more than $100 million to get techs to upsell and close on service calls. The result? Technicians have fled in droves, and both contractor costs and consumer prices have risen considerably. It’s a business model that’s impossible to sustain and one that does more harm than good. Thankfully, there’s a new kid in town—The New Flat Rate—with a proven approach that honors both technicians and consumers, making the industry stand up and take notice.

“I realized that consumers were more than willing to buy if contractors could just find a way around high-pressure technician sales tactics,” said Rodney Koop, founder and CEO of The New Flat Rate. “We hung out at big box retail stores for hours watching consumers make purchases quickly and with no apparent stress. What’s more, no employees were attempting to ‘sell’ anything. The stores simply displayed good, better and best options in each product category, and consumers chose for themselves. We set out to replicate that experience.”

The New Flat Rate is a no-pressure, advanced add-on system of menu pricing that does the work for technicians—taking sales talk out of the equation and replacing it with straightforward, tiered options that put the consumer in control—all the while, substantially increasing service call close rates and profits.

“In today’s society, people want choices. They want to pick what they want, not what a salesman sells them. That’s exactly what we’re doing with The New Flat Rate,” said Nathan Copeland, sales manager with Copeland and Son Air Conditioning and Heating Service in Nashville. “After just one year, our average service ticket has gone up 43 percent. We believe 2014 will be our best year ever.”

“Prior to adding The New Flat Rate, our average service ticket was about $427,” said Matthew Thompson, owner of Gold Star Plumbing in Wantagh, New York. “After adding the system, our average ticket skyrocketed to $623. That’s a 46 percent increase. To us, that’s huge.”

What’s more, these companies recouped their investment within two weeks of implementation.

The New Flat Rate team invested more than $500,000 and two years of nationwide ride-alongs, research and beta testing to develop menu pricing systems for four residential and light commercial contracting markets: HVAC Service & Repair, HVAC Equipment Replacement, Plumbing Service & Repair and Electrical Service & Repair. The menu pricing systems are available in spiral-bound books or on iPads. Customized pricing is developed for individual contractors—from one-man trucks to large companies—based on data the client supplies, like billable hourly rate, materials mark-up and taxes. Once contractors register, they can be up and running within a week.

Each market-specific edition covers hundreds of “menus,” or service and equipment replacement scenarios. Within each menu there are up to five options the consumer can choose: Basic/Band-Aid, Bronze, Silver, Gold and Platinum. Customer presentation pages contain these tiered options in consumer-friendly language alongside the corresponding prices; technician pages contain the “to-do” list associated with each tier. On a service call, all a tech needs to do is deliver a simple verbal script explaining the basics and let the customer choose the level of service they want. Overwhelmingly, consumers upsell themselves beyond the Basic level.

With established clients in all 50 states and Canada, plus plans to expand overseas, The New Flat Rate has a sizeable base of satisfied and loyal contractors. According to these contractors, techs are happier; consumers are happier; the average service ticket nearly doubles, if not triples; and net profits increase as much as 10 times. Independent third-party case studies and client testimonials confirm that this system reduces technician stress and increases contractor profits. 

The New Flat Rate just launched a new website that details how its menu pricing systems work, outlines the tiered options, offers informative and entertaining videos, presents a series of compelling case studies and gives interested contractors an easy way to sign up for a demo. Check it out at www.thenewflatrate.com.

About The New Flat Rate, Inc.
Founded in 2011, The New Flat Rate, Inc. initially targeted the HVAC contractor community with a no-pressure, advanced add-on system of menu pricing. After extensive research and beta testing, the company launched its HVAC Service & Repair Menu Pricing edition. In response to industry demand, the company released three more editions: Plumbing Service & Repair, Electrical Service & Repair and HVAC Equipment Replacement. Each market-specific edition is designed to do the bundling and upselling for technicians by providing hundreds of service, repair and equipment replacement “menus” or scenarios, each with up to five straightforward options consumers can choose. Independent studies and contractor testimonials prove The New Flat Rate improves consumer satisfaction, reduces technician stress and boosts profits. All editions are available in print and digital formats. Visitwww.thenewflatrate.com or call 706-259-8892 to learn more.

