< Previous10 DECEMBER 2021HIGH-PERFORMANCE HVAC TODAY the customer-facing image of the company. They represent all that is good and sometimes all that is bad about their company. Front-line team- mates are a massive part of a company’s brand. Here is something else to think about: Your brand is THE source of your position and strength (or weakness) in your marketplace. It anchors your customers’ experience, influences all conversations with and about your company, and it creates a long-lasting opinion in your cus- tomer’s minds. Here is the key: a brand can change the posi- tioning of your product or service from a com- modity to a premium-level offering. B ack in 2009, National Comfort Insti- tute hosted a leadership conference that had the theme, “Through Your Custom- ers’ Eyes: Your Image, Your Brand.” We based it on something we saw while visiting a Northeast Ohio HVAC contractor. They had a full-length mirror hung near the entrance to their sheet metal shop and above the mirror was a sign that read, “THE CUSTOMER’S EYES.” Think about this. Every time a technician passed that mirror, they saw themselves as cus- tomers would see them. Why would a contractor do that? First, they understood their field service and installation technicians are their front line, Through A Customer’s Eyes: The Importance of Your Brand By Mike Weil MARKETING WHAT DOES YOUR BRAND SAY ABOUT YOU?DECEMBER 2021 11HVACTODAY.COM tual numbers that impair your cus- tomers’ ability to be comfortable and safe within their homes and buildings. Sure, your competitors all sell the same or similar equipment that you do. But, as a high-performance HVAC contractor, you are different because you sell solutions. Do your competi- tors consider any of the following? z Ask about customer problems zTest, measure, and then diagnose the root cause of customer problems z Design solutions to solve their problems z Bundle products and services (in- cluding duct system renovations) to simplify investment decisions z Verify that the solution will work zProvide easy financing options. In your customers’ eyes, they will see that you are one of few contract- ing companies that do all the above. Isn’t that a better brand identity? … Build Trust and Value: When you do the things described above, you build trust with customers and create value. You design, build, and install custom systems based on your customers’ needs. By the way, you cannot do these things and build trust and value if your field teams lack the necessary technical abilities. That is basic. So regular training is a requirement to build brand trust and value. The intangibles your customers cannot see also create trust and val- ue. It’s amazing how things like peo- ple and processes can make all the difference to your company’s success and how others see it. Part of this is how your team listens to customer problems and then goes about find- ing the issues. Your customer will see this approach and appreciate the val- ue it affords them. Most will pay for such premium services and the op- tions you offer. … Tell Your Story to the World: Let’s face it, your high-performance approach plus how your teammates look and act in the customers’ eyes, their professionalism, and even the look of your trucks, tools, and paper- work, all builds your image and tells your story. People remember what they see, and in marketing terms, that can help keep your company top-of- mind with them. … Generate Referrals: Because of everything you do and because you can genuinely solve customer com- fort and efficiency issues, your brand can help generate referrals to more customers. We all know how import- ant referrals are. I’m not just talking about word-of-mouth referrals but also positive online reviews and tes- timonials. They all play into your brand and image. … Deliver on Expectations: From a customer perspective, the HVAC In- dustry, in general, has not done itself a huge favor. So many contractors build their brand identity around price. As a result, consumer expectations are typically low, and that is an industry brand. As an individual high-performance HVAC contractor, you can raise the bar. You can show how you custom- ize system design, installation, and service to fit each customer’s individ- ual needs. That customization creates a higher level of expectation that only you can deliver. YOU ARE A BRAND, NO MATTER WHAT Your brand doesn’t stop with how your field people look; it is all your company’s interactions with the pub- lic. In fact, it even has to do with how you interact with employees and how they interact with each other. You still have a brand even if you do nothing to work on it or don’t be- lieve in branding. No matter what, it’s there. For example, what do you sup- pose a customer would think if: zYour service technician smells like an old ashtray