HVACR BUSINESS NOVEMBER 2021 by HVACR Business

Get the Word Out Pete Grasso 5

Learn from Negative Reviews Colleen Keyworth 15

Monitor Your Cash Ruth King 18

Pay Attention to DIY Media David Boduch 19

HVACRBUSINESS.COM OCTOBER 2020 / VOL.15 / NO.10

REFRIGERATION REGULATIONS ARE CHANGING pg 6

ALSO INSIDE » Executive Roundtable: Smart Home Controls .................................................... 10 Business Insights: Heating & Cooling Systems ........................................ 20 20 Questions with David Indursky President of Encon Mechanical …............................. 22

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CONTENTS

OCTOBER 2020 / VOL.15 / NO.10

F E AT U R E S

Refrigeration Regulations are Changing There is increasing global activity to transition to more climate-friendly refrigerants to meet the growing demand. By Helen Walter-Terrinoni

D E PA R T M E N T S

Executive Roundtable: Smart Home Controls Manufacturers answer consumer demand with a variety of smart thermostats that integrate with various connected home products and platforms. By Pete Grasso

Learn from Negative Reviews Respond, see what failed in your system and procedures that caused the problem and fix it. By Colleen Keyworth

C O LU M N S

Wealth Rule No. 5: Monitor Your Cash

Pay Attention to DIY, Home Renovation Media

Always pay attention to cash coming in and going out. Cash is the first part of building wealth. By Ruth King Explaining the realities of your work is the first step to clearing any objections they may have about the time issue. By David Boduch

Editorâ&#x20AC;&#x2122;s Notebook Youâ&#x20AC;&#x2122;re an expert, so position yourself to be the one your local media turns to when they need a resource. By Pete Grasso

Sponsored Content Heating & Cooling Systems

20 Questions with David Indursky President of Encon Mechanical in Ocean, N.J.

Your business is your life’s work. Let’s protect it. Breaking Records in Trying Times Seven years ago, if you’d told Nathan Engelsma, owner of Grapids Heating & Cooling, that he’d have a record-breaking April during the 2020 crisis, he’d have laughed. April is historically the lowest-performing month. Forget about it.

But Nathan and his team: • Joined Nexstar in 2013. • Worked with their coaches, implemented Nexstar practices, and networked with other members. • Turned the small, HVAC-only business into an 11-truck, $9M industry leader. Even through a pandemic.

“ There’s no way this kind of growth could have happened without my coaches and peers at Nexstar.” – Nathan Engelsma Grapids Heating & Cooling – Member since 2013

888-240-STAR (7827) 4

www.NexstarNetwork.com membership@nexstarnetwork.com HVACR BUSINESS OCTOBER 2020

www.hvacrbusiness.com

THE HVACR MANAGEMENT MAGAZINE

EDITOR’S NOTEBOOK

BY PETE GRASSO TERRY Tanker Publisher ttanker@hvacrbusiness.com PETE Grasso Editor pgrasso@hvacrbusiness.com MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com BRUCE Sprague Circulation Manager bs200264@sbcglobal.net

ADVERTISING STAFF ERIC Hagerman National Sales Manager Tel 216-409-3246 Fax 440-731-8750 ehagerman@hvacrbusiness.com TERRY Tanker Publisher Tel 440-731-8600 Fax 440-731-8750 ttanker@hvacrbusiness.com

BARBARA Kerr Executive Assistant bkerr@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S. The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information. Copyright©2020 by JFT Properties LLC. No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees. This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication. The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions: 1 year $48; 2 years $75; 3 years $96; Canadian and foreign, 1-year $108 U.S. funds only. Single copies $8. Subscriptions are prepaid, and check or money orders only. Subscriber Services: To order a subscription or change your address, write to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039 or call (440) 731-8600; or visit our Web site at www.hvacrbusiness.com. For questions regarding your subscription, please contact bkerr@hvacrbusiness.com. HVACR Business (ISSN 2153-2877) Copyright ©2020 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431)

Get the Word Out

ast month I wrote about the need for this industry to talk about ventilation (Let’s Talk About Ventilation, pg. 5) with your customers. We’re in the midst of a pandemic, spread through the air, so of course we need to be talking about ventilation and air quality with our customers. But why stop there? You are professionals — experts in this area — and you should be a resource for anyone who wants to talk about the importance of indoor air quality as people move back indoors. Of course, that means speaking with the media! Professional journalists always need expert sources, and when it comes to HVACR and IAQ, who is more of an expert than you?

Target: Know where you plan to send it to before you write it. This is huge. The more familiar you are with the publications to which you’re sending it, the better you can tailor your release to them. It’s a Tool: Remember, the press release is just one tool. You can’t write it, send it out and forget about it. The most successful press releases are simply conversation starters with editors.

You’re an expert, so position yourself to be the one your local media turns to when they need a resource.

Most of the time, though, the media isn’t going to seek you out. You have to solicit them and position yourself as an expert on all things HVACR. This is where a good public relations program comes in.

There are a variety of ways to let your expertise be known and become a go-to source for the media. But let’s start at the beginning. The press release is the staple of any public relations program. It’s the most basic tool for getting news out about your company. Writing them is pretty straightforward, and yet so many seem to get it wrong. Allow me to be a little preachy on this subject, as writing press releases is something I’ve done a lot of during my former career as a PR pro. And, during my years as an editor, I’ve received a lot of press releases — some good, some bad. Don’t be intimidated by the thought of writing a press release. Yes, there are many PR pros out there who do nothing but write press releases, but that doesn’t mean you can’t write one when your company has news to announce. On the flip side, don’t underestimate the effect an unprofessional press release has on your company/brand. Put some thought into writing it, but don’t overthink it. Here are my top six tips for making the most of your press release:

POSTMASTER: Send address changes to HVACR Business, 31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039.

One Subject: Keep your focus to one piece of information. Including too many different topics in your press release can overcrowd your message and make it difficult for media outlets to pick it up.

31674 Center Ridge Road, Suite 104 North Ridgeville, OH 44039 Tel: (440) 731-8600 Fax: (440) 731-8750 Web site: www.hvacrbusiness.com (ISSN: 2153-2877)

Keep it Simple: Your message should be straightforward. Remember, when reporters write stories they have to answer Who, What, When, Where, Why and How. Do the same in your press release and keep it to only those points.

www.hvacrbusiness.com www.HVACRBUSINESS.com www.hvacrbusiness.com www.hvacrbusiness.com

Spell Check: Always, always, always spell check and proofread your press release. Have someone else read it too. You won’t be taken seriously if your press release is loaded with spelling and grammatical errors.

Who Cares?: Always ask yourself this before writing a press release. Sure, it might seem important to you, but is it really news? Will people really care about it? You shouldn’t write a press release about every little thing your company does. Make sure people will care about what your press releases is about. Writing your press release is only the beginning. Now you have to send it out and try to get it published. Sometimes, this is easier said than done. But, if you spend a little time doing some research, your chances for success will be much higher. For starters, figure out where you’d like your news to be published. Is it the local paper or television news station? Get familiar with the media outlet you’re targeting and frame your press release so that it fits best with the type of content they regularly publish. Find the best person at each media outlet to contact and send your press release to them. Now, this next step is crucial. After sending your press release, call them and “pitch” your news to them. Keep your pitch short and relevant. Identify yourself, state that you’re calling in regard to the press release you recently sent them, give them a brief overview of the press release and then ask if they have any questions or need anything from you further. Even if they’re not interested in that particular piece of news, it’s important to remain positive. Building a relationship with the media is the most important part of public relations. If the local media is familiar with not only who you are but also what you and your company do, then when a story arises around, say, the importance of indoor air quality, they’re going to turn to an expert with whom they already have a relationship. u