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Manage It or It will Manage You!

Today, despite technology that is intended to make our lives easier, we tend to work harder and have less flexible time than ever. About 95 percent of the time, the time management challenges we find fall into a set number of common categories.  I want you to become more productive. This is why I am sharing with you the biggest waste of time traps we experience today.

#1: Interruptions and Distractions
Emails and phone calls impact us constantly and represent almost a third of this category’s complaints. Overcoming this trap requires a firm application of self-discipline. If something distracts you, tighten your focus.  Turn off your email alerts or close your browser; forward your calls to voicemail and respond a few times a day, or go somewhere quieter to work.

# 2: People Problems
Many distractions emanate from others.  They’re the result of either the employee or the manager not being properly trained. Management duties represent the biggest time challenges. Employees who are not properly trained hurt profitability and productivity. Most employee challenges can be solved by holding them accountable to perform. It is your job to lay the path so you can get the performance standards to where they should be.

#3: Overwork/Overwhelm
You can only push yourself so much within a 24-hour day. Eliminate unimportant tasks from your schedule.  To the greatest extent possible, find ways to delegate. If you run out of time for something minor, let it go. Stop seeing your task list as a must-do list; instead view it in order of must-do today, can-wait-until-tomorrow, can-wait-a-few-days, can-be-delegated-and-followed-up-on list.

#4: Prioritization
Whether the failure to set priorities is the manager or the employee’s challenge, focusing on the wrong task at the wrong time can lead to feeling overwhelmed.  The solution: Simply prioritize your projects and focus first on the items that truly bring you the greatest returns.

#5: Meetings
Besides not over scheduling meetings yourself, you can overcome the meeting trap by only participating in meetings that absolutely need your attendance and setting time limits you communicate to everyone before it starts. If you can, leave once you’ve made your contributions.

#6. Lack of Self-Discipline
Fire up your willpower, crack the whip on yourself and your employees, and decide to concentrate on a task until it is complete.  About a quarter of those with self-discipline problems see procrastination as a bigger issue than a lack of focus. Most often, they find themselves daunted by huge, complex projects. So in addition to applying tight focus to the problem, break it into smaller chunks you can handle more easily. Set milestones, buckle down, and get to work.

#7: Disorganization
Learn to use your email to its fullest by establishing a logical, simple organizational system, and process every piece of information you receive. Don’t let it pile up, and never hesitate about what to do with an item whether a piece of paper, an email, or voicemail.  And always make time for planning, including making time to review what you’re doing to ensure it’s working. As necessary, take steps to fix what doesn’t work, and be on the lookout for ways to improve efficiency.

#8. Scheduling
Do you have problems getting things done in the time you have? Common complaints include an inability to estimate how long tasks will take and deciding where on the calendar to place each task. The second case requires task prioritization, as well as a willingness to say no to new work.  You can’t accomplish anything important if your calendar is filled with unimportant meetings and events.  Target the high-significance tasks first and address them directly, so as not to waste time.

#9: Crises
You can’t do much when others create a crisis except react, which means you must remain flexible. Establish processes in advance to help you handle the unexpected.  Create guidelines for each type of emergency you can imagine. When a crisis arises, practice SLLR: Stop, Look, Listen, and Respond.

#10: Work/Life Balance
People want a personal life, so they can pursue their hobbies, rest and relax, exercise, go to school, or spend more time with their families. Again, the solution involves a strict adherence to self-discipline and prioritization, so you can make a big enough time in your schedule to enjoy life outside of work.

Focus on being efficient and productive at work, so you can achieve maximum results in minimum time.  Proper training and discipline can help you and your employees achieve greater results.

 

Is Your Business Plug-and-Play?

There are tons of companies and products that are making a name for themselves by making things easier for consumers. Many of the hottest products today are simply plug-and-play. That means they take all of the guesswork out of the product for consumers. To use an item, the consumer need only plug it in and start playing.

It’s user-friendly. How user-friendly are you? Is your company plug-and-play? Many service companies

make it so difficult for homeowners to use them that I wonder if they understand the meaning of service.

So, with the world looking for more convenient and easier to use devices, how do you stack up? How do you make your company plug-and-play?

