The last two years in our industry have toughened and wizened us all. Having survived, you might now be asking yourself, “How do I restore profit and also grow my company into the future?”

There is no one that cares for their homeowner clients like you. You care about their health, comfort, energy savings, extending the life of their home comfort system, and about providing them with opportunities to do their part to leave the earth in good shape for their children and great grandchildren.

Here is one growth opportunity I urge you to consider. HVAC contractors are ideally positioned to capitalize on the rapidly emerging re-insulation and weatherization industry. Government and utility resources are already in play with much, much more ahead. I can forsee a decade of extraordinary growth just ahead.

We can help you “skate towards where the puck is going to be”!

With our AttiCat® Re-Insulation Business Systems we have the finest equipment and training available. Our new TRUST PRO™ in-home sales system software is the perfect fit. Add in our weatherization and air sealing products, systems, and training to your current HVAC business and “you are looking at the puck – right in front of you”!

Are you ready to take the shot? Email Tom for dealer success testimonials, references and more information now.

What you need to know:
1. Your product and material costs
2. Your hourly labor costs
3. The hourly labor burden costs (this includes the company benefits provided for each labor-hour)
4. Your overhead as a percentage of sales
5. Your desired net profit as a percentage of sales
6. Your sales commission as a percentage of sales

Step 1: Add Up Your Costs
For each job add your costs for equipment, materials and burdened labor. If you aren’t sure what your burden per labor hour is you can start by assuming it’s 30% of the hourly wage.

Example:
Equipment = $2,000
Labor 16 hours @ $20 per hour = $320
Burden @ 30% of labor = $96
Total Costs = $2,416

Step 2: Calculate Your Divisor
Add your overhead as a percentage of sales and your desired net profit as a percentage of sales. Subtract that number from 1.0. The remainder is your divisor.

Example:
Overhead = 45%
Desired Net Profit = 15%
Total = 60%
1-.60 = .40 = Divisor

Step 3: Calculate Your Selling Price Before Sales Commission
Divide your Total Costs by your Divisor.

Example:
Total Costs = $2,416
Divisor = .40

$2,416 / .40 = $6,040 Selling Price Before Sales Commission

Step 4: Calculate Your Selling Price Including Sales Commission
Add the percentage of the sale that will be the sales commission to the selling price and the total is your Total Selling Price Including Sales Commission.

Example:
Selling Price Before Sales Commission = $6,040
Sales Commission = 8% of $6,040 = $483
Total Selling Price Including Sales Commission = $6,523

How to Calculate a Multiplier
The multiplier will produce exactly the same selling price. Divide 1.0 by the divisor and the result is the multiplier.
Example:
1.0 / .40 = 2.5 Multiplier
Try this out on the example above and you’ll see the same selling price as a result.

What’s good about using a single divisor or multiplier?
It’s simple and easy to use. It helps contractors just starting out how to think about their costs in relation to overhead and the difference between gross profit and net profit. This method works well if the contractor consistently does the same kind of work, such as high-efficiency furnace and air conditioner replacements that have similar material costs and labor time to complete.

What’s not so good about a single divisor or multiplier?
When jobs vary widely in equipment, material and labor costs this method will produce too wide of a pricing range, tending to “over-price” high-end equipment and “under-price” lower end equipment sales making you less price competitive. If this is the case then another method, which we’ll cover next week, is more desirable.

Email me for a How to Price For a Profit worksheet.

The investment is amazingly low, especially compared to the rate of return.  Your techs can sell this service, your crews can provide this service, all with minimal training, all with the vehicles you already have, and all to the customers you already serve.  It’s WIN-WIN-WIN!

By adding insulation before replacing equipment you ensure the customer will get the comfort and savings benefits they expect and you have a competitive advantage by offering something others won’t/can’t, Plus very often you’ll be able to reduce the replacement equipment size providing another cost-saving benefit to your customers.

There are two primary sales strategies for tapping into this incredibly lucrative market:

1. Include an AttiCat attic insulation upgrade in all high-end replacement proposals…and take it away if the customer isn’t interested.
2. Offer to inspect the attic insulation on every service and maintenance call and the technician can provide information and, if interested, a proposal at that time.

To help the comfort advisor and the technician be more confident and effective in explaining the value of upgrading their attic insulation and to help them sell more HVAC enhancements and generate more replacement equipment leads we have partnered with C5 Services (www.C5services.com), a market-leader in creating computer-based sales tools for the HVAC industry.