HVACR BUSINESS OCTOBER 2020

REFRIGERATION REGULATIONS ARE CHANGING

There is increasing global activity to transition to more climate-friendly refrigerants to meet the growing demand. BY HELEN WALTER-TERRINONI

here are similarities and differences in refrigerant classes and the potential risks they introduce, so it is important to be aware of differences and to follow current best practices that apply to all refrigerants: • Most refrigerants are heavier than air and can displace oxygen. It is important for emergency and maintenance planning to have adequate ventilation and to be aware of refrigerant and oxygen concentrations in machine rooms and other confined spaces, especially in commercial systems, to minimize the risk of exposure. The metric used by ASHRAE is the Refrigerant Concentration Limit (RCL). The RCL for A1 refrigerants is set to exposure limits, but for flammable refrigerants, the RCL is set at 25 percent of the lower flammability limit. This metric sets the safety requirements and allowable charge limits for all refrigerants,

It is important to understand how to mitigate potential hazards through their proper handling, storage and use. including A1 and A2L refrigerants. • Nearly all refrigerants are either flammable or combustible and all fluorocarbon-based refrigerants produce hydrogen fluoride (HF) when burned and as compressed gases can cause frostbite if liquid refrigerant is sprayed on skin. All refrigerants should be isolated or removed from equipment where work is being performed to minimize releases and potential exposure. • Proper personal protective equipment must be worn to minimize exposure from breathing vapors and exposure to HF and minimize risk of frostbite.

HVACR BUSINESS OCTOBER 2020

• This list is not all-inclusive. See refrigerant producers’ safety data sheets (SDSs), the equipment service manual or reference training for more information. • Although low GWP refrigerants directly reduce emissions of greenhouse gases, the energy efficiency of systems and equipment also is important to reduce indirect environmental impacts due to emissions from power generation.

WRITING ON THE WALL The Montreal Protocol for Substances that Deplete the Ozone Layer, ratified in 1989, phased out two classes of ozone

depleting refrigerants - chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs). Hydrofluorocarbons (HFCs) replaced CFCs and HCFCs in many applications to reduce damage to the ozone layer but are potent greenhouse gases. The most commonly used HFC refrigerants for air conditioning and commercial refrigeration (R-410A and R-404A) have thousands of times the climate impact of carbon dioxide. The greenhouse gas impact of HFCs has been well understood for decades. Countries, states and local jurisdictions began regulating HFCs and seeing a pending patchwork developing, the impacted industry agreed to support the global phase down of HFCs using the same orderly approach as was used to phase out ozone-depleting substances (ODSs). In 2016, the parties to the Montreal www.hvacrbusiness.com

Protocol agreed to phase down the use of HFCs citing, among other concerns, the continued increase in refrigerant usage and emissions that are expected to rise as access to refrigeration and air conditioning continues to increase in developed and developing nations. The Kigali Amendment to the Montreal Protocol is now in force, having been ratified by more than 90 countries and is designed to reduce the production and consumption of these heat-trapping gases more than 80 percent over the next 30 years. A certain percentage of these refrigerants needs to remain to service existing equipment and for use in refrigerant blends.

LOW GWP REFRIGERANTS Refrigerants in widespread commercial use that replace CFCs, HCFCs and HFCs can have different toxicity and flammability properties. It is important to understand how to mitigate potential hazards through their proper handling, storage and use. The transition to low global warming potential (GWP) alternatives will result in greater usage of refrigerants that were

There is increasing global activity to transition to more climate-friendly refrigerants to meet the growing demand. traditionally used prior to the development of CFCs (e.g., ammonia, carbon dioxide and hydrocarbons such as propane and butane) and to new alternatives with different properties than products currently used today.

percent of the lower flammability limit LFL. For example, if the concentration might exceed the RCL limit that creates a toxicity, asphyxiation or flammability concern in a machine room, sensors and ventilation or other mitigation are required.

Refrigerants are classified by ASHRAE based on toxicity testing and flammability characteristics.

These requirements were already in ASHRAE 15 prior to the evaluation of low GWP refrigerants and have been modified and updated in the new ASHRAE 15-2019 as a result of industry research and testing.

ASHRAE has RCLs for all ASHRAE 34-listed refrigerants in consideration of toxicity and flammability properties. Building codes have traditionally adopted ASHRAE 34, ASHRAE 15 and other safety standards that provide guidance regarding mitigation if the charge size of the refrigerant would be installed in a space where the RCL would be exceeded. As mentioned above, for A1 refrigerants, the RCL is set in ASHRAE 34 based on exposure limits, but for flammable refrigerants it is conservatively set at 25

EPA SNAP PROGRAM The Environmental Protection Agency (EPA) Significant New Alternatives Policy (SNAP) Program is required by statute to maintain a list of “acceptable” and “unacceptable” substitutes for ozone depleting substances (ODS), including refrigerants replacing HCFC-22. In

2015

and

2016,

the

EPA

promulgated regulations (SNAP Rule 20 and 21) changing the status of several high global warming potential (GWP) refrigerants to “unacceptable.” In Mexichem Fluor, vs. EPA, refrigerant producers Mexichem Fluor and Arkema challenged the legitimacy of SNAP Rules 20 and 21. The D.C. Circuit Court determined that EPA was still responsible for maintaining the list of substitutes for ODSs, but EPA could not regulate the use of previously accepted alternatives that were not ODSs. The SNAP Rules 20 and 21 were remanded back to EPA to be re-written in compliance with the Court’s decision. EPA SNAP Rules 20 and 21 remain important as several states are adopting the requirements in those regulations directly or as mandated by statute.

EPA REFRIGERANT MANAGEMENT SECTION 608 EPA also updated Section 608 of the Clean Air Act (CAA) to include requirements around venting, leak reduction and reporting for HFCs in 2016. The National Environment Development Association continued on page 8

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johnsoncontrols.com/training © 2020 Johnson Controls. All rights reserved. Tyco and the product names listed are marks and/or registered marks of Johnson Controls. johnsoncontrols.com/training Unauthorized use is strictly prohibited worldwide. All other marks are property of their respective owners. © 2020 Johnson Controls. All rights reserved. Tyco and the product names listed are marks and/or registered marks of Johnson Controls. Unauthorized useControls. is strictlyAll prohibited worldwide. other marks are property their respective © 2020 Johnson rights reserved. TycoAll and the product names listedofare marks and/or owners. registered marks of Johnson Controls. Unauthorized use is strictly prohibited worldwide. All other marks are property of their respective owners.

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HVACR BUSINESS OCTOBER 2020

continued from page 7

requirements for HFCs.

Clean Air Project (NEDACAP) and the Air Permitting Forum (APF) petitioned the courts to review the recent changes to Section 608. In response, EPA published a new rule in 2020 rescinding leak

THE PARIS CLIMATE AGREEMENT Parties to the Paris Climate Agreement agreed to limit global temperature rise to 2C, with an aspirational goal of

limiting the increase to 1.5C. Sixty-five

U.S. CLIMATE ALLIANCE

(65) countries committed to address

On August 4, 2017, the U.S. submitted notification of withdrawal from the Paris Climate Agreement, withdrawing, at the earliest, Nov. 4, 2020. The United States Climate Alliance States committed to reduce emissions commensurate with the original U.S. commitment. 444 “Climate Mayors” also committed to the Paris Climate Agreement reductions.

high global warming potential HFCs in their Individual Nationally Determined Contributions (INDCs) to the Paris Agreement.

Since the U.S. has not yet ratified the Kigali Amendment, some states have included HFCs in this effort. There is increasing global activity to transition to more climate-friendly refrigerants to meet the growing demand. In the U.S. 16 members of the Climate Alliance are working to address consumption and/or emissions of HFCs as part of their efforts to reduce greenhouse gas emissions.

