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

Post-HFC-phaseout Refrigerant Options

Many refrigerant manufacturers stand prepared after EPA alters refrigerant lists

HFC-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

A Little Bit of Good News Concerning Regulations

By:Kyle Gargaro

http://www.achrnews.com/blogs/17/post/130074-a-little-bit-of-good-news-concerning-regulations

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

http://www.achrnews.com/articles/130088-training-can-help-curb-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

By Nick Kostora

June 22, 2015

http://www.achrnews.com/articles/129907-recruiting-veterans-to-join-hvac

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

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

By Kyle Gargaro

June 29, 2015

http://www.achrnews.com/articles/129973-newsmakers-qa-defining-the-internet-of-things

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?

Keeping One Eye on the Future

June 29, 2015

By Kyle Gargaro

http://www.achrnews.com/blogs/17-opinions/post/129949-keeping-one-eye-on-the-future

I recently had the pleasure of participating in the Joint Futures CommitteeMeeting in Arlington, Virginia. In case you are unaware of the group, this is where the best and brightest of the industry — save for me, of course — get together for a one-day meeting to brainstorm solutions for some of the HVACR industry’s problems. It takes place at the ACCA headquarters and is run by Glenn Hourahan of ACCA and former ACCA chairman Laura DiFilippo.

All the major stakeholders were represented at the meeting, as a good mix of manufacturers, distributors, and contractors were present. They even welcomed a home builder representative.

The interesting part is that this group is not concerned about problems that are here today or even problems that will rise up in the near future. Instead, the Joint Future Committee tries to look three years or more down the road to examine what will impact the industry. It is a very proactive, yet challenging, way to address the industry’s future.

The process starts months prior, when everyone in the committee sends three ideas to possibly discuss at the meeting. That is not as easy as it sounds. In my job, it’s easy to identify the problems of today, and figuring out the problems of tomorrow is not really that hard. In fact, they tend to knock on your door; you don’t need to go looking for them. Trying to come up with the problems that will bubble up three to five years from now is a lot tougher.

INTERNET OF THINGS

For instance, at the event, my group talked about the Internet of Things (IoT).

The topic centered upon the move to have all HVAC systems electronically connected to the house and building network and controls system. This is being pushed by the U.S. Department of Energy (DOE) as well as utilities to enable connection to the smart grid, improve diagnostics, and help in the efforts to reduce energy consumption, control peak power, and better enable the use of renewable energy. This will change the way equipment is designed, installed, and serviced. The question was, “How do we get the industry engaged and prepare the installation and service industry for the change in the way units may be installed and operated in the future?” It sounds like a lot to discuss, but, don’t worry — they ordered in lunch.

Another subgroup tackled what would happen if a group decided to do to HVAC what Uber has done to taxis. This is what it looks like to try and identify problems of the future.

What does this mean to our contractor readers? Well, first, it means there is a group of smart folks in HVACR trying to make sure this industry stays ahead of the curve. Also, those who complain that the different channel groups don’t work together are probably unaware of meetings like this.

Finally, this should be a blueprint for running your business. I am sure, for a lot of HVAC contractors, running a business is a day-to-day or week-to-week job. This means they are just trying to put out the fires of the day and make sure they have a good week. Contractors who feel they are ahead of the game are tracking their monthly numbers and can tell you how they compare to last year.

But, how many contractors are truly looking three to five years down the road to investigate what their company will look like and, more importantly, what their competitors will look like? Odds are the government will be moving the goal posts on you.

Obviously, this is not something that you can think about daily or even weekly. But, maybe you can squeeze in a couple hours monthly or quarterly. Better yet, get your executive team to help you out. As I can tell you firsthand from my experience on the Joint Futures Committee, multiple heads thinking about problems are definitely better than one. The number of ideas that come out of the group brainstorming session is staggering.

Give it a try so you won’t get caught flat footed when the industry and your market inevitably changes.

To learn more about the Joint Futures committee, visit http://bit.ly/JointFutures.

