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TRANSCRIPT
CRUSHING YOUR COMPETITION AS A
WHOLE HOUSE HOME PERFORMANCE
CONTRACTOR
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CRUSHING YOUR COMPETITION AS A
WHOLE HOUSE HOME PERFORMANCE
CONTRACTOR
HOME
PERFORMANCE CONTRACTING
Comfort Energy Savings Guaranteed
GREEN HOMES AMERICA
• Founded in 2005 as a division of The Linc Group/ABM
• The Linc Network is the largest, most successful HVAC franchise in history. (approaching 160 locations)
• GHA is a single-source, home performance contractor / only provider that guarantees results
• Company-owned and franchise locations in New Jersey, New York, Utah, Virginia, California, South Carolina, Florida and Washington
• GHA partners exclusively with HVAC/R contractors
TODAY’S SUBJECTS FROM
A BUSINESS POINT OF VIEW
What is Home
Performance Contracting?
Why add Home Performance
to your current offerings?
What’s required to get into Home
Performance Contracting?
What do I look for in choosing a
Home Performance Partner?
HOME PERFORMANCE CONTRACTING?
In simple terms,
Exactly
what is HPC?
Home Performance Contracting
is a holistic approach to achieving
significant increases in:
Home Safety
Indoor Comfort
Air Quality
Energy Efficiencies
HOME PERFORMANCE CONTRACTING?
Home Performance Contracting includes a thorough
analysis of structural, electrical and mechanical
components of the home. Specialized tools and
equipment are used to test for:
Unsafe and/or Inefficient
Equipment
Air Leaks
Insulation Voids
Thermal Bypasses
only to have the
customer still
complain about “too
Hot
or too Cold”?
How many times
have you
properly
designed and
installed a new
HVAC system ---
Homeowner Frustrations
ELIMINATED BY
HOME
PERFORMANCE
CONTRACTING
Home Energy
Assessment
(Test-out)
Install
Energy
Upgrades
Sell the
Energy Upgrades
Home Performance Procedural Process
Diagnose
Problems
Found
Home Energy
Assessment
(Test-in)
WHY ADD HOME PERFORMANCE?
WE ALREADY HAVE A BUSINESS!
YEA, BUT! We’re too busy to take on a new business opportunity.
We already have too many problems.
Our market isn’t suited for HPC; Utility rates are too low
WHAT IF?
WHATS HAPPENING
IN THE MARKET
PLACE?
TAKE A LOOK
WOULD YOU AGREE?
• People are truly concerned about home comfort and family health and safety
• Cries for energy independence getting louder
• Energy prices are rising and will continue
• No one wants more coal-burning power plants
• People are looking for ways to save money
2012 HVAC REALITIES
• “Bad Economy” is the “New Economy”
• Competition will remain fierce
• Differentiation will continue to be key
• New energy-related technologies will proliferate
• Existing customers are an untapped opportunity - they have frustrations and unmet needs…
THE PERMANENT SOLUTION
HOME PERFORMANCE CONTRACTING
SOLVING CORE CAUSES = PERMANENT SOLUTIONS
Start with the Core
• Seal air leaks throughout the attic and home
• Add insulation to attic and walls
• Seal or replace leaky ducts
• Install variable-speed Motors and Pumps
• Energy efficient lighting solutions, including motion detectors
• Replace single-pane Windows (beware – paybacks are long)
DELIVERING WHAT CUSTOMERS DESERVE
After you improve the Core, you take the next steps…
• “Right-sized”, high efficiency air conditioner
• “Right-sized”, high efficiency furnace
• On-demand and/or Solar water heating
• Solar heating and pool heating
HOME PERFORMANCE CONTRACTING
OK, But what are
the benefits to my
company?