CALIFORNIA AIR RESOURCES BOARD (CARB) California Senate Bill 1383, signed into law in 2016, mandates HFC emission reductions of 40 percent by 2030, compared to 2013 levels and requires that CARB create regulations to meet this goal. The rest of the world regulates based on refrigerant production and consumption rather than emissions. Since California’s goals are based on emissions from equipment that has been in place for 15 to 30 years, California’s goals are 5-10 years ahead of the Kigali Amendment. To meet this ambitious goal, California adopted the EPA SNAP rules by regulation and legislation and the EPA CAA Section 608 Refrigerant Management rules by regulation. CARB proposed a transition date for air conditioning (AC) equipment to low GWP refrigerants in 2021. In response to the 2017 proposal, AHRI, its members and the Natural Resources Defense Council, proposed that CARB delay the transition date to 2023 to align with U.S. Department of Energy’s new energy efficiency requirements to eliminate an additional transition and has requested a further delay until 2025 to allow for sufficient time for building codes to be updated.

www.TacoComfort.com

HVACR BUSINESS OCTOBER 2020

As of September 2020, CARB is drafting regulations that may require a transition of commercial refrigeration refrigerants to those below 150 GWP in 2022 and air conditioning refrigerants www.hvacrbusiness.com

to those below 750 GWP by 2023. California is also considering a ban on the use of refrigerants above 1500 GWP for use to service equipment.

to A2L refrigerants. The difference may, at least in part, be attributed to the analysis completed by stakeholders of the Australian supply chain and the new requirement that a license is required to purchase an HFC. u

IMPLEMENTATION VARIES BY COUNTRY As noted earlier, under the Montreal Protocol each country can adopt their own regulations. There are generally four primary strategies used to regulate fluorocarbons, which are sometimes combined: • Carbon taxes (used in Australia from 2012 – 2014)

EDITOR’S NOTE: For a complete list of notations and links for this article, please visit hvacrbusiness.com/ refrigerant-regulations-changing.

• Quota and allocation system (Canada, Europe, Japan)

• Australia requires a refrigerant deposit which is refunded for returned HFCs to encourage good refrigerant management.

• GWP limits by sector (Canada, Europe, Japan)

• Japan has requirements

• Refrigerant ban by sector (U.S. and most countries for ODSs) There are some variations to these and some ancillary requirements. • Australia has a step down every two years instead of every five years as required under the Kigali HFC Amendment.

www.hvacrbusiness.com

reclaim

refrigerant

SAFE REFRIGERANT TRANSITION Differences in low-GWP refrigerant properties (e.g., flammability and toxicity) may require changes to current practices to minimize risk while meeting climate regulations. Some low-GWP refrigerants have not been used in some time or will be

used with larger charge sizes (e.g., ammonia and hydrocarbons). Some other low-GWP refrigerants are in earlier stages of commercial use (R-32 in EU, Japan and Australia air conditioning; R-1234yf in automotive air conditioning in US, Canada, EU, Japan and Korea). Other low-GWP refrigerants are being proposed for commercialization. In 2012, in Australia, a carbon tax of $23 Australian dollars per ton was the impetus for a very quick conversion to low-GWP refrigerants. The Australian industry has yet to find incidents related

Helen Walter-Terrinoni is vice president of regulatory affairs for the Air Conditioning, Heating and Refrigeration Institute (AHRI). Inspired by the success in Australia, AHRI initiated the Safe Refrigerant Transition Task Force to prepare for the transition. If interested in the Safe Refrigerant Transition Task Force, you can contact Helen WalterTerrinoni (HWalter-terrinoni@ahrinet.org) or Christopher Bresee (CBresee@ahrinet.org.) Visit ahrinet.org/SafeRefrigerant for additional information.

HVACR BUSINESS OCTOBER 2020

EXECUTIVE ROUNDTABLE: SMART HOME CONTROLS Manufacturers answer consumer demand with a variety of smart thermostats that integrate with various connected home products and platforms.

Casey Klock

Derrick Boyce

Craig Johnson

Aprilaire

ecobee

Emerson

Glenn Savage LG Air Conditioning Technologies

Rob Munin Johnson Controls

Matt Robbins Resideo

Raheel Chaudry Rheem

George Land Trane

BY PETE GRASSO

he development of Wi-Fi in the late 1990s, and then the availability of low cost, more powerful microprocessors in the early 2000s really accelerated the development of smart devices in general, including smart thermostats. Thermostats, initially, evolved into connected thermostats, and connected thermostats evolved into what, today, we call smart thermostats. The smart home/ connected home category has really become a huge opportunity for HVACR contractors to expand their offerings, as manufacturers continue to develop these products aimed at consumers. I recently spoke with a handful of executives at many of the top manufacturers to get their thoughts on smart thermostats and connected home devices, what innovations contractors need to be aware of and the changes and challenges that lie ahead. This Executive Roundtable panel included Casey Klock, product marketing manager at Aprilaire; Derrick Boyce, vice president, sales at ecobee; Craig Johnson, president, residential solutions at Emerson; Glenn Savage,

“In recent years, we’ve seen a shift toward IoT technologies becoming the norm in the residential market.” — Craig Johnson controls engineer at LG Air Conditioning Technologies; Rob Munin, general manager, thermostats and sensors at Johnson Controls; Matt Robbins, vice president/ general manager of comfort at Resideo; Raheel Chaudry, senior product manager, controls at Rheem; and George Land, general manager, digital products at Trane.

How have smart thermostats and home automation products evolved in the past few years? Boyce: If you think of a thermostat as an example, they’ve evolved from basically dumb devices on the wall that just controlled your heating and cooling, and they required that personal interaction to make any changes or adjustments, to evolving into adding Wi-Fi, to where the next phase of that evolution is really into smart thermostats that act as a central point for your connected home. It’s like having a computer on your wall.

HVACR BUSINESS OCTOBER 2020

Chaudry: More and more appliances have built-in connectivity nowadays. What makes a house smart is that these appliances communicate both ways within intelligent cloud. And now we are seeing that they talk in a mesh network with each other as well. That is the latest trend … appliances and devices are talking to each other without intervention from humans, as well as without talking to the cloud and making smart decisions by themselves. Johnson: In recent years, we’ve seen a shift towards IoT technologies becoming the norm in the residential market. Customers have a greater interest in being able to control their own comfort and IoT technology allows customers to make adjustments that affect comfort remotely, particularly when traveling or away from home for an extended period of time. Customers also control their system from their mobile app while at home. Klock: The evolution really relates

to connectivity, especially in new construction. The trouble we’re still working through and the opportunity, really, is figuring out interoperability. You have all these different connected devices and all these subsequent apps, and it’s a proliferation of both right? So, how do you figure out how to work well with one another so that you can have a really good user experience and one or two minimal number of apps that really serve all the home’s needs in terms of connectivity. Land: It started off with the connected thermostat. It was around remote control, being able to adjust your system or check on it when you weren’t home. With the addition of Alexa and the other voice assistants, it really added the experience of being in the home, having enhanced control. As smart thermostats became the norm, we had sensors, wireless sensors around the house to optimize comfort. Today, there’s holistic integration with ceiling fans, lighting, ventilation management, advanced humidity management. Munin: I think back just five years ago, and it was very much a single point entries into the home. You had lighting, you had a thermostat, then cameras became big. Then of course the voice assistance www.hvacrbusiness.com

became effectively the default hub of the smart home that’s not related to security. The thermostat needs to be intuitive at the wall and needs to be easy to use in the app. The evolution that I’ve seen in the industry for HVAC contractors has really been, over the past five years, a very rapid uptick of adoption and acceptance. Robbins: The install and registration journey is getting easier for customers and pros. Another thing that’s gotten really better too, is customer communications on the back end. When you have the app and when you have an app-based technology, you’ve also got access to emailing customers or communicating to them through the app. And there’s an opportunity to talk to them about the impact of their choices on energy use, on system performance and on whether they need to change their filter. Savage: From a technical standpoint, they have evolved by going from scheduling to direct access and proprietary communication and control protocols to open communication and control protocols. This is a huge benefit to the industry as it offers a good amount of flexibility to the homeowner. Each family member now has the ability to control the comfort of their individual space.

