Austin, Texas June 2012 Inside: Simple Sales Strategies Does ACCA Have That? The Art of Management Volume 7, Issue 1 Letter from the Executive Marketing Opportunity Knocks on a Year-Round Income (and Profit) Stream Hello Friends, By Adams Hudson Summer is here and it’s getting hotter by the moment. We hope that as the weather heats up, your business is following suit. Now’s the time to use the weather to your advantage. If for some reason – the slowed e c o n o m y, h i g h f u e l prices, or your market is sluggish – turn to your ACCAdemics for tips on bringing in more revenue. And, of course, we’re always ready here at the Austin Chapter to help in whatever way we can to move your business forward. So thanks for allowing us to be part of your success. Meeting ideas, locations, suggestions are always welcome! Contact any Member or Board of Director for your comments. Find us at www.accaAustin.org Cynthia Sanders Executive Director [email protected] I’ve been working with contractors for a long time – many of whom have had awe-inspiring success. Yet, I’ve met quite a few who have not. It’s my observation that the majority in the second group tend to fall for the biggest bugaboo in business: missed opportunity. Success in HVAC sales rests on selling value – not equipment, not price breaks, not even your charming smile. So, never present the price apart from presenting the value of doing business with you and your company. Perhaps the BIGGEST warning sign that you’ve taken membership in the “missed opportunity” brigade is this: you don’t try to keep the customers you’ve got. The fact is, your current customers should be viewed differently from other prospects, and they should be contacted differently and more often. Anything less and you’re missing a tremendous opportunity. Just such an opportunity is indeed knocking and you’ll find it in Maintenance Agreements. When you offer Maintenance Agreements to your customers, you position your business above your competitors by: Creating a more predictable profit center, where income comes in year-round. Providing yourself a “built-in” mechanism for contacting and visiting your customers multiple times a year – keeping your name foremost in their minds for future sales and referrals. Developing an ever-expanding customer base that funds itself and pays huge profits – much better than paying for less loyal new customers. Keeping good employees profitably active in the “off-season.” A Maintenance Agreement takes your technicians into your customers’ homes two times a year for a full system evaluation, for which you’ll be paid. Plus, Maintenance Agreements strengthen a contracting company’s bottom line, typically adding thousands of dollars of predictable profit. By providing year-round work and cash flow, they are very important for a company’s financial health. Imagine being able to start the year knowing you’ve got appreciative, high-value customers with a prepaid service that only needs scheduling. Now, that’s an opportunity that shouldn’t be missed! Adams Hudson is ACCA’s National Marketing Partner. You can request his free marketing and sales magazine by emailing [email protected]. ©2011 Hudson, Ink Corp. 2 Simple Sales The Strategies Secret to Your Success Train Your Techs to Sell “I Wonder If ACCA Has That for Me?” During peak seasons, your competition would gladly eat your lunch if you settled back. Here’s a big-time warning: DO NOT get pulled under the mat by service calls. Want to keep up with the latest news in the industry? Look no further than ACCA… It is quite easy to do. You get a bunch of calls, you think you’re busy, your guys work 72-hour weeks and then you take a breath sometime in early fall only to find that you’ve spent the summer fixing instead of installing. Oh well, maybe next year. As needed, ACCA offers “Hot Topics” webinars exclusively for our members, covering breaking news or items of urgent importance to the HVACR industry. Members may participate in “Hot Topics” at no charge, and as soon as possible after the webinars are held, we make recordings available for viewing online. So, if you’re getting tons of service calls, when would it be wise to offer a service or product upgrade? When the tech is at the home! What about a Maintenance Agreement? What about offering the 3option close: “Repair, Replace or Upgrade”? Your techs can see opportunities for upsells – if they look for them. But it’s not always easy for them to do what you might think is so obvious. Technicians can have a hard time “morphing” from tech to salesman. They’re technicians and usually not salespeople. To help here, you can do one of two things. You can have them call in a “Field Rep” for a second opinion when the opportunity is there (and pay a bonus if it sells). Or, you can have them trained by your salespeople or pro trainers to overcome objections and capitalize on sales situations. Arm your technicians with the words and tools to capitalize on good opportunities. This could include a few phrases to “paint” the sales picture; 3 ways to overcome objections; 3 “do-all” sales closes; or a few comfort guarantees. To complete the “upsell” job, they must have the sales tools they need. All technicians should know how to sell