CLEAR CONTRACTOR BENEFITS
You will be viewed as the
Energy & Comfort Expert
EASIER TO
BUNDLE
PRICING MORE
REFERRALS! REDUCE
CALLBACKS CUSTOMERS
WILL RAVE
ABOUT YOU
WHY SHOULD HVAC CONTRACTORS OWN HPC?
We Have Resources Other Trade Contractors
Don’t Have
1. Maintenance Agreement base & captive customers
2. Service Techs - the perfect lead source
3. Unmatched mechanical equipment expertise
4. In-home sales experts
5. Understand license, permit, and rebate processing
Metric HVAC
Contractor
Home Performance
Contractor
Close Rate 30% - 35% 30% - 40%+
Burdened Margin 25 – 35% 50%+
Average Ticket $5,500 - $6,500 $9,000 - $15,000+
HVAC $5,500- $7,500 $5,500- $7,500
Air Sealing & Insulation $3,500- $7,500
Water Heating $1,500 - $9,000
HPC = BETTER MARGINS & HIGHER JOB SIZES
WHAT’S REQUIRED
I WANT TO GET INTO HOME PERFORMANCE CONTRACTING!
HOME PERFORMANCE REQUIREMENTS
• A Solid Business Plan
• Home Performance Accreditation
• Specially Trained Employees
• Capital Investment in Tools & Equipment
• HPC Systems and Procedures
THE CRITICAL QUESTION!
Do I go it alone, or
should I look for a
home performance
partner?
IF YOU WANT A PARTNER…..
What do I look
for in a Home
Performance
Partner?
GreenHomes America
THE PERFECT PARTNER
• Culture and Personality
• Reputation, Longevity and Financial
Stability
• Viable, Flexible Proven Business System
• Outstanding and Ongoing Training
GreenHomes America
THE PERFECT PARTNER
• Sharing Best Practices and Procedures
• Assistance with Pricing Structure
• Continuous Support
• Consistently Acceptable Return on
Investment
• Exit Strategy?
HOME PERFORMANCE IS A GAME CHANGER
CLEARLY DIFFERENTIATES YOUR BUSINESS
INCREASES YOUR MARGINS
INCREASES YOUR PROFITABILITY
REDUCES SEASONALITY AND CALLBACKS
ASSURES CUSTOMER SATISFACTION
HOME PERFORMANCE IS THE RIGHT THING TO DO
HOME PERFORMANCE IS A GAME CHANGER
CLEARLY DIFFERENTIATES YOUR BUSINESS
INCREASES YOUR MARGINS
INCREASES YOUR PROFITABILITY
REDUCES SEASONALITY & CALLBACKS
IT ASSURES CUSTOMER SATISFACTION
HOME PERFORMANCE IS THE RIGHT THING TO DO!
HOME PERFORMANCE
THE WAVE
IS HERE!
BE ON IT! OR BE
UNDER IT!
HOME PERFORMANCE
CONTRACTING PRESENTED BY
Comfort Energy Savings Guaranteed
Mike Callahan [email protected]
www.greenhomesamerica.com
MISSING OR INSUFFICIENT INSULATION!
DUCTS LEAK!
Home Performance is a
Game Changer for our
HVAC business
Jerry Unruh ABC Cooling & Heating
Northern California
Is this the Secret Sauce?
• Comfort
• Safety
• Lower Utility Bills
Offer a Complete, Bundled,
Whole House Package that
includes:
Is HPC Right for an HVAC
Company?
• First Quarter typically the slowest
• 2012 Record Months
• Added HPC July of 2010
“What we did yesterday
may not work
tomorrow!”
Is HPC Right for your
Company? • Does it fit my Core
Competency or Primary reason for being in business?
• Will it dilute my Focus?
• How does it impact my Business and Financial model?
How do you decide to make the time and financial investment ?
