Vol. 12 Issue 12

TTCCPPNN TTOOPPIICCSSThe Latest Information for Trane Offices using the Cooperative Purchasing Network

2012

A MESSAGE FROMJON SYMKO, TCPN TRANE

COORDINATOR

And the beat goes on…records keep falling. We are 153%

over 2011 booked orders at this time last year. And here is

the good news…most of this increase is coming from newer

offices just getting into the program. Still, less than 100 sales

people nationwide have really geared up for using this tool

and only 27 have sold over $250K. Maybe that is why we still

aren’t taking advantage of the full scope of this program. If

more sales people followed and applied the TCPN Success

Formula, we would grow our share exponentially. If you need

any assistance in applying the Formula or knowing more about

it, please contact me and let’s set a time to help.

The most existing news in the second quarter was the hiring

full time of Esmeralda Calvillo who will be assisting Sonia

Luna on maintaining our labor intensive reporting program as

well as providing the field with TCPN quote numbers and

following up with everyone on proposals, project status and

fees. Please welcome her to the TCPN family!

Some exciting new products were introduced in the 2nd

quarter. We have added Trane’s solar panels to the pricing

matrix as well as Intelligent Services. Con-Serv Heat

Recovery ventilator, a Trane affiliate, was also added. Lastly

a unique water treatment product line, eH2O was added. I

have included a introduction to them in this newsletter. Please

review and contact Rob Peterson if you have any

opportunities.

We held the Level II Labor Solutions Seminar for the West

territories in May in Dallas. About 35 attendees learned how

to leverage the TCPN tool through sales persons’ testimonials

and presentations by superintendents, facilities directors and

purchasing directors. Role plays were used to reinforce the

teachings in the day and half seminar.

Inside this Newsletter are some very interesting articles and

valuable information. The first is an article from the

ASHRAE Journal on school construction as well as some

tips on IAQ for schools. Secondly is an RS Means

schedule for classes for learning estimating. I have

personally attended one and found out a lot of new

information. If you doing a turnkey chiller replacement

project, consider contacting Mason Industries on selling

them the old chiller. You potentially can reduced the overall

cost of the project to your customer or increase your

margins.

When a customer recognizes the benefits of the program

and is presented as we teach, great things happen. Please

find a memo from Auburn University on the parts program

that was introduced in the first quarter. Kudos to Jason

Ouzts and Craig Elliott. This is exactly how offices can use

this tool to not only increase their revenues on their

traditional business but spread this to all revenue streams.

Many of you have asked, how do we introduce our clients to

TCPN? Some of you, like Jeremy Lee from Kansas City

office are very adept at describing the program in e-mail

form. In this issue I have included a very well written e-mail

that describes the program to his customer. Use it as a

template to also assist in describing the program to your

customer.

Lastly, I am attaching a sales articles that I have in my

personal portfolio that I think means something in the way

we approach this TCPN tool to our customers. I hope you

enjoy this and make you think a little.

Remember to visit the TCPN portal where you will find the up

to date customer lists, brochures, SPA, equipment matrix,

PowerPoint Presentations and other pertinent information.

The portal is located under the K-12 vertical market section or

through National Accounts section. Here is the link:

https://home.ingerrand.com/Our%20Businesses/ClimateSoluti

ons/Sales/National%20Accounts/Forms/AllItems.aspx?RootFo

lder=%2FOur%20Businesses%2FClimateSolutions%2FSales

%2FNational%20Accounts%2FTCPN

Again, we would appreciate any feed back you may have on

improving this newsletter and we are here to assist in making

the program work in your territory.

Thank you,

Jon SymkoStrategic Account Executive

MEET TCPN PERSONNEL

Esmeralda Calvillo

I currently am the Administrative Assistant for Jon Symko at

TCPN Trane. I received my certification for Medical

Assistant in 2002 and worked in the medical field for 5

years. With the birth of my daughter Madison in September

2007, I decided to become a stay-at-home mom for couple

of months after I decided to go back to work. I entered the

education field and was employed at Harris County

Department of Education in an alternative school at

Highpoint East as of Site Secretary for 4 years. A better

opportunity was presented for administrative assistant and

I’m glad to be on board with TCPN Trane.