Publication date: 6/29/2015 

US Reps Refute 92% Furnace Rule

By:Jen Anesi

Industry, Congress insist 92 percent AFUE furnace rule places ‘unnecessary burden’ on homeowners
On June 8, 121 members of the U.S. House of Representatives sent a letter to U.S. Department of Energy (DOE) Secretary Ernest Moniz urging the agency to reconsider its recently proposed 92 percent AFUE nationwide residential furnace standard. The current national standard for residential natural gas furnaces is 80 percent AFUE.
In the letter authored by U.S. Rep. Mo Brooks, R-Alabama, Brooks and 120 undersigned members of the House — including 116 Republicans and four Democrats — said they are “extremely concerned that requiring the elimination of the economical and efficient noncondensing furnace will place an unnecessary burden on already struggling homeowners in our states,” and that “by setting a nationwide energy-efficiency standard that precludes a consumer from choosing to install a noncondensing furnace, the DOE will be forcing many homeowners to either abandon the use of natural gas to heat their homes or pay substantially more for the installation of a furnace that meets the new standard.”

Got Mobile for Your HVAC Field Technicians? Here are 7 Applications to Compliment your Service Management App

http://www.msidata.com/apps-to-compliment-hvac-field-technicians

You invested in a field service app to keep your organization connected and efficient. Now that you have an HVAC management app you love, how can you take even greater advantage of evolving mobile technology?

Taking the initiative to research, invest in, and implement a mobile field service solution is a lot of work. Now that you’ve done it, though, and you’re realizing greater productivity, efficiency, first-time fix rates, and customer satisfaction, not to mention a huge ROI, you’re never looking back! Going mobile was the best thing you could have done for your business. 

But now that you’re set up with a mobile solution, it’s time to take full advantage of the device capabilities and array of complimentary apps for your industry. 

Read on as we list 5 applications for HVAC organizations to assist your technicians in the field and build on the capabilities of your field service app. 

Ductless Technology Moves into Ducted ASHPs

Inverters: Efficient, Comfortable, Quiet

Joanna R. Turpin

Once the hallmark of high-efficiency ductless equipment, more manufacturers are incorporating inverter-driven compressors into their ducted air-source heat pump (ASHP) offerings. The reasons for this are simple: Inverter technology improves energy efficiency, provides better comfort, and offers quieter operation.

While consumers have responded positively to these newer energy-efficient products, inverter technology is more expensive and, therefore, mainly offered on higher-end heat pumps (and air conditioners). Even though these systems can cost significantly more than non-inverter ASHPs, manufacturers note their higher price tags are more than offset by significantly higher efficiencies.

Operation and Benefits

My Two Cents: Setting an Adequate Contracting Pricing Policy

The Formula I Use to Appropriately Establish a Sales Price

By Butch Welsch

http://www.achrnews.com/articles/129578-my-two-cents-setting-an-adequate-contracting-pricing-policyhttp://www.achrnews.com/articles/129578-my-two-cents-setting-an-adequate-contracting-pricing-policy

Based on the interest in my Feb. 16 column, “Basic HVAC Contracting Budget Accounting,” I thought it would be worthwhile to follow the financial theme a step further and get into pricing policy. This will not be directed at specific pricing numbers, but the procedures we should each go through when establishing our prices.

One might think that determining selling prices would be a relatively easy task once the costs have been determined. However, I can assure you, based on personal experience and some classes I have presented, even the most intelligent and supposedly sophisticated contractors do not always arrive at the selling price they want and intend to use. While this may seem elementary, I encourage you to stick it away some place and refer to it occasionally to make sure you are not skipping an important step. This system applies to whatever your company overhead may be or whatever net profit you are seeking to achieve.

Remember, your overhead percentage is determined by your ability to perform a certain amount of work. If you are going to do less work, your overhead percentage goes up. Unfortunately, when most contractors see there is less work available, they tend to lower their prices. This is exactly the opposite of what it should be because their costs are actually increasing due to a higher overhead percentage.

