< Previousby their newly purchased home. It was about 50 years old and a nightmare for anyone with re-spiratory issues. The house had air leaks every-where. Old insulation was full of rodent urine and feces. Plus, there were fibers, fiberglass, irritants, and other contaminants in the attic, in the walls and, of course, in the air ducts.The customer was expecting a quote on reno-vating the existing HVAC systems which I sup-pose in their minds meant adding a little Freon and maybe cleaning the duct work.So, what does this have to do with “The Habitu-al Buyer?” Everything.SETTING THE STAGEI’m going to let you in on a secret. In my for-mer life as a professional electrical estimator I learned that information is often more important than process. The key is to find out as much as possible about your prospects or about any job you are about to quote.In this case, I knew the cust-omer could af-ford anything they could possibly want, so I showed them op-tions that were absolutely the best possible solutions for the health of their home and family. I also knew that to do the job right and guar-antee the family would breath clean, contaminant-free air would be expensive.I recommended gutting ev-erything that had anything to do with the existing HVAC sys-tems and all the insulation in the attic as well. My top option cost Ten years ago, I sat down on a sawhorse in front of a husband and a wife who met with me at their home. I was making rec-ommendations to them about two HVAC systems while the home was being renovated.I sat on a sawhorse because there was nothing else to sit on. My customer and his wife occupied the only other seats in the entire 7000-sq. ft. home -- her on a metal folding chair and he on the car-penter’s small coca cola-decorated refrigerator.Customer? Not prospect? This couple had used our company for years to maintain and replace HVAC systems in their previous home. They were our customers and they adored us because their health-challenged child had responded extremely well to our earlier indoor air quality reno-vations. We had earned their complete trust.They were now being chal-lenged HIGH PERFORMANCE HVAC TODAYThe Habitual BuyerBy Rodney Koop, CEO, The New Flat RateSALES20 NOVEMBER 2017The husband asked me to rewrite a detailed description of what we could do for his family in the $50,000 price range. I was very happy to do that for him.THE HABITUAL BUYERMost consumers want to shop price. They want options. They want to spend their money the way they want to spend it. This is THE common habit among consumers.Habitual buyers will pay a premi-um if you are a solutions provider. In this instance, it was obvious that dol-lar amounts had little to do with the purchase. But, and this is a hot key, it had ev-erything to do with immediately estab-lishing the budget. How much would they be comfortable spending if it was justifiable ($55,000 is what they ended up agreeing to)? What if my top option had been $45,000? Would the wife be just as inclined to feel good about it? Remember, these options were eas-ily affordable for this couple. I point that out because if you do not have at least part of your offering at affordable levels. you will be quickly shown the door.The husband felt comfortable in the middle. Why? He wanted options that would work for both he and his wife.However, he had to see the details of that option because he did not want to short change his wife’s desires. He knew what she really wanted was peace of mind concerning the health of her daughter. They both wanted me to make sure my company could pro-vide protection from any kind of ir-ritants or allergens that would cause her respiratory system trouble. Hav-ing expertise in indoor air quality was a big plus for my team and it got us in a door. That door now seldom shuts.In this case, the husband had the fi-nal say and his wife trusted him. He wanted the detail to assure her that they could get what they needed at what he considered a reasonable price.Back to the habitual buyer. Every-one wants to shop. Your job is to pro-vide options in such a way that they immediately find comfort in one of them.