11280 West Road · Houston, TX 77065Toll Free: (888) 884-7695

Toll Free FAX: (800) 458-0099www.tcpn.org

TCPN ACTIVITY 2012 YTD 2nd QUARTER TOTALS

DISTRICT OFFICE ZONENUMBER

YEAR TO DATEAMOUNT

HOUSTON 1 $3,116,541

DALLAS 2 $10,815,406

SAN ANTONIO/AUSTIN 3 $198,521

SHREVEPORT 4 $114,042

EL PASO 5 $1,748,598

ARIZONA 6 $665,647

ARKANSAS 7 $1,961,485

NEW MEXICO 8 $513,096

OKLAHOMA 9 $141,523

WICHITA 10 $1,430,899

KANSAS CITY 11 $100,390

PHILADELPHIA 12 $282,461

TENNESSEE 13 $110,356

PORTLAND 14 $0

WASHINGTON 15 $2,010,000

SAN FRANCISCO 16 $0

WILMINGTON 17 $0

GULF SOUTH 18 $202,756

DES MOINES 19 $0

ROCKY MOUNTAIN 20 $127,866

LAS VEGAS 21 $0

GREENSBORO 22 $1,517,294

VIRGINIA 23 $268,883

FLINT 24 $0

CHARLOTTE 25 $38,949

SACRAMENTO 26 $224,934

ATLANTA/BIRMINGHAM 27 $140,140

NORTH JERSEY 28 $6,897

BALTIMORE 29 $286,969

CHICAGO/GRAND RAPIDS 30 $667,236

PENNSYLVANIA 31 $18,887

MINNESOTA/DAKOTAS 32 $336,123

WISCONSIN 33 $0

OHIO 34 $609,586

LOS ANGELES 35 $0

DAYTON 36 $2,514,375

WASHINGTON DC 37 $550,017

SAN DIEGO 38 $0

ST LOUIS 39 $0

SOUTH FLORIDA 40 $19,104

NORTH FLORIDA 41 $0

CENTRAL FLORIDA 42 $1,380,197

NORFOLK 43 $19,822

CLEVELAND 44 $2,141,620

AIRDYNE A $0

CLARK SECURITIES C $43,848

TOTALS $34,324,468

2ND QTR 2011 $22,429,985

% INCREASE 153%

2012 2nd QUARTER

SIGNIFICANT TCPN PROJECTS

CUSTOMER/PROJECT TYPE OFFICE AMOUNT SALESMAN

Port Neches Groves ISD Houston $930,670 Mike Bee

Various Replacement Turnkey Projects

Friendswood ISD Houston $346,618 Cory Grant

Screw machines-Equipment

Spring ISD Houston $450,601 Mark Thompson

Boiler replacements

Texas A&M University Dallas $170,000 Joe Lucash

Campus wide PM contract

Denison ISD Dallas $352,760 David Nation

Pre-purchase equipment for Bond

Wylie ISD Dallas $373,665 Rusty Reeves

Turnkey replacement of RTUs

Stephen.F.Austin State University Shreveport $104,854 Mike Temple

UV lights on 52 AHUs

Ysleta ISD El Paso $959,176 George Hernandez

Boiler replacements

Bentonville Schools Springdale $1,116,382 Springdale sales teamPre-purchase equipment & ctrls forBond

