© AirAdvice, Inc. 2010 All rights reserved. Three webinars for commercial HVAC contractors,...

Three webinars for commercial HVAC contractors, presented by

Series Schedule

• Session 1 – July 22nd

Ensure Maintenance Agreement Renewals

• Session 2 – July 29th

Win New Maintenance Agreements

• Session 3 – August 5th

Drive Retrofit Project Revenue

Using Energy Services To…

Session #2: Win New Maintenance Agreements

Agenda for today:

• Review Key Points From Session #1• Positioning Energy Services as a Differentiator• Selling To New Service Prospects vs. Existing

Customers• Targeting Prospects• The Sales Process

Quick Review Of Key Session 1 Concepts

• Building owners’ perspective• Financial leverage of service• Why energy efficiency is important

Why Now – Building Owners’ Pain

• Tenants now have leverage• Immediate need to reduce operating costs and

improve cash flow• Tight capital budgets delaying retrofit or replacement

projects

The Financial Leverage of Service

PM Agreements $3.02

Service / Repairs $7.48

Projects $5.41

Total $15.91

Each $1 of service agreements generates the equivalent of $15.91 in new revenue

PM Agreements

Why Energy Efficiency is Important

Building Size Current

Energy Cost Savings Savings (sf) ($ per sf) (%) ($)

5% 1,000$

10,000 $2.00 10% 2,000$

25% 5,000$

5% 5,000$

50,000 $2.00 10% 10,000$

25% 25,000$

5% 10,000$

100,000 $2.00 10% 20,000$

25% 50,000$

Your Customers’ Time Horizon of Focus

2010 2011 2012 2013

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Your Customers’ Time Horizon of Focus

2010 2011 2012 2013

Q1 Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

What can I do to cut costs now?!

Your Talking Points

• We understand your need to reduce costs now• We have a unique approach• Not only addresses long-term cost of ownership • Identifies immediate operating cost savings • Cot savings will more than cover the cost of the service agreement • Positive cash flow from Day 1

Reposition Yourself in Less Than 30 Seconds

Reduce Operating Costs 30% without Capital

“Through implementation of no- and low-cost operation and management practices alone, buildings may see a reduction in energy consumption of up to 30 percent.”

Energy

Service/RepairsAdministrative

Cleaning

Grounds / Security

% of Total Operating Costs

ENERGY STAR Says…

““Energy use is the single largest operating expense in commercial office buildings.”

Winning New Maintenance Agreements

Hunter’s mindset required

Getting Started

1. Define Differentiated Offering

2. Target Prospects

3. Refine Sales Process

4. Establish accountabilities / incentives

How Will You Differentiate?

“I used to dread a customer asking, ‘What makes your company different?’ Now I welcome it.”

- Ted Hussey, Marina Mechanical

Energy Service Agreements

Energy Service Agreement Options

EnergyPremium

Energy PlusEnergy Basic

Continuous energy monitoring & verification Energy Savings Assessment™ (every 9 months) Energy Benchmark™ (quarterly)

Energy Service Agreement Tool Kit

Energy Benchmark™

Energy Savings

Assessment™

Energy Savings Audit™

Continuous Energy

Monitoring

What it Does

Benchmarks energy efficiency of building against peers

Identifies specific low/no cost savings opportunities

Focus on generating cash flow

Provides financial justification of proposed retrofit projects

Documents actual savings

Ensures ongoing energy performance

How it’s Used

Included as part of the Energy Service Agreement proposal

Sold as part of the Energy Service Agreement

Used as needed to justify retrofits

Sold as part of the Energy Service Agreement

Targeting Prospects

Attractiveness: # of buildings, type, size

Receptiveness: How motivated are they?