Let’s put some real numbers on this:
2 ½ times the Gross Margin Dollars for each job installed
• Marketing Costs are less than half
• Close Rate is equal to or higher
than our other work
• Average Job is more than double
• Gross Margins average 13% higher
Home Performance requires a Company Cultural Change
• High efficiency has been our green
• Zone Control has been our solution
to Comfort
• HPC initially was a separate
department
• HPC is now what we do
• Home Performance is a
game changer
• Clearly differentiates your
business
• Increase your margins
• Higher average tickets
• Customers for Life
• Reduces seasonality
• Reduces callbacks
Summary of Benefits
Why BPI Accreditation and
Whole House Home
Performance Contracting is
Right for You
Crushing Your Competition as a Whole
House Home Performance Contractor
John Jones
BPI
What is BPI? Standards
Certification
Accreditation
Quality Assurance BPI
July 2010
August 2012
Who
BPI
Works
With
BPI
Test Centers & Proctors
Utility Programs,
State & Federal
Government (GSA )
Quality Assurance Providers
BPI Accredited Contractors
BPI
BPI Certified
Professionals
Home Owners
What is Whole House Home
Performance Contracting?
The systematic approach to
improving the comfort,
health, safety, energy
efficiency and durability of
your customers’ homes.
It starts with standards.
48
Typical home…full of systems…
Drainage system
Foundation system
Flooring system
Wall system
Ceiling system
Roof system
Insulation system
Heating system
Air conditioning system
Ventilation & IAQ systems
Moisture control systems
Distribution system
Exhaust systems
Plumbing systems in/out
Electric, Appliance & Lighting systems
Energy management system
49
Need for Whole House
Home Performance Contracting
About one-third of owner-occupied homes are
now at least 45 years old and an additional
third is between 25 and 45 years old meaning
that a large majority of our homes (about 56
million) were built before modern energy
codes and are drafty, uncomfortable and
expensive to operate.
50
BPI Whole House Home Performance
Contractor Model Contractor is in control of the job cradle to grave
Educate Customers on Whole-House Contracting
Offer Whole House Solutions
Get Key Staff Trained & Certified
Follow BPI Standards in Your Work
Do No Harm by “testing out”
Participate in Independent, Third-Party Quality Assurance Program
51
Who
BPI
Works
With
BPI
Test Centers & Proctors
Utility Programs,
State & Federal
Government (GSA )
Quality Assurance Providers
BPI Accredited Contractors
BPI
BPI Certified
Professionals
Home Owners
Keys to Whole House
Contracting
Verifying and
ensuring the
quality of your
work
Test Out
53
What is BPI Accreditation?
A professional credential
awarded by BPI to
contracting companies who
commit to offering
comprehensive “whole
house” home performance
solutions for their
customers.
54
BPI Certification vs. Accreditation
BPI Certifications
Measures competence of the individual through
written and field practical exams
BPI Accreditation
A company credential showing whole company
commitment to Quality Assurance
55
What’s In It For Me, the Contractor?
Brand Recognition – Differentiation
Access to Resources
Educational
Business Training
Marketing Outreach
Independent, 3rd Party Quality Assurance
Feedback on Best Practices
56
Are You Different from Your Competition?
What makes your
company different? Fully Insured?
Bonded?
Licensed?
Experienced Techs?
Free estimates?
Emergency service?
Guaranteed low prices?
Better Business Bureau
So is your competition
So is your competition
So is your competition
So does your competition
So does your competition
So does your competition
So does your competition
So is your competition
57
Want to Make Your Company Different?
Want to truly give your customers something
different from your competition? Whole house solutions Not your competition
BPI Accredited Company Not your competition
BPI Certified Technicians Not your competition
Customer Dispute Resolution Not your Competition
3rd party Quality Assurance Not your Competition
“every man I ever knew that was good with a …, and lived, always had
an edge . “Sure pays to have an edge.” Outlaw Josey Wales 1976
Ask yourself, what’s your edge?
