Tuesday, March 15, 2016

What did you say??

Communication and listening


By Rich McCarten

Do you remember playing the game “Telephone”? You know, where someone starts by whispering a phrase to the person next to them, that person then repeats to the next person and so forth until you get back to the beginning where the originator then announces with great laughter just how totally unrelated the end result is from the original statement! It is quite fun and can illustrate just how fragile the communication process can be. If any of you have had an argument with your spouse, you know what I am talking about! You thought you were very clear in your statement, but your significant other heard an entirely different account of what you said. There are many reasons why this may occur and certainly more intimate family relationships are trickier than selling a furnace, but some basic understanding of the communication process will go a long way in our business of servicing and maintaining our customers’ HVAC systems, especially when a sale depends on being clear and involving everyone accurately in the sale.
There are a few guidelines I try to remember when in a customer’s home to help me:
1.       Make sure ask plenty of questions then listen to what your customer’s say. You should listen twice as much as you talk. Humans think 4 times faster than we speak, so unless your subject is EXTREMELY exciting, our minds start thinking of other things that need to be done.  That’s where asking a lot of questions and showing how you can provide solutions to homeowners’ problems will keep your customers engaged with you.  I want to tell homeowner all about the features, btu’s, variable speed, modulation, etc. that my product has and while important, unless you answer WHAT those features can do for customers or how they will solve a problem, we end up confusing homeowners. Remember the phrase “WIIFM” (… What’s in it for me?) Consumers want to know how they will benefit from what is inside the Furnace/ Black Box!
2.       Most households today have two incomes. Both people tend to work outside the home and sometimes we are fooled by who the main bread winner is. Never make assumptions! We also work in a male dominated industry and many of us old timers tend to forget to include the woman of the household in the sales process. This can be FATAL! The jury is out on this! While studies indicate in a major purchase decision like a Central Air Conditioning System, the man often picks which black box may go in the home, it is the woman who decides WHO will be allowed in her home for the installation. Make sure you address and include BOTH people in the household in the sales process.
3.       Try painting a picture of what each feature means in everyday terms that people can relate to rather than talking in our technical jargon. For example, “...A Modulating gas valve is like the cruise control in your car. As you go up a hill, the system automatically increases to maintain your speed (set point) and conversely when you go down the other side, the system automatically reduces to maintain your speed (set point). Or “this variable speed blower allows you to run the fan 100 % through your Infinity Air Cleaner to protect your family from the indoor pollutants without costing more than a 60-watt light bulb”.  You get the idea, take some time to develop your own analogies to explain in every day terms what all of our features mean to customers and how they help solve a problem that you uncovered during your question asking phase.
4.       Welcome objections! Yeah I know it sounds weird! We all hate objections because we think that we somehow made a mistake, or we are going to lose the sale, or the customer is being difficult. An objection is simply a request for more information. It means you did not provide enough value to overcome the customers’ fear of making an incorrect buying decision. Again, the best way to handle an objection is to ask questions! People do not want to feel like they are getting “Sold” An objection is often a way to try to put you off. “So Mrs. Smith, I hear you are concerned that you may not need this WiFi thermostat because it costs more. Tell me more about that? Is controlling your homes’ system remotely important to you if you leave and forget to turn your system down? Is there peace of mind that this feature gives you?
These are some examples of how to handle objections and there are volumes written about the art of questioning and objection handling that are well worth your time to read. Being prepared is the solution to handling objections!

There is no better advice that employing the Golden Rule in sales. Nobody wants to feel like they have been “sold” or taken advantage of. Todays’ Central Comfort Systems can be hugely expensive and customers often have sticker shock. We buy a system, on average, once in every 15 years roughly. Imagine the sticker shock if you bought a car like that and never stayed current with prevailing prices. You would keel over! Remember too that what we do is EXTREMELY important in a homeowner’s world. HVAC accounts for 40-50% of energy costs in a home. We provide one of the only systems that can provide a legitimate ROI in a home. We all have seen people drop huge dollars on plumbing fixtures in some of these expensive homes only to try and go cheap on the HVAC system. How backward is that? What is the ROI of that pretty Kohler fixture? Think about not only the energy savings in one year, but take it 10 years out and we are talking about real money!