Here’s what AttiCat® ProposalPRO™ includes:

1. Propose and Present AttiCat Insulation opportunities…. including calculating the potential client savings based on DOE/EPA Energy Star formulas.  All Pricing and other Presets are easily loaded and managed so a professional proposal can be developed in just a few minutes.
2. 2. Explain to a client who is facing significant repair costs on a furnace, air conditioner or heat pump, today’s clear and strong benefits of replacing this equipment vs. repairing.   This is simply the strongest tool available to assist your company in converting service repair situations into installation opportunities.
3. 3. Complete a detailed heat loss/gain calculation for all your residential equipment sizing needs.  Our system provides the world’s fastest ACCA-Approved Manual J 8^th Edition load calculator.
4. Calculate Utility Savings for both AttiCat insulation and HVAC equipment.  This great feature allows savings to be directly calculated from the Load Calculations for the home or with manual input of heating and cooling costs.
5. Deal with a wide variety of client Comfort, Health and Energy issues with a dynamic on-screen and printable reference library.  In addition to preloaded reference materials, you can load easily access unlimited reference materials to help your comfort consultants and service techs become an invaluable resource to your clients.

This dynamic new tool has been developed to greatly enhance the productivity of both your service techs and comfort consultants.

Try ProposalPRO™ FREE for 10 Days

AttiCat ProposalPRO is so loaded with great features that the only way to experience all its potential power is to try it.  Just click here watch a 5-minute self-guided tour of AttiCat ProposalPRO can also be downloaded at www.c5services.com/downloads/AttiCatPresentation.exe.   If you like what you see, then you can download a FREE 10-day Demo version by going to www.c5services.com/atticatdemorequest.html.  (AttiCat ProposalPRO will run on any windows-based PC.)

There are a number of very affordable ways to get you into this lucrative business.  We even have monthly leasing packages that start at less than $400 per month!  You can bundle equipment materials, training and sales software into one easy package and get started earning profits in the first month.

Although we created the AttiCat ProposalPRO to support the insulation sales effort, it will also help you sell HVAC equipment and upgrades to non-insulation customers.  This program sells for only $1,195.  Any one of its 5 selling modules is worth that…and more!  Call me now at 425-985-4534 and get AttiCat ProposalPRO for an introductory special price of only $995.

Not likely. So I asked.

This guy’s not the “hard closer” type although he does ask, and ask again. And he’s pretty good at objection handling. His overall closing rate just under 40% which is a solid but not off-the-charts number. And his first-call close rate, which means out of the jobs he does get, the percentage that are on the first call, is only 20%. That means that he sells 4-out-of-10 leads and that just less than one of those four buys on the first call. So his success can’t be because he’s using high-pressure tactics.

So what’s he doing?

These days, he say, it’s all in the numbers. He follows the basics by having a nice little “meet and greet” chat and then invites them to walk the house to take measurements. He asks a lot of questions and takes notes on what they say. Later, at the kitchen table, he writes up three “system” choices with the “best” on being the one that qualifies for the Federal Tax Credits and some local utility rebates. The “better” choice is a step down from that that does not qualify and the “good” is his best shot at being competitive with the price-shoppers.

You can probably guess what happens. When given three choices most people are inclined toward the middle one. However in this case the top choice, after credits and rebates are deducted, comes so close to the middle choice that for most people it’s a no-brainer to go with the best system.

He says that since he takes the time to write this out and explain it to customers he feels they appreciate it and it gives him an edge.

As I was talking to him on the phone he was on his way to check in on a job that was installed last week. Made me smile. This is a guy who sees the sale as the beginning of a long-term relationship, not just a means to a sale commission. But then that’s another story…

To train and support motivated sales professionals to achieve extraordinary sales success.

Sales Coach Objectives

To be determined by each client but will include:

• Create a personalized in-home sales process
• Create appropriate selling tools and materials
• Learn how to effectively use the sales process, tools and materials to address the most common sales situations
• To reach a targeted goals in sales revenue, gross profit margin, close rate, referral lead generation and income
• To provide owners and managers with a sales process they can manage and support

Sales Coach 8 Week Program:

• Getting Started: Week 1-3

There will be an initial one-hour phone consultation with Tom to establish goals and objectives and creating an individual training plan. The training plan will be a combination of self-study of the System Selling In-Home Sales Call process, product training by others, going out on installations, ride-alongs with technicians and observing sales calls made by others in the company. The sales manager will be involved in making sure the plan is followed and provide ongoing direction and support for the participant. There is one additional individual teleconference with Tom each week.

