© AirAdvice, Inc All rights reserved. Three webinars for commercial HVAC contractors, presented by

© AirAdvice, Inc All rights reserved. Series Schedule Session 1 – July 22 nd Ensure Maintenance Agreement Renewals Session 2 – July 29 th Win New Maintenance Agreements Session 3 – August 5 th Drive Retrofit Project Revenue Using Energy Services To…

© AirAdvice, Inc All rights reserved. Session #2: Win New Maintenance Agreements Agenda for today: Review Key Points From Session #1 Positioning Energy Services as a Differentiator Selling To New Service Prospects vs. Existing Customers Targeting Prospects The Sales Process

© AirAdvice, Inc All rights reserved. Quick Review Of Key Session 1 Concepts Building owners’ perspective Financial leverage of service Why energy efficiency is important

© AirAdvice, Inc All rights reserved. Why Now – Building Owners’ Pain Tenants now have leverage Immediate need to reduce operating costs and improve cash flow Tight capital budgets delaying retrofit or replacement projects

© AirAdvice, Inc All rights reserved. The Financial Leverage of Service Total PM Agreements$3.02 Service / Repairs$7.48 Projects$5.41 Total$15.91 Each $1 of service agreements generates the equivalent of $15.91 in new revenue PM Agreements $1

© AirAdvice, Inc All rights reserved. Why Energy Efficiency is Important

© AirAdvice, Inc All rights reserved. Your Customers’ Time Horizon of Focus Q1Q2Q3Q4

© AirAdvice, Inc All rights reserved. Your Customers’ Time Horizon of Focus Q1 Q2Q3Q4 What can I do to cut costs now?!

© AirAdvice, Inc All rights reserved. Your Talking Points We understand your need to reduce costs now We have a unique approach Not only addresses long-term cost of ownership Identifies immediate operating cost savings Cot savings will more than cover the cost of the service agreement Positive cash flow from Day 1 Reposition Yourself in Less Than 30 Seconds

© AirAdvice, Inc All rights reserved. Reduce Operating Costs 30% without Capital “Through implementation of no- and low-cost operation and management practices alone, buildings may see a reduction in energy consumption of up to 30 percent.”

© AirAdvice, Inc All rights reserved. ENERGY STAR Says… ““Energy use is the single largest operating expense in commercial office buildings.”

© AirAdvice, Inc All rights reserved. Winning New Maintenance Agreements Hunter’s mindset required

© AirAdvice, Inc All rights reserved. Getting Started 1.Define Differentiated Offering 2.Target Prospects 3.Refine Sales Process 4.Establish accountabilities / incentives

© AirAdvice, Inc All rights reserved. How Will You Differentiate? “I used to dread a customer asking, ‘What makes your company different?’ Now I welcome it.” - Ted Hussey, Marina Mechanical

© AirAdvice, Inc All rights reserved. Energy Service Agreements Energy Service Agreement Options Energy Premium Energy Plus Energy Basic Continuous energy monitoring & verification Energy Savings Assessment™ (every 9 months) Energy Benchmark™ (quarterly)

© AirAdvice, Inc All rights reserved. Energy Service Agreement Tool Kit Energy Benchmark™ Energy Savings Assessment™ Energy Savings Audit™ Continuous Energy Monitoring What it Does Benchmarks energy efficiency of building against peers Identifies specific low/no cost savings opportunities Focus on generating cash flow Provides financial justification of proposed retrofit projects Documents actual savings Ensures ongoing energy performance How it’s Used Included as part of the Energy Service Agreement proposal Sold as part of the Energy Service Agreement Used as needed to justify retrofits Sold as part of the Energy Service Agreement

© AirAdvice, Inc All rights reserved. Targeting Prospects  Attractiveness: # of buildings, type, size  Receptiveness: How motivated are they?