58
Typical home…full of systems…
Drainage system
Foundation system
Flooring system
Wall system
Ceiling system
Roof system
Insulation system
Heating system
Air conditioning system
Ventilation & IAQ systems
Moisture control systems
Distribution system
Exhaust systems
Plumbing systems in/out
Electric, Appliance & Lighting systems
Energy management system
59
Summary of the Value Proposition
SALES BENEFITS • Offer customer complete solutions • HP uses a systematic approach • Expand your scope of services • Improve your closing rates • Increase referrals • Be selective about projects • Perform larger value projects
OPERATIONAL BENEFITS • Differentiate business • Reduce staff down time • Retain high quality staff • Identify qualified staff to hire • Minimize call back costs • Fewer customer complaints • Manage your risk • Increase profit margins • Ability to sleep, knowing you did it right, the first time
60
A Few Reasons to Get Accredited
To reduce to the maximum extent possible your company’s exposure to risk.
61
Benefits of Accreditation
Commit to a quality
management system
Drive decision making into
the field
Encourage employees to
problem solve
62
Benefits of Accreditation
Test out
Allow employees the
freedom to make the
changes that will reduce or
eliminate callbacks
Get to the root cause of
callbacks
63
Callback:
The most significant investment a company can make in building a negative image with its customers.
64
Minimize Your Company’s Risk
Investing in Accreditation
Investing in training for employees
Get key employees professionally certified
Building Analyst + Specialty Certification
Commit to educating customers
Conduct comprehensive assessments
Utilize a customer dispute resolution system
Keep accurate records... (wait there’s more.)
65
Furnace
Filter Slot
Return Air
66
Why Sponsors Choose Accreditation
Build a strong contractor infrastructure capable of
delivering “house-as-a-system” energy retrofits.
Ensure that contractors’ work conforms to
standards.
Customer dispute resolution system in place.
Independent, third-party quality assurance.
Minimizes Their Risk
67
BPI Accreditation Recognizes HVAC
Credentials
Certification criteria for company accreditation:
BPI Building Analyst certification; plus
NATE (Oil or Gas Service
or Installation certifications); or
NORA (Silver or Gold certification); or
RSES (one of three member designations)
Your HVAC experience counts
Your NATE credential credited toward portion of
BPI’s Heating or A/C and Heat Pump exams
Pass a 50-question instead of 100 question “house-as-
a-system” written exam and a field practical exam with
the appropriate diagnostic equipment for health and
safety testing.
This Is Too Expensive!
“I don’t have the time or resources to
invest in these kinds of systems.”
BPI’s combined Accreditation/QA fee is $.003 for every dollar of revenue.
Accreditation/Quality Assurance adds about $15 to the average $5,000 job.
70
Whole House Solution Costs
How much does it cost to get BPI Accredited? 3 or 5 day training each for 2 Certifications: $1,200 x 2 = $2,400 (optional)
BPI Certification Exam Fees: $550 x 2 = $1,100
Accreditation and Quality Assurance: 1,500/year
Diagnostic Equipment: $8,000
Some contractors dedicate salesperson and a small technical crew for this part of
their operation
Total Estimated Initial Cost: $13,000
Average Project Size: $8,000 - $12,000
71
Example HVAC Franchise Costs
How much does it cost for a duct sealing franchise?
Franchise Fee $10,000 - $39,000
Diagnostic Equipment: $16,000 - $24,00 •3 or 4 days of training at the contractor's facility, includes an actual home
diagnostic and duct sealing
•strongly suggest a dedicated salesperson and a small technical crew for this
part of their operation
Total Estimated Initial Cost: $26,000 - $63,000*
Average Project Size: $1,100 - $2,000**
**http://www.aeroseal.com/contact-us/residential-dealer.html *http://www.snipsmag.com/Articles/Feature_Article/be4fbbc958aa7010VgnVCM100000f932a8c0__
72
The Best Reasons to Get
Accredited
Build your skills.
Expand your work scope.
Stand out from the crowd.
73
Go to www.bpi.org/hvac
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