1. Explain everything.

How much do your technicians really explain when they go to a client’s home

for a service call? When your technician enters a client’s home, there is a good

chance that the homeowner knows nothing about what is wrong with their home

and most likely they’re worried. They’re worried about the frustration and hassle

of a major problem. They’re worried about the cost of a huge repair coming at the

wrong time.

Your goal as a user-friendly service company should be to remove some of that

fear and explain everything that is going on in their home. Don’t just tell your client

what happened in technical terms. Explain it to them in layman’s terms so they

understand what caused the problem and how you’re going to fix it for them.

Explain how much your service costs, what that cost entails, and what guarantees

and warranties back up your work. Don’t leave your client confused. Explain

everything.

2. Present options.

One of the ways to make a service call more user-friendly is to put the client in

control of the outcome. That means offering them options. No one likes to be told

what to do, and if you simply do the work and present your client with the bill at the

end, you’re doing just that. Plus, you might be missing out on additional opportunities

to serve the client. Talk with your client about the options that they have in their

home and what they would like to see. That way you’re giving them the power to

choose the outcome, and they’ll feel better about your service.

3. Be easy to find.

You might have 10 different phone numbers coming into your business, but when you

put a number on your trucks and in your Yellow Page ads, why not just put one?

That way, homeowners only have to concentrate on one number. Plus, if your existing

clients need to go to the phone book to look up your number, you’re falling down on the

job. Make it easy on them. They should have stickers throughout their home, whether

it is on their electrical box, water heater, HVAC system, or gutters! You want your

number everywhere possible. That way, if something does breakdown, your number

is the first thing they see. If your clients need to go to the Yellow Pages to find you,

you’re not making it easy enough.

4. Be accessible.

When your client calls, you should be there, or at least someone should. If you’re

going to operate a truly user-friendly company, you need to answer your phones live

24 hours a day and seven days a week. Basically, when your clients need you, you

should be there. That goes for running service calls, too. Naturally, you don’t need to

have someone at your office 24 hours a day, but when you leave, the phone shouldn’t

dead-end at voicemail. Your phones should be forwarded to the on-call person that

night. Be accessible when your clients need you.

5. Guarantee satisfaction.

If a customer complains about your service, you’re going to give them their money

back, right? If you’re going to do that anyway, why not let them know that their

satisfaction is guaranteed? That will take some of the fear and worry out of using

your company for the homeowner. Guaranteed satisfaction does get results.

These five quick items to focus on will make your company more user-friendly. The more plug-and-play

you can make your company, the better your service experience will be. Eliminate the fear, the worry,

and the confusion most homeowners feel when calling a home-services company and you’ll have a client

for life.

Hit Your Target Through Perfecting Your Aim!

When it comes to managing a company and growing its success, setting sights on improvement and taking aim on things that detract from your company’s success is critical.  Equally critical is nurturing the successful things happening in your business.  But first you need to find the cracks in the floor and retrieve the gold dust hidden underneath. Below are action steps to get you started:

Laser-in on your daily business routines.              

In order to improve a business process, you should first look at the daily tasks your company performs.  Things like answering the phone, running repair calls, and paying vendors may seem routine, but are they being done properly and efficiently?  Are your employees giving your customers the greatest level of service?  Do they know how? Is your accounts-payable person behind on paying invoices causing your company unnecessary late fees?

You will need to assess each job function in your company to figure out which one to focus on improving first.  Example: Technicians have numerous price objections because they are not providing above-and-beyond customer service.  What do you need to do to get customer-satisfaction levels up so that you receive fewer complaints and create more repeat and referral business?

Create the change.

Once you have identified your business processes for improvement, it is time to provide yourself and your employees with the change solution.  If you are a member of Success Group International®, you have an excellent advantage over thousands of contractors.  You have client success managers to help with your high-level business-improvement needs.  You have Success Academy® at your fingertips to assist you with frontline-employee and management training.  All you have to do is reach out to the resources you have, explain your need, and you will be pointed in the right direction to get started on changing your business for the better.  The key to creating the change is to give your employees the training they need—and for you to reach out to your SGI™ client success manager to get their help.

Implement the change.