What innovations are manufacturers introducing in this space? Boyce: It all starts with having a great user interface. Products have to be easy to use and simple for customers to understand. That’s really important in how we design our products. Integration capabilities is really important as well, having the flexibility or providing the consumers the flexibility to choose how they build out their connected home experience. Chaudry: Customers want features that are meaningful and helpful within their lives. Smart appliances must enhance their experience with the product and be meaningful to their lifestyle and needs. Technologies must be easy to use, intuitive and customizable. This is driving innovation for us in terms of connectivity, data analytics, better user experience in terms of both appliances, as well as the peripherals, such as the thermostat and more cellphone apps. Johnson: Remote diagnostic IoT, such as the Sensi Predict — a predictive maintenance solution with an innovative new 10-sensor system that provides real time www.hvacrbusiness.com

data on HVAC systems — is one trend we’re expecting to see become more and more commonplace. Proactive and preventative maintenance is becoming increasingly important as contractors are seeking to do more with less. Klock: The trend, and it’s not there yet, is going beyond temperature and humidity. It’s how do you incorporate the system, or the air as a whole, into one system. And it’s much more than just temperature and humidity. Land: We’re seeing mass customization toward what’s best for the consumer for their particular situation, so whether that’s the way they choose to interact with the system, whether they like to interact with the thing on the wall, the thing in their hand or through their voice. Optimizing comfort is another piece. There’s so much we can do now with integrating different pieces in the house. Munin: We have data that say consumers use our app two to three times a week, which is pretty consistent across the thermostat manufacturers. When you think about it, aside from maybe a newsfeed, social media, there’s not a lot of other apps that people go to that often. It’s important that the app is intuitive, that it’s helpful and that it’s an opportunity for contractors. At JCI, we’re launching a brand new app and a brand new platform, and with that will be a development in the future opportunities for branding, for contractors inside of the Lux app, brought to you by JCI. Robbins: When the industry started out, it was you could connect one device and that was great. Now we can do so much more. One thing we’re excited about is our T9, T10 product line being able to connect to remote sensors. You can control your thermostat, not just off of the local temperature, but of the temperature in the room you’re in, using integrated motion sensing. Or, if you want, use a weighted average of temperature at multiple points in your house so that you could feel more comfort and more control. And just being able to connect multiple devices into an integrated ecosystem is something that’s really exciting. Savage: Manufacturers have moved from proprietary to open protocols. This gives both the contractor and the consumer more choices and an improved user-experience in a connected home.

REASON

Up to 12% more efficient.

R-32 systems are up to 12% more efficient than similar R-410A systems.

T H I S I S J U S T O N E O F 3 2 G R E AT R E A S O N S TO C H O O S E R -3 2 R E F R I G E R A N T. S E E T H E M A L L AT R 3 2 R E A S O N S . C O M .

WITH MORE THAN 100 MILLION UNITS INSTALLED WORLDWIDE, R-32 IS ENDORSED BY:

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Is this category being driven by consumer demand? Boyce: It’s not only driven by consumer demand, but the adoption is critical to creating awareness. Consumer demand is a driver of change. Connected products are no longer nice to have, it’s an expectation. Chaudry: We do see demand from both the high-end homeowners, homeowners who want high-end equipment and are interested in smart technologies as well as partners, such as utilities, aggregators and co-op, electrical co-ops. From that perspective, the demand is there from the customers.

have value for the homeowner to jump into this pool, and we need the contractors to see that as an opportunity for them. Robbins: There are segments of home automation that are manufacturer driven. But at least in the HVACR space, I think customers have a real desire for greater control and integration of their systems and finding ways to save energy and simplify operation. There is a lot of customer pull for these products, and I think we’re only going to see that grow. Savage: Many of the contractors we have talked to have said that this is a huge differentiator in the market. Having the ability to offer a product that is both energy-efficient and “smart” brings in more

“Customers have a real desire for greater control and integration of their systems.” — Matt Robbins

Johnson: Remote diagnostic IoT is a win-win for both homeowners and contractors because it optimizes installation, maintenance and performance efficiency by keeping both contractors and homeowners in the know throughout every stage of the process. Klock: It’s a little bit of both. If you look back to cell phones, at first it was, “Okay, that seems like a really nice luxury.” Now it’s a necessity, right? We’re still on the early adoption phase of smart homes. I wouldn’t say its mainstream completely yet, especially on the smart home side, but with all the different technologies, it’s becoming that way.

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Land: Initially, retail led the smart thermostat category, as an early adopter. Consumers did proactive replacements. They saw the value proposition and wanted to bring it into the home. But now, that’s led to widespread consumer awareness and consumer demand. There’s recognition by contractors of how much smart technology can elevate their customer satisfaction and referral rates and also how it can help them in their business. Munin: Smart thermostats started as a tech adopter categories. The benefits of a connected thermostat are real. All of the feature and benefit points make a ton of sense to consumers. To get to the mass adoption, our philosophy is we need to

HVACR BUSINESS OCTOBER 2020

sales as consumers have come to expect technology driven product offerings.

How are HVACR contractors best positioned to sell this type of equipment? Boyce: Homeowners trust their pro contractors, so they’re in a great position to influence that decision-making. It’s a great way to strengthen the relationship with the homeowner by adding that additional value, and it’s an opportunity for contractors to increase their revenues without deviating from their core business. Chaudry: People really want to customize solutions. And, typically, they want high-end equipment that is highly efficient, highly customizable and so forth. That is the easy target for the contractors for this type of equipment. Johnson: Offering smart thermostats allows contractors to provide an easy solution for their customers to control comfort and save energy. With diagnostic technology, contractors are more likely to know exactly what to expect prior to a service call and ensure that the right person and the right parts are on the truck. This optimizes contractor efficiency and credibility with customers. Klock: It creates engagement with their customer. Today, it’s almost more reactive type relationships where with

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connected products, it can be more proactive, whether that’s the dealer now has access to equipment details, or maybe it’s a replacement of a consumable like a filter, or maybe it’s a, “Hey, I don’t think your equipment’s running very well because of ABC,” instead of waiting for the customer to call and tell you their furnace is down. As the equipment and analytics get better, it’ll be more on the preventative side. Land: Contractors are the comfort experts that customers rely on for our complete solutions. It’s not as much about HVACR contractors selling home automation as it is educating consumers on how much more comfortable, how much more efficient, how much better their air quality can be, by leveraging what’s now mature technology. Munin: There’s really an opportunity for contractors to capture more of the smart home. There are very few industries where millions and millions of homeowners, consumers, twice a year allow professionals into their house to work on the most expensive part of their power plant, if you will, the HVAC. I think that’s a major opportunity. Robbins: HVACR technicians are really unique in the marketplace. They go into customers’ homes and they solve a problem in the time of need. They’re heroes to a lot of customers. They have a deep and special expert relationship with customers that I think puts them in a great position to sell more home automation and introduce home automation to customers more broadly. Savage: In a competitive marketplace, the ability to offer a connected home solution makes LG an attractive solution. Homeowners are demanding more connectivity and a smoother user experience from their home appliances and systems. The ability to offer smart technology, tips the scale toward the manufacturers that can offer a connected home.

