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1 Visit our sponsor: Interested in conducting your own webinar?

2 CRUSHING YOUR COMPETITION AS A WHOLE HOUSE HOME PERFORMANCE CONTRACTOR

3 Audio Abstract Presenter Info Slides Handouts Group Chat Q & A Live Twitter Feed Help Survey Archive Add to your favorites

4 CRUSHING YOUR COMPETITION AS A WHOLE HOUSE HOME PERFORMANCE CONTRACTOR

5 HOME PERFORMANCE CONTRACTING Comfort Energy Savings Guaranteed

6 GREENHOMES AMERICA Mike Callahan Callahan / Roach & Associates mcallahan@crginc.cc

7 GREEN HOMES AMERICA Founded in 2005 as a division of The Linc Group/ABM The Linc Network is the largest, most successful HVAC franchise in history. (approaching 160 locations) GHA is a single-source, home performance contractor / only provider that guarantees results Company-owned and franchise locations in New Jersey, New York, Utah, Virginia, California, South Carolina, Florida and Washington GHA partners exclusively with HVAC/R contractors

8 TODAY S SUBJECTS FROM A BUSINESS POINT OF VIEW What is Home Performance Contracting? Why add Home Performance to your current offerings? What s required to get into Home Performance Contracting? What do I look for in choosing a Home Performance Partner?

9 HOME PERFORMANCE CONTRACTING? In simple terms, Exactly what is HPC? Home Performance Contracting is a holistic approach to achieving significant increases in: Home Safety Indoor Comfort Air Quality Energy Efficiencies

10 HOME PERFORMANCE CONTRACTING? Home Performance Contracting includes a thorough analysis of structural, electrical and mechanical components of the home. Specialized tools and equipment are used to test for: Unsafe and/or Inefficient Equipment Air Leaks Insulation Voids Thermal Bypasses

11 How many times have you properly designed and installed a new HVAC system --- only to have the customer still complain about too Hot or too Cold?

12 Homeowner Frustrations ELIMINATED BY HOME PERFORMANCE CONTRACTING

13 Home Performance Procedural Process Home Energy Assessment (Test-in) Diagnose Problems Found Sell the Energy Upgrades Install Energy Upgrades Home Energy Assessment (Test-out)

14 WHY ADD HOME PERFORMANCE? WE ALREADY HAVE A BUSINESS!

15 YEA, BUT! We re too busy to take on a new business opportunity. We already have too many problems. Our market isn t suited for HPC; Utility rates are too low WHAT IF?

16 TAKE A LOOK WHATS HAPPENING IN THE MARKET PLACE?

17 WOULD YOU AGREE? People are truly concerned about home comfort and family health and safety Cries for energy independence getting louder Energy prices are rising and will continue No one wants more coalburning power plants People are looking for ways to save money

18 2012 HVAC REALITIES Bad Economy is the New Economy Competition will remain fierce Differentiation will continue to be key New energy-related technologies will proliferate Existing customers are an untapped opportunity - they have frustrations and unmet needs

19 THE PERMANENT SOLUTION HOME PERFORMANCE CONTRACTING

20 SOLVING CORE CAUSES = PERMANENT SOLUTIONS Seal air leaks throughout the attic and home Add insulation to attic and walls Seal or replace leaky ducts Install variable-speed Motors and Pumps Energy efficient lighting solutions, including motion detectors Replace single-pane Windows (beware paybacks are long) Start with the Core

21 DELIVERING WHAT CUSTOMERS DESERVE After you improve the Core, you take the next steps Right-sized, high efficiency air conditioner Right-sized, high efficiency furnace On-demand and/or Solar water heating Solar heating and pool heating

22 HOME PERFORMANCE CONTRACTING OK, But what are the benefits to my company?

23 CLEAR CONTRACTOR BENEFITS You will be viewed as the Energy & Comfort Expert REDUCE CALLBACKS EASIER TO BUNDLE MORE PRICING REFERRALS! CUSTOMERS WILL RAVE ABOUT YOU

24 WHY SHOULD HVAC CONTRACTORS OWN HPC? We Have Resources Other Trade Contractors Don t Have 1. Maintenance Agreement base & captive customers 2. Service Techs - the perfect lead source 3. Unmatched mechanical equipment expertise 4. In-home sales experts 5. Understand license, permit, and rebate processing

25 HPC = BETTER MARGINS & HIGHER JOB SIZES Metric HVAC Contractor Home Performance Contractor Close Rate 30% - 35% 30% - 40%+ Burdened Margin 25 35% 50%+ Average Ticket $5,500 - $6,500 $9,000 - $15,000+ HVAC $5,500- $7,500 $5,500- $7,500 Air Sealing & Insulation $3,500- $7,500 Water Heating $1,500 - $9,000