Step No. 1

What you need to know to stop your air conditioner or heat pump from losing its cool.

http://www.carrier.com/homecomfort/en/us/for-owners/#0

No matter how energy-efficient your air conditioner was when it was installed, it can lose efficiency if not properly maintained. The good news is, it isn’t hard, time-consuming or expensive to do the kind of upkeep that can he

lp your unit last for years:

• Change your air filters regularly. A clogged or improperly installed air filter makes your system work harder. So, if you forget to change your filters, you might notice you’re paying more for air conditioning that you’re not enjoying nearly as much.
• Be sure not to block your floor, wall or ceiling vents. When drapes, furniture, toys or anything else blocks the vents, it will restrict the airflow—and decrease the system’s efficiency and life span.
• Check your outside condensing unit periodically to make sure it isn’t covered up or clogged with leaves or debris. Give it space—at least a foot—by cutting back shrubs or tall grass. Air needs to flow in through the sides to cool the coil.
• Check the drain system to make sure it isn’t clogged. Because your air conditioner removes humidity from your home during the cooling season, you should notice water trickling from the condensate drain of the indoor unit. Keep in mind that the drainage will be limited if you live in a very dry environment.
• Don’t try to turn your home into an icebox. You shouldn’t run your system in cooling mode when outdoor temperatures are lower than 55°F/12.78°C unless your outdoor unit is modified to handle cooling in colder weather.
• Have a Carrier® expert clean your indoor coil and replace your filters routinely. If you notice longer operating cycles and reduced energy efficiency, the coil could be to blame.
• Check for water in the base of your outdoor unit. It likely means the support base has settled or shifted since installation and is no longer level. If that’s the case, be sure to re-level it to assure proper drainage. Also check for standing water or ice under the unit in and arrange for it to drain away.
• Consider having your ducts sealed or insulated. Air leaks can lead to wasted energy and an overworked air conditioner.

Think of it this way: By investing a little time and money in keeping your unit operating at peak performance, you stand to save a lot in system repair and energy bills. Of course, if you’re not up to the task, your local Carrier®expert can take care of all the above, and much more.

Tech Tip of the Month with Phil Hrenak

Hi-Velocity Duct rules of thumb

• 8” duct required for 1.5- 3 ton systems
• 10” duct required for 3.5 & five ton systems
• 14” insulated return duct for 1.5-3 ton systems, 16” for 3.5 ton, 4 ton & 5 ton systems
• Minimum eight 2” outlets per ton Minimum four “super duct” outlets per ton 
• Minimum 10’ length on a run (even if you have to coil up the run)
• Systems operate at 250 CFM per ton, 30 CFM per 2” outlet, 60 CFM per super duct outlet 
• Outlet packages come in 10’ = 100% Air Flow and 15’ = 90% Air Flow
• (Adding a 5Ft splice or 20’ = 80% Air Flow)
• (Adding a 10Ft Splice or 25’= 65% Air Flow)
• HEZ blower unit can be ordered as 230 or 115 volt units
• Chilled Water Coil Delta T = 8 to 10 DegF@ 44 EWT & 2.5 GPM per Ton
• Delta T Air side 15-20 Deg F, Delta T across coil for better humidity removal should be 29 DegF Must have a minimum of 18” of strait duct directly off the unit prior to elbow or tee. 
• Use branch take-offs rather than bull head tees. 
• Bullhead tees must have maximum 60/40 balance. 
• Branch take-offs allow for up to 70/30. 

CFM per outlet= FPM x .022 for 2” FPM x .042 for HE

Customer Awareness, Internet of Things Influence IAQ Products

IAQ Products Becoming Smarter, More Connected than Ever Before

http://www.achrnews.com/articles/128940-customer-awareness-internet-of-things-influence-iaq-products

By Jen Anesi

CHICAGO — As consumers become increasingly aware of the quality of the air inside their homes and workplaces, installers and manufacturers are working to meet consumers’ growing demands for products that measure, humidify, dehumidify, filter, clean, and sanitize the air. At this year’s AHR Expo in Chicago, manufacturers displayed and demonstrated some of the many new products they have developed to help both the contractor and the end user achieve the best possible IAQ.