zYour truck leaks oil and puddles up a customer’s driveway z Your customer service representa- tive answers the phone in an abrupt or rude manner zA technician only talks in jargon when communicating. These are negative traits that also create a brand identity. So why not work toward building the best brand possible in your mar- ketplace? Suppose you are a high-per- formance HVAC contractor who trains and certifies your technicians to test, measure, diagnose, and verify HVAC systems. In that case, you al- ready have a significant enhancement to your brand. YOUR BRAND HELPS YOU TO … … Create Market Differentia- tion: As high-performance HVAC contractors, you are already ahead of the pack. You have taken the time to train, maybe even certify your tech- nicians in going beyond the mechan- ical equipment. You look at ventila- tion and other factors that include the comfort system. You test, measure, and then diagnose issues based on ac-12 DECEMBER 2021HIGH-PERFORMANCE HVAC TODAY MARKETING plish your performance goals. In other words, clarity and focus drive direction and motivation, which builds employee confidence and pride in their craft. Customer Connection: Your high-performance contracting ap- proach also creates strong bonds with customers. Of course, this has a lot to do with technician attitude in the field. But if you train them properly and they buy into the high-performance approach, your technicians can be- come advisors and consultants to cus- tomers regarding comfort and safety needs. This helps them (and you) connect with cus- tomers on a level other contractors rarely achieve. Everything you do to build upon and strengthen these qualities of your brand will do one other thing: they will help in- crease your business value. If the time comes for you to sell your company, your brand can be an important part of its overall value. From your reputation to your custom- er relationships and service/mainte- nance base, your brand can help at- tract potential buyers or investors. YOU ARE THE BRAND You build a solid company brand through consistency over time. You and your team need to work toward providing a pleasant experience with every customer. Branding is cultural, and it becomes the fabric of your company. As a high-performance HVAC con- tractor, your brand can remove the “apples to apples” equipment compar- ison from the equation and focus the customer on how you stand out by de- livering the performance that results in better comfort and actual energy savings. Once in front of the customer, you can help cut the noise about one box vs. another and focus on the deliv- ered results. Look at ways you can sharpen your image and build your brand. Put your- self in the best position to be viewed by your target audience as the compa- ny people trust, like, and want to do business with. So, when you look into the mirror, what do you see? Do you see someone with a nine-to-five job hustling cheap prices and box swap-outs? Or, do you see someone who fo- cuses on their customers and custom designs systems for their individu- al needs, then installs, services, and maintains those systems. Are you the company that provides more value to its customers than any other in your marketplace? Remember, in the end, no mat- ter what you do or don’t do, through the custom er’s eyes; you are the brand. OTHER BRAND BENEFITS Recognition: Your customers will recognize your company for ev- erything discussed above. But brand goes beyond that, and it includes how you talk about yourself. This “talk” is the marketing and promotion part of brand building. Marketing includes everything from your logo, website, trucks, and uniforms, to how you ad- vertise and promote your business and its services to build a brand. Recognition goes beyond your mar- ket. Your peers and your industry will also recognize your brand. This recog- nition happens when you become in- volved with trade organizations, regu- lar training, and certification classes, and share your successes and failures with peers. Clarity and Focus: Branding af- fects external forces and influences your team and their families. A great brand clarifies what they do and helps them focus on the training and pro- cedures you’ve developed to accom- Mike Weil is the edi- tor-in-chief of High-Per- formance HVAC Today as well as the director of communications for Na- tional Comfort Institute. He has been a writer and editor in the HVAC Industry for 40 years. He can be reached at ncilink.com/ContactMe . When you look in the mirror, do you see what is, or what you want? The reality is, what you see is what your customer sees. That is your brand.DECEMBER 2021 13HVACTODAY.COM14 DECEMBER 2021HIGH-PERFORMANCE HVAC TODAY Test ports near the pump. When you bal- ance a water system, one of the first steps is to measure pump pressures and plot