What’s the efficiency advantage to smart thermostats? Boyce: It comes to the intuitiveness of the product. When the smart thermostat brings on the heating and cooling, it understands how long it needs to run in order to hit the desired set point. It’s looking at a number of variables, what’s happening outside the home, what happens inside the home, the desired set points for the homeowner. Over time, it intuitively learns how

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to maximize the efficiency and the energy savings when heating and cooling a home. Chaudry: Absolutely. There’s the savings that come with not only programmable thermostat, but also systems that allow for geo-fencing … that definitely helps with up-selling the equipment as well as thermostats. Land: There’s an enormous opportunity to make sure that the energy you’re expending to be comfortable is only what you need and not wasted on heating or cooling for times or places that you don’t care about or that you aren’t there. There’s a huge efficiency play in the remote diagnostics. Many times, a consumer is comfortable, but their system is running inefficiently because it’s not operating at peak performance. With remote diagnostics, we can detect that, and we can notify the homeowner, notify the contractor they’ve got a customer who is comfortable but is very inefficient.

What education do you offer contractors for this type of equipment? Chaudry: Rheem has innovation learning centers with a variety of curriculum set up all over the world. We have five in North America, which give contractors the opportunity to learn about our smart home products, as well as spend time in a hands-on experience that brings learning to a new level.

REASON

Globally accepted.

Over 100 million R-32 units have been safely deployed worldwide.

Johnson: Contractors must complete an online training course to learn more about Sensi Predict’s benefits and the steps to offer the solution to customers. Sensi thermostats were designed with pros in mind. With special installation features including a built-in level, terminal lights and easy click terminals, technicians of any skill level can easily and quickly install a Sensi thermostat so they can get on to the next job. Klock: We do webinars. Most of them are virtual now, but we were very well known for our in-person webinars. And we still do those to some extent, but just not with the pandemic going on. We also have a really great Aprilaire partners website to help with the education information ... it contains a lot of videos and content to inform and educate. Land: Our in-person classes are currently paused, but we have a full suite of

T H I S I S J U S T O N E O F 3 2 G R E AT R E A S O N S TO C H O O S E R -3 2 R E F R I G E R A N T. S E E T H E M A L L AT R 3 2 R E A S O N S . C O M .

WITH MORE THAN 100 MILLION UNITS INSTALLED WORLDWIDE, R-32 IS ENDORSED BY:

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online training modules, which, this year, have become more popular than ever. We also offer direct consumer support. We don’t want contractors to be the IT service desk. We’ve got people to help consumers with sort of that first line of questions. Munin: We do a lot of outreach at the individual level, at the distributor level with their customers who are the contractors and just education. We do series of webinars. We worked with a couple of the buying groups, so we have access to some teaching tools there, and it’s a constant effort on our part to figure out how best to educate dealers and the contractors so that they’re comfortable. Robbins: One of the things that we’re excited about expanding next year is our Pro PERKS program. An element of the loyalty program is access to high quality online training so that contractors can understand the features of our products, the key selling propositions, the product expansion and extension opportunities, but they can also learn how to perform

installations and how they can maintain the systems that we provide and create. Savage: We offer training in our LG Air Solutions Academies for all of the controls products we sell.

Has availability of these devices in big box stores helped or hurt contractors? Boyce: There’s always a contentious point between professional and the retail side of the business, but it drives awareness and awareness drives demand. Homeowners will research products and typically have a good idea of what they want regardless. Our pro business is on an accelerated growth trajectory and has been for quite some time. A big part of the awareness and the spillover that you see from that retailer big box side really helps in the professional side of our business. Chaudry: We really are not competing with the smart thermostats sold in big box stores. Those devices allow for connectivity, yet they’re limited in the amount of information and control that they give to contractors and homeowners. Our job as

an equipment manufacturer is to use the smart thermostat to maximize affordable home comfort in a way that DIY smart thermostats cannot do. Klock: It’s created a demand from consumers, as well as created some competition. It’s important to differentiate between a pro or trade installed model and a consumer DIY installed model, because frankly they’re different. And so, as product managers, we need to be aware of that and differentiate accordingly for those different needs.

frankly, with the maturation of how we all connect with technology, it’s ubiquitous. It’s impossible to wish it away. I get more of the big distributors that the contractors will be served from saying to us, “are you in the big boxes? Because we don’t mind. We actually like it, it helps generate some demand for us and awareness of these products.” Robbins: I think these absolutely help contractors. I think we’re creating market awareness around a high quality and compelling product.

Land: Sometimes the retail price point changes what contractors do, in terms of a pricing strategy, when they itemize their items. But overall, the retail channel, from what we’ve seen, has helped contractors by creating awareness of the category and creating that sort of consumer demand for a feature-rich experience.

Savage: No, one of our controls accessories allows our customers the ability to use the devices that are sold at those big box stores with our equipment. It also opens up discussion with our contractors about what controls are appropriate to use with our equipment and what the advantages and disadvantages are. u

Munin: Lux is a brand that lives in the big box retailers and also lives in wholesale distribution for the pros. Five years ago, the professional side of the fence was vehemently opposed to any of that. Then,

Pete Grasso is the editor of HVACR Business magazine. Email pgrasso@hvacrbusiness.com to contact him.

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HVACR BUSINESS OCTOBER 2020

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LEARN FROM NEGATIVE REVIEWS

Respond, see what failed in your system and procedures that caused the problem and fix it. BY COLLEEN KEYWORTH

ince people first started service businesses, there have been unhappy customers due to jobs that didn’t quite go the way they were supposed to go or because some people just enjoy being upset. Unfortunately, just moving on no longer cuts it thanks to the Internet. Today, reviews matter and the impact of bad reviews can affect your business. The most popular platform for business reviews is Google My Business reviews. For this reason, Online-Access Inc. did a study and analyzed more than 25,000 Google reviews gathered over five years from more than 400 HVACR and plumbing contractors. Here is what we learned.

GOOGLE REVIEWS IN PERSPECTIVE Overall, these are the general statistics regarding Google My Business reviews. www.hvacrbusiness.com

An editorial calendar is simply a calendar for all of your current and future marketing activities that allows everyone on your team to stay organized. • 74 percent of local businesses have at least one Google Review

• The average Google Reviews star rating for a local business is 4.42 stars

• On average, local businesses have 39 Google reviews

• Senior living services, car dealerships and hotels have the lowest average Google star ratings

The good news for most of the home service contractor reviews, is getting bad reviews isn’t common. Out of the 25,000 reviews, only about 1,500 were below a 3-star rating. So, more than 94 percent of the reviews were favorable. Unfortunately, the first thing many potential customers do when looking for a service company is sort their reviews by the unfavorable ones first.

• Only 5 percent of businesses have a Google average-star rating below 3 stars, while 61 percent have 4-5 stars

We also learned that the number of people leaving reviews is rapidly increasing. Of the 25,000 reviews looked at over

• Businesses appearing in Google’s top three local positions have an average of 47 Google Reviews

the five-year period, 7,000 of them were left in just the last 6 months! This increase is due to the cultural shift of both businesses and consumers actively seeking out reviews and the growing number of review platforms that have sprung up to facilitate customer feedback. Of the 1,500 bad Google reviews studied, here are the top three reasons — which account for more than 50 percent of those bad reviews. Mismanaged Client Expectations. These were the complaints where the customer had expectations of either the process or the results that were not met. Even though some of these expectations were not valid, the bad review could have easily been avoided had the contractor communicated or taken the time to learn the customer’s expectations before taking the job. continued on page 16

HVACR BUSINESS OCTOBER 2020

4. 45 percent of consumers say they’re more likely to visit a business that responds to negative reviews.

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For example, the customer buys a single air conditioner for his two-story home and becomes irate when the contractor tells him after the job, that the upstairs may be up to 10 degrees hotter. These types of reviews could have been easily prevented by better communication.

Of course, responding to a negative review may seem like a daunting task. Here are 12 simple suggestions on responding to reviews that should help you in your response:

Pricing Issues. Complaints where the customer did not equate the value of what the contractor delivered with the price they had to pay.

