LABOR UTILIZATION to help you compete

1. LABOR UTILIZATIONto help you compete BONUS PROGRAM WEBINAR SERIES MODULE 5 September 10, 2014 Presented by Kip Bagley Vice President of Service, EMCOR Services/Mesa Energy Systems Jim Leslie Vice President, Tucker Mechanical, an EMCOR Company

2. Moderator Don NealCEO & Founder

3. Tips for this Webinar Be an active participant • Ask questions anytime on the side chat bar • Engage by answering the polling questions Don’t feel obligated to take notes • Slides and webinar will be available after the presentation at www.msca.org Share this experience with your colleagues • Schedule for the webinar series will be displayed at the end

4. Kip Bagley Vice President of Service, EMCOR Services/Mesa Energy Systems Jim Leslie Vice President, Tucker Mechanical, an EMCOR Company

5. OBJECTIVES Understand how to use labor mix properly and how it can increase margins along with the longevity of your business. National Agreement? What you didn't know! Learn to use your best salespeople – the technicians! Understand the pitfalls and peaks of field incentive programs.

6. Polling Question #1 Do you track your service crew/labor mix?A. Yes B. No C. Not Sure

7. Labor Mix – Blended Work Force (crew rates)

8. Labor Mix – Blended Work Force (crew rates)

9. National Service Agreement Discussion

10. Service, Maintenance & Operations Work ARTICLE VII – Scope of Service, Maintenance and Operations Work ARTICLE IX – Classification of Employees 14. Service Journeymen 15. Servicemen (MES) 16. Service Apprentices 17. Tradesmen (MEST) ARTICLE X – Hiring and Use of Employees ARTICLE XII – Wages, Benefits and Hours of Work

11. Polling Question #2 If you’ve ever moved a technician from the field into sales, how was the transition period?A. Good B. Bad C. Ugly D. N/A E. I don’t know.

12. Technicians Selling Identify techs who are a good fit for sales How to transition techs from field to sales Provide guidelines for incentivizing techs

13. Who Do They Trust? Who do your customers really trust to give them technical information about their systems?

14. Who Do They Trust: The Salesperson?

15. Who Do They Trust: The CFO?

16. Who Do They Trust: The Dispatcher?

17. Who Do They Trust: The Technician!

18. Technician Loyalty In order of priority: Customers Contractors Unions

19. The Good, The Bad and The Ugly . . . • Transition from Field to Sales • Positives • Negatives • What technicians fear the most

20. Transition: The Good Technical knowledge and background Understand systems and equipment Natural at sales Comfortable in front of customers No fear to speak from their experience and knowledge

21. Transition: The Bad Technical knowledge – too much is sometimes a bad thing! Tendency to oversell Lack of pure sales training Horrible at “cold calling”

22. Transition: The Ugly Technicians don’t consider themselves “salespeople” – they view themselves as customer “supporters.” Techs provide solutions they truly believe will help the customer. Deathly afraid to jump from hourly to salary/commission. Fear of leaving the uniform for a polo shirt. Not used to delayed or long-term results.

23. Eyeing Future Salespeople What to look for when targeting future salespeople from the field: Outstanding rapport with existing customers Willingness to go “above and beyond” Great at paperwork/computer skills Works well with others Dispatcher and office staff perception Talk to technician’s existing customers Is the technician ready to go from union to non-union financially? Do you have a replacement?

24. Polling Question #3 Do you currently have or have you ever had a Field Referral Program for sales?A. Yes B. No C. I don’t know.

25. Field Referral Program Helping technicians sell from the field: Beware of compensating “normal” activities Watch payout amounts Decide between revenue or gross profit payouts Use COMMON SENSE!

26. Profitable Maintenance Agreements Looking at the entire account vs. contract only Gross margin of maintenance agreement Gross margin of pull-through work Average margin of maintenance agreement and pull-through work = actual profitability of account

27. Key Takeaways Implement a blended work force to maximize your labor resources. Use the National Service & Maintenance Agreement as a tool to strategize and manage your labor force. Capitalize on the customer’s inherent trust of their technician, and transition your techs into sales – but choose wisely and train thoroughly. Evaluate the actual profitability of an account by averaging the gross margins of pull-through work and maintenance agreement.

28. It’s Your Turn… Q1: Was this webinar informative and useful? Yes, I found this informative and useful. Yes, but it wasn’t as informative and useful as I expected. No, this was not informative or useful. Q2: Did the speaker present the material in a clear and concise manner? Yes No Q3: Will you download this webinar, and share it with others in your company? Yes No

29. Join us for the next webinar on October 22!To register, go to https://msca.webex.com October 22: Efficiency Presented byMike Star and Devon Hubbard December 3: New Business Opportunities Presented byJaimi Lomas and Adam Wallenstein

30. Reminder The PowerPoint and handout will be available on the homepage of the MSCA website immediately after the webinar at www.msca.org. The archived webinar will be accessible from the MSCA website within 24-48 hours.

31. For Additional Information or Questions, Contact: Kip Bagley Vice President of Service EMCOR Services/Mesa Energy Systems (949) 460-0460 kip_bagley@emcorgroup.com Jim Leslie Vice President Tucker Mechanical, an EMCOR Company (203) 630-2506 jim_leslie@emcorgroup.com Barbara Dolim Executive Director MSCA (301) 990-2210 (direct) bdolim@mcaa.org