Be sure to communicate the reason for change with your employees. It is okay to let your employees know what has been most challenging for the business. Ask them for their input.  Inform them how you plan to correct the challenge.  Make sure you give a good description of why it is important to them, the customer, and the company. Let them know how they will play a key role in creating the success of the business.

Be sure to measure the accuracy and consistency of the established change processes. Attending initial training with your employees shows them that you are equally committed to the change necessary to grow the business.

Create a process.

Written processes on how to perform a job within your company leaves little room for error.  Providing training and developing process-driven operating systems will free up more of your time. Make written processes easy to follow and understand—then tasks may be completed with little to no mistakes. Always give new employees a written copy of processes; this way they know how they are expected to perform from day one.

Test the change.

So many times things are implemented and never perfected.  You should sit with call-takers, accounting team members, ride-along with technicians, and examine the most challenging and/or time-consuming parts of doing their job.  After you have spent time with the employees performing the task, involve them by brainstorming ways to improve the process.  Automating manual processes and investing in contractor-specific technology to give greater customer service and decrease nonproductive time can benefit the company.

Never stop improving the change.

As time passes, encourage your employees to improve the company’s existing systems and procedures. When your employees operate with laser focus, customer service improves, overhead expenses decrease, customer satisfaction increases, your revenue and profits grow, and your business will become a beacon in the communities you service.

Start perfecting your aim now and hit your targets for the year!    

The Maintenance Mindset

How many miles are on your car?  If you’re like most, you drive around 15,000 miles a year and keep your car for about nine years.  But there are some car owners out there who push their car further… a lot further. 

Not long ago, I read an article about car owners who maintain their cars so that they last for years, even decades. One gentleman in the article was still driving his 1966 Volvo® that had an astounding 2.7 million miles on it! He was the extreme, but there were many others in the article with hundreds of thousands of miles on their cars.

The secret that all of them touted to their cars’ longevity is maintenance. Maintenance. It’s a simple word with a big benefit, and it’s one that will likely ring true with many of your clients nowadays.

How many homeowners do you serve that are trying to push their roofs to last a hundred summers? How many would like to keep their air conditioner cooling through 2.7 million days of summer? How many would like to see their water heater keep heating and their electrical panel keep powering for a few more decades?

You may not know the number, but they are out there. Are you sending them the right message?

You might be a business that is focused on replacements, but what about those homeowners who aren’t looking to replace? What can you do to pique their interest and get them to make you their service company of choice?

Here are three ideas to try and attract homeowners with the Maintenance Mindset:

Promote Maintenance

This is what they want—so give it to them. You don’t need to shift all of your marketing from replacement to maintenance, but it doesn’t hurt to let homeowners know that you have a “Maintenance Mindset,” too.

Offer Tips

These homeowners who want to push their homes as far as possible would love some tips on how to do it. A great place for this is your quarterly homeowner newsletter or even emails to your client base. Tell your technicians to give homeowners some easy examples of what they can do reduce wear and tear.  They’ll appreciate it, and may even call you when the tips alert them to something in need of attention.

Explain the Club Membership

If you notice a homeowner with an old car in the driveway that keeps going strong, you can bet they’d be interested in a club membership. But you don’t need the car to know that you should be offering the benefits of a club to every homeowner you talk to. For the maintenance-minded consumer, a club membership offers a double benefit—scheduled maintenance and savings, which should get them interested in being your next club member!

These three simple tips are ways to attract the business of homeowners trying to stretch their systems as long as they can. But what’s in it for you?

For starters, these homeowners will go for maintenance year in and year out. That means you’re practically assured a call from them every year, and if you can get them locked into a club membership, they will be calling you.

Plus, even those with the maintenance mindset will eventually see the need for a new system, service panel, roof, or water heater, and when they do, they’ll turn to the company that has taken care of them all along.

In today’s budget-conscious times, more and more homeowners are working to stretch their dollars even further. Providing and promoting maintenance are ways that you can help these homeowners and your bottom line.

Riding Along with Mike: Top Down, Bottom Up!

Riding Along with Mike: Top Down, Bottom Up!