$98,000 and included two high end HVAC systems with humidity control, dehumidification control, IQAir Per-fect 16 filtration, and fresh air infusion using ERV technology. We would install two completely new clean, sealed, and spray-foam en-capsulated air duct systems and pro-vide triple safe water protection from all condensation. This option included a 10-year complete-coverage warranty for all repairs and maintenance.I then proceeded to go over four oth-er options with the least expensive one costing around $24,000.When I finished reviewing the options I asked them, “what should we do?”They both thanked me for my hon-esty and the wife said, “I like that top option.” I asked her what she liked about it and she said she just felt good about it. Her husband was quick to ask about the $50,000 option. He and I discussed it at length, but his wife kept going back to my top option.Finally, the husband smiled and said, “My wife always wants the best and I don’t blame her. However, I’m an engineer and I like to take a more practical approach. It looks to me that we can get the same level of quali-ty with the middle option and that is where I feel most comfortable.”NOVEMBER 2017 21HVACTODAY.COMshould be the best quality repair and perhaps renovation bringing the sys-tem back to “like new” condition. Wait and let them ask about a new system when they feel comfortable with you.4. Customers default to shop-ping. Once again, the secret to the ha-bitual buyer is knowing their default is to “compare and choose.” They choose fast when they have something to compare. For instance, almost nobody will buy the last washing machine on the floor at Sears. The more washers on the floor, the more they will com-pare, and they will most certainly buy. You always sell far more when the cus-tomer has a choice.OTHER NOTESAsk yourself how habitual buying patterns affect you. Then ask how they affect those around you. I would be re-miss without saying habitual buyers don’t always buy the same way. Exam-ple, top shelf shoppers buy top shelf options when they have top shelf mon-ey. But when money is tight -- like af-ter they pay their taxes -- they will still buy, but from the middle shelf.Habitual buying patterns have little bearing on wealth. Wealthy people can afford to take risks and are often more frugal, so they may take cheaper options. Someone who can-not afford for their comfort system to breakdown again will often pay a premium to assure no more break-downs. But wealthier people are capable and will buy top shelf when it appeals to them.There is more information avail-able on this subject. After 10 years of study, I still make new discoveries. In my opinion, nothing simplifies your sales like catering to customer buy-ing habits. They will be happier and you will be wealthier. That seems like a good “win-win.” Questions? Comments. Go to ncilink.com/1117HB FOUR TIPS ON SELLING TO HABITUAL BUYERS1. Keep it simple and keep it about solutions and systems be-cause these things require expertise, talent, and craftsmanship. If you make it about name brands, part names, etc., the buyer will habitually feel the need to comparison shop. You don’t want customers shopping among competitors or online because it is not likely they will find anyone who will do as good a job for them as you will.2. The bottom option. The bot-tom option is key because it lets the customer see your honesty. It requires two things: it must be very reason-ably and competitively priced. If it looks like what they expected to pay, or what they “heard” cousin Betty paid for similar work, then they will trust that all your prices are honest and fair.When they perceive your pricing is right, 80% of them will want to move up your option ladder. The bottom op-tion must still solve the problem. Do not short change the needed or ex-pected result because those who take the bottom option still deserve your expert work.Do you see how the bottom option takes as much thought as the higher options? It is important to know your costs and price your work reasonably. If you do this right, your overall prof-it will skyrocket. However, if you are greedy you will often not get anything.3. Your top option should be aggressive but not stupid. Exam-ple -- when a customer calls you to re-pair an air conditioner and you find a shorted contactor, the top option should not be a $20,000 for a new system. That’s the fastest way to get kicked out of a home. The top option 22 NOVEMBER 2017HIGH PERFORMANCE HVAC TODAYSALESRodney Koop, over the last three decades, has founded and sold HVAC, electrical, and plumbing service companies. He is a Master Electrician -- holding 10 unrestricted electrical licenses -- and has helped write and qualify exam questions for state board testing. During his career, Koop has contributed numerous articles and industry assessments to multiple publications and recently authored his first book. Today, Koop is the CEO and founder of The New Flat Rate.NOVEMBER 2017 23HVACTODAY.COMGoodman is a proud sponsor of Lifetime Channel’s television series Military Makeover® that helps create better homes for our American veterans. Goodman donates high-efficiency HVAC products for these veterans and their families. Local Goodman® brand dealers also donate their time to install these upgraded systems providing support to veterans in their local community.This TV series salutes those that have risked their lives, offering hope and a helping hand right here on the home front.PROUD SPONSOR OF Our continuing commitment to quality products may mean a change in