• Weekly National Sales Coaching Teleconferences: Bi-weekly

Tom will lead bi-weekly one-hour Sales Coach teleconferences with other Sales Coach participants around the country. Each session will have a review topic with plenty of time for Q&A.

• System Selling Sales Tools Creation: Weeks 4-5

The professional in-home sales person will need the following:

• Cook Book or similar pricing tool for use at the kitchen table
• At least two financing programs and competency with the paperwork
• A Best-Better-Good Proposal Worksheet (not the current company contract)
• A whole-house load calculation form or software
• A Photo-Testimonial Binder (before-after job photos and customer testimonials)
• A professional Company Presentation Book
• A company-logoed folder for homeowner leave-behind materials

System Selling with T.R.U.S.T.® Boot Camp: During weeks 6-8 as classes fill

This is a 3 ½ day full “boot camp” seminar to be held at a regional location. In addition to class room instruction, there are three challenging one-on-one role plays with Tom, DVD recording of each role play, personalized performance feedback and lots more. All sales tools, strategies and tactics will be discussed and practiced. The graduate will be prepared and confident to immediately engage in sales calls with the expectation to close high-end system sales. Class size limited to allow one-on-one coaching by Tom. All materials, continental breakfast and lunch are included. Owners and managers may attend to observe at a reduced fee.

Complete 8 Week Sales Coach Total Investment $2,900 Includes:

• Getting Started: $700

All participants must have a personal copy of the Tom System Selling In-Home Sales Call DVD and Workbook, The Best of System Selling Audio CD Set and Ron Smith’s HVAC Spells Wealth book. This includes three personal teleconferences with Tom.

• Weekly National Sales Coaching Teleconferences: $100 per month; 2 month minimum

This is a per-company fee for a single line connection. No limit to the number of persons who listen and participate. Speakerphone with mute capability is recommended.

• System Selling Sales Tools Creation: No fee; provided by participant

Tom will provide samples and/or direction on creating these. Third-party suppliers can provide some of these products (pricing noted).

• Cook Book or similar pricing tool for use at the kitchen table
• At least two financing programs and competent with the paperwork
• A Best-Better-Good Proposal Worksheet (not the current company contract)
• A whole-house load calculation form or software ($1,200 includes more features)
• A Photo-Testimonial Binder (before-after job photos and customer testimonials)
• A professional Company Presentation Book ($200)
• A company-logoed folder for leave-behind materials

• System Selling with T.R.U.S.T.® Boot Camp: $2,000 for sales person; $500 for manager

All Tom Piscitelli sales training, coaching and sales materials are 100% Sales Results Guaranteed to produce the promised sales results or be fully refunded.

So that we’re all thinking about the same thing, I’ll define “leave behind” as whatever you leave with the customers at the end of the call, whether you make the sale or not.

Do this: in the margin on this page write down what you always leave behind after you make a sale. Then write down what you always leave behind when you do not make the sale. I emphasized “always” because I’m interested in helping you create a standard practice…not an occasional and random one.

I’ll wager that many of you were stumped on the “always” requirement. Your list may include only product literature and a copy of your “bid”. For some of you the margin is blank. Whether you make the sale or not it’s vital that you leave behind appropriate information to either reinforce that the customer made the right decision in buying from you or, if they didn’t buy yet, that they should buy from you.

What to leave behind when you make the sale

So now that you understand why this is an important strategy you’ll see why certain support materials are necessary.  Each of the following is intended to do one or all of these three things: establish trust, differentiate you from others and add value:

1. A custom-made company-logoed folder. This folder has your logo or company photo on the cover along with the logos of your key affiliated companies. That can include your equipment brand logo, Better Business Bureau, NATE and so on. The inside of the folder has two pockets for inserting paperwork. On the left pocket is a slit for your business card. The right pocket has some cool customer testimonials printed on it. The back of the folder has a “dare to compare” list. This is a list of the top 10 great things that you do with a two check boxes next to each line. One of the check box columns is labeled with your company name and the other column has the word “Other” at the top. ALL of your boxes are checked off. It’s as if you want the customer to compare you…you dare them to.
2. Your proposal form. Leave a neat, legible copy or better yet the original.There are still some sales trainers who suggest you don’t leave your proposal unless they agree to buy. I believe that if our intention is to create a lifetime relationship with the customers…creating clients…then we have to act in a trustworthy manner. If you trust someone you’d leave anything that could help them. Leave the proposal.
3. Your company brochure…I hope you have one!  This doesn’t have to be super fancy. The essentials include photos of your owners, group photos of your key people including office persons, techs, installers and you. Add a few customer testimonials and a short list of your credentials such as time in business, licensed, bonded, insured, certifications, a smattering of your good stuff especially if you have some advantages over your competition. For instance if you’ve earned NATE certification and are drug-free and have 24-hour service be sure to mention all of those.If you don’t have a brochure just yet then type something up on your stationary. These days it’s easy to import a few photos and make color copies. Do it.
4. Product literature. Leave information on whatever they bought, of course, and if you talked about upgrades and they had any interest at all include them too. More is better. They can’t buy what they don’t have information about. Some people will surprise you with how cautious they were during the call and then later decided to upgrade everything. Don’t deny them their right to spend more money.
5. Written summary of what’s next.  This is so important. Many, even most, people will have a twinge of buyer’s remorse. They need some re-assurance after you leave that they made a great decision. You’ll be telling them they did as you wrap up after the sale but they need something that “holds their hand” when you’re gone. A simple remedy is to have a checklist including the next steps: who will call to confirm the installation, when she will call, what happens when the installers show up, what will happen while the installers are there, how the lead installer will wrap up the day’s work, what they can expect the first day/night with their new system, whom to call if there are problems, when you will be contacting them again, how to reach you any time for help. It’s all about peace of mind.

What to leave behind when you don’t make the sale

1. As you probably suspect it’s the same list, except for two things: NOW is the time for your referral list. Referral  list? Some of you have one; I’ve seen them. This is a written list of clients (past customers) who have enthusiastically agreed to have their names, addresses and contact information given to potential customers who want personal assurance that you and your company are all that you claim you are.Just having a list provides evidence that you are competent, confident and professional. For some, that will be all they need to be assured they will make the right decision by choosing you. A few will call someone and of course get a glowing recommendation…and the sale is yours.
2. Why paying less is a bad idea. Many people are going to shop you. It’s the way some are and there isn’t anything you can do about it. Except this: create a story…I like the “iceberg story”…that points out why you solutions to their problems cost as much as they do. You have to somehow explain the “hidden costs”, the ones the customers don’t know about and will never see, are very important, even critical to the systems performance and the customer’s satisfaction. This is the old “you get what you pay for” concept. As you are about to leave pull this out and suggest they be cautious about choosing any other contractor, making sure they do all the important, hidden, things that you, for example, as experts, always take care to do. And, if you have courage, ask them again to buy. You’ll get some to say yes!

Now you have some work to do. Get to it…and Good Selling!

During a recent interview on HVACTV.com, three of us were asked, “How can our industry reach the millions of existing homeowners with the breaking news about the new products and services we have to offer?” Most of us would readily arrive at the opinion that we need to get contractors and manufacturers to advertise more. Sure that works, but to really have impact, to really create consumer demand, we’d have to spend millions of dollars — money our slim-margin industry just doesn’t have.

Earlier in that same HVACTV.com show, Rex Boynton, president of NATE, talked about how his program has already certified more than 11,000 service technicians and they are gaining momentum on reaching the rest of the 300,000 technicians in the country.

Imagine, if these 300,000 techs make only 3 to 4 calls a day, that’s 1 million in-home service calls a day! And that’s just with the technicians. Add in the 100,000 or so calls per day being made by HVAC sales people.

My idea is simply this: let’s talk to the customer. Let’s make the time during every call to do what sales people do: greet the customer, establish some rapport, ask questions, listen, educate, and develop interest. If they want something, show them what the choices are, and ask them if they want it!

Talk to them? Why? Some will say, correctly, that we didn’t have to do that in the past. “In my father’s day, we went in and fixed the problem and the customers were happy. We went out to give them a bid or estimate (ugh…please don’t use those words), told them what they needed, and they bought it.” What’s so different today?

Well, today is different for several reasons:

• With our industry in a slow or no-growth mode, competition is tougher than ever.

• Retailers are solidly into HVAC and they’re doing a good job. This raises customers expectations for professionalism, etc.

• Customers are more interested and educated about HVAC and related issues today.

• Customers are more careful about what they are buying and from whom they are buying.

• Customers are tired of “pushy” salespeople.

• Customers are increasingly looking for a company, and people, they can TRUST.

Think about it from the customer’s point of view. Customers invite you into their homes. They have problems and want solutions. They want to be treated fairly and honestly by someone they can trust. They want their unique needs met. They want fair prices for what they get — they want value.