26 I WANT TO GET INTO HOME PERFORMANCE CONTRACTING! WHAT S REQUIRED

27 HOME PERFORMANCE REQUIREMENTS A Solid Business Plan Home Performance Accreditation Specially Trained Employees Capital Investment in Tools & Equipment HPC Systems and Procedures

28 THE CRITICAL QUESTION! Do I go it alone, or should I look for a home performance partner?

29 IF YOU WANT A PARTNER.. What do I look for in a Home Performance Partner?

30 GreenHomes America THE PERFECT PARTNER Culture and Personality Reputation, Longevity and Financial Stability Viable, Flexible Proven Business System Outstanding and Ongoing Training

31 GreenHomes America THE PERFECT PARTNER Sharing Best Practices and Procedures Assistance with Pricing Structure Continuous Support Consistently Acceptable Return on Investment Exit Strategy?

32 HOME PERFORMANCE IS A GAME CHANGER CLEARLY DIFFERENTIATES YOUR BUSINESS INCREASES YOUR MARGINS INCREASES YOUR PROFITABILITY REDUCES SEASONALITY AND CALLBACKS ASSURES CUSTOMER SATISFACTION HOME PERFORMANCE IS THE RIGHT THING TO DO

33 HOME PERFORMANCE IS A GAME CHANGER CLEARLY DIFFERENTIATES YOUR BUSINESS INCREASES YOUR MARGINS INCREASES YOUR PROFITABILITY REDUCES SEASONALITY & CALLBACKS IT ASSURES CUSTOMER SATISFACTION HOME PERFORMANCE IS THE RIGHT THING TO DO!

34 HOME PERFORMANCE THE WAVE IS HERE! BE ON IT! OR BE UNDER IT!

35 HOME PERFORMANCE CONTRACTING PRESENTED BY Comfort Energy Savings Guaranteed Mike Callahan

36 MISSING OR INSUFFICIENT INSULATION!

37 DUCTS LEAK!

38 Home Performance is a Game Changer for our HVAC business Jerry Unruh ABC Cooling & Heating Northern California

39 Is this the Secret Sauce? Offer a Complete, Bundled, Whole House Package that includes: Comfort Safety Lower Utility Bills

40 Is HPC Right for an HVAC Company? First Quarter typically the slowest 2012 Record Months Added HPC July of 2010 What we did yesterday may not work tomorrow!

41 Is HPC Right for your Company? Does it fit my Core Competency or Primary reason for being in business? Will it dilute my Focus? How does it impact my Business and Financial model?

42 How do you decide to make the time and financial investment? Let s put some real numbers on this: Marketing Costs are less than half Close Rate is equal to or higher than our other work Average Job is more than double Gross Margins average 13% higher 2 ½ times the Gross Margin Dollars for each job installed

43 Home Performance requires a Company Cultural Change High efficiency has been our green Zone Control has been our solution to Comfort HPC initially was a separate department HPC is now what we do

44 Summary of Benefits Home Performance is a game changer Clearly differentiates your business Increase your margins Higher average tickets Customers for Life Reduces seasonality Reduces callbacks

45 Why BPI Accreditation and Whole House Home Performance Contracting is Right for You Crushing Your Competition as a Whole House Home Performance Contractor John Jones BPI

46 What is BPI? Standards July 2010 Quality Assurance BPI Certification August 2012 Accreditation

47 Who BPI BPI Test Centers & Proctors BPI Certified Professionals Works With BPI Accredited Contractors BPI Utility Programs, State & Federal Government (GSA ) Home Owners Quality Assurance Providers

48 48 What is Whole House Home Performance Contracting? The systematic approach to improving the comfort, health, safety, energy efficiency and durability of your customers homes. It starts with standards.

49 49 Typical home full of systems Drainage system Foundation system Flooring system Wall system Ceiling system Roof system Insulation system Heating system Air conditioning system Ventilation & IAQ systems Moisture control systems Distribution system Exhaust systems Plumbing systems in/out Electric, Appliance & Lighting systems Energy management system

50 50 Need for Whole House Home Performance Contracting About one-third of owner-occupied homes are now at least 45 years old and an additional third is between 25 and 45 years old meaning that a large majority of our homes (about 56 million) were built before modern energy codes and are drafty, uncomfortable and expensive to operate.

51 51 BPI Whole House Home Performance Contractor Model Contractor is in control of the job cradle to grave Educate Customers on Whole-House Contracting Offer Whole House Solutions Get Key Staff Trained & Certified Follow BPI Standards in Your Work Do No Harm by testing out Participate in Independent, Third-Party Quality Assurance Program

52 Who BPI BPI Test Centers & Proctors BPI Certified Professionals Works With BPI Accredited Contractors BPI Utility Programs, State & Federal Government (GSA ) Home Owners Quality Assurance Providers

53 53 Keys to Whole House Contracting Verifying and ensuring the quality of your work Test Out

54 54 What is BPI Accreditation? A professional credential awarded by BPI to contracting companies who commit to offering comprehensive whole house home performance solutions for their customers.