By understanding the importance of communication, questioning and providing solutions, we can then provide the correct system at the correct price and make the correct margin to continue to provide the correct service!


 But not if you haven’t listened to your customer and uncovered their needs first!!

Tuesday, September 15, 2015

MY TWO CENTS

Guest Column
Mike Agugliaro

MY TWO CENTS

Creating a Successful Culture

Eight out of 10 businesses that open this year will fail within 18 months. Many of these business leaders will never truly realize what went wrong. What causes this lack of success? There’s no simple answer, and it’s easy to pin this failure on lack of financing or other economic factors, but cracks in the foundation often appear well before the day a company is forced to shut its doors.

HIRE THE BEST EMPLOYEES

What can you do to create a culture in the workplace that helps ensure company success? It all starts with your employees.

When my business partner and I started our company, the first few years were tough. Simply put, we struggled. We weren’t making much money, had no rhyme or reason to the processes we were using, and had no time for our families. We worked constantly and wore ourselves thin just to get by. We knew we had to make a change, so, after some deep thought, we altered the company’s structure. Instead of doing what everyone else in the industry had already done, we modeled and implemented proven systems and formulas based on companies that had the cultures and service levels we strived to provide. In just a few short years, our company made a drastic turn for the better, and we were soon setting new milestones.

We were fortunate. We realized our downfalls in time to shift the company’s structure into one that breeds success, but many business owners don’t recognize the warning signs until they’re faced with the difficult decision to close up shop for good.

STAFF EXPECTATIONS

Tuesday, August 11, 2015

Post-HFC-phaseout Refrigerant Options

Many refrigerant manufacturers stand prepared after EPA alters refrigerant lists

FS-DSCF1204.jpgHFC-FREE: Aspects of future refrigerants are reflected in this chart at the booth of Arkema at the 2015 AHR Expo.
The July 2 ruling from the U.S. Environmental Protection Agency (EPA) that sets forth the timeframes for the phaseout of certain hydrofluorocarbons (HFCs) in specific applications presents some challenges for the refrigeration industry. The ruling also presents new opportunities for growth of the natural refrigerants market.
The ruling, however, was not unexpected, and it did not catch many of the major refrigerant manufacturers flatfooted. In fact, several of these companies have invested millions of dollars into research and development of low-GWP (global-warming potential) refrigerants, resulting in a number of options for contractors seeking alternatives to the refrigerants that have been delisted under the EPA’s recent rule, “Protection of Stratospheric Ozone: Change of Listing Status for Certain Substitutes under the Significant New Alternatives Policy Program [SNAP].”

THE FIRST STEP

Tuesday, July 21, 2015

A Little Bit of Good News Concerning Regulations

By:Kyle Gargaro
Bashing the government has become quite popular in this country. And, rightfully so. This partisan group in Washington often overreaches and does not think through the laws and regulations they place on people and businesses. That is evident in HVAC industry circles where the industry is reacting to a plethora of regulations on the horizon.
And, while news concerning HVAC that comes out of Washington, District of Columbia, is usually negative, the industry finally got some good news recently. More than a few U.S. Representatives came out against the U.S. Department of Energy’s (DOE’s) recently proposed 92 percent AFUE nationwide residential furnace standard. That standard might be the worst idea since subprime mortgages.
The DOE’s own analysis of the standard showed that 31 percent of

Training Can Help Curb Callbacks

Investing in continuing education is a smart move for HVAC contractors

The money that contractors invest in training will come back to them quickly in the form of reduced callbacks.
If there is one issue that all HVAC contractors can agree upon, it’s that no one likes callbacks. Those return trips to fix problems, or assuage a customer’s concerns, cost money, and can reduce the goodwill a customer feels toward the contractor, thus decreasing the possibility of a referral.
That’s why keeping the number of callbacks to a minimum is the goal of any contractor, and one way to do that is to increase the amount of training that they — and their technicians — receive.