How do we know this is true? You can validate this thinking two ways:

1. Ask yourself, as a consumer, what you would want!

2. Look at what the successful retailers are doing! (Want to recalibrate your marketing thinking? Stop thinking about yourself as a contractor and start thinking as a retailer.)

What Do Consumers Want?

Customers generally want their HVAC contractor and system to provide:

• Peace of mind (no worry)

• Comfort

• A healthy environment

• Energy and cost savings

• Quiet operation

• Convenience.

Can you provide all this? You betcha. It’s done by blending some smart retailing business practices with a few key equipment upgrades and accessory/
enhancements to complete the system.

How Do Retailers Sell?

Heck, we all know this answer, because WE are their customers! Here’s what Retailers do:

• Offer choices

• Offer financing (every time)

• The price is the price
(no bids or estimates)

• Offer or include warranties

• Offer or include guarantees

• Open evenings and weekends

• Sell from showrooms

• Convenient to reach on the phone
or internet

• Advertise/market to attract new
customer

• After the sale, they ask the customer
how they did

• Ask for referrals.

And what does all this provide for the retailer? It provides customer satisfaction! First they attract the customer to them, then they make the sale, then they make sure the customer is very satisfied, then they ask the customer to buy again, and they ask the customer to tell their friends about the good experience they have had.

Why the increased emphasis on customer satisfaction? You’re probably thinking that’s always been important to you. I hope you have! Well, it’s even more important now as our industry has evolved from a growth to a service industry.

With that evolution, comes the realization that the incredible growth of the past decades won’t be repeated. As growth slows, our industry becomes more competitive. The winners in this environment are those who can clearly out-perform their competition. The key to winning in our new world is customer satisfaction!

Fact: companies with higher customer satisfaction also have higher profits than those with lower customer satisfaction levels. The reason: very satisfied customers will call you again. They will refer other customers to you.

Building Satisfied Customers,
One At A Time

Earlier I said that tops among the benefits customers look for is peace of mind, and that means they want to do business with someone they trust. In recognizing this, we created an acronym from the word “trust” that can help you remember what should be happening during the in-home sales call.

T… stands for the Truth

R… stands for Relationship

U… stands for Understanding

S… stands for Showing

T… stands for Telling How

Let me take you through the TRUST steps. TRUST starts with a commitment to the truth. We need this commitment to the truth if we intend the customer to have so much confidence in us that they’ll value our advice, will call us back into their home, will refer us to friends and relatives. This doesn’t just mean you need to become honest and ethical — you already are. It does mean you feel an obligation to share the honest facts with the customer.

If a customer has a 15-year-old furnace and it needs a major component replaced, and you do the job correctly and charge a fair price, then you’ve been honest. But you haven’t shared the complete truth with the customer — which includes the facts that a 15-year-old furnace is nearing the end of its useful life, that it’s consuming more energy that it was designed to, that the homeowner might save money in the long haul by choosing to replace rather than repair the system.

Sharing such honest feedback requires that we develop some degree of relationship. Relationship is the “R” in TRUST. If you think about a business that you enjoy going to — whether it’s a clothing shop, an auto dealership, or the local tavern — the main reason you probably enjoy it is the way they treat you or the relationship they have with you.

The average service technician doesn’t go on a service call to establish a relationship with each customer. But that’s exactly what I’m suggesting you do! This is the number one way that you can be different than the pack. It only takes a few seconds.

The “U” is for Understanding. By asking questions and listening to the responses we build a stronger relationship and we get a better understanding of the customer’s needs.

The “S” stands for Showing. With a better understanding of the customer and their needs, we can show them — using our expertise — what their choices are.

And lastly, the “T” stands for Telling how. For example, “I Showed you what’s possible, Mr. and Mrs. Smith; I’d be happy to tell you how you can make this happen.”

With the T.R.U.S.T. approach you can stop worrying about what you are SUPPOSED to say and simply let your sincere interest in helping customers get what they want take over. Your customers will suddenly be comfortable with you, because you are comfortable with yourself.

However, it’ll mean you have to change what you are currently doing.

One of the most important reasons that I left my career as a manufacturer and distributor executive was because I realized that I could have such a huge impact on people and on their businesses if I could just help them to change. I’m really fascinated with the subject of why people don’t change – and what to do about it!