benefits of replacing an older system. All technicians should be schooled on energy savings (especially in regard to the age of the system), repair savings, new system warranties, property value increase, financing and overall comfort now. Your techs should carry a price book, and last but not least, they should get some sort of incentive for selling benefits to the customer. This incentive is most likely a commission on the sale or a simple $100 on a split, $200 on a full system, or whatever. But make sure you impress upon them that “selling” should meet a real need, not take advantage of a customer you are serving. The first time you catch someone selling a system that the customer really could’ve gone without, immediate walking papers are in order. The better you develop a tech’s skills, the better your profits are likely to improve. The tech is there. The need is there. The customer can buy. Why don’t you all get together? Learn more at www.acca.org. Yeah. ACCA has that for you. SmartWords “Business is a combination of war and sport.” Andre Maurois Product Spotlight Elite Software RHVAC completely implements the Manual J 8th edition with all addenda on your computer. Calculates heating and cooling requirements for rooms, zones, systems, and whole buildings. Plus thousands of modern construction materials are accounted for. Learn more when you visit www.acca.org/store. 3 ACCA Benefit Highlight News Flash Industry Relations The Latest from ACCA National ACCA takes seriously our mission to represent our members before the manufacturers and corporations whose products and policies impact the contracting industry. Hence the CO-STARS program (Committee on Special Talks to Advance Relations and Strategies) to bring contractors and senior manufacturer executives to discuss areas of mutual concern, and create specific solutions that can help the entire industry. CO-STARS meetings are held 1-3 times a year with various manufacturers in both the residential and commercial sectors. For more information on ACCA’s Industry Relations program, contact Hilary Atkins at [email protected]. The Art of Management Sometimes, You Just Have to Let Go It’s inevitable. If you run, own or manage a business, at some point you’re going to have to let someone go. It’s not pleasant for anyone, but delaying can only cause more hassle, frustration, and in some cases, lost revenue. But just because you have to let someone go, doesn’t mean harsh feelings have to be involved. Perhaps it just wasn’t a good fit. It’s business, not personal, and these tips will help you keep it that way: 1. Be direct. Trying to sugarcoat the news only makes it harder for both of you. 2. If you feel you should, offer one or two reasons for the termination, but avoid any long or drawn out discussions of what went wrong. 3. Have everything you need for the termination before you begin – that means final paychecks, any severance pay and necessary personnel forms. 4. Shake hands, wish the departing employee well, and thank them for their time with your company. 5. Keep your other employees in the loop. While you certainly shouldn’t spread the news around the office before you meet with the terminated employee, a short meeting afterwards to inform the rest of your staff will calm the questions and water-cooler whispers. Rule Breaking 101 “If you raise your prices, you’ll lose your customers.” FALSE: Why are your customers buying from you in the first place? Is it because of price, or is it because of value? If your customers are your customers because of the benefits you offer, they’ll be willing to pay for your services even if the price is higher than the competition. ComfortU Online Training ComfortU offers a whole new way of learning for contractors and their employees. Users get access to seminars and training sessions from the nation’s leading contractors and industry experts ... all from the comfort of your own desk, office or training room! You get to participate in live, interactive training without taking time away from work. Or access online training archives whenever you want, 24/7. The best part? It’s all for one low monthly fee. No risk. Cancel anytime. Enjoy topics like: QA Orientation Residential System Design - Load Calculation Residential System Design - HVAC Quality Residential System Design - Duct Design That’s ComfortU! To learn more, go to: www.acca.org/comfortu/ . 4 June 2012 News & Events “Split Decision” What: Chapter Meeting When: Tuesday, June 5, 2012 Time: Noon-1:30 Price: $20 Where: Third Base Sports Bar* 1717 W. 6th Street Austin, Texas *Plenty of free covered parking! Join us for a lunch time meeting at Third Base Sports Bar on West 6th Street for two timely presentations. First, Steve Wood with Southwestern HVAC Sales presents: Condensate Removal for Mini Split Systems, a NATE approved course, that includes a comprehensive overview of condensation control technology for mini split equipment. Second, Bennett Cromer with Federated Insurance brings his new video, “In the Blink of an Eye” to the chapter, this 10 minute video highlights the consequences of distracted driving. May Meeting at Independence Brewery Everyone Wins at ACCA Austin!
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