water flow through the pump. Without these pressures, this test is impossible. When you test a forced-air system, installing test ports is easy. You drill ⅜-in. holes through sheet metal in the duct or equipment. Installing hydronic test ports in water piping is much more difficult. A water system of this cal- iber also lacks isolation valves. Without them, you’re unable to separate the piping from the pressurized system, and liquid squirts out when you install the test ports. Balancing valves. A balancing valve lets you regulate system flow. Balancing valves also con- tain test ports that allow you to accurately mea- sure and adjust the water flow through the sys- tem or a single system component such as a coil. Any recommendations you make in the cus- tomer report should include installing balanc- ing valves and test ports (also known as “Pete’s Plugs”). Installing these accessories provides ac- cess to water flow pressures in the pipe so that you can interpret system flow. INSPECT AND DOCUMENT THE WATER SYSTEM Your first step to discover improvements in a hydronic system is to inspect it and document your findings. Unfortunately, plans and specifica- tions for smaller systems are rarely available, so begin by sketching a system schematic and tak- ing photos of anything that may need repairs or upgrades. Then, read and record the nameplate informa- tion on the pump and equipment. With the man- ufacturer and model number, you can go to the U nfortunately, many smaller hydron- ic heating and cooling systems can’t be tested, adjusted, and balanced. Let’s take a look at what you can do to improve the performance of a water system that’s missing balancing fittings and valves. INCOMPLETE HYDRONIC SYSTEMS Many hydronic systems are not designed or built for balancing. From one perspective, these systems are incomplete. Often, the budget for these jobs is low, so there is no design or speci- fication. The installing contractor assumes it’s a self-balancing system. But all is not lost. Each of these systems does include the most basic water system compo- nents. At a minimum, each has a pump, piping, and heating and cooling equipment. Don’t write the system off because the odds are you can improve it. Typically, small systems may include a standard or tankless water heater or a small boil- er. While most of these smaller systems move hot water, some may also move chilled water. The equipment may include an air handler with a coil, base- board units, a radiator, or some simple domestic water circula- tion system. IDENTIFY WHAT’S MISSING Normally systems designed and built for balancing include balancing valves and test ports. A Procedure to Solve Small Hydronic System Balancing Problems By Rob Falke TECHNICAL Hot Water Hydronic SystemDECEMBER 2021 15HVACTODAY.COM z If you find a plugged strainer (system filter), clean it z If the pump speed is adjustable, make a note of it and adjust the pump speed accordingly z If there is a power or control issue, correct it. TEMPERATURE TESTING Since heating or cooling equipment transfers heat, temperature testing and diagnostics are essential on hy- dronic systems. The quality and accu- racy of instruments such as tempera- ture measurement pipe clamps are increasing while their cost decreases. Measure the temperature on the pipe surface before and after the equipment. You can use these mea- surements to interpret water tempera- tures with reasonable accuracy. Sub- tract the two temperatures to find the temperature difference. One word of caution; when test- ing and diagnosing hydronic system temperatures, understand they are af- fected by fluid flow volume and defi- cient equipment performance. When analyzing system temperatures, your evaluation must consider flow and equipment function as two separate causes of performance losses. Compare the measured equipment temperature change to the manu- facturer-listed temperature change range. Typically, if the temperature change is low, it is evidence of either high fluid flow or poor equipment per- formance. Should the temperature change be mid-range, this may indicate the sys- tem’s flow and performance are ac- ceptable. When the temperature change over equipment is high, it may be good evi- dence of low fluid flow. RECOMMEND SOLUTIONS Whenever you work to solve prob- lems on a defective hydronic system, you can use the steps included in this article to improve the performance of most systems. However, the best hy- dronic system diagnostics require test ports and balancing valves to measure and calculate system performance. Since you aim to improve the hy- dronic system, always include recom- mendations to install test ports and balancing valves in your final report. This educates your customer and re- duces future liability. Once you install test ports and bal- ancing valves, you can