BEYOND YOUR COMFORT ZONE Presented by Jaimi Lomas General Manager and Vice President of Service, A.O. Reed & Co. Adam Wallenstein Director of Service, Neptune Plumbing and Heating Co. BONUS PROGRAM WEBINAR SERIES MODULE 7 December 3, 2014

Don Neal CEO & Founder Moderator

Tips for This Webinar Be an active participant Ask questions anytime on the side chat bar Engage by answering the polling questions Don’t feel obligated to take notes Slides and webinar will be available after the presentation at Share this experience with your colleagues

Jaimi Lomas General Manager and Vice President of Service, A.O. Reed & Co. Adam Wallenstein Director of Service, Neptune Plumbing and Heating Co.

Other than HVAC services, what specialties do you offer? (Check all that apply.) A.Plumbing B.Refrigeration C.Electrical D.Residential E.Facility Operations / Staffing F.Controls G.Pipelining H.Other I.N/A Polling Question #1 Polling Question #2 If you offer other services, what percentage of clients use more than one service? A.1 – 20% B.21 – 40% C.41 – 60% D.61 – 80% E.81 – 100% F.I don’t know

OBJECTIVES How to stay relevant in an evolving industry Exploring new technologies Develop new services to sell to your current clients Translating your ideas into reality

What About... Energy Services? Not a new sale, just expanding what you already do!

Do you proactively sell energy projects to your PM clients? A.Yes B.No C.I don’t know D.N/A Polling Question #3 Polling Question #4 Do you have one person that drives energy projects? A.Yes B.No C.I don’t know D.N/A

Energy Services If you care about profits, you will learn to DRIVE!

Energy Services: Getting Started

Load your SERVICE TEAM and PARTNERS on your energy bus! Energy engineer Lighting contractor Control team Window tinting Roofing Solar Green plumbers Financing New technologies Energy Services

Develop a working plan and KEEP IT MOVING: Energy flow worksheet Weekly Monday morning team meetings Constant client communication Package the presentation appropriately for the client Wrap it up - the measurement and verification is crucial Energy Services

Energy Services: The Plan

Develop the target list Get the word out to everyone in your organization Talk to the techs! Go to the local USGBC meetings Set-up client “lunch and learns” Offer free audits or benchmarking Energy Services: The Plan

Benchmark, either in-house with GreenSTAR or outsource Take a HOLISTIC approach, bundle everything Use a phased approach Audit and upgrade YOUR OFFICE FIRST Be very careful what you promise Celebrate SUCCESS – it’s not just your success, it’s your clients’ successes, too! Case studies, shirts, publications, GreenSTAR Energy Services: Suggestions

This is our chance to cement long-term relationships with our clients. Put together a plan and make it happen. Energy Services: Recap

Plumbing, Drain Cleaning and Pipe Lining The opportunity to expand into new territories.

Not a new sale - just expanding what you already do! What About... Plumbing?

If it’s good enough for Amazon…. Customers that buy HVAC service frequently buy plumbing service, too!! Little effort for a high return! So What...? Plumbing

Develop a working plan: 1.Hire a plumbing sales/project manager 2.Choose qualified, experienced SERVICE plumbers 3.Offer to every HVAC client 4.Perform FREE cursory plumbing inspections 5.Offer free backflow inspections 6.Initial equipment investment Now What...? Plumbing

1. Sell PM Contracts - Jetting 2. Sell PM Contracts - Backflow 3. Sell PM Contracts - Staffing Yes, PM for Plumbing

What About Pipe Lining?

No/very little culture change, just different skill sets (still service) Same customers Different mindset; instead of replacing the pipe, we refurbish! Start with sewer; endless opportunities So What...? Pipe Lining

Choose the right partner A whole NEW WORLD! Embrace NEW TECHNOLOGY IDENTIFY the market and CREATE a business plan HEALTHY INVESTMENT TRAIN, TRAIN, TRAIN CROSS-SELL! How to Get Started... Pipe Lining

Residential The opportunity to penetrate the residential market.