A Growing Awareness

The biggest thing driving innovation is the customer, said J. Paige Freeland, marketing, General Filters Inc. “People are

Energy Saver 101 Infographic: Home Cooling

http://energy.gov/articles/energy-saver-101-infographic-home-cooling

How to Check and Charge a R-410A Refrigeration System

Tech Tip of the Month with Phil Hrenak

1.Inspect the coils, blower wheels and the blower motor speed to insure they are operating properly. Using the temperature rise method (CFM = KW(Volts X Amps) X 3.413 divided by (Temp rise X 1.08)), check the airflow. Using the manufacturer’s coil specification sheets, confirm the pressure drop across coils. The airflow measurement is used to find the evaporator load, so it must be accurate 

2. Check the system operating pressures. Attach the hoses from the manifold gauge to the pressure taps on the liquid and suction service valves. Service valve locations can be found anywhere within the outside cabinet, but generally they are located near the coil. Read and record the information on the pressure gauges for liquid and suction with the pencil and paper. 

3. Using the outdoor thermometer, measure and record the outdoor temperature. 

4. Measure the dry bulb temperature by placing a thermometer where air goes to the indoor unit in the return duct. Wrap the thermometer bulb in wet cloth and then measure the wet bulb temperature the same way as the dry bulb measurement, recording the results. This is an important step since it finds the evaporator load that’s having a key effect on system pressures. 

5. Measure the liquid-line temperature to determine sub-cooling. Use a liquid-line thermometer that has a probe that can be tightly attached to the line. Place the attachment approximately 6 inches from the liquid service valve. Write down the measurement results. 

6. Connect the hoses from your manifold gauge to the pressure taps on the liquid and suction service valves. Measure and record the liquid and suction pressures. Measure the high side pressure at the service valve pressure tap for the liquid-line. Use a pressure conversion chart to change the high side pressure to saturated temperature. Deduct the liquid-line temperature from the saturation temperature of R-410A refrigerant in the condenser to compute the sub-cooling value. On the manufacturer’s data sheet find the correct operating pressures for the circumstances found for the measured air. Also look at the sheet for needed sub-cooling levels. 

7. Charge the unit with enough R-410A to meet the manufacturer’s specification if, based on the information from their data sheet, there may be a too low sub-cooling problem. If this is the case, it is most likely due to lack of refrigerant. Sub-cooling temperatures that are too high may be due to an excess of refrigerant in the condenser, but it may also be a failed TVX (Thermostatic Expansion Valve) or line restriction. It’s important to check both high and low side pressures to determine if any of these issues are present. 

If there is no line restriction and the TVX is working correctly, siphon off enough R-410A refrigerant until the pressure reading is at the level suggested by the manufacturer. Use a refrigerant recovery machine to safely transport the coolant as it is illegal to release R-410A into the air.

How To Attract Prospective HVAC Customers Online

http://www.achrnews.com/articles/128729-how-to-attract-prospective-hvac-customers-online

By Nick Kostora

Online marketing is quickly becoming one of the most important means of communication between HVAC contractors and prospective customers. With each passing year, it becomes more apparent that digital platforms are only going to grow, expand, and prosper.

At this point, not having a Facebook page is the exception, rather than the norm. Companies can trend worldwide on Twitter in a matter of minutes. Good reviews on Angie’s List or Yelp can mean the difference between a customer looking into your business or scrolling right on by to the next option. Having a dedicated person on staff to handle social media posts is now a growing trend for larger contractors.

Across the country, contractors are reflexively adapting to changes in digital marketing in hopes of staying in front of current and potential customers across all forms of media.

Balancing Marketing Strategies

Rich Morgan, president, Magic Touch Mechanical, Mesa, Arizona, said a good balance between online advertising and traditional marketing is critical for success in his market.

