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Welcome to IAQ Series #1 The IAQ Business Model

Welcome to IAQ Series #1 The IAQ Business Model. Your Hosts for Today’s Conference are: Gary Elekes in Nashville, Tennessee Gary Oetker in Plano, Texas. Conference Objectives:

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Welcome to IAQ Series #1 The IAQ Business Model

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  1. Welcome to IAQ Series #1The IAQ Business Model

  2. Your Hosts for Today’s Conference are: Gary Elekesin Nashville, Tennessee Gary Oetker in Plano, Texas

  3. Conference Objectives: • Review IAQ fundamentals in regards to sources of indoor pollution, solutions to IAQ problems and the business opportunity this represents. • Review the elements of the IAQ Business Model.

  4. Agenda for Conference • Review IAQ fundamentals and the IAQ business environment • Review IAQ business opportunity • Review sales and marketing approaches to IAQ • Review IAQ business measurements and recommendations • Review implementation of IAQ business model

  5. Indoor Air Quality • Yesterday • Loose Homes & Natural Ventilation • IAQ Solutions – Total Comfort & Duct Cleaning • Today • Energy Conservation / Tighter Homes • Pressure Problems In Home • New Technology & Improved Standards • Growing Concern About Liability & Litigation • The Future • New Construction Techniques • Whole House Approach to IAQ • Opportunities for Contractors to Grow

  6. Indoor Health • Americans spend 90% of their time indoors • 50% of this is within their home • Indoor air pollution is 2 to 5 times worse than outdoor air pollution • Health Affects • Respiratory problems • 50 million Americans suffer from allergies • 60% of all allergies are caused by mold • 12 million Americans have asthmatic episodes yearly • Asthma has tripled in the last 20 years

  7. Indoor Air Pollutants • Biological Contaminants • Pollen • House Dust Mites • Mold • Bacteria • Viruses • Pet Dander • Combustion Pollutants • Gaseous Pollutants • Other Sources such as Radon and Asbestos

  8. Mold • Contaminants • Spores • Enzyme Filaments • Toxic Gases • To Grow & Thrive • Dirt/Organic Material • Moisture/Humidity • Ill effects • Health • Structural Damage to Home

  9. HVAC Contractor Practices Affecting IAQ Humidity Problems • Oversized Cooling Systems • Mismatched Indoor Coil (particularly with on high efficiency equipment) Pressure Problems • Leaky ductwork • Lack of Return Air • Poorly Designed Air Distribution System • Poorly Installed Air Distribution System

  10. Pollutant Categories

  11. Indoor Air Solutions • Source Control • Equipment Cleaning • Duct Cleaning • Duct Repair • Duct Renovation • Cleaning the Air (Filtration) • Various MERV Rated Air Cleaners • HEPA Filtration Systems • Germicidal Lamps

  12. Indoor Air Solutions (cont.) • Ventilation • Fresh Air Intake • HRV • ERV • Humidity Control • Dehumidifiers • Humidifiers

  13. Applicable HVAC Products & Services • Various Methods of Air Filtration • Germicidal Lamps • Various Methods of Ventilation (including HRV & ERV) • Duct Cleaning • Testing & Diagnosing IAQ Problems • Duct Repair & Renovation • Air Balancing • Other Related Trades (Home Insulation & Renovation)

  14. IAQ Growth Potential

  15. Sales Approaches • Existing Comfort Advisors • Bundled With Equipment Replacement • Separate IAQ Offer • Service & Maintenance Technicians • Accessory Sale • Dedicated IAQ Sales People & Installation People

  16. Marketing Approaches • Marketing to Existing Customers (service strategy) • Technician Set Sales Leads • Direct Marketing to Customer Base • Acquiring New Customers (advertising strategy) • Conventional Advertising & Direct Marketing • Special Offerings Applicable to Both Above • Air Testing (I.E. – AirAdvice) • Other Considerations • Pricing • Compensation

  17. Sample IAQ Price Sheet

  18. Sample IAQ Technician Spiffs

  19. Measurement Considerations Separate Department or Division • Easy when IAQ is sold separately • Separate Department Income Statement • Technician Accessory Sales • Duct Cleaning • Duct Repair & Renovation • How do you handle IAQ sales that are bundled with equipment sales?

  20. Direct Cost Model - Duct Cleaning • Parts/Material 20% • Labor 18% • Equipment 0% • Allocated Fringe Benefits 7% • Sales Commission 10% • Total Cost of Sales 55% • Gross Margin 45%

  21. Business Recommendations • Gross Margin Percentage • 40% to 50% Depending on mix of products & services • Some IAQ products cost as much as the HVAC equipment • Gross Margin Dollars Per Day • $300 to $750 per IAQ Technician (depending on mix of products and services

  22. How To Implement Discuss Involve Personnel Conclude Get Buy-In on Decisions Commit All Hands in Team Goal Create Idea to reality – stuff! Execute Accountability to do Work Feedback Measurements & Report Adapt Plan Adapt as Needed – Start from the top again

  23. Questions & Answers

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