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Energy Services for Mechanical Contractors

Energy Services for Mechanical Contractors. Webinar Series. Session 1, 12/2/09: An Overview of Energy Services for Mechanical Contractors Session 2, 12/9/09:  Energy benchmarking and assessments Session 3, 12/16/09: Marketing and sales of energy services.

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Energy Services for Mechanical Contractors

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  1. Energy Services for Mechanical Contractors

  2. Webinar Series • Session 1, 12/2/09: An Overview of Energy Services for Mechanical Contractors • Session 2, 12/9/09:  Energy benchmarking and assessments • Session 3, 12/16/09: Marketing and sales of energy services

  3. Part 3 of 3 Marketing and Sales of Energy Services

  4. Getting started

  5. What business do you consider yourself to be in?

  6. 1. Develop a marketing mindset

  7. Making places where we work and live more comfortable and energy efficient

  8. 2. Speak financial decision makers’ language: Total cost of ownership

  9. 3. Integrate energy into your core business

  10. 4. Communicate to generate leads and motivate action Who What How

  11. Who: Start with current service customers

  12. What: An Energy Service Agreement Details in the Sales part of today’s webinar

  13. Briefly, what is an Energy Service Agreement? • Basic energy services to bolt-on to service agreement: • Energy Star rating for the building • Energy Usage Index for the building • Low cost ways to improve performance

  14. Targeted communications to drive demand for energy services

  15. How: Marketing/Sales Collateral • Mail or leave-behind collateral: • Flyers • Letters • Email • Website • Local/Regional PR

  16. Letters

  17. Local/Regional PR

  18. Email Your logo here: To: [email recipient] From: [XYZ commercial hvac company] Subject: Reducing energy costs – what can your mechanical contractor do? Anyone can tell you when you have old, run down equipment that it is necessary to replace it. But, can your mechanical service contractor explain to you how your building uses energy and where you could have the most impact in reducing energy consumption? Can they tell you the cost, benefit, and any tax or utility credit available on each of the recommendations? We can. With our green building services, we can help you to determine whether or not you have a significant energy problem, and if so, how to focus your investment for the greatest impact. We can implement solutions, including operations practices and upgrades, to reduce energy consumption, decrease operating costs, and improve the health and comfort of your building. Visit xyzcomany.airadvice.com for more information and to see an example of our work.

  19. Website

  20. Positioning and branding High Performance BuildingsTM Energy Saver Service TM Green Buildings ProgramTM Energy Bill Reduction ProgramTM Waste Sniffer ProgramTM

  21. Key marketing takeaways • Develop marketing mindset • Speak financial language, total ownership cost • Use Energy Service Agreements to integrate energy into core business • Communicate to generate leads, drive action

  22. Sales: Field level-set • Are you feeling pressure to cut or cancel some agreements? • Are you seeing new competitors? • Are retrofit payback periods compressing? • Owners more skeptical than ever? • “I never used to have to sell”

  23. Just landed a big one! I’m way under quota • “A salesman’s motivation is determined by where he/she is on the panic-euphoria continuum.” • - Harry Archung, EMCOR Mesa Energy Services Euphoria Panic

  24. To close, you need to understand… • Who decision maker really is • What is their pain? • What are you really selling? • A differentiated service • (or) • A commodity You can change the buyer’s motivation and decision criteria

  25. Plenty of pain…got a cure? They need help addressing their pain

  26. The doctor is in…. Reduce energy costs through your PMAs

  27. Use Energy Service Agreements to renew & close service and retrofit business

  28. Set bar higher for your competition Modifying PMA scope to ESA scope WILL reduce utility bills

  29. Why do people buy PMAs? • Habit? • They know they should? • Kind of like auto maintenance, every 3-5k miles What if you were told that oil change could increase your gas mileage by 10-20%?

  30. How do you differentiate today? • Better trained techs? • Reputation? • Tools? • Price? If it has worked in the past will it work in the future?

  31. What’s an Energy Service Agreement? • It includes standard services you do today, plus… • Provides an Energy Star rating for the building • Establishes an Energy Usage Index for the building • Identifies controls issues • Identifies low cost ways to improve performance

  32. ESA Example

  33. Real-world sales scenario • Prospect in Denver looking for PMA • Owner occupied • Dealing with Facility Manager • 3 bids

  34. Building Profile • Operated 80 hours/week • 97,992 square feet • Heating System: Electric Resistance • Domestic Hot Water: Gas • Economizer: Yes • Cooling System: DX / Packaged Unit • Utility Bills: $175k electric, $3.7k gas

  35. The service provider’s strategy • Change buying criteria • Offered Benchmark at no charge • Used to educate FM on offering • Gained better understanding of the bldg and pain points • Competitors went “business as usual”

  36. First: Energy Assessment Report • Benchmark results • Sensors • Low cost/no cost list

  37. Lighting Time-based Sensor Data Temperature Carbon dioxide

  38. Energy conservation measures identified • Temperature control • Temperature schedule • Ventilation control • Lighting schedule • HVAC controls • Lighting control strategy Provided clues regarding VFD replacement

  39. Energy Report Outcomes • Built credibility by identifying real savings • Identified retrofit opportunities resulting in: • Small labor and equipment opportunities • Potential larger opportunities • Service provider used report to get to owner Drove the need for an audit to get to ROI

  40. Energy Audit Report

  41. Audit Report Results • Simple payback • Cost of doing nothing--Larry

  42. Pricing of Energy Services Determined By • Strategy: • Cost recovery vs profit center • Retrofit lead generation • Nature of additional work uncovered • Targets: Customers up for renewal vs prospects • Marginal cost analysis • First to market

  43. Summary: Why Energy Services • It’s in the middle of your fairway • Small modification to current PMA model • You already have priced-in a truck roll • Change the buying criteria • Renew and get new service agreements • Justify retrofits Differentiate!!

  44. Next Steps • Look for email tomorrow with link to resources • Sample Energy Service Agreement • Today’s slides • Recording of today’s webinar • Assess your current base of customers • Contact us with questions on energy services: (866)247-4800 or info@airadvice.com

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