specifications without notice. © 2017 Goodman Manufacturing Company, L.P. Houston, Texas · USA www.goodmanmfg.com Visit Us at Summit 2018!that you currently enjoy.So, what makes a great leader? I suppose it depends on what management books you read or which consultants you listen to. There many books and articles written about leadership, almost too many to count. What I’ve found is that there are 19 common traits of great leaders that most everyone agrees on. With that in mind, I’ve created the following list of those top attributes. As you go through the list, think about how you can adopt those you might not have to help put or keep your company on the road to greatness.LEAD BY EXAMPLE “If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” – John Quincy Adams, 6th U.S. presidentLeaders need to show, not just tell. For example, if you want employees to be on time, make sure you’re always on time -- or even early. If profes-HVAC companies that thrive in any economy don’t rely on luck or lots of cash on hand. They thrive because they have leaders and leadership teams with vision and perseverance to guide them through. In the world of Performance-Based Contracting™, you are the leader in your business and most likely in your marketplace. You already demonstrate some of the quali-ties of great leadership or you wouldn’t enjoy the successes 24 NOVEMBER 2017Attributes of a Great Leader[PART ONE]By Mike WeilLEADERSHIP“THE GOOD-TO-GREAT LEADERS NEVER WANTED TO BECOME LARGER-THAN-LIFE HEROES. THEY NEVER ASPIRED TO BE PUT ON A PEDESTAL OR BECOME UNREACHABLE ICONS. THEY WERE SEEMINGLY ORDINARY PEOPLE QUIETLY PRODUCING EXTRAORDINARY RESULTS.” -- James C. Collins, Good to Great: Why Some Companies Make the Leap ... and Others Don’tHIGH PERFORMANCE HVAC TODAYCOMMUNICATE, COMMUNICATE, COMMUNICATE “The art of communication is the language of leadership.” – James Humes, speech writer for five U.S. presidentsEffective communication is im-portant in all things, whether in your private life, or in the office and field. This means not only making sure you are heard and understood, but that you develop smart listening practic-es as well. It involves being specific in what you say, in the instructions you provide, and objectives you describe. Communication is a two-way street, and making the most of it will keep your company moving forward, even during tough times times.SHARE YOUR VISION “Know what your future looks like, feels like, and acts like.” – Brian Scudamore, founder and CEO of 1-800-Got-Junk?Transport yourself into the future so you can see it with picture clar-ity. Then be as transparent as you can with all your team members. The more they know, the more you all are part of the same dream and vision. This strengthens the team and helps everyone work harder to get where you need to go. If you keep informa-tion from your team, they’ll lose trust in you. That’s when they look else-where. Steven M.R. Covey discuss-es the issue of trust in his landmark management book, “The Speed of Trust.”sionalism is a priority, make sure you’re dressed for success, and treat everyone you interact with (both in-person and online) with courtesy. If you want technicians to do stat-ic pressure tests on every call, do it yourself first, then train your service manager or lead technician to con-duct those tests and let them lead by example.Set the tone and your employees will follow it. Great leaders do whatever needs to be done to move their organi-zation forward. They will make the right decisions rather than an easy decision. Many top leadership consultants say that leaders who do these things are leaders worth following.BE HUMBLE – FOR REALThere’s a difference between a leader and a boss. While both are in charge, a leader shares the spotlight and is comfortable crediting others. While it might seem counter intui-tive, being humble takes more con-fidence than basking in glory. Your employees and customers will appre-ciate it. In fact, research organization Catalyst, states in a recent study of more than 1500 workers worldwide that humility is “one of four critical leadership factors for creating an en-vironment where employees from dif-ferent demographic backgrounds feel included.”The study found workers felt strong bonds as a team when their leaders demonstrated humility by being will-ing to learn from criticism and admit-ting to making mistakes. They empow-ered followers to learn and develop. And those leaders took personal risks for the greater good, yet still held em-ployees responsible for results.NOVEMBER 2017 25HVACTODAY.COMonly when necessary and limit them to addressing the task at hand.KNOW YOUR LIMITS “A man has got to know his limitations.” —Clint Eastwood as Dirty Harry in the 1973 movie, “Magnum Force.”We all have limits, no matter who we are. Great leaders have a clear under-standing of