“We rely on a mix of traditional, digital, and guerrilla marketing to bring in new business as well as market to our existing clients,” said Morgan. “The mix is more heavily skewed toward digital marketing; roughly percent traditional, 30 percent in digital, and 10 percent in guerrilla marketing.”

The online media Morgan refers to include social media, referral sites, review sites, blogging, and smaller sites his company owns that feed traffic back to the main site. Traditional media includes direct mail, billboards, newspapers, TV, and radio. Guerrilla marketing relies on phone calls, truck wraps, refrigerator magnets, etc.

“We actually just started TV commercials and radio commercials in 2015,” said Travis Smith, owner, Sky Heating and Air Conditioning, Portland, Oregon. “We figured, since most are running to the Internet, we should try something a little different. In my market, I only hear two other companies on the radio and have seen one other on TV. In the five days we have been on TV, we have already had a bunch of people mention the ad. We also use Facebook currently, but are probably not utilizing it to its full potential since we do not have a full-time person to take care of this marketing.”

Greg Crumpton, president, Air- Tight, Charlotte, North Carolina, follows some of the same principles. His company wraps its work trucks, and is heavily invested in digital marketing. AirTight does not do any sort of traditional marketing, however.

“Brand recognition has been great for us on the Web,” said Crumpton. “A customer told me we are everywhere on the Web. We’ve learned over the years about keywords, search engine optimization (SEO), and ways we can be most relevant to customers. We do a digital quarterly newsletter, and I write a biweekly blog. We do things this way partially because it’s the smartest way to spend our money. I found you have to be frugal with how you spend your money and these methods give us the best results.”

The Financial Aspect

A number of factors impact the approaches contractors take when considering marketing. And, while there’s no definitive formula for success, the contractors interviewed by The NEWS acknowledge online marketing makes sense financially. It’s free to start a Facebook page, Twitter profile, or create a Google Plus account and begin spreading word of a company quickly to a large audience.

“Online marketing is quickly becoming the most cost-effective method to reach the masses,” said Morgan. “Social media marketing is one of the few mediums with which we can make the shift from push marketing to pull marketing and draw customers to us by offering excellent advice and resources, thereby building trust and winning their business.”

Social media, in particular, looks to have continued growth for at least the next several years. By 2016, there are expected to be more than 2 billion users across social media platforms, per eMarketer.com. The Washington Post reports nearly 20 percent of the world’s population logs into Facebook at least once per month, and 1.35 billion people are actively using the site. That is a worldwide statistic, but it highlights just how popular digital platforms have become. The opportunities to reach a prospective customer base are certainly there.

Reviews: For Better, Worse

There are numerous marketing aspects available in the digital space, namely review sites such as Angie’s List. More than 60,000 reviews are sent to Angie’s List each month and can be a customer’s first impression of local contractors.

“Angie’s List is a big part of our digital presence,” said Morgan. “We have received 375 reviews and five Super Service Awards in nine years on the list.

“We’ve seen online review sites as the best digital platform for generating new business over the last decade,” Morgan continued. “People frequently go to these sites, and it’s important we have a positive presence on them.”

Smith insisted Yelp has been extremely helpful for his business.

“Many contractors hate Yelp, but, for us, we’ve done a lot of work from our presence on the website.”

Rick Tullis, president, Capstone Mechanical, Waco, Texas, said his company largely moved away from digital marketing when it sold off its residential division, but said having a robust website is more important than any referral or review site.

“When we were in the retail world of residential HVAC, we did invest heavily in Facebook, Twitter, search engine optimization (SEO), and blogging,” said Tullis. “We even had a fulltime marketing person in our office who spent a large majority of her time just maintaining our digital presence. This strategy was used to drive the best search engine results possible.

“I have come to despise thirdparty referral services,” continued Tullis. “When we tried them, they never brought us the kind of valuable leads we were expecting, but they always required payment, even for the bad leads. We ended up deciding it was better to control our own destiny by marketing directly to the people we wanted to serve.”

Tullis said the company’s website remains the standard resource commercial customers and general contractors use to size them up. “We focus on having a strong presence in the community through sponsorships and encourage our team to serve in a variety of roles. When we focus on the needs of the community and our customers, our business opportunities grow.”