If you offer residential services, what percentage of your clients are also commercial clients? A.1 – 20% B.21 – 40% C.41 – 60% D.61 – 80% E.81 – 100% F.I don’t know G.N/A Polling Question #5

Residential is a whole new animal. New customers A new way of thinking A new way of doing things Residential: What?

Residential scale = high margins COD = improved cash flow Big market Residential: What?

1.Scheduling: specific time vs. “today” 2.Technician training: being inside someone’s home 3.Diagnostic fee 4.Different invoices: 6 signatures/initials vs. 1 5.Different billing structure: flat-rate vs. T&M 6.Different payment structure: COD vs. billing 7.Customer service: follow-up 8.Different marketing: top-of-mind vs. sales Residential: A Whole New Animal

Different mindset; office and techs need to be onboard and on the same page Make the decision…can’t be done haphazardly Residential: Moving Forward

Staffing Services

If you offer staffing or facility operations, do you get most of the pull-through and project work from these sites? A.Yes B.No C.I don’t know D.N/A Polling Question #6

Talk about building TRUST and GROWING your business. You are already providing it and you don’t even know it! Customize a 2080 plan around your clients needs. Who will they call for all of the EMERGENCY HVAC & PLUMBING? Who gets first and last look at PROJECT work? The What and the So What... Staffing Services!

Now What... Staffing Services? Just PROPOSE IT! Most clients wouldn’t even think of it! Stand alone service or BUNDLED with PM. Figure out where you are nearly doing it now. Think CUSTOM-made to order. Whoever is most creative WINS. CAUTION: Support YOUR employees – they work for you!

Loyalty Programs

Do you have a loyalty program for clients? A.Yes B.No C.I don’t know Polling Question #7 Polling Question #8 Do you believe your loyalty program has helped you retain and/or gain new business? A.Yes B.No C.I don’t know D.N/A

What Is Loyalty? The what…. Loyalty Programs The consumer is loyal to you if they frequently buy your service. Loyal Behavior Low High Desired Behavior

So What...? Loyalty Programs Retain best, most profitable customers Make good customers better Make it easier for your clients to commit and stay! Constantly reinforce your clients’ good choices

Now What? Build Your Own Loyalty Program 1.More about COMMITMENT than rewards! 2.LOYALTY should support the CUSTOMER experience, not the other way around. 3.Based on hard benefits (hourly discounts) or soft benefits (quicker response, special privileges). 4.Let your employees know who your loyalty clients are. 5.Remind your clients constantly of their benefits. GREAT TIP! Offer employees of commercial customer, free “membership” into residential loyalty program

Key Takeaways With Energy Services, it’s lead or get out of the way – take the opportunity to cement long-term relationships with your clients. Plumbing, drain cleaning and pipe lining are opportunities to expand your available services with minimal additional overhead or personnel. Take advantage of the inherent benefits, like high margins and large market, of residential services – but proceed with caution. Building a loyalty plan is an opportunity to secure commitment from existing customers.

It’s Your Turn… Q1: Was this webinar informative and useful? A.Yes, I found this informative and useful. B.Yes, but it wasn’t as informative and useful as I expected. C.No, this was not informative or useful. Q2: Did the speaker present the material in a clear and concise manner? A.Yes B.No Q3: Will you download this webinar, and share it with others in your company? A.Yes B.No

Reminder The PowerPoint and handout will be available on the homepage of the MSCA website immediately after the webinar at The archived webinar will be accessible from the MSCA website within hours.

For Additional Information or Questions, Contact: Barbara Dolim Executive Director Mechanical Service Contractors of America (301) (direct) Jaimi Lomas General Manager and Vice President of Service A.O. Reed & Co. (858) Adam Wallenstein Director of Service Neptune Plumbing and Heating Co. (216)