their own limitations. They know that success is a team sport and there is no such thing as a “self-made” man or woman. In a 2010 blog post, Performance Specialist Laura Lopez wrote, “Rec-ognizing your limitations isn’t about signaling weakness or about admitting defeat, it is the opposite, it is about em-powering yourself to be more success-ful. Recognizing your limitations means losing your arrogance about others’ abilities and engaging them to be part of the solution.”HAVE COMPASSION “The purpose of human life is to serve, and to show compassion and the will to help others.” —Albert Schweitzser, theologian and Nobel Peace Prize recipientThings do go wrong. Fact. Before jumping to conclusions or guessing what happened, take a deep breath. Use compassion and empathy to help you understand what went wrong and how to make sure it doesn’t happen again. Empathy is, according to Psychology Today author Ray Williams, “the social glue that holds human society together.” In his article, ‘Why We Need More Empathetic and Compassionate Lead-ers,’ he states that compassion and empathy are “not weaknesses” in the workplace. Rather they are strengths that build morale, bonds teams togeth-er, and often lead to stronger bottom line results.FAMILY FIRST, WORK SECONDFamily first means just that: any time a team member has an urgent family issue they need to attend to, let them. Most of you know how often family issues influence work performance. Make sure your team knows that you care about their home life as well as their work life. It pays dividends in their performance and productivity. Equally important, great leaders also put THEIR families first as well. Questions? Comments. Go to ncilink.com/1117GL This ends part one of our two-part series on leadership. We covered nine of the 19 attributes. Next month we will provide the rest. In the mean-time, we’d love to hear from you. Visit our website at HVACToday.com and leave a comment on this article.BE TRUSTING “The best way to find out if you can trust somebody is to trust them.” --Ernest Hemingway, American authorBy giving unwavering trust to your team, you inspire them to do a great job. Great leaders provide their teams with the tools and support they need, then get out of their way and let them do the work. Trust is like glue: it binds leaders to their followers and leads to team suc-cess. Stephen Covey further discusses this in The Speed of Trust.HAVE PRODUCTIVE MEETINGS “You should never go to a meeting or make a telephone call without a clear idea of what you are trying to achieve.” – Steve Jobs, co-founder, Apple, Inc.Productive meetings -- this means being organized, task oriented, and having an agenda. It means limit- ing side conversations and other time-wasting events. If you trust your team, there is no need to micro- manage them. Do these things and meetings will run quickly and effi-ciently. Great leaders have meetings 26 NOVEMBER 2017HIGH PERFORMANCE HVAC TODAYLEADERSHIPMike Weil is the editor-in-chief of High-Performance HVAC Today magazine. He would love to hear your comments, suggestions, and and ideas. Send him an email at mikew@ncihvac.com“High Velocity -- NOT!” — Tom Spall, Carbondale, PA This is a Geothermal unit rated at .75” TESP and 1350 CFM. It was installed to replace a high-velocity system, and connected to the 7” round supply duct, and a 15” round return. Oops! Tom Spall of T.E. Spall & Son., Inc. is the November 2017 winner of our Photo-of-the-Month contest, as voted on by the subscribers to the High Performance HVAC Today magazine and visitors to the website. He will receive a $50 gift card.You can too – submissions are always welcome. If you’d like to submit a photo for consideration in our Photo-of-the-Month contest, click below and fill out the information as requested.THE DECEMBER CONTEST OPENS ON NOVEMBER 10, 2017. That gives you plenty of time to submit something in any of our three categories: The Good , The Bad , WTH (What the heck).NOVEMBER 2017 27HVACTODAY.COMCRCALLAHAN ROACHFlat Rate Pricing and Business Building ServicesCall Us: 800-528-0212With more than 25 years of experience in developing flat rate pricing for the HVAC, Plumbing, and Pool and Spa industry, Callahan Roach has led the flate rate pricing industry for decades.Be Sure to Visit Us at Summit 2018!PREFERRED PARTNERPHOTO OF THE MONTHClick HereLeads, and Increase Our Closing Rates. – presented by Nathan Copeland, Copeland and Son, Nashville, TNn From Tradesmen to Craftsmen: How Our Company Made the Leap – presented by Kevin Walsh, Schaafsma Heating and Cooling, Grand Rapids, MIn How We Systematically Perform Productive and Profitable Duct Reno-vations – Even the Tough Ones! – present-ed by Vince DiFilippo, DiFilippo Service Co., Paoli, PAn Indoor Air Quality & System Per-formance: A Winning HVAC Renovation Combination – presented by John