Social Media Guide For Contractors

By Nick Kostora

Contractors Plug in to the Social Scene

Over the past decade, social media has moved beyond novelty and has become a way of life. Sudden technological changes have left many HVAC contractors playing catch-up, to a certain degree. While acceptance of Facebook, Twitter, Google Plus, and other sites is still growing, there is no doubt that each has a role in the HVAC industry. But, of all the social media sites out there, which are most important to use? What content should be posted? How often should that content be posted? These are all reasonable questions for contractors to be asking and, luckily, sufficient answers exist.

“Residential contractors should focus on websites used by consumers,” said Ben Landers, president, Blue Corona Inc., an inbound Web marketing, analytics, and optimization company. “Facebook is obvious and popular, and if a business has a target audience in the age range of 35-60 — the age group that’s embracing Facebook more and more — it makes that much more sense to use the platform.”

“We recommend Twitter, Facebook, and Google Plus,” said Jennifer Eitzmann, social media director, Hudson Ink Inc., a contracting marketing organization. “Google Plus does not have the active user base of Facebook, but is important for search engine optimization (SEO) because it’s run by Google. Facebook is a big hitter for contractors because it’s so visual and it is designed for a demographic that they serve. Twitter’s popularity is still biggest on the West Coast, so it is more important to be used for West Coast contractors.”

Best Posting Practices

Forget being the Low Bidder…………Learn to be the Right Bidder

Those of you who know me, know that I was part of a medium sized commercial HVAC contracting business for a number of years.  I focused on the design/build part of the business.  We were fairly successful.  Our success didn’t come from being the ‘low bidder’ on every job.  Our design / build success came from educating our customers and letting them know the difference between our design / build solution and the other guys.  We got about 85% of the projects that we submitted proposals on, and only rarely were we the ‘low bidder’.    

Of course, there is a difference between commercial / industrial HVAC systems and residential / light commercial systems.  But, most of the same ideas that I’ used doing the big stuff, can be translated into doing the smaller stuff.  Here are a few ideas to help get you and your business away from being the “Low Bidder” and becoming the “Right Bidder.”  If every contractor is in a race to get to the bottom of the pile, then everyone in the race is a loser.

1.     First Impressions Count

Be professional looking and well spoken. When you visit a homeowner or a small business owner, make sure your clothes are clean, including your winter jacket.  Your hands should be reasonbly clean so that Mrs. Homeowner doesn’t mind shaking hands with you.  Don’t track refrigeration oil in on the carpet, either. 

As soon as you first meet anyone, introduce yourself and present a business card.  Do not immediately dive into a sales pitch.  Remember that communication is a two-way street.  One of my old mentors told me “Jonesy, you got two ears and one mouth.  Use them in that proportion.” 

Ask a lot of questions.  Do not assume that you know what the customer wants – ask them what they want.  More importantly - ask them what their end goal is.  Then guide them to the right stuff to fit their needs.  What they NEED may not be exactly what you have in the back of your truck.  People seem to know when you are trying to sell them something that they don’t need.

2.     Have a look around

Once the introductions are over, and a general idea of the ‘end goal’ is established, ask to take a look around the house or the building.  If it’s new construction, ask to see the drawings or plans.  This is one of the most important things to do.  Make not of possible problems or defficiencies, but don’t ‘point fingers at the other guy’. 

Things to look for are:

a.     Don’t focus on just the furnace or the AC.  I call that “Thinking outside the box”.  Look at the building as a complete system, not just a furnace and some ductwork.  There is a lot more to it than just the furnace & AC

b.    Combustion safety problems like a big kitchen exhaust fan, but no make-up-air.  Fire places and gravity vent water heaters but, still, no make-up-air.  Are there any other problems that might cause backdrafting?

c.     Is the existing ductwork the right size?  Is it big enough for the needed air flow?  Does it have too many reductions to allow good air flow?  Are the supply and return registers in good places or not?  Are there enough registers and grilles to allow enough air flow?

d.    Have there been any improvements done to the home or the existing building?  Added insulation?  Newer, better-grade windows?  Any areas remodelled or any additions to the building?  Look for things that might have increased or DECREASED the loads on the home or building.