Wait, breathe deeply and wait some more. Waiting a day or so to respond will help you cool down as well as let the customer move on, reducing the potential of them responding to your response.

Bad Service. These were the ones caused by missed appointments, broken promises or sloppy work. Even though there are always two sides to every story, the basic theme of these reviews was poorly-delivered service.

Verify that it is a real review from a real customer. Knowing who the customer is can help make responding easier. For example, if the review is from a disgruntled ex-employee, your web company can probably help you get it removed.

Of the three major types of reviews looked at, communication before the job was done could have avoided most of the customer’s frustration. Customer dissatisfaction mainly occurs when pre-set expectations are not met. In the example used above, even though the results would have been the same, had

the salesperson communicated it before the job, the customer would have received the results he expected and not been frustrated.

RESPONDING IS IMPORTANT

By discussing the client’s expectations before the job, the contractor has the option to either raise his delivery to meet the expectations or lower the client’s expectations to what can actually be delivered. Anything between the two points will end up as dissatisfaction and, likely, a bad review.

1. 94 percent of consumers say a bad review has convinced them to avoid a business.

HVACR BUSINESS OCTOBER 2020

Believe it or not, responding to bad reviews is worth your time. Here are four reasons why:

2. 53 percent of customers expect businesses to respond to negative reviews within a week.

Deal offline with the customer first and try to get the review removed. Even though the customer took the grievance to the public forum, solving it in person or speaking with the customer by phone is best when possible.

3. Yet, 63 percent say a business has never responded to their review.

Respond for the potential customer, not the offended party. Remember, your

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Knowing you take responsibility for your mistakes helps potential customers trust you more. response is for the potential customers reading it, not the person who wrote it. Your goal should be to appear to be the most “reasonable-one-in-the-room,” and that you aren’t going to verbally abuse a customer that has a concern. You can only control their expectations before the job. The burden of making sure they know what they are getting is on you, not on them. If you later tell them they should have known something that wasn’t discussed or documented, it implies you’re not giving full disclosure. Be rational and calm (even if the reviewer is not). The calmer and more professional your response, the more irrational it makes the complainant appear in contrast. If you screwed up, come clean and make it right. Knowing you take responsibility for your mistakes helps potential customers trust you more. If they reviewed under a false name, respond with their real one. If the bad review comes from someone trying to hide their name by using a fake one, respond to them using their full name. It’s only fair since they’re using your real name. Many times, the angry reviewer will remove the review out of embarrassment or lost anonymity. Just the facts, no emotion. Remember, you want to be seen as the reasonable and calm one. Assume they are confused, not lying. Don’t accuse the reviewer of lying. In print or online, always assume the best. Others reading the review will draw their own conclusions. Name calling will not help those conclusions. “Bless Their Little Heart.” It’s a running joke in the south that you can say anything you want about someone as long as you end it with “… bless their little heart!” Always end your response that you are sorry for their choice to be angry over the situation, but you wish them the best in the future. Be aware that user reviews can always be updated or changed, so your response should, too. Going through your reviews every so often is a good idea because customers can update their reviews any time they want. Updating your response to reflect the change shows that you care or www.hvacrbusiness.com

want to make things right and are actively engaged with your reviews.

LEARN FROM OTHERS When in doubt, see how other companies responded to similar reviews. If you aren’t sure how to respond, looking at how others have handled similar customer complaints just got easier. Since we pulled and classified the 1,500 random reviews received by contractors, we decided to create a tool to search out similar client complaints and see how others have handled them. The tool can be found at hvacwebsites. com/badreviews. Feel free to bookmark it and use it for ideas when you next have to reply to a frustrated customer. All identifying information has been removed from the reviews and the responses and not all the responses are ones that we would recommend you use. We left those responses, however, since they help show how anger doesn’t help the situation or the perspective the reader takes away about the company. This database of bad reviews also makes a great tool for technician meetings. Before you end a meeting, read five of the reviews and ask your techs what could have been done to prevent it. Since the review is not about them, it lets your techs look at the situation rationally without becoming defensive. The simple exercise of focusing your techs on the fact that both actions and inactions have consequences will pay off ten-fold and reduce bad reviews simply by keeping them focused on customer perceptions. The best advice when you get a bad review is to respond to it, to see what failed in your systems and procedures that caused it and then fix it. u

Colleen Keyworth is the sales and training coordinator for Contractor’s Online-Access, an HVAC-focused Search Engine Optimization and Internet marketing company located in Port Huron, Mich. Growing up and working in her family’s HVAC business, she has a clear understanding of contracting as well as the realities that contractors face in owning and operating a profitable business. For additional information, visit hvacwebsites.com.

REASON

Pure, not blended.

R-32 is a single-component refrigerant making it easier to clean, reuse, recover and reclaim than blends.

T H I S I S J U S T O N E O F 3 2 G R E AT R E A S O N S TO C H O O S E R -3 2 R E F R I G E R A N T. S E E T H E M A L L AT R 3 2 R E A S O N S . C O M .

WITH MORE THAN 100 MILLION UNITS INSTALLED WORLDWIDE, R-32 IS ENDORSED BY:

HVACR BUSINESS OCTOBER 2020

FINANCE

BY RUTH KING

Wealth Rule No. 5: Monitor Your Cash

your business that week and estimates the needs for the following week. Your bookkeeper puts this statement on your desk every Friday afternoon along with a copy of the company’s receivable and payable list.

First, check your bank balance on-line every day. Why? This is what happened to one of my clients:

They should take no longer than 15 minutes to prepare, assuming that accounts receivable and accounts payable are up to date.

Janine is the bookkeeper at my client’s company. She checks the balances and activities for the business accounts every day. One day Janine noticed two tiny deposits, each less than one dollar. She thought that the owner had set up another online account and just forgot to tell her.

Beginning cash is the cash you have at the start of the week: petty cash, cash in your operating checking accounts, payroll checking account, and money market funds. It is not stock investments or longterm investments. It’s cash. It’s what you’re using to cover checks you’ve written.

She asked him whether he had set up any new online accounts. He said no. Janine thought the deposits were strange since no one at the company had requested new accounts. She never thought to call the bank. The next day the owner got a phone call from the bank asking whether they had authorized a $50,000 withdrawal from their account. Obviously, the answer was no and the bank shut down that account. That’s why those two deposits were made. A hacker was trying to see whether the account was real.

Next determine your cash receipts this week. You receive cash when your clients pay you for work performed; i.e. when you collect on sales. Collections on sales are in many forms. You may receive cash, credit card payments and checks. Each is tracked as a separate line item. Remember, cash is generated by its collections on sales — not sending the invoice to the customer.

ash is the lifeblood of your company. You should watch it every day. There are two things to do to help you monitor your cash: check your bank statements every day and a weekly cash flow report.

Always pay attention to cash coming in and going out. Cash is the first part of building wealth. It takes less than five minutes each day to see what deposits have cleared and what withdrawals were made. It’s very easy to set up ACH withdrawals so that you never sign a check for the withdrawal. Someone can forge your signature on the paperwork since it isn’t checked. Make sure you recognize every withdrawal, whether it is by check, counter check or ACH withdrawal. If you don’t recognize a withdrawal, start investigating to find out what it is.

