HVACR Business

MAR 2014

Help hvacr contractors master the critical components of business management.

Issue link: http://digital.hvacrbusiness.com/i/272242

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HVACRBUSINESS.Com 16 HVACR Business m a rc h 2 0 1 4 T hroughout the last decade, as the HVAC residential service and replacement business has grown, contractors have tried to fnd their way in the highly competi- tive world of marketing and branding. Some joined great organizations, such as ACCA, Nexstar, or Service Roundtable. Many did not. Those that did not, and "winged it," might still be scratching their heads after 5 years of tweaking their business to adapt to the changing HVAC replacement market. It's important to remember that sales and marketing go hand-in-hand. Many contractors focus on getting their phones to ring, only to lose the leads later. For this reason, this article frst focuses on the keys to successfully con- verting leads into contracts, and then to making the phone ring. 4 KeYs TO GROWinG sALes in THe HVAC RePLACeMenT MARKeT 1. Create a selling culture – Be pro- active and foster an environment in which goal setting, rewarding, and celebrating is a daily, weekly, and monthly activity. One way to cre- ate a selling culture is by posting goal boards in the sales and instal- lation area of your company. These boards do not have to be in dollars; they could be in number of budgeted leads, number of sales, and growth vs. plan and/or prior year. Use the power of communication to get your entire team involved in the success of your replacement department. Alternatively, you could conduct a contest whereby service technicians and sales reps are recognized and rewarded for sales results. Why con- duct a contest? Your service team is composed of people with differ- ent levels of motivation and follow- through. Ten percent of your service team will be superstars; 10 percent will never turn a lead over, even if the AC unit was melting into the grass; and the other 80% has aver- age results in turnovers vs. service calls run. To get a signifcant increase in sales, you need to get the "aver- age" 80 percent to up their game by 10%. For example, if your team turns over an average of 4 system sales in 3 months, and you spiff them an extra $300 each if they get to 6 in 2 months, what is the impact? a) 8 techs X 4 systems X 6,000 = $192,000 in sales b) 8 techs x 6 systems x 6,000 = $288,000 in sales c) TOTAL INCREASE $96,000 or 50% at a cost of $2,400, or 2.5% of sales! 2. Hire the right people – Screen your salespeople carefully! We use the D.I.S.C. test (www.discprofle.com) to measure personality traits, such as dominance (D), infuence (I), steadi- ness (S), and conscientiousness (C). Many contractors focus on getting their phones to ring, only to lose the leads later. Selling HVAC equipmenT By JAime DiDomeniCo, owner of n&m coolToday in A poST-millennium How to optimize Your Company Culture for Sales growth erA

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