2020 leadseminar project sales

2020 LEADSeminar Project Sales

Capital Planning Facilitator: Brad Jovaag

Participant Workbook

October 14, 2020 LEADSeminar Virtual Classroom

Capital Planning Creating New Opportunity

Service Professional Group The Service Professional Group (SPGroup) is an international association of independent commercial HVAC service providers. SPGroup’s goal is to continually improve the Associate’s individual businesses by working together to provide industry specific training, support and an ongoing exchange of knowledge, experience, and best practices. Mission Statement Provide training and tools to ensure that Associate Members are the preferred employer and service provider of choice for building managers and owners in their local market.

LEADSeminar 2020

CAPITAL PLANNING

Participant Workbook Page 1

Capital Planning Learning Objectives

▪ Create Long Term Sales Opportunity

▪ Implement Proactive Sales Strategy

▪ Expand Existing Customer Relationships

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LEADSeminar 2020 CAPITAL PLANNING

Page 2

Capital Planning Current Trends

In the current era of aging buildings and budget pressures, facility executives are reevaluating

their planning processes. As a service provider, your company has the resources to address

each of the following planning trends.

1. Capital Prioritization

− Decision makers need the right information that provides an

accurate big picture

2. Capital Expenditure (CapEx) Tools

− Assist facility managers collaborate with finance

3. Better Comparative Metrics

− Repair versus replace comparison

4. Life-cycle Planning

− Create a compelling business case

5. Attention to ROI of Investments

− Prioritize elective projects

6. Forecasting Real-time Predictive Analytics

− Life cycle costing based on equipment age and condition

7. Continuous Capital Planning

− Identify long-term capital replacement needs

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LEADSeminar 2020

CAPITAL PLANNING


Capital Planning How We Help Customers

Many project sales with existing customers result from responding to operational problems or

requests. The focus of this session is building on the relationship with new information.

Reactive

− Respond to an existing customer request

Proactive

− Identify critical building needs and sales opportunity

with existing or new prospective customers

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Prospects don’t respond well to people who sound as if they’re selling something.

Who Stole My Sale

Todd Duncan


Page 4

Capital Planning How We Help Customers

Reactive opportunities are often emergencies and time sensitive. Proactive opportunities tend

to be future projects with existing customers. Most new prospective customers have an existing

relationship that takes time to overcome.

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LEADSeminar 2020

CAPITAL PLANNING


Capital Planning Group Breakout

Individually

− Identify a proactive project sold in the past 12 months

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• How was the project identified?

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• What was the scope of work?

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• What was the customer’s objective?

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In Your Small Group

− Review each project and select one to share with the class

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Page 6

Capital Planning Proactive Project Sales

The objective of any proactive sales process is to provide a value added service for existing

customers and critical documentation for new prospects that will establish creditability for you

and your company.

1. Building Assessment Report

− Document Current or Future Needs

− Mechanical Systems Condition

2. Equipment Replacement Capital Plan

− Budget Numbers

3. Energy Star Portfolio Manager

− Benchmark Report

− Identify Energy Saving Opportunities

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If you’re proactive, you focus on preparing.

If you’re reactive, you end up focus on repairing.

John C. Maxwell

LEADSeminar 2020

CAPITAL PLANNING


Building Assessment Report

Following the standard introduction pages, is detailed equipment information collected from the

building survey or contract file.

Equipment Inventory

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Page 8


This section serves as an overview of the pages that follow, and defines the three-tiered, color-

coded criteria for analysis of each system and/or component.

Equipment Condition Assessment

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LEADSeminar 2020

CAPITAL PLANNING



This summary page is intended to provide an immediate reference to areas of concern. Note

that this customer was a local church with reduced runtime on the systems. Although several

major pieces of equipment have been replaced in the past 4 years, equipment original to the

building continue to operate.

Assessment Summary

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Page 10


The findings pages provide additional information and recommendations for the equipment

highlighted as yellow or red.

Equipment Condition Findings

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LEADSeminar 2020

CAPITAL PLANNING



Equipment Condition Findings

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Page 12

Capital Planning Best Practices

What estimating tools do you currently use to create a budget

estimated price?

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LEADSeminar 2020

CAPITAL PLANNING


Capital Planning Financial Incentives

Utility Rebates

− www.dsireusa.org

Federal Tax Incentive

− www.section179.org

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http://www.dsireusa.org/

http://www.section179.org/


Page 14

Capital Planning Budget Numbers

Equipment Replacement Budget Estimates

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Approach each customer with the idea of helping solve a problem or achieve a goal,

not of selling a product or service.

Brian Tracy

LEADSeminar 2020

CAPITAL PLANNING


Capital Planning Budget Numbers

Although there is continuous planning and reprioritization, the initial capital planning process is

timed to the customer’s Fiscal (Financial) Year.

− Submit capital requests 90-120 days prior to current

Fiscal Year (FY) end

• Calendar FY – January 1 to December 31

• Education Market FY – July 1 to June 30

− Capital project approval timeline

• Typically, in month/period 11 or 12 of current FY

− When project is approved

• Proceed with formal quote immediately

• Customer priorities will change

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2020 leadseminar project sales

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