Sometimes the need for change can be quite clear, and yet people continue to forge ahead, doing the same things that are not getting them where they want to go. Einstein said, “Doing the same thing over and over and expecting a different result is the definition of insanity.”

How many times have you bought something that was “cheap?” Or bought something from someone you weren’t completely comfortable with? We all have. And what was the result?

Perhaps the product didn’t live up to your expectations, and you had to buy it again. Only this time you bought the better one, or even the best one. And if you purchased it from a salesperson you weren’t quite comfortable with, did you refer friends or relatives to him or her? Probably not.

Why did you make those decisions?

As consumers, we learn from our buying experiences. One of the essential benefits we want when we buy something is peace of mind.

Peace of mind. It’s everywhere. It’s in the lyrics of our music. It’s in our checkbook every time we make a payment on the myriad of insurance policies that we seem to have. It’s in the store clerk’s presentation when they ask if we’d like the extended warranty protection plan for the appliance, electronic device, or car we just bought. Peace of mind is why customers usually choose the better choice when shown good-better-best options.

Why is peace of mind so important? Simple — because human beings are hard-wired to avoid worry. Worry causes stress and stress wears us out, or worse.

So, to address this fundamental issue, and to give HVAC salespeople a philosophy and roadmap that will guide them, and their customers, though the hazards of buying, I have developed the T.R.U.S.T.® selling process. T.R.U.S.T.® is an acronym that breaks down as follows:

T stands for the Truth

R stands for Relationship

U stands for Understanding

S stands for Showing

T stands for Telling How.

In this first of three articles we examine why it’s so important to always tell the truth, and why and how to build a customer relationship during the in-home sale.

The Truth

Approximately how much of the time should we tell the truth?

And what happens when we don’t, when we tell just a small “untruth?” There are many human reasons for not being 100% candid or truthful with people, and, in spite of our rationalizations for them, choosing to behave in this manner is ineffective in selling, and in life.

One reason we sometimes don’t tell the truth is because we are afraid of the customer’s response.

“How long will this last?”

“Ummmmmmmm…50 years.”

We assume the customer needs it to last 50 years. Did the customer say that? No, she just asked how long it will last. We assume 50 years is what the customer wants to hear. Let’s try the truth:

“How long will this last?”

“With proper maintenance, this furnace will last 15 or 20 years or even more. One of the reasons we offer this furnace is because of its history of reliability, and our service technicians recommend these to all of our customers. In fact, it comes with a 5-year warranty on all parts, and the heat exchanger, the most expensive part of the furnace, is warranted for as long as you live in the home. We believe in it so much that our company also includes a 5-year labor warranty on this model.”

Another reason we might not tell the truth is because we don’t know the answer to the question.

“How long will this last?”

“Ummmmmmmm…50 years.”

In this example, we’re afraid to let the customer know we don’t know. What gets us into trouble here is what I refer to as image. This powerful, and largely unconscious, driving force compels us to present an image of what we think the customer wants us to be. For most people, image is behind the car we drive, the clothes we wear, and, as a salesperson, in the words we use. Some salespeople memorize what they think they are supposed to say because they think the words are what compels the customer to buy.

Nuts.

The only person I’m fooling when I try to become something I’m not, is myself.

The customer knows.

Only 7% of all communication is verbal: the words we say only account for 7% of the entire message we deliver. The other 93% of all communication is non-verbal, and includes appearance, posture, facial expression, hand gestures, eye contact, and, the most powerful of all, tone of voice. In fact, tone of voice reveals 35% of our “truth.” We can’t fake who we are, or why we say what we do — the customer knows. So let’s see how we might reply with the best information we happen to have:

“How long will this last?”

“That’s a good question. This is a fairly new model, so we don’t have a life-history on it yet. I can tell you that the manufacturer is proud of its past products’ reliability, and we are too. That’s one of the main reasons we’ve sold this brand for 20 years. As evidence that they, and we, believe in this furnace, it comes with a 5 year warranty on all parts.”

Let’s not worry about what we think they want to hear, let’s just let our guard down and explain things as they really are. The truth is very, very effective.

Relationship

First of all, to our male readers, the word “relationship” is okay to use. I’m kidding a bit here, but some of us just aren’t used to thinking this way!

Why do we need to consider what we do as having a relationship? Why can’t we just get the job, do the work, collect the money and move on to the next job?

We must think of every customer as a customer-for-life. Successful companies in all industries understand this. Our success, and our survival, depend on this attitude and commitment.