CASH FLOW REPORT A weekly cash flow report helps you track the cash coming in and going out of

Other inputs might include interest income or borrowing from the bank line of credit. There might be an investment in the business. There might be a sale of an asset where you received cash for that asset. Total cash available is beginning cash plus all inputs are cash that the company receives this week. Disbursements are cash going out of the company this week. Disbursements are the checks written for accounts payable, payroll, loan payments, purchases of inventory and other assets and payment of overhead expenses. Ending cash is total cash available, minus disbursements. Ending cash must be positive. Without enough cash you need to decide which vendor isn’t getting paid. Sometimes those are the tough decisions. Have the courage to make them. Once you calculate ending cash for the

HVACR BUSINESS OCTOBER 2020

week, estimate collections and disbursements for the upcoming week. Estimate accounts receivables that are going to be collected, payables and loan payments that must be paid, and what payroll will be. Then take ending cash for this week and subtract payroll for next week, disbursements for next week, and add to it expected collections for next week. The end result should be a positive number. The weekly cash flow report forces your company to be current (up to date with entries) for receivables and payables entries each week. This makes it easier to produce timely monthly financial statements each month. Your bookkeeper should put this statement on your desk each Friday afternoon. If that number is negative, i.e. you need

more cash next week, it’s a lot easier to have a week to collect that cash rather than the bookkeeper knocking on your door on Thursday saying, “We don’t have enough to make payroll” and payroll is due on Friday. Daily monitoring of your checking accounts and weekly monitoring of your cash flow helps you keep track of your cash. u Editor’s Note: For a sample Weekly Cash Flow Report, visit hvacrbusiness.com/ resource-center Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to become more profitable. Contact Ruth at ruthking@hvacchannel.tv or call 770-729-0258.

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BUSINESS PLANNING

BY DAVE BODUCH

Pay Attention to DIY, Home Renovation Media

roperty Brothers, House Hunters Renovation, Renovation Realities, House Crashers, Fixer Upper — do you know these reality shows? Whether you watch them or not, they’re having an impact on our industry. Television channels, such as HGTV and DIY Network, have made home renovations a popular idea. If you haven’t ever tuned in, the gist of these shows is that the homeowners usually have a situation they’re not happy with and they would like a change. They want a remodel; they want new things; they want something different. In 2015, the DIY Network had more than 60 million subscribers, and Home and Garden TV (HGTV) had nearly 95 million. Pinterest, a popular website for DIY home improvement, currently has 291 million active users. Now, not all of your customers watch these channels or use these types of websites, but lots of your customers are in those numbers somewhere — you can be sure of that. All these numbers tell us that consumers are researching. They’ve recognized they want something and they’re looking at how they can make it happen. That “I want” is a powerful thing. Here’s where we come in: I’ve seen a lot of articles on HGTV.com about how to select a contractor. These articles tell readers to look for contractors who are similar to the ones the channel has on its shows. Many of these shows feature full remodels, but that’s fine if that’s not what you do. You can still give them one or a few specific elements of what remodeling customers want — you don’t have to give them a full remodel. The customers who want these things might not be like your average customer. HGTV viewers tend to be female, around middle age and making more money than average. But if you’ve seen the shows and

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Explaining the realities of your work is the first step to clearing any objections they may have about the time issue. you have a general understanding of their typical viewers, all you have to do to avoid missing a sales opportunity during a job is to inquire! It’s as simple as asking what the customer likes or dislikes or whether they’re thinking of making any changes. Then, you can find out if these ideas for changes stem from something that was seen on TV and connect over the fact that you or someone in your life watches home improvement shows, too. I’ve seen some negative reactions online from contractors about home renovation shows. Here are the top three perceived obstacles, as well as some ways you can easily overcome them: “These shows make it look too simple — my customers will be angry that I need more time to complete the job.” You’re a professional — it’s part of your job to explain to your customers what you will be doing in their home. Explaining the realities of your work is the first step to clearing any objections they may have about the time issue. “The products on those shows and that customers request only come from bigname advertisers, and they’re not as good as the ones I want to use.”

I get it: TV contractors are going the extra mile. They’re using technology, they’re excellent consultants, and they have lots of empathy. They’re incredible… almost to the point of not being believable. But when the customers expect this kind of service, they better get it, or they’re not going to hire you to do any piece of whatever it is they might want. But you know what? I believe you and your team can be this good.

You can have a positive outlook about home improvement shows or a negative one. But we can’t argue with the “want” factor these shows create. These wants are emotional. We don’t have to take advantage of this — the customers will! When it comes to home improvement show viewers as customers, you have an opportunity to help realize someone’s dreams and give them something they wish they had. Don’t miss it. u Dave Boduch is a trainer at Nexstar Network. To learn more, visit nexstarnetwork.com, call 888-240-7827, or email membership@ nexstarnetwork.com.

I’ve seen the brand names (who are advertisers) on these shows, and even though we don’t always see these things as quality, you should also be able to explain to the customer why the product you want to use is better than what they’re seeing on TV. Confusion and anger come from the customer being left in the dark. “The contractors on these shows are extremely professional, and we’re just never all going to be on that level.”

HVACR BUSINESS OCTOBER 2020

BUSINESS INSIGHTS »

HEATING & COOLING SYSTEMS

AMERICAN STANDARD:

Leading the Way to a Higher Standard of Indoor Comfort 1. What’s the most important element of home comfort to homeowners?

KATHRYN WILDRICK

Our industry sits at the center of whole-home comfort. Comfort is defined by how customers feel in their space. It means their air is not only at the perfect temperature, but also is fresh and clean. Consumers have become savvier about indoor air quality (IAQ) and how that impacts their health and daily living.

FOLLOW UP: American Standard dealers provide customers a higher standard of comfort through reliable products & quality service. Visit americanstandardairdealers.com for additional information.

They turn to HVAC specialists as resources to evaluate current conditions and seek out new solutions. This presents an opportunity for our dealers to establish trusted relationships with customers by providing dependable and realistic recommendations that create comfort, peace of mind and instill confidence in their investment. Customers have better problems to deal with than worrying about home comfort.

2. How does American Standard address home comfort needs through its solutions? It’s not a one size fits all approach. We know every home environment is different, so we’ve spent over a century creating a variety of reliable heating and cooling systems that homeowners can count on. In doing so, we’ve been able to support the reputation and relationships our dealers have established with their customers. We want them to know when they recommend American Standard solutions that they’re recommending a best-in-class system that works smarter and will offer a customized experience based on unique home environments and comfort needs.

3. Dealers face many business challenges including sales and customer services. How does American Standard help those within its network make the process more seamless and worry-free? Dealers understand that most of the time that when homeowners call them, the customer already has a problem, like their system isn’t functioning, heating or cooling has been lost or they’re experiencing some other issue. Regardless of the problem, the customer is worried by the unknown. So, when a customer requires a service call they expect an honest evaluation of the problem and a solution that fits their budget. That’s why we encourage our dealers to be straightforward and thoughtful with their questioning and advice because that guidance is what builds customer trust. We’ve developed many courses and training programs to help dealers understand the sales process and learn how to take a more consultative, personalized approach with each customer.

HVACR BUSINESS OCTOBER 2020

Brand Manager at American Standard Heating & Air Conditioning

BUSINESS INSIGHTS: Build confidence by doing things right the first time. 4. What does ‘Better Problems’ mean to the American Standard brand and to the dealers within the American Standard network? In our minds, it’s about doing it right the first time. When a system is installed correctly and the customer never has to think about it again, then it’s a job well done. That’s what we mean by ‘Better Problems;’ the HVAC system becomes one less thing a customer needs to worry about. For the dealers that align with our values of maintaining the utmost integrity in everything they do, they personify this feeling of ‘Better Problems’ because they are offering best-in-class service and equipment that customers can rely on.

5. How can a dealer sell ‘peace of mind’ and ‘better problems’ so customers have a better experience? By simply being honest and straightforward. HVAC shouldn’t be a complex experience. It’s about delivering real value to our customers by providing them with industry-leading products and services and committing to the highest level of technical skill.

6. What kind of training does American Standard provide to dealers to ensure the installation is equal to the quality of equipment and brand experience? We have a wide range of technical courses and videos focused on all of our products tailored to what both the business owner and service technician need. Digital courses are available 24/7 at no cost. Our technical training focuses on topics like HVAC basics, core principles of HVAC, air flow, zoning, motors and more. Our Field Tech Help videos were designed with the technician in mind. They are usually less than 5 minutes long and are available without a login. This allows a tech to quickly search for the problem they are experiencing and find the solution while still on the job. On the business

management side, we seek to support customer service, business development, sales and other areas that will help our dealers grow and maintain their companies.

