< Previous20 JUNE 2019HIGH-PERFORMANCE HVAC TODAYHVAC SMART MARTJUNE 2019 21HVACTODAY.COMAdvertiser IndexHIGH-PERFORMANCEHVAC TODAY TMAD INDEXArzel Zoning Technology, Inc. | ArzelZoning.com ................................................................... 20Baker Distributing Company | BakerDist.com ......................................................................... 19Dwyer Instruments, Inc. | www.dwyer-inst.com ...................................................................... 2Goodman Manufacturing | www.GoodmanMfg.com ............................................................ 4Jackson Systems | www.JacksonSystems.com ......................................................................... 6Lazco Corp. | www.LazcoCorp.com ................................................................................................ 7R.E. Michel Company | www.REMichel.com ..............................................................................14The New Flat Rate | www.TheNewFlatRate.com .................................................................... 20To Your Success | ToYourSuccess.com ........................................................................................ 20United Refrigeration Inc. | www.uri.com ................................................................................... 21To 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 to order online.PublisherDominick GuarinoEditor-in-ChiefMike WeilArt DirectorConnie ConklinOnline Development DirectorBrian RosemanCirculation ManagerAndrea Begany- GarsedEditorial AssistantMarge SmithEmail us at contactus@hvactoday.com with your comments and questions.22 JUNE 2019HIGH-PERFORMANCE HVAC TODAYhow to tap into this very profitable blue ocean of business? I believe there are several key reasons:1. Box swapping continues to be the KPI (Key Performance Indicator) for HVAC contractors — this is still encouraged by manufacturers, distribu-tors, and most “consultants.”2. Lack of strategy – few leaders have taken the time to study and develop the right perfor-mance-based business model for their company and market area.3. Fear of the unknown – most people within organizations feel out of their comfort zone in the blue ocean of High-Performance contracting.4. Trouble marketing their newfound skills to homeowners – the strategy involves market-ing a different level of service and maintenance. You generate leads and sales of system improve-ments through testing and diagnosing system per-formance issues.5. Lack of good systems and internal training to build High-Performance services into the com-pany culture — success is dependent on everyone in your company being on the same page, includ-ing dispatch, field personnel, sales, operations – all starting with your leadership.6. Absence of a profound belief that once you understand and have learned the right way to in-stall and service your customers’ systems using measured performance, you could never go back to box swapping and parts changing again.Now you could look at these six challenges as negatives and problematic, or you can look at overcoming them as your keys to starting your blue ocean strategy. Maybe you’ve already dipped your toes in these new waters. Perhaps you’ve even paddled just past the shore, trying to get through the bloodied waters of typical HVAC contracting. Once you do, you’ll be able to reach the clear blue ocean, just on the horizon. Wherever you are, the good news is, there are plenty of blue seas waiting to be explored and charted. About 14 years ago, a book titled, “Blue Ocean Strategy” was published by the Harvard Business Review Press. I recently re-read the book with new eyes, thinking about service and installation companies in our industry. With a “blue ocean” strategy, contractors can dif-ferentiate themselves in their marketplace and pro-vide products and services with little or no compe-tition. They would also be able to charge enough to be very profitable, grow their businesses, and take good care of their employees.Sound like a tall order? Let’s start by defining a blue ocean strategy. The book’s authors define a blue ocean as an “untapped market space,” await-ing “demand creation, with the opportunity for highly profitable growth.” In blue oceans, competi-tion is irrelevant because the rules of the game are waiting to be set.A “Red Ocean,” on the other hand exists where “industry boundaries are defined and accepted, and the competitive rules of the game are known. “Here, companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the ocean bloody.”Sound familiar? For decades, our industry’s red ocean has been the Low Price Swamp where deal-ers are competing mostly on price, with virtually the same exact equipment.Unfortunately, without education, to typical cus-tomers a furnace, is a furnace, is a furnace. Improv-ing soft skills and nice touches like wearing booties will only get you so far.THE HVAC INDUSTRY’S BLUE OCEANSo where is your blue ocean? You actually don’t need to look any farther than the HVAC systems you’re already servicing. The market for selling High-Performance services is virtually untapped.Why have so few HVAC contractors figured out Dominick Guarino is publisher of HVAC Today magazine and CEO of National Comfort Institute, Inc. He can be reached at domg@ncihvac.comONE MORE THING...By Dominick GuarinoHigh-Performance Contracting is a Great Blue Ocean StrategyNext >