3.     Do the Math!

I can not tell you the number of times that I have heard the addage “But, we’ve always done it that way.”  Well, Praise the Lord for all those who decided to change!  If ‘we always did it the same way’, we would still have coal fired heaters, unpaved roads, and drive into town on a buckboard with one horsepower.

As homes and buildings have changed, the needs of buildings have changed, too.  Don’t just automatically replace the old equipment with new equipment of the same size.  That approach only works out to be correct about 25-30% of the time. 

Take a few minutes and ‘do the math’.  Heating and cooling calculations are fairly easy to do now, with all of the sofware available.  If you don’t feel comfortable doing it yourself, then come in to TSI and have our design staff do it for you.  This will help to assure your customer that they are getting the RIGHT SOLUTION, and not just what you have on the back of the truck.

4.     Putting the V back in HVAC

Ventilation!  Ventilation is not just exhaust.  The insulting way to state this is that any HVAC contractor who doesn't address the V in HVAC is just a HAC (read: hack).  New homes are tighter than ever because of energy codes that require higher levels of air-sealing and insulation.  Older homes are tighter now because so many of them have replaced windows, installed storm windows, and storm doors.  Even new siding tightens-up old homes and reduces air infiltration.  All homes, old and new, need spot ventilation in kitchens and bathrooms.  Things aren’t like ‘the old days.’

Are you really including the V in HVAC?  Do you know what ASHRAE 62.2 is?  Do you understand the three strategies for providing mechanical ventilation (positive pressure, negative pressure, and balanced)?  Have you measured the air flow in your ventilation systems?

To make a long story short – If you do what is best for the building owner, if you are there to help them and not just sell them something, everyone wins.  The owner gets what they need, you get more work, and your sales margin can be better.  Don’t just be the low bidder - Be the right bidder.  Take a professional approach and you will be more profitable, with more work, working smarter and not harder.

Cold Weather And Your Refrigeration Units

By Glenn Minch Some things to consider when selecting outdoor refrigeration units applied in extreme cold: Cold Weather Accessories & Controls Condenser Bypass Valve Condenser Fan Cycling Control Compressor Crank Case Heater Adjustable Low Pressure Control The condenser bypass valve is used to used divert refrigerant from the condenser coil & instead pipe it right into the liquid line to maintain sufficient head pressure. This low ambient control works in any weather condition including subzero windy weather. This is the best cold weather control for your commercial refrigeration unit. The condenser fan cycling control is used to cycle outdoor condenser fan motor on & off to try & maintain system head pressure. This method may not work well in extreme cold & windy conditions. This is especially true when the condenser coil has been installed facing West. Often wind travels West to East & can over cool the condenser even with the fan cycled off. This mostly happens on extremely cold & windy days. This is why we do not believe that a condenser fan cycling control is a good choice. There may be several days a year where a cooler or freezer will not operate correctly with a condenser fan cycling control. The compressor crank case heater is used to prevent liquid refrigerant from migrating into compressor. The heater is energized all the time & keeps the compressor warm. This protects the compressor from liquid migration & liquid slugging. All outdoor condensing units should have an adjustable low pressure control. Some units come with OEM nonadjustable low pressure controls that have a settings too high for cold ambient conditions. This may cause compressor to sit idle & not cool the space to be conditioned when it gets cold out. We recommend a standard pump down setting for all outdoor compressor units. The standard pump down setting is 20# low side compressor on & 0# low side compressor off.

The Key Driving Forces Behind Price Resistance

BY TOM REILLY

Industrial Distribution’s 67th Annual Survey of Distributor Operations identified 17 areas of concern for distributors, but the number one is price competition. This comes as no surprise to me. Price competition prompted me to write the first edition of Value-Added Selling in 1984 and Crush Price Objections in 1999. Price objections have always been a top concern of business people.