First, industry marketing gurus tell us that it costs more than $400 to advertise to win one sale, which means it costs $400 in cold cash, net profit cash, to attract a new customer. Walking away from that customer once we’ve sold the job is like flushing money down the toilet.

Plus, these gurus say, it’s six times easier, and six times less costly, to sell products and services to past customers who’ve already purchased from you than it is to find and sell to a new customer.

When you continue a business relationship with your customer, you can receive future revenue from maintenance agreements, replacement parts sales, add-on sales, future replacement and add-ons and, the best of all, referrals. Add it up, and you’ll discover that a customer you sell to today is worth $20,000 or more over your business lifetime.

It’s all about the relationship.

So, how do we develop and maintain an effective customer relationship? Here are some high points for the HVAC salesperson to follow during the in-home sale:

Be on time: five minutes early, zero minutes late, call every time while on the way.

Knock on the door: A small thing, but friends knock, strangers ring.

First impressions count: Smile, clean and neat, professional appearance, photo ID.

Wait to be invited in: You are a guest.

Put on your boot covers: Yes, even the salesperson must do it.

Shake hands with everyone: Firm, responding to their hand pressure.

Establish rapport: Must be sincere.

Review why you are there: Make sure the information you have is accurate.

Explain how the call will progress: Set expectations and ask for approval.

Survey the home with the customers.

Involve the customers: Ask them to help you measure for the load calculation.

Ask questions and listen: Active Listening is Key.

Have a “servant’s” attitude: You are there to help the customer.

Have fun: If you do, they will.

Be confident and enthusiastic: If you are, they will be too.

A final note on building customer relationships. You can follow all the steps, but if you don’t sincerely care about the customer, it won’t work. What I mean here is that if you are focused on “getting the order” and “how much the order will be,” most customers will sense this and they will treat you as “just another salesperson” out to get their money.

If you need to, recalibrate yourself a bit, and see yourself as a consultant or as an advisor whose job is to help customers sort through their problems, understand what the possible solutions might be, and help them make a decision that is right. When you are “there” for customers, customers will be “there” for you.

Congratulations! You just made a sale! Now what? Some sales people might think the work is done, that they’ve completed their part by getting the customer to say “yes” and sign the agreement. Well, if the sales person’s goal is to get the sale and move on to the next prospect, they could be right.

But if the sales person wants customers for life, then there is more to be done.

Imagine you’re the homeowner who has just made a big purchasing decision, one you’re a little unsure about. You don’t know much about the product you bought, how it needs to be designed and installed, the materials necessary, or the contractor you are hiring. You also don’t know anything about all the contractor’s employees who might be involved in your job. Even the sales person is a stranger. What would you want to happen next?

Let’s start by seeing ourselves, and our customers, as consumers. As consumers, we’re conditioned by an almost endless number of retailers who all vye for our attention and money. Retailers are very competent at attracting us, and our money, or they wouldn’t still be in business. Most retailers know it’s very expensive to convince us to buy from them, and don’t want to spend more money to convince us again. So to save money and grow their businesses with people who want to do business with them, they spend a little more after the sale to keep us as customers. Makes sense, doesn’t it?

My father is an accountant and, at 82, still runs a small business with 40 clients. I grew up hearing about clients, but didn’t put it together until recently. I got the point when one of my seminar participants suggested that a customer was “someone we’ve sold something to, putting them in the past” and that a client was “someone we continue to sell something to, putting them in the present and future”. (I finally got it, Dad!) We want clients!

Okay, so we’ve established that we want to keep customers, that we can take lessons from retailers, and that our customers-for-life can be called clients. How can we make sure this happens?

Creating Clients
Retailers know about something called Buyer’s Remorse. You’ve heard of it, I’m sure, and have likely felt it yourself. It’s that uncomfortable feeling we have, that ” doubt” we feel, right after we say “yes.”

Researchers know that the actual decision to buy is mostly an emotional one, and we later start justifying it with facts and rationalization. This is an awkward time for the buyer, and it can be for the seller too.

However, certain things can be said and done to make this a positive part of the experience, putting positive closure on the buyer’s decision, and beginning a new lifetime relationship with your client.

Let’s take this one step a time:

• The client just said “yes” and signed the agreement. You’ll want to say something reassuring, such as, “Thank you, you’ve made a good decision, one that you and your family will all appreciate.”

KISS applies here. I suggest you Keep It Short and Simple.