WHEN THINGS GO WRONG

HVAC systems are very complex, and, if technicians do not have the proper training, there are a number of ways installations or repairs can go wrong, resulting in a callback. Typical reasons for callbacks usually include incorrect installations, improper diagnosis of a problem, or poor repair jobs, said Alex Hutcherson, vice president, HVAC, Ferguson Enterprises. “These problems can often be avoided if a technician is experienced, knowledgeable, and trained with the proper set of skills and tools to install, test units, and make repairs.”
According to Howard Weiss, executive vice president, ESCO Group, the problems associated with improperly trained technicians and contractors can be seen in a recent ESCO Group study of residential HVAC systems, which showed:
• 72 percent are oversized, which can impact the occupant’s comfort and health, energy consumption, and equipment life;
• 68 percent are improperly charged, which can affect energy consumption by 18-25 percent;
• 70 percent have improper airflow, which affects both sensible and latent efficiency and decreases energy efficiency; and
• 91 percent remain untested for combustion safety and efficiency, even though a minor air/fuel ratio inaccuracy will affect energy efficiency by 18-20 percent.
“The net result of each of these problems is an unnecessary callback. In order to resolve these issues, contractors and technicians need a strong foundation in proper equipment sizing, critical charging procedures, airflow, psychrometrics, and combustion efficiencies,” said Weiss. “In addition, the last decade has seen many technological changes, ranging from ductless split systems to combined heat and power systems to variable refrigerant flow systems. As technologies change, contractors must invest in training to keep their businesses current and relevant. The money they invest in training will come back to them quickly in the form of reduced callbacks.”
More training will definitely reduce the number of callbacks, said Larry Konopacz, manager of training and education, Bell & Gossett Little Red Schoolhouse. “System components often fail because they are mismatched to the system, not because of a manufacturing defect. Simply replacing a failed component without understanding why it failed may result in repeated callbacks. By understanding how a system operates and identifying the reason a component failed, technicians are able to properly resolve the issue and stop callbacks.”
Tom Stephan, an instructor with the Goulds Water Technology Factory School, also believes more training results in fewer callbacks — and, the more practical, the better. “Factory training is an effective way to simulate real-world installations and troubleshooting. In fact, my preference is practical and tactile training in short amounts of time, because contractors tend to retain the information longer if they are involved in tactile training. And, as it is with other types of training, if the training is not applied within a short period of time, the memory tends to fade.”

HELP IS AVAILABLE

Recruiting Veterans to Join HVAC

Programs are designed to introduce veterans to mechanical trades careers

June 22, 2015

The shortage of well-trained HVAC technicians has plagued the industry for years, and projections insist the problem isn’t going away anytime soon. Even the most conservative estimates put the current shortage of HVAC technicians at 20,000, and this number says nothing of the shortage of qualified HVAC technicians.
However, many are finding qualified, disciplined help from those who once donned uniforms decorated with different badges and stripes.

VETERANS IN THE WORKFORCE


Tuesday, July 14, 2015

NEWSmakers Q&A: Defining the Internet of Things

Daikin’s Paul Rauker discusses the current and future role of the IoT in the HVAC industry


June 29, 2015

Put the term Internet of Things into a Google search and you will soon see 752 million results. It has become a buzzword, both inside and outside the HVAC industry. But, does everyone know what the phrase actually encompasses? I was less than clear on what it entailed, so I talked with Paul Rauker, vice president and general manager at Daikin Applied, about this topic. Rauker, who previously worked at Honeywell, spends much of his day thinking about this emerging technology.
KG: Hey Paul. Are you ready to talk the Internet of Things?
PR: Every day of my life (laughs).
KG: The Internet of Things has become a buzzword. How do you explain it to people who are less than familiar with the term?