In our recent survey of 300 salespeople, dealing with price-related issues dominated five of the top six challenges salespeople face. The problem most folks have with price competition is that they accept it at face value — believing that their price is the problem. Our research shows something else. Earlier this year, we announced our findings in surveying 500 buyers and consumers. We identified the key driving forces behind price resistance. These findings may surprise you.

Why Customers Push Back on Price

The number-one reason customers push back on price is equity. This finding is reflected in these statements: “I want a fair deal,” and “I do not want to feel that I have been taken advantage of.” This tells me that salespeople are doing a poor job of communicating the value of their proposition. When buyers perceive an equitable exchange of price for value, they do not complain about price. Value happens when the return is greater than the investment. 

The number-two reason customers push back on price is fear or scarcity. This finding is reflected in these statements: “I don’t want to spend more than is necessary,” “I am afraid of spending too much for something,” and “I do not want to waste valuable resources like money.” Fear is a powerful emotion. It is so powerful that it trumps other emotions including, and especially, greed. So, why are your customers afraid of paying your price? Where is this fear coming from? Have your salespeople said or done something to trigger this fear reaction? 

The number-three reason customers push back on price is limited resources. This finding is reflected in these statements: “I have a budget I must work with,” or “I have limited funds to work with.” Salespeople must qualify buyers early in the sales process to determine the viability of a prospect — the need and the ability to pay for a solution. Are your salespeople chasing the wrong business? Do you have a way to help this buyer find the funding? Are your salespeople really calling on the high-level decision maker who can create funding for an idea he or she likes?

The number-four reason customers push back on price is lack of differentiation. This finding is reflected in these statements: “I can buy the same thing online cheaper,” “I do not see much difference in the product for the difference in price,” or “I do not see the difference between suppliers.” Your failure to differentiate (products, or your company) is driving your customers to make the simplest decision of all — price.

Winding Up with a Fair Deal
Collectively, these four reasons comprise 65 percent of the reasons customers push back on price. If you prepare your salespeople to deal proactively with these reasons, you can eliminate most of the push-back that you get. Look at this through the customers’ optic.  

If you fail to offer a fair deal, causing the customer to spend more than necessary, squandering their valuable resources, and delivering commodity solutions to their products, you deserve price resistance. On the other hand, if you offer an equitable exchange of value for their money, help them invest wisely in a solution, assist them in protecting their valuable resources, and offer a differentiated product-solution and unique customer experience, you deserve the difference in your price vis-à-vis the competition.

Your company and your salespeople are not victims to price competition. You are complicit in it. Our research has found that 72 percent of salespeople and their managers will cave in to price resistance when buyers push back. If you tell your salespeople, “Get the business at any price, and we will figure out a way to make money on it internally,” you are complicit as a manager. Mixed messages confuse the market and frustrate your salespeople. Commanding a higher price for a differentiated product and unique customer experience is heavy lifting. Are you up for the challenge or will you go down for the count?

Tom Reilly is a professional speaker and sales trainer. He is the author of Crush Price Objections (McGraw-Hill, 2010). You may visit him online at www.TomReillyTraining.com.

German Water: How Flow Rate Affects Heat Output

It’s OK to Design a System Outside of a 20°F Delta T

By John Siegenthaler, PE

http://www.achrnews.com/articles/128199-german-water-how-flow-rate-affects-heat-output

When thinking mathematically, most people think in proportions. For example, if someone is baking cookies and they want to make a double batch, they intuitively know they need to double the amount of ingredients.

If someone was told a 100-horsepower (hp) engine could make a certain car go 100 mph at full throttle, and was then asked how fast a 200-hp engine would make the same car go, he’s likely to answer 200 mph.

Unfortunately, nature doesn’t always work in proportions. NASCAR fans know it takes a lot more than 200 hp to push a race car around the track at 200 mph. It takes about 800 hp to produce that kind of speed. Most of the power goes into overcoming the aerodynamic drag of the car at those high speeds.