• They will want to know what’s going to happen next. “Here’s what will happen next. Brenda will call you tomorrow before noon to confirm an installation date. She will talk to you about when the installers will arrive, tell you who they will be and who is in charge, and how long they will likely be here. If you have any questions she can answer them. And, of course, you can call me anytime if you have questions for me. Does that sound all right so far?”

• The clients are feeling better. “Good. You’ll like our installers. They have been with us a long time and are excellent craftsmen who take a lot of pride in what they do. You’ll see them paying attention to all the details including putting down drop cloths and wearing boot covers to protect your home. When they’re done, they’ll go over everything with you on a quality checklist they use, and make sure all your questions are answered. Does all that sound okay too?”

• They are breathing again. “Great. When the job is complete and the checklist is gone over and your questions are all answered, the lead installer will ask for a check or credit card for the remaining balance due. Will that be okay with you?”

• They feel good about not paying until they are satisfied. “Terrific. I’ll give you a call to arrange to come by again after you’ve had the system running for a week or two and see if you have any more questions. In the meantime please call me anytime you want. Sound good?”

• Don’t forget the yard sign: “Would it be okay if I left one of our company yard signs out front? Some of your neighbors may be interested in what we offer and it helps us grow our business. I’d appreciate it.”

Time for Marketing 101: Creating Clients-For-Life
Okay, you left the clients feeling as good as possible about the decision and now it’s up to the rest of your company team members to do their part. Let’s assume they do and now you have made arrangements to revisit the new clients a week or two after the installation. Since you are building a personal as well as a company relationship with the clients, a personal visit is best.

Make sure they are happy, or find out if they are not, by asking questions:

“So folks, how do you like your new comfort system?”

Listen. Listen. Listen. Be prepared to write down any issues or concerns. If there are any, show your concern and address them immediately, resolving what you can, and committing to following up personally to resolve any others. Make sure you personally follow up and, if at all possible, revisit the clients and ask again if they are then happy.

When your clients tell you they are happy:

Find out what they are happy about, “Terrific, can you tell me what you like the most about your new system?”

Listen! Then take out a blank sheet of nice quality paper and a nice pen and hand it toward them and ask, “Would you mind doing me a favor and writing down just a few sentences including what you just said? I’d like to share that with other folks

who are looking for a system like yours.”

You will get a written testimonial every time. This goes in a separate binder with 20 or so pages of photos of your nice work in the front section and an additional 20 handwritten testimonials you’ve received from other very satisfied customers.

This binder (I like to call it the Iceberg Binder since it shows your hidden value) is given to the clients during the sales call to look at while you’re at the kitchen table preparing your proposal.

As they turn the pages you can imagine them concluding that you and your company are the right choice for them!

Now for the Referral
Once the client has given you a testimonial it is time for you to ask for the best of all leads: the referral.

“Thank you for this (taking the Testimonial from them). One last thing. Would you happen to know anyone, friends, coworkers, neighbors, family, who might also be looking to solve the kind of problems you had? I’d appreciate anyone you might refer me to.”

Now wait for them to reply!

As a consumer, have you ever received a thank you card? How did you feel?

I’m sure you have, and you felt good about getting it, and felt good about those who sent it. Make a commitment to personally send one to every client after a sale. Personally means that you hand write a message and sign the card and you hand write the names and address on the envelope. Use a stamp, not metered postage — it’s more personal that way.

And include another request for referrals in your thank you note. Many salespeople have a referral offer of $50 on the back of their business cards. I often hear this consistently works well. Give it a try. (Hint: Don’t offer more than $50 — that’s enough for people who like you and wouldn’t mind getting a few bucks for their trouble. Even better, give $25 to the client who is providing the referral, and $25 credit to the new client.)

What’s Next?
Now Marketing 201 kicks in. You’ve earned a relationship with a client who has chosen you to be their HVAC contractor, and you must keep telling them that you value that relationship. Here’s a partial list of good things to do to keep clients-for-life:

• Quarterly company newsletters with general HVAC information and new product and service offers

• Monthly postcards with offers

• Annual birthday cards for the system on their installation date

• Technician conversations with clients about new products and services on planned maintenance agreement calls

• Send a personal letter (from the salesperson) annually announcing new products and asking for a referral.

After the Sale: Creating Very Satisfied Clients
Research has shown that creating a very satisfied customer will result in them telling nine of their friends about the experience, turning some of them in to future customers, who will in turn do the same and on and on. When you follow the guidelines we’ve discussed, coupled with your everyday excellence in designing and installing top quality HVAC systems, you will indeed create your own business future, you will create clients for life.