55 55 BPI Certification vs. Accreditation BPI Certifications Measures competence of the individual through written and field practical exams BPI Accreditation A company credential showing whole company commitment to Quality Assurance

56 56 What s In It For Me, the Contractor? Brand Recognition Differentiation Access to Resources Educational Business Training Marketing Outreach Independent, 3 rd Party Quality Assurance Feedback on Best Practices

57 57 Are You Different from Your Competition? What makes your company different? Fully Insured? Bonded? Licensed? Experienced Techs? Free estimates? Emergency service? Guaranteed low prices? Better Business Bureau So is your competition So is your competition So is your competition So does your competition So does your competition So does your competition So does your competition So is your competition

58 58 Want to Make Your Company Different? Want to truly give your customers something different from your competition? Whole house solutions Not your competition BPI Accredited Company Not your competition BPI Certified Technicians Not your competition Customer Dispute Resolution Not your Competition 3 rd party Quality Assurance Not your Competition every man I ever knew that was good with a, and lived, always had an edge. Sure pays to have an edge. Outlaw Josey Wales 1976 Ask yourself, what s your edge?

59 59 Typical home full of systems Drainage system Foundation system Flooring system Wall system Ceiling system Roof system Insulation system Heating system Air conditioning system Ventilation & IAQ systems Moisture control systems Distribution system Exhaust systems Plumbing systems in/out Electric, Appliance & Lighting systems Energy management system

60 60 Summary of the Value Proposition SALES BENEFITS Offer customer complete solutions HP uses a systematic approach Expand your scope of services Improve your closing rates Increase referrals Be selective about projects Perform larger value projects OPERATIONAL BENEFITS Differentiate business Reduce staff down time Retain high quality staff Identify qualified staff to hire Minimize call back costs Fewer customer complaints Manage your risk Increase profit margins Ability to sleep, knowing you did it right, the first time

61 61 A Few Reasons to Get Accredited To reduce to the maximum extent possible your company s exposure to risk.

62 62 Benefits of Accreditation Commit to a quality management system Drive decision making into the field Encourage employees to problem solve

63 63 Benefits of Accreditation Test out Allow employees the freedom to make the changes that will reduce or eliminate callbacks Get to the root cause of callbacks

64 64 Callback: The most significant investment a company can make in building a negative image with its customers.

65 65 Minimize Your Company s Risk Investing in Accreditation Investing in training for employees Get key employees professionally certified Building Analyst + Specialty Certification Commit to educating customers Conduct comprehensive assessments Utilize a customer dispute resolution system Keep accurate records... (wait there s more.)

66 66 Return Air Furnace Filter Slot

67 67 Why Sponsors Choose Accreditation Minimizes Their Risk Build a strong contractor infrastructure capable of delivering house-as-a-system energy retrofits. Ensure that contractors work conforms to standards. Customer dispute resolution system in place. Independent, third-party quality assurance.

68 BPI Accreditation Recognizes HVAC Credentials Certification criteria for company accreditation: BPI Building Analyst certification; plus NATE (Oil or Gas Service or Installation certifications); or NORA (Silver or Gold certification); or RSES (one of three member designations)

69 Your HVAC experience counts Your NATE credential credited toward portion of BPI s Heating or A/C and Heat Pump exams Pass a 50-question instead of 100 question house-asa-system written exam and a field practical exam with the appropriate diagnostic equipment for health and safety testing.

70 70 This Is Too Expensive! I don t have the time or resources to invest in these kinds of systems. BPI s combined Accreditation/QA fee is $.003 for every dollar of revenue. Accreditation/Quality Assurance adds about $15 to the average $5,000 job.

71 71 Whole House Solution Costs How much does it cost to get BPI Accredited? 3 or 5 day training each for 2 Certifications: $1,200 x 2 = $2,400 (optional) BPI Certification Exam Fees: $550 x 2 = $1,100 Accreditation and Quality Assurance: 1,500/year Diagnostic Equipment: $8,000 Some contractors dedicate salesperson and a small technical crew for this part of their operation Total Estimated Initial Cost: $13,000 Average Project Size: $8,000 - $12,000

72 72 Example HVAC Franchise Costs How much does it cost for a duct sealing franchise? Franchise Fee $10,000 - $39,000 Diagnostic Equipment: $16,000 - $24,00 3 or 4 days of training at the contractor's facility, includes an actual home diagnostic and duct sealing strongly suggest a dedicated salesperson and a small technical crew for this part of their operation Total Estimated Initial Cost: $26,000 - $63,000* Average Project Size: $1,100 - $2,000** * **

73 73 The Best Reasons to Get Accredited Build your skills. Expand your work scope. Stand out from the crowd.

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