Target the Correct Decision Making Level

% of Time Spent Position What Motivates Them Why Talk to Them

20% 30% VP Finance, VP Operations, VP Facilities

• Reducing operating costs (management pressure)

• Decision maker for service

45% 60%Facilities or Plant Manager / Director

or Property Manager

• Happy tenants• Looking good to their

owners

• Can influence decisions• Partner with them to go

upstairs• In the loop w/ current service

provider

10% 20%CFO / COO / Controller

• Overall operating cost and corporate objectives

• Needed to approve decision• Can direct activities

5% 10%Building Engineer/Operator

• Minimizing downtime• Reduced complaints

• Close to mechanical equipment

• Need to win them over• May have veto power

Energy Service Agreement™ Sales Process

Get the Meeting

1st Meeting - Introduction

Building Survey / Energy Benchmark

Present the Proposal

Close the Service Sale

Sell Energy ServicesNot an Opportunity

Confirmation / Verification

How Energy Services Impacts Sales Funnel

1st Meeting

Proposal

Survey

Confirmation

1. Increase conversion rate from dials to 1st meetings– Industry average ~ 2 - 3%

Delivering a differentiated message will increase 1st meetings

1st Meeting

Proposal

Survey

Confirmation

2. Increase close rate of proposals– Industry average ~ 30%

Delivering clear value will increase close rate

3. Sell standalone energy services

Not ideal, but it’s a start

Get the Meeting

1st Meeting - Introduction

Building Survey / Energy Benchmark

Present the Proposal

Close the Service Sale

Sell Energy ServicesNot an Opportunity

Confirmation / Verification

Step in Process Currentw/ Energy Services Offering

Impact to Bottom

Increase conversion rate from dials to 1st meetings 3% 4% 33%

Increase close rate of proposals 30% 40% 33%

Option for “energy only” agreements establishes business relationships

0% 20% 100%*

Combined effect: Increase sales by nearly 3X!

Step #1: Get The Meeting

• Explain how you’re different• I can show you how we will reduce your

operating costs

Prospecting and Setting Appointments

Cold Calling

Marketing Leads

CustomerReferrals

Sales Approach

We’re reaching out to help building managers improve cash flow by generating immediate

savings

Trying to cut operating costs?

Mr. Jones recommended I speak to you – we recently cut his energy costs $20k

Requires Calling scriptsTime + focus

Marketing campaign

Good reputation

Tools Required Phone scriptEnergy Services

Letter /EmailEnergy Services

Testimonial

Step #2: First Meeting

Identify pain AND create doubt

• Uncover financial pain• Create a spark• Get agreement on simple next step

Step #3: Present & Close

The goal: Verbal close

• Energy Benchmark results• Options / recommendation• Trial close

Energy Star Benchmarking: The On-Ramp

• Energy metrics– Cost per sf– Energy usage index

(kbtu/sf)– Carbon footprint

• Comparison to peers– ENERGY STAR® Energy

Performance Rating– Energy Cost Comparison

• Comparison to peers– ENERGY STAR® Energy

Performance Rating– Energy Cost Comparison

• Opportunities for savings

Energy Assessment

• Low & no cost savings

Energy Assessment

• Backed-up withyour building assessment data

Step #4: Propose Energy Service Agreement

Winning Proposals• Overall customer benefits vs pain points• Document current building performance• Deliverables / Scope of Work• Analysis of total cost of ownership• Relevant references

Motivate Your Sales Team

Clearly define sales expectations and incentives– 2 Energy Benchmarks per week– 2 Energy Service Agreement per month

Commission100$ 10% of revenue from assessment / audit value20%

Quantity Average ValueAnnual

Commission2 per week 10,000$ 1 per month 2,500$ 3,000$ 2 per month 4,000$ 19,200$

32,200$

Energy Solutions Sales Incentives

per benchmark

of Year 1 agreement value

ProductEnergy BenchmarkEnergy Savings Assessment / Audit (stand-alone)

Energy BenchmarkEnergy Savings Assessment / Audit (stand-alone)

Energy Service Agreement (recurring)

Potential Annual Earnings:

MechanicalMechanical

What Will it Take to Overcome Sales Inertia?

In order to… Your salespeople will need…

Sell it at the right price Pricing guidelines

Know what to sell Clearly defined offering

Communicate the benefits Sales literature

Close business Contract document

Be motivated to sell Defined sales incentives

Key Takeaways

1. Prospects need your help, they don’t know you can

2. Taking share requires sales to become hunters

3. Integrate Energy Services into Service Agreement

4. ESA’s are not cost centers, they generate cash

5. Develop 30 second commercial

6. Set expectations with sales regarding weekly targets

7. “Sell” free Energy Star benchmarks

$1 in Service Contracts Generates $15.91

© AirAdvice, Inc. 2010 All rights reserved. Three webinars for commercial HVAC contractors,...

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