complete more accurate diagnostics and make addi- tional recommendations to improve the system further. manufacturer’s website and down- load any specifications or engineering information. These documents will provide a firm foundation for your system assess- ment. Continue to record each possi- ble defect and solution as you find it throughout the inspection. Hydronic system defects can include: z Absence of flow control valves and test ports zUndersized piping z Excessive fittings zPoor equipment installation z Wiring and control defects zEvidence of leakage and corrosion. While you complete your inspec- tion, create an ongoing list of repairs and upgrade recommendations you can offer your customers to improve system performance. START-UP THE SYSTEM Adjust the controls to call for the de- sired operating mode to start the sys- tem. Assure the system responds ap- propriately to each control change and note any corrections needed on your customer report. Each flaw you find will lead you closer to the solution your customer wants. Listen to the system start and operate. Inspect and document un- usual noise, vibrations, water ham- mering, or air sounds moving through the water system. FIND THE PROBLEM YET? The problem is often revealed when you inspect the system, review equip- ment specifications, and start up the system. You’ll find many of these po- tential repairs during inspection: zIf there is air in the system, bleed it out through the bleed valve Balancing Valve Rob “Doc” Falke serves the industry as presi- dent of National Com- fort Institute. If you’re an HVAC professional inter- ested in a free Hydronic Balancing Procedure, contact Doc at ncilink. com/ContactMe or call him at 800-633-7058. Go to NCI’s website at nationalcomfortinsti- tute.com for free information, articles, down- loads, and current training opportunities.16 DECEMBER 2021HIGH-PERFORMANCE HVAC TODAY T he biggest challenge a contractor faces isn’t the work itself but a customer who is often concerned about cost. That cus- tomer might be interested in the idea of installing a higher-efficiency HVAC system or doing duct renovations, air upgrades, or adding indoor air quality solutions to their homes but are put off by sticker shock. In my experience, one of the best ways to change this obstacle is to change how we, as con- tractors, look at our businesses and the services we provide. I’ve found that retail businesses often overcome pricing objections by offering customers options on financing those purchases. I know many con- tractors provide some form of financing, but of- ten they don’t push it. Total Comfort today is a $17.5 million resi- dential HVAC company located in Minneapolis, MN. We offer to finance 95% of the time and sell around 80% of our jobs using it. Though we’ve had a retail mindset for many years, it became our focus after partnering with Home Depot ® and selling through their stores. In July 2021, we sold the business to a nation- By Gary Katz SALES al group called the Turnpoint Services Group (ncilink.com/Turnpoint) – who provided us with additional financing options. WHY OFFER FINANCING? Providing customers with a financing option is important. Our sales team talks with many cus- tomers who don’t have a dire need for new heat- ing and cooling. In fact, customers often are just thinking about upgrading but don’t want to get serious about it for six months or a year. After all, it’s expensive. Offering financing, especially the zero-inter- est kind – enables us to help them overcome that objection. Customers can have a new system in- stalled or upgraded now and put off payments for six months or more, depending on the terms of the financing option they choose. In other words, good financing programs help many people get over the hump of figuring out how to pay for the purchase. Financing also works well in emergencies when the air conditioner breaks down in summer heat, and they need it replaced right now. It helps close more “up-sell” jobs as well. For example, custom- ers may be thinking they can only afford a low- er-end system, but if you give them a year or two to pay for it, they can buy a higher-end system. TYPICAL OBJECTIONS Typical objections that can lead to delays and lost sales include: z Call me back in three months. I think I might be getting a bonus. Then I can afford it. zCall me back in April after I get my tax return. z Let me save up for it, and I’ll pay for it next year. You eliminate these objections when you offer Financing Helps Increase Your Retail High-Performance SalesDECEMBER 2021 17HVACTODAY.COM to finance because they don’t have to come up with all the cash. Also, let’s face it -- in the retail business, ev- eryone is comfortable with monthly payments. Another way I’ve used financing is in situations where people DO have the money to buy. Their