Ellis, So Cal Air Dynamics, Northridge, CAn How We Became Our Local Carbon Monoxide Evangelist and Go-to Prob-lem Solver – presented by Tom Johnson, TM Johnson, Cambridge, MNn We Sell High Performance HVAC – You Can Too If You Just Do It! – pre-sented by Eric Johnson, Air Conditioning By Jay, Scottsdale, AZThere’s a lot more in store for you in-cluding great general sessions, roundta-ble discussions, and a fantastic trade show. But wait, there’s more: Summit 2018 coincides with an incredible music and film Festival in Austin, Texas called South-By-Southwest, which kicks off after Post-Summit training wraps up on March 8th.There is a lot of excellent, thought- provoking, and entertaining activities at the 2018 Home and HVAC Performance Summit in Austin. Be sure to register today.High-Performance Talk™ In other member news, NCI will soon launch a new and fully upgraded ver-sion of its PerformanceTalk™ discus-sion forum.This “2.0” version is called High-Per-formance Talk and it will enable users to not only interact with each other via email (as the current version does now), but also allows users to to post and view other posts via a website.Other improvements to this member benefit include:• Conversations all stay on one page.Plus you can can now jump around con-versations easily using a smart scroll bar.• This service is 100% mobile friendly – visiting HighPerformanceTalk.com on your mobile device allows you to read or post right then and there.• Badges and Emoji are now available! There is so much more! High Performance Talk is now live. Go to highperformance talk.com/ and start taking advantage of this latest member benefit.28 NOVEMBER 2017HIGH PERFORMANCE HVAC TODAYNCI MEMBER UPDATEONE KEY FOCUS OF NCI’S 2018 SUMMIT IS TO SHARE SUCCESS STORIES OF SIX FORWARD-THINKING MEMBERS WHO’VE CREATED A HIGH-PERFORMANCE HVAC CULTURE IN THEIR BUSINESSES.GREAT NEWS!! The National Comfort Insti-tute, Inc. (NCI) Home and HVAC Performance Summit 2018 will be held in Austin, TX from March 4th to 6th. As a member, you are eligible for a special, early- bird bonus: DOUBLE NCI TRAINING BUCKS when you REGISTER BEFORE November 10, 2017.What Does This Mean? In addition to saving hundreds of dollars by taking ad-vantage of our early-bird discount, mem-bers can earn up to 30% in NCI Bucks credited back into their accounts. To take advantage of this special mem-bers-only offer, contact your NCI custom-er care representative at 1-800-633-7058.Be sure to check our newly desgined Summit web page at GotoSummit.com. Check back often for updates and other news. The 2018 theme is “Blaze Your Trail To High Performance.” One of our key focuses is on sharing the success stories of six forward-thinking NCI members who make High-Performance HVAC an integral part of their company’s culture.Here’s a preview of their six breakout sessions: n How We Put ComfortMaxx to Work to Improve Our Confidence in Field Test-ing and Diagnostics, Generate Better Summit 2018 Member-Only SavingsNOVEMBER 2017 29HVACTODAY.COMAdvertiser IndexHIGH PERFORMANCEHVAC TODAY TMAD INDEXBaker | www.bakerdist.com ..............................................................................................................31Callahan Roach | www.callahan-roach.com ...............................................................................27Goodman Manufacturing/Daikin | www.goodmanmfg.com ............................................23Jackson Systems | www.jacksonsystems.com..............................................................................6The New Flat Rate | www.thenewflatrate.com ..........................................................................13R.E. Michel Company, Inc. | www.remichel.com ..........................................................................2Service Titan | www.servicetitan.com ...........................................................................................18Total Seal | www.hc-products.com ................................................................................................5To Your Success | www.ToYourSuccess.com/NCI ........................................................................5To Subscribe to High-Performance HVAC Today:ONLINE: Visit HVACToday.com/subscribe for a FREE digital subscription.PRINT: 1 year/$72; single copy $7. Canada: 1 year/$92; single copy $9. Payable in advance with U.S. funds. Prepaid subscriptions may be sent to: High-Performance HVAC Today, PO Box 147, Avon Lake, OH 44012. Phone: 440-949-1850; toll free 800-633-7058; FAX 440-949-1851, or visit HVACToday.com/subscribe.PublisherDominick GuarinoEditor-in-ChiefMike WeilArt DirectorConnie ConklinOnline Development DirectorBrian RosemanSales ManagerDave KenneyCirculation ManagerAndrea Begany- GarsedEditorial AssistantMarge SmithEmail us at contactus@hvactoday.com with your comments and questions.Next >