Success Academy® Trainer Mike Dolan has visited SGI™ companies, both big and small, from coastline to coastline.  During his travels, he hears remarkable stories, encounters unique situations, and talks to inspiring people.  Those happenings spur thoughts and ideas that he has shared for your benefit!  Enjoy and allow them to motivate you!

That may sound like the “to-do” list for a summer road trip, but it’s actually what I’ve seen on my road trips that lead to success for clients, teams, and businesses.  Let’s take a look.

Top Down

“Top Down” means that planning, execution, and management come from the owner and the management team.  The structure has to flow from the top down, so team members have clear direction, clear understanding, and clear motives.  Top Down does not mean, “The peasants are revolting!  Throw the stones and boiling oil from the north tower!”  Do not confuse “Top” with “Ivory Tower” management! Ivory Tower isolates you from your team, leads to disenchantment and revolt, creates churn in your employment practices, and will cost you clients. 

On a recent onsite training trip, I watched the owner of the company LEAD his team through the training, participating in the entire process.  On day two, as we started the role-play, the owner chose to LEAD his team by stepping up and going first, in front of the room.  I’ve done some weekend training this year, and the owners were there in the room, working through the books with the team.  How do you know if you have Top Down in your company?  It’s really simple:   Does your team light up when you enter the room, or when you leave it?

Bottom Up

“Bottom Up” means that the team is engaged, is goal-oriented, and works toward success because they have seen the leadership and direction from the top.  Bottom Up does not mean, “There’s a breach in the wall!  Down with the tyrant!”  Do not confuse “Bottom” with “Palace Coup” workers!  Palace Coup defies authority, disrupts good people, and loses clients. 

On an onsite training a couple years ago, I had a “warehouse guy” sit in on training to sell club memberships.  He left the meeting to deliver some paperwork to a recent customer and returned with a client, as he believed so strongly in the value of the club that he sold it on the spot.  There are many, many stories like this, as team members see leadership flow from the top and they return it.

Top Down, Bottom Up: It’s All About Integration

When you have “Top Down, Bottom Up” as a culture in your company, your company is vertically integrated.  What does it mean?  No matter whom I speak to from your company, I get the same strong message that you are the right company for me.  Horizontal integration, on the other hand, delivers a different message from everyone.  This leads to lost clients, employees leaving and taking clients, Ivory Towers, and Palace Coups.

In my experience, the team leader who trains with the team achieves “Top Down, Bottom Up” integration and the winning culture.  It’s just that simple; train with your team.

Envision Your Business

Envision Your Business

Envisioning your business is all about understanding why you decided to own your own business and mapping out how you plan to achieve the business you’ve always dreamed of.  A successful business owner understands the key fundamentals of what their business is today as well as understands how to further achieve in the future. Take a look at the direction your business is taking.  Is it what you had planned? Are you on track and budget? Do you know what your next steps are?

Being proactive means always planning your next move and striving to meet the goals and objectives you set. Take a look at your company’s income statement, balance sheet, and most recent year-end report within the last fiscal year.  Are you on target or not?  Are you monitoring the effectiveness of your marketing efforts?

A new year is right around the corner—now is a good time to ask yourself what your company’s focus is.  Is it to provide fast, friendly, reliable service and become the number-one source for service and repair in your community?  Do you wish to surpass the competition in sales and service and become an industry leader?  Knowing what you want is great—but how are you going to do it?

Remember that as the owner you are in control of your company’s success! Goals and objectives are important, but be sure not to create too many, which makes them difficult to meet, and will leave you feeling discouraged and overwhelmed. Begin defining what success is within your company. Develop an overall picture of your projected progress and growth by asking yourself this question: What is most important to me, the owner? 

 

  1. Setting targets for increased sales?
  2. Increasing your customer base?
  3. Providing more services to your customers?
  4. Becoming a household name within one, three, or five years?
  5. Establishing a set amount of hours you want to dedicate to your business daily?

 
Remember that it is never too late to put goals and objectives into place—you should define both short- and long-term goals. Business goals should be measurable so try using numbers, dates, and percentages so that you can establish timelines for your achievements. Think of this exercise as an important part of your “road map” to success and remember that our goal at SGITM is to help you achieve greatness along the way!