2. Light Commercial Light Commercial Time for Growth Commercial Service, Maintenance & Replacement Sales “The Commercial Account Manager” (CAM) Presented by Gary Elekes – EPC Inc.

3. Who are you?  A company already looking for growth  Departmental – Need Commercial Sales in a separate account.  Need to Separate our commercial customer records.  We have at least one successful, dedicated salesperson.  Should hold frequent commercial sales meetings  Dedicated commercial technician or skill set to do so  Low overhead in the segment – light commercial bolts on Residential

4. Today’s Situation  Are you already in this market  As a company, maybe not disciplined or consistent in our delivery

5. Available Options  Try to create a profitable stand-alone commercial business.  Focus on this market as an extension of residential (where applicable.) u Have a disciplined, low-overhead extension into light commercial maintenance, service and replacement

6. Company Strategy  A company needs internal growth.  Primary emphasis may have been residential.  Develop growth internally.

7. Commercial Strategy  Use existing resources to build a second predictable source of service and replacement revenue and profits.

8. Treat It Just Like Residential! u Maintenance u Demand Service u Equipment Replacements u Accessories

9. Product/service offering  Immediate  Immediate demand service.  Effective, cost-effective maintenance agreements.  Replacement of existing light commercial units.  IAQ Accessory Sales.  Energy Management Control Systems.

10. Goal and Objectives  Goal u Move us to a new level in the light commercial service business.  Objectives u Focus on the obvious, most profitable segments - The “Low Hanging Fruit.” u Insure you have a disciplined approach. u Create a Sales Plan for the CAM.

11. Sales Plan Development  Selling “Basic” Maintenance Programs.  Each maintenance dollar brought in usually represents about 1/4 of the annual billings to a commercial customer.  Focus on the Maintenance Agreements… The demand service & replacement business will come. “If you build it; they will come.”  The recommended compensation structure supports this thought process. Note: You don’t want them “chasing” contractors for the big elephant!

12. Sales Plan Development (Cont..) 1st Year Projections Contract Sales: $ 75,000.00( 30% Gross Margin ) Demand Service:$ 150,000.00( 45% Gross Margin ) Equipment:$ 75,000.00( 35% Gross Margin ) Controls, IAQ, Accessories:$ 7,500.00( 40% Gross Margin ) Total Revenue:$ 307,500.00 Revenue Contract Sales: $ 22,500.00 Gross Margin Demand Service:$ 67,500.00 Gross Margin Equipment:$ 26,250.00 Gross Margin Controls, IAQ, Accessories:$ 3,000.00 Gross Margin Total Gross Margin:$ 119,250.00( 38% ) Gross Margin Approximate 1st Year Sales Expense: $ 50,000.00( 12% )

13. Sales Plan Development (Cont..) 2nd Year Projections Contract Sales:($ 75,000 old $ 75,000 new) total =$ 150,000.00 Demand Service:$ 300,000.00 Equipment:$ 150,000.00 Controls, IAQ, Accessories:$ 15,000.00 Total Revenue:$ 615,000.00 Revenue Contract Sales: $ 45,000.00 Gross Margin Demand Service:$ 135,000.00 Gross Margin Equipment:$ 52,500.00 Gross Margin Controls, IAQ, Accessories:$ 6,000.00 Gross Margin Total Gross Margin:$ 238,500.00( 39% ) Gross Margin Approximate 2nd Year Sales Expense: $ 66,850.00( 10% )

14. Sales Plan Development (Cont..) 3rd Year Projections Contract Sales:($ 150,000 old $ 50,000 new) total =$ 200,000.00 Demand Service:$ 400,000.00 Equipment:$ 200,000.00 Controls, IAQ, Accessories:$ 20,000.00 Total Revenue:$ 820,000.00 Revenue Contract Sales: $ 60,000.00 Gross Margin Demand Service:$ 180,000.00 Gross Margin Equipment:$ 70,000.00 Gross Margin Controls, IAQ, Accessories:$ 8,000.00 Gross Margin Total Gross Margin:$ 318,000.00( 39% ) Gross Margin Approximate 3rd Year Sales Expense: $ 72,500.00( 8.5% ) Note: With $ 15,000.00 Base ( 7.5% )

15. A Reminder - Light Commercial Defined  Used in a place of business.  Simple and meaningful maintenance agreements.  DX air-cooled equipment of 20 ton capacity or less.  Equipment of the size and design of normal residential.  Equipment your staff is comfortable servicing and installing.

16. A Note on Service Quality  Responsiveness is a given in this market.  Top priority of customer service and dispatcher.  Separate light commercial from residential.  Dispatcher has to assess skill sets of technicians.

17. Pricing  Standard RTU  Man hours per visit u 5 Tons or less = 1.5 u 6.25 -10 ton = 2.0 u 12.5 - 20 = 3.0  Service Agreements  40 - 50% GP  Replacement  30 - 40% GP

18. Promotion  Well-trained light-commercial sales people  Build your referral network u Notify your satisfied residential customers who might have businesses (USA customers.) u Build relationships  Yellow pages  Existing Advertising

19. Commercial Account Manager  Compensation program????  Job Description/Expectations/Plan

20. Account Manager Job Description  1. Consistently approach NEW prospects.(3-7 per week)  2. Transition customers from “un-planned/demand” service to an USA.  3. Provide total customer service function for key accounts u Provide a SINGLE contact for all account needs.  4. Communicate internally with ALL production departments to insure what is sold is delivered.

21. Commercial Technician Spiffs  Compensation u Replacement = $50 u Preventive Maintenance Agreement  >$1000 = $50  <$1000= $25

22. Commercial Technician Job Description  Why are they different  They perceive themselves to be elite among technicians.  They must have good written above oratory skills  They typically have skills that allow them to receive higher pay  They have a broad range of diagnostic and repair skills u Required to work on various sizes, brands, & styles of equipment-Greater variety than Residential Service  Must play a “role” in a stream-lined communication process that includes : u Customer, Account manager, Dispatcher, and Management.

23. Weekly Review is a Must  Think about Light Commercial Service separately u Customer Development  Existing Customers  Prospects  Sales  Leads u Quality Service

24. Start your discipline now  Start with existing customers u Segment your database  Keep score of progress u Maintenance agreements sold u Demand service u Replacements  The forms

25. Make a good decision  Are you ready for this step? u Are the core competencies of your business healthy? u Do you have the right technicians? u Do you have control of your dispatch? u How about your salesperson?  Focus on the type of equipment you can manage.  Get the right people in place.

26. Vision Statement - Long term excellence  Maximize service profitability by achieving excellence in light commercial service and replacement & accessory sales.