© AirAdvice, Inc All rights reserved. Target the Correct Decision Making Level % of Time Spent PositionWhat Motivates ThemWhy Talk to Them 20%  30% VP Finance, VP Operations, VP Facilities Reducing operating costs (management pressure) Decision maker for service 45%  60% Facilities or Plant Manager / Director or Property Manager Happy tenants Looking good to their owners Can influence decisions Partner with them to go upstairs In the loop w/ current service provider 10%  20% CFO / COO / Controller Overall operating cost and corporate objectives Needed to approve decision Can direct activities 5%  10% Building Engineer/Operator Minimizing downtime Reduced complaints Close to mechanical equipment Need to win them over May have veto power

© AirAdvice, Inc All rights reserved. Energy Service Agreement™ Sales Process Get the Meeting 1 st Meeting - Introduction Building Survey / Energy Benchmark Present the Proposal Close the Service Sale Sell Energy Services Not an Opportunity Today Confirmation / Verification

© AirAdvice, Inc All rights reserved. How Energy Services Impacts Sales Funnel 1 st Meeting Dials Proposal Survey Sales Confirmation 1.Increase conversion rate from dials to 1 st meetings –Industry average ~ 2 - 3% Delivering a differentiated message will increase 1 st meetings

© AirAdvice, Inc All rights reserved. 1 st Meeting Dials Proposal Survey How Energy Services Impacts Sales Funnel Sales Confirmation 2.Increase close rate of proposals –Industry average ~ 30% Delivering clear value will increase close rate

© AirAdvice, Inc All rights reserved. How Energy Services Impacts Sales Funnel 3.Sell standalone energy services Not ideal, but it’s a start

© AirAdvice, Inc All rights reserved. Source: ACCA How Energy Services Impacts Sales Funnel Step in ProcessCurrent w/ Energy Services Offering Impact to Bottom Line Increase conversion rate from dials to 1 st meetings 3%4%  33% Increase close rate of proposals 30%40%  33% Option for “energy only” agreements establishes business relationships 0%20%  100%* Combined effect: Increase sales by nearly 3X!

© AirAdvice, Inc All rights reserved. Step #1: Get The Meeting Explain how you’re different I can show you how we will reduce your operating costs

© AirAdvice, Inc All rights reserved. Prospecting and Setting Appointments Cold Calling Marketing Leads Customer Referrals Sales Approach We’re reaching out to help building managers improve cash flow by generating immediate savings Trying to cut operating costs? Mr. Jones recommended I speak to you – we recently cut his energy costs $20k Requires Calling scripts Time + focus Marketing campaign Good reputation Tools Required Phone script Energy Services Letter / Energy Services Testimonial

© AirAdvice, Inc All rights reserved. Step #2: First Meeting Identify pain AND create doubt Uncover financial pain Create a spark Get agreement on simple next step

© AirAdvice, Inc All rights reserved. Step #3: Present & Close The goal: Verbal close Energy Benchmark results Options / recommendation Trial close

© AirAdvice, Inc All rights reserved. Energy Star Benchmarking: The On-Ramp Energy metrics –Cost per sf –Energy usage index (kbtu/sf) –Carbon footprint

© AirAdvice, Inc All rights reserved. Energy Star Benchmarking: The On-Ramp Energy metrics –Cost per sf –Energy usage index (kbtu/sf) –Carbon footprint Comparison to peers –ENERGY STAR® Energy Performance Rating –Energy Cost Comparison

© AirAdvice, Inc All rights reserved. Energy metrics –Cost per sf –Energy usage index (kbtu/sf) –Carbon footprint Comparison to peers –ENERGY STAR® Energy Performance Rating –Energy Cost Comparison Opportunities for savings Energy Star Benchmarking: The On-Ramp

© AirAdvice, Inc All rights reserved. Energy Assessment Low & no cost savings

© AirAdvice, Inc All rights reserved. Energy Assessment Backed-up with your building assessment data

© AirAdvice, Inc All rights reserved. Step #4: Propose Energy Service Agreement

© AirAdvice, Inc All rights reserved. Winning Proposals Overall customer benefits vs pain points Document current building performance Deliverables / Scope of Work Analysis of total cost of ownership Relevant references

© AirAdvice, Inc All rights reserved. Motivate Your Sales Team Clearly define sales expectations and incentives –2 Energy Benchmarks per week –2 Energy Service Agreement per month

© AirAdvice, Inc All rights reserved. What Will it Take to Overcome Sales Inertia? In order to…Your salespeople will need… Sell it at the right pricePricing guidelines Know what to sellClearly defined offering Communicate the benefitsSales literature Close businessContract document Be motivated to sellDefined sales incentives

© AirAdvice, Inc All rights reserved. Key Takeaways 1.Prospects need your help, they don’t know you can 2.Taking share requires sales to become hunters 3.Integrate Energy Services into Service Agreement 4.ESA’s are not cost centers, they generate cash 5.Develop 30 second commercial 6.Set expectations with sales regarding weekly targets 7.“Sell” free Energy Star benchmarks $1 in Service Contracts Generates $15.91