objection may be that their cash is tied up in invest- ments, so they need to push off the purchase until they can move things around to get access to it. I tell those people to opt into our six- months-no-interest financing. Now they have six months to move their in- vestments around. These things help set Total Com- fort apart because it opens the doors to more up-selling, differentiates us from most competitors who don’t offer it, and helps us achieve a much higher closing rate. WHO SHOULD BE YOUR FINANCING PARTNER? In the HVAC universe, most major manufacturers – Carrier, Trane, Len- nox, Rheem/Ruud, Goodman, and so on – offer all kinds of financing op- tions. When I was first considering making financing part of the services Total Comfort offers, this is where I started. Go to your preferred vendor partner and talk to them about their plans and how to get started. As a Carrier dealer, we use the fi- nancing services they offer. Carrier works with Wells Fargo, and we use them quite a bit. We even have the Wells Fargo portal right on our web- site. The customer or sales rep goes to our website, clicks on the financing button, and opens directly to a Wells Fargo financing application. We hand the iPad to the customer, so they can fill it out. It takes 10 to 15 minutes. We get instant approval or denial. We also have financing options through our partnerships with the Home Depot and Turnpoint Services. The fact is, you can have many dif- ferent plans. Just remember to start with your manufacturer partner or your distributor. It is in their best in- terest to help you sell more. They can offer you a lot of help setting up fi- nancing plans that will work for your business. You can also turn to other groups you work with – such as membership orga- nizations. They often offer financing plans or can help you find a third party. WHAT TO LOOK FOR Some key things to look for in a fi- nancing partner include: Ease of use. We look for vendors with a smooth system that is easy for the contractor to use and, more impor- tantly, easy for the customer to use. Reputable Company. Any outfit you work with that touches your cus- tomers must have a rock-solid repu- tation, and they must be a rock-solid company too. Great Recommendations. This is very important. Peer groups such as ACCA MIX groups are also great re- sources to help you find alternative fi- nancing options. Industry friends or local business partners can be great resources too. WHAT TYPE OF FINANCING SHOULD YOU OFFER? Every financing company has many choices. They all have a rate sheet with 10 to 15 financing options. We go through those rate sheets and select the ones we want to offer. We then train our salespeople to provide only the plans we’ve chosen. From Wells Fargo, we typically use their 12- to 18-month, no-interest plan. These plans have very reasonable rates. Our next level financing is the 48- or 60-month plan when there’s a good promotion. Finally, we also offer several lon- ger-term options. Typically, these are 80-month programs at 7.99% interest. This plan is for people wanting long- term financing at a reasonable rate for seven to 10 years. The interest on such plans can range from 3.99% to 9.99%, depending on how much of a fee you want to pay. All of the options I’ve discussed here are through our Carrier Wells Fargo connection, Home Depot, and Turn- point. For cases where a custom- er’s credit isn’t great and they can’t get preferred financing rates through these programs, we have an addition- al financing option through Finance of America. These options are called Benji™ or LendingPoint®. They are a national financing group focused on helping lower-income families. If the customer still can’t get ap- proved, Benji automatically takes an- other second look at financing in the 15 to 20-plus percent range. This is an excellent program for people who need help financially and have no other op- tions. It is more expensive, but it’s bet- ter than having no heat. SELLING APPROACH After our salespeople go through their replacement or upgrade pitch, they ask customers if they are inter- ested in financing. Most people say yes, and we offer them zero-interest financing. If they feel they can pay it 18 DECEMBER 2021HIGH-PERFORMANCE HVAC TODAY commit to it, you could get frustrated, and it won’t work. Final point: By offering financing options, you will increase your sales. Don’t do financing for free. You can’t do it and lose money. Build in the costs into your pricing, and people will buy from you. ers use it around 80% of the time. The other 15% either pay with a credit card (so they can get points) or by check. Every once in a while, the customer pays in cash too! I find it interesting that so many of our competitors either don’t offer to fi- nance at all or don’t push it when they do. To