7. Knowing IAQ is an increasing concern for many homeowners right now, how is American Standard training dealers differently this year to provide customers with the right support and products? We have the opportunity to advise customers on ways they can improve their IAQ and assist them in developing personalized solutions to meet their unique needs. This starts with our dealers being armed with the latest information and statistics to make recommendations that are backed by proven methods for improving the health of indoor spaces. We have information that we’ve developed specifically around IAQ opportunities. We guide our dealers to understand the value of our whole-home air cleaner, the AccuClean. We can teach them how to ask the right questions to match the right solution to the customer’s unique needs.

8. How can dealers highlight ‘Better Problems’ as a benefit to their customers when making recommendations? ‘Better Problems’ is about holding yourself to a higher standard to provide an unparalleled experience to customers. From being more proactive about setting up seasonal maintenance contracts to leveraging newer tools like remote diagnostics, always put the customer first. At the end of the day, if your business plays a critical role in maintaining comfort, then you can create customers for life by putting quality service first.

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93%

of American Standard dealers are satisfied with our product quality.

81%

of people eat chocolate.

AMERICAN STANDARD: MORE POPULAR THAN CHOCOLATE. It’s hard to get everyone to agree on something—but we’ve come close. American Standard’s proven quality, ease of use and customer satisfaction make it easy for dealers to love—and sell.

American Sandard received a 93% product quality satisfaction score among current dealers in a proprietary Dealer Brand Health Study conducted by Trane Technologies in 2019. Chocolate habits were reported by Statista in 2019.

www.hvacrbusiness.com

HVACR BUSINESS OCTOBER 2020

See why it makes sense to sell us more at

amsd.us/chocolate

20QUESTIONS >>

with DAVID INDURSKY

We sat down with David Indursky, president of Encon Mechanical in Ocean, N.J. Indursky discussed recruiting, the effects of the coronavirus pandemic on business and doing the right thing. 1. What’s your background?

I was born into the business … I’m second generation. My father started the company in 1968. He’s 82 and still shows up every day. The running joke in the office is, my mother will kill me if I fire him.

2. Did you always know this is what you were going to do?

No, I really didn’t. I always enjoyed working in the trade, I enjoyed getting hot, sweaty, dirty, I enjoyed the money of it, and I enjoyed the work. Throughout college, I considered physical therapy school. The government was changing its perspective of how doctors were billing, and I really didn’t want to be in a career at that point where I was governed by our government of what earnings could look like.

3. So how did you start out full-time?

I was a truck driver delivering parts. I worked in our sheet metal fabrication shop for quite some time. Back in the day, we did some track work, so I did my fair share of hot residential attic spaces and learned quickly I didn’t want to do that as a career. Then I became a junior estimator, worked my way up into estimating and then ultimately into project management.

4. What was the company like then?

When I started in the 1990s, we were doing an awful lot of public planning spec work and doing well at it. But the market shifted and we decided it was a better business mix to be in the private sector, and really completely left the public sector by 2000.

5. What’s your business mix now?

We are a commercial-industrial contractor. We serve the better part of New Jersey … about a $35 million company at this point. We do a lot of fast track commercial interior Class A work and a lot of work within hospitals and surgical centers. We have about 27 service trucks on the road. We do built in automation with our in-house people.

6. What’s your management style?

I am not someone that’ll micromanage someone’s job. I use the expression quite candidly that if my son told me he brushed his teeth, I don’t go check the toothbrush to make sure it’s wet. We live on the honor system. If you say, “It’s done,” it’s done. If you say, “It’s not,” be honest with us. Nothing’s perfect.

7. How important is trust in your team? As I’ve grown and struggled and failed, I’ve learned ways not to do it. I’ve built a good team that I can delegate to and have a lot of good trust in the team. I really believe that to grow and be successful beyond a small shop, it’s about the people and the systems. If you can’t trust and delegate to that process, growth is really a recipe for failure at that point.

HVACR BUSINESS OCTOBER 2020

8. How do you motivate your team?

We motivate by good praise, we motivate by recognition. We have a lot of different ways to recognize our team publicly and privately. I’ve learned over the years, most people are more motivated by recognition and things outside of just money.

9. What’s the boomerang program?

We have people who will leave, because they feel they have a better opportunity to do something else. If they leave the right way, we give them an opportunity to come back. Many of them come back and say, “Wow, you really treat us well.” You’ve got to find that out for yourself, because people think the grass is greener.

10. Does that make recruitment easier? Our philosophy is we’re always hiring, always looking for good people, always looking for talent. We’ve got a program internally that if you bring on new talent, we reward you for that financially. We obviously work with some recruiters, but we’re very involved in the trade schools. We want to get them young. We want to train them with what we feel are best practices.

11. What’s the key to recruiting?

There are great ones out there. You got to find them. You find them by always looking. There are a lot of guys — men and women — in the blue collar field that make a very nice living. They work an honest day, they get paid for it and guess what … They can’t outsource what we do for a living. It’s really a space that is recession proof.

12. Do you place emphasis on training? We do it every day. Normally this time of year, we’re doing training once a week in our training center. We’re talking about how we could open that up again in a safe environment, but we can’t miss our fall months on making sure our young talent, they need to know how to check heat exchanger. It’s incumbent on our senior guys ... go train the 22-yearold, because you were once 22.

13. How important is safety?

We’re in a dangerous business. We do not want anybody getting hurt. One of our core values is safety. We take it uber seriously. For it, we’ve got to train.

14. Where do you see future growth?

The world of integration. Everyone talks about making their house smarter, they’re building smarter, but doing that, we play a lot in that space. We see it actually starting to happen. The world of, you drive up to your house and it knows you’re home, and it turns on your lights and your oven and your stereo ... The next generation of building owners and homeowners, they all expect it.

15. What do you find most rewarding?

I love seeing the growth and the maturing of our young team. When we get someone who is young here and at five, 10 years later, is a senior journeyman, making a great wage, really out on his own, running his own truck and his own accounts … I love seeing that. I also really like when we solve someone’s problems.

16. How did Encon become so good at solving problems?

It’s about the team. I wouldn’t pretend to be near the smartest one ... When you talk technical competency of my team, I’m probably not even in the top 10. We’ve got a lot of smart people and they figure this stuff out. We put the right people in the room, we kick the egos out and they work toward solutions.

17. Who’s your biggest role model?

Really having the honor and the privilege of working in a family business, working with a father that is full of wisdom and willing to give back and still be able to communicate outside of business. That really makes him a role model, especially in a generational business.

18. What’s his best advice?

Do the right thing — Treat everyone with the same respect and honesty, and life will be good to you.

19. How has the pandemic affected business?

When we shut down that Sunday night, when the rest of New Jersey shut down, we told everyone, “Stay home.” People came in and grabbed computers and monitors, hardware, phones, printers and we became a virtual company. When we say overnight, it was literally overnight, because we were still running service calls, but no one was allowed inside the building. I never thought we could be virtual. I’m a person that likes to see people.

20. Are you talking more about IAQ and ventilation with customers?

We have probably three people on our team dedicated to the conversation. That’s all they’re doing.

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ITâ&#x20AC;&#x2122;S NOT TOO EARLY TO ENTER YOUR FLEET FOR THE 2021 CONTEST

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HVACR BUSINESS NOVEMBER 2021

Articles inside

20 Questions with David Indursky

Refrigeration Regulations are Changing

Wealth Rule No. 5: Monitor Your Cash

Editor’s Notebook

Pay Attention to DIY, Home Renovation Media