Selling beyond good/better/bestDifferentiate your business by using

Fault Detection Technology

Table of contents

03 Levers to pull at the kitchen table

06 Differentiating the install experience

07 Eliminating callbacks

08 Differentiating the equipment

09 Conclusion

Levers to pull at the kitchen tableLet’s be honest. If you’re selling one of the major HVAC equipment lines, they’re pretty similar in their selling methods, simplified as good, better and best.

Of course, there are finer details contractors can use to differentiate equipment options to customers, but they all end up being measured in the same way: how efficiently they generate and move heat from one place to another. So, how do we differentiate ourselves?

PriceThe most dangerous spot to get stuck on is price. You don’t want to be racing to the bottom when you know you’re up against your competitor.

Differentiating on price means either eroding your margins or compromising on quality and service. Cutting corners on quality and service means poor customer experience, unhappy customers and poor referral rates.

03

ServiceServices are where progressive contractors have focused their attention. A better service experience for customers means higher ratings and online reviews, word of mouth referrals and an ability to maintain margins against your competition. But service superiority is often hard to show before the customer has signed on the dotted line, and the non-tangible aspect of service is hard to put a value on. That said, when your technicians show up on time with clean shirts and booties, clean up after themselves and they don’t have to return due to a faulty installation, that’s a huge win towards getting that next five-star review.

“If you want to lead and go into the future with relevance, to me, it’s the only option.”

Patrick SomersGeneral ManagerGeneral Air Conditioning and Plumbing (Sensi Predict Authorized Dealer)

04

Add-on valueAnother area where progressive contractors differentiate themselves is add-ons. Add-ons visibly differentiate your offering while adding minimal cost. Some common add-ons include: smart thermostats, humidifiers, maintenance agreements and filter replacements.

Recently, there’s been a new product category that progressive contractors are using to one-up their competitors: Fault Detection and Diagnostics (FDD). In other words, it makes existing HVAC systems smart. With the rapid advancement in technology, contractors now have access to FDD technology and smart monitoring at a price you wouldn’t expect. It’s giving contractors the opportunity to differentiate not only the equipment they are installing, but, for the first time, the entire install and maintenance experience. This opportunity is giving these market leaders the ability to differentiate both their services and add-ons simultaneously, allowing them to easily stay away from price differentiation. This is a double win at the kitchen table and for the business.

05

“We use some added value items provided by the manufacturer and some added by the company. We proved that a structured format (Good, Better, Best) results in the sale of a lot of the high efficiency premium equipment.”

Smith, Ron. (2007). HVAC Spells Wealth

The EPA estimates that nearly half of all HVAC systems are incorrectly installed.*

50%

Differentiating the install experienceThe most important day in the life of an HVAC system is the day it is installed.

The most critical steps in this final mile of manufacturing are:

• Proper size for the application load

• Proper matching of indoor and outdoor equipment

• Proper sealing, evacuation and capacity measurement of refrigerant loop

• Trimming refrigerant charge

• Maintaining ideal static pressure

• Adjusting airflow for the application

• Following start-up sequence

• Measuring output and overall performance

With the industry-wide technician shortage and reliance on less experienced installers, there are many things that can and do go wrong at the time of HVAC system installation.

06*https://www.energystar.gov/campaign/heating_cooling/esvi

Eliminating callbacksA callback after system installation is not only a margin killer, but with ratings and reviews everywhere, the impact on your business goes well beyond the fixed cost of the return visit. Losing the opportunity to generate a positive review can have lasting impact, while a one-star review can deter future customers from even considering your company.

Callbacks can be anything from a technician simply leaving off a gas valve or forgetting to reinstall the service disconnect, all the way to a catastrophic failure related to how the system was installed. Regardless of the problem, customers are rightfully disappointed when they have issues after making such a big investment.

With affordable Smart FDD technology and smart monitoring, you can eliminate installation callbacks altogether. FDD tools generate real- time data and provide an install verification report before the install team leaves the house. This way, you can offer a “no callback” or “perfect install” guarantee, immediately differentiating you from your competition. Your install verification report to the homeowner gives you a level of credibility that others just don’t have.

07

Differentiating the equipment/HVAC systemBy offering FDD technology with a new system install, you can offer a Smart HVAC system to your customers. $250-$400 in smart sensors can transform an ordinary HVAC system into a smart one offering gold star commission verification, 24/7 fault detection and monthly health check reports throughout its life. This is the most cost effective way to differentiate your equipment/HVAC system from the competition.

“By having factual data, we’ve been able to increase our close rates anywhere between 15 and 19%.”

Leo MurrietaGeneral ManagerPioneer Air (Sensi Predict Authorized Dealer)

08

15-19%

09

ConclusionWhen a homeowner chooses a contractor, trust is at the core of the decision. Competing on price is a deadly spiral and you should avoid it at all costs.

With affordable and simple-to-use FDD technology and smart monitoring, you can set yourself apart from the competition by differentiating on service and add-ons at the same time.

With FDD technology and smart monitoring you can offer:• Premium install experience • Quality install verification report • No call-back guarantee

• Enhanced System Comfort Care • 24/7 fault detections • Energy summary and smart reports

All of these features can easily drive customers to share their experience and insights on social media, which, if you’re doing your job right, is only good for you. This gives you a level of credbility and trust that others don’t have, and an opportunity to gain referrals—just by getting the work done that you would be doing anyway.

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