me, financing is foundational to closing a sale. FINAL THOUGHTS If you are ready to add financing to your service offerings, my recommen- dation is to start with your manufac- turer. They have the resources to show you how to use financing the right way. Then be patient. Commit to mak- ing financing work in your business. It’s just like anything new: If you don’t off after the 12- or 24-month period of that contract, then it’s a great option, and we encourage it. If they aren’t comfortable doing that, we can provide longer-term fi- nancing for five to 10 years with addi- tional interest. We then ask which one they prefer. We find that 70-80% of customers choose the zero interest op- tions. The most important thing is to provide customers several options to choose from so they can decide what works best for them. Even if the purchase isn’t an emer- gency, we encourage them to take that zero-interest option because it’s free. For us, we have the financing costs built-in to our price. The team at Total Comfort offers fi- nancing 95% of the time, and custom- SALES Gary Katz is the CEO of Total Comfort, Inc., Minneapolis, MN. He has grown the company from $3 million in gross sales in 2000 to the nearly $18 million com- pany it is today. He has always been a strong believer in marketing and sales. Despite many ups and downs in the business over the years, Total Comfort remains a solid and vital HVAC company today. You can reach him at ncilink.com/ContactMe .DECEMBER 2021 19HVACTODAY.COM NCI UPDATE ship, just go to the following URL: ncilink.com/NCIMem- bershipApplication. December 2021 PowerPack It’s here! The PowerPack pro- vides you with some addition- al tools to help you conduct and market your High-Perfor- mance HVAC capabilities. This month we feature tools for performing testing and di- agnostics using the Comfort- Maxx™ cloud-based software. Some of the tools included here each month may not be normally accessi- ble with your membership subscrip- tion. However, you can access these tools during the current month. Here is what we’ve included: z Perform a ComfortMaxx Air™ Test (Online Training) z Master HVAC Pressure Diagnos- tics Using Static Pressure Budgets (Webinar) z ComfortMaxx™ Field Data Col- lection for Residential Split Systems (Download) z ComfortMaxx™ Field Data Collec- tion for Residential Package Systems (Download). We hope you find these tools and training materials helpful in your quest to grow your High-Performance HVAC business. Be sure to share your December Pow- erPack with your entire team. Go to ncil- ink.com/PwrPak for access today. If you have any questions, or if you are unable to access any of the tools in this program, please contact us at 800-633- 7058. Summit 2022 Will Land In Scottsdale National Comfort Institute’s Annual High-Performance HVAC Summit is com- ing! Once again it will be held in Scotts- dale, AZ. The 2022 program provides you a cre- ative way to personalize what your team learns. What does that mean? We created a breakout session approach where each topic area will have three options. That’s a total of 18 personalized learning oppor- tunities. The per-class options include: Novice – Choose this level if you’re be- ginning to learn the specific discipline. Practitioner – This stage is for attend- ees who have begun practicing these skills and want to take it up a notch – or need a refresher Mastery – Choose this option if you’re already proficient in the specific area and are ready for the next level. This new design lets you choose ses- sions based on where you are today on the path to High-Performance HVAC Contracting. Registration is now open and you can still get Early Bird rates . For more details and to register, please visit gotosummit.com. It’s true. Now you have a chance to kick the tires a little to help you decide whether NCI membership is a fit for you. This 30-Day Free Trial Period includes access to the following: z Unlimited Toll-Free Technical Sup- port from NCI. You can call our team of experts to guide you – step-by-step – through technical issues in the field z Four-week membership orienta- tion program with access to special top level member benefits, including online training, webinars, and more z Free Technical, Sales, and Market- ing downloads from our members-only area of the NCI website z Free ComfortMaxx Air™ testing and lead generation software for 30 days for your NCI Airflow and Air Balanc- ing Certified Technicians z The NCI Member Newsletter will help keep you informed with technical tips, industry updates, and much more! If you’re interested, point your browser to ncilink.com/trial to learn how to get a trial membership. After the 30-day trial period you will have the option to sign up for the full Membership. To apply for FULL member- Did You Know that NCI Offers a Trial Membership?Next >