Creating Solutions Business

1. Creating Solutions Business

2. Creating BusinessSolutions are where we need to be • We separate ourselves from the market by adding value. • We add value through our knowledge and synergy. • Our synergy is in having equipment, controls, parts and service all “under one roof”. • Our knowledge is in how the entire system works together from both an equipment and control perspective. EarthWise Systems a prime example of our knowledge in action.

3. +$ –$ air handlers +$ ductwork controls +$ –$ +$ piping, pumps chillers EarthWise™ System Summary • EWS is a design and “pain” • solving process: • Waterside & Airside • Low flow • Low temperature • High efficiency • Optimized Controls • Taking advantage of technology! Operating Cost First Cost

4. Existing BuildingsSolutionOpportunities • Waterside: aging chiller plants • Hydraulic and energy opportunities • Controls…or lack there of! • Airside: problems and expansion • Acoustical problems? • Short of capacity? • Use existing infrastructure

5. Existing BuildingsFinancial Opportunities Annual Average Return 40% 30% 20% 10% 0% Small Company Stocks Common Stocks Long-term Corp Bonds U.S. T-Bills 0% 10% 20% 30% 40% 50% Risk Index(year-to-year volatility) Source: EPA/The Vanguard Group

6. Creating BusinessExisting Office Building • Existing Situation: • Can not maintain comfort if OSA is over 90 degrees! • Owner knows one chiller has to go • Previous Proposals: • Short of airflow so... • Replace AHU’s, ductworks, chillers, tower, etc. • Is there a better solution? What would you do?

7. Creating BusinessExisting Office Building • Existing Situation: • Can not maintain comfort if OSA is over 90 degrees! • Low Flow Low Temp Solution: • Use existing AHU’s, ductwork, tower, etc. • Series Variable Flow with new chiller downstream and old chiller upstream! • Old chiller efficiency goes up (48 LWT versus 44 LWT) • Converting an inspection contract into a turnkey project!

8. Creating BusinessWhat about smaller projects? pump • Old 40 ton chiller • High maintenance costs! • Problem: 7-10 year payback! • EFLH are not in our favor! • No opportunity here! three-way valve or bypass with control valve three-way valve or bypass with control valve

9. Creating BusinessA System’s Approach • Include pumping energy! • Run hours @ F.L. not EFLH • Use Variable Primary Flow! • Convert valves to 2 way. • Keep some existing 3 way. • Now 3-5 year payback! Variable Speed Pump two-way valve three-way valve or bypass with control valve

10. Creating BusinessFinancial Selling • Why do customers say no? • No Money, No Budget, No Capital • Payback, Hurdle Rate

11. Creating BusinessFinancial Selling • How can we overcome this? • Lease Purchase & Pro Forma on all proposals • Show them the cost of saying no! • New Equipment paid for by future savings! • OR Capital expense in the future! • Replacement cost included in the future! • Leasing is the norm!

12. Existing Buildings & Financial SellingFinancial Selling • Leasing & Pro forma are critical! • Any additional ideas to share? • We need to create some business • We need tools!

14. Discovery U F C U F C Rapport/ Relating Proposal Support Support Decision Pain Money Solutions Sales Process Overview • Only those in the top 25% should be in this process. • Action Items: • Solutions account qualifier • Set goals for account development • No smoke. Be very clear of your intentions and get buy-in from customer on the process. • Action Items: • Do Earthwise Opportunities checklist • Do annual customer audit form • Use intro preso • Get consent to process through Letter of Intent. • To provide a world class solution. We need to know their business as well as they do. • Action Items: • Detailed survey • HVAC equipment assessment • Meeting with Solutions Team to develop plan • Commitment is critical at this point. Know the pain and associated solutions. Will the customer commit? • Action Items: • Develop summary preso and deliver • Sign Letter of Commitment • Develop full proposal from all info. Answer all pain, decision and money questions. • Action Items: • Develop proposal • Close deal

15. Existing BuildingRelationship Stage - First You Must Qualify,EarthWise Tools Assessment & Annual Audit

16. Existing BuildingUp Front Contract #1 - Preliminary Presentation/Letter to proceed

17. Existing BuildingDiscovery - Find the Pain, Decision makers and Money.

18. Existing BuildingUp Front Contract #2 - Summary Presentation/Letter of commitment

19. Existing Building -ProposalAdvocate - Proposal

20. Discovery U F C U F C Rapport/ Relating Proposal Support Support Decision Pain Money Solutions Sales Process Overview • Only those in the top 25% should be in this process. • Action Items: • Solutions account qualifier • Set goals for account development • No smoke. Be very clear of your intentions and get buy-in from customer on the process. • Action Items: • Do Earthwise Opportunities checklist • Do annual customer audit form • Use intro preso • Get consent to process through Letter of Intent. • To provide a world class solution. We need to know their business as well as they do. • Action Items: • Detailed survey • HVAC equipment assessment • Meeting with Solutions Team to develop plan • Commitment is critical at this point. Know the pain and associated solutions. Will the customer commit? • Action Items: • Develop summary preso and deliver • Sign Letter of Commitment • Develop full proposal from all info. Answer all pain, decision and money questions. • Action Items: • Develop proposal • Close deal