Chehalis School District Seattle $1,050,000 James Kershner

PACT

Steilacoom School District Seattle $960,000 James Kershner

PACT

Duplin County School District Raleigh $810,201 Tim Gasper

Turnkey chiller replacements

Town of Wytheville Roanoke $268,883 Rod Thaxton

Master Service Agreement

McHenry College Chicago $667,236 Laura Michel

Controls retrofits

City of Kissimmee Orlando $166,083 Allison Hunt

Equipment & Controls changeout

Palm Beach County Palm Beach $134,662 Jim Neveils

Replace AHUs

Lorain County Community College Cleveland $2,141,620 Tom Whitehead

Complex Turnkey

Texas A & M University-Commerce Airdyne $43,848 Bryan Becker

Air compressor replacement

TCPN SALES STARS

2012 2nd Quarter TCPN Sales Warriors

OFFICE

Jason Bishop Houston

Jack Dennis Houston

Mike Tabb Houston

Matt Guthrie Houston

Linda Schneider Houston

Mike Daley Houston

Matt Quinlan Houston

Jamie Banton Dallas

Mike Faulkner Dallas

Lisa Garrison Dallas

Scott Myerkord Dallas

David Nation Dallas

Ronnie Weems Dallas

Taylor Shephard Dallas

Shirley Ross Ft Worth

Jeff Page Austin

Gary Dennis San Antonio

Karen Lewis San Antonio

Tony Moncado San Antonio

Scott Naab San Antonio

Chris Villasana San Antonio

Marcus Harmon Shreveport

Mike Temple Shreveport

Jorge Polanco El Paso

Jamie Batsell Phoenix

Marshall Kaufman Phoenix

Peter Jacobs Phoenix

Dan Skiba Phoenix

Todd Castleberry Little Rock

Jim Bradford Springdale

Tim Berends Wichita

Craig Singer Wichita

Greg Schnakenberg Kansas City

Tim Andrel Philadelphia

Michael Hennessey Philadelphia

Katie Sandy Philadelphia

Chris Van Sant Philadelphia

Marty Petrusek Memphis

Bryce Karcher Pensacola

Tracy Henderson Pensacola

Jeffrey Harrison New Orleans

Casey Kirk Baton Rouge

Matt Horner Ft Collins

Jack Krawczyk Raleigh

Eric Cassidy Raleigh

Tim Gasper Raleigh

Jessica Blanton Wilmington NC

Jim Brodeur Columbia

Keith Tan Sacramento

Burt Wade Birmingham

Craig Elliott Montgomery

Michael Hennessy North Jersey

Jake Luthi Pittsburg

Charles Holt Minneapolis

Dan Gust Toledo

Nate Hull Cincinnati

Kathleen Taylor Detroit

Bill Litz Wash DC

Joe Mulligan Wash DC

James Fusco Wash DC

James Desousa W Palm Beach

Jim Neveils W. Palm Beach

Jason Aki Orlando

Allison Hunt Orlando

Buddy Hamblin Norfolk

2012 2nd Quarter TCPN Bronze Warriors (>$250K)

2012 2nd Quarter TCPN Silver Warriors (>$500K)

OFFICE

Mike Bee Houston

Tommy Morton Dallas

Jacob Sublett Lubbock

Adam Frankenberger Springdale

James Tarcola Phoenix

Eric Webster Alburqueque

Laura Michel Chicago

Jeremy Sockwell Orlando

2012 2nd Quarter TCPN Gold Warriors (>$1 MM)

OFFICE

Steve Knight Houston

Cory Grant Houston

Joey Johnson* Dallas

Rusty Reeves Dallas

Keith Glasby Ft Worth

Russell Ortiz El Paso

JD Howard Raleigh

Rod Thaxton Roanoke

Bob Lee Baltimore

Bill Amann Minneapolis

Bob Haun Cincinnati

OFFICE

Mark Thompson Houston

Joe Lucash* Dallas

George Hernandez El Paso

Mark Raabe Springdale

Brett Miller Wichita

James Keshner Seattle

Rodney Rhoades Dayton

Tom Whitehead* Cleveland

eH20

eH2O, LLC specializes in novel water feed and water process systems for HVAC. The success of

this company started in 1999 with two Ph. D chemists and a metallurgist in the newly developing

non-chemical water treatment field. The founding member was specialized in automotive

engineering and quality control and used this knowledge to improve the water cooled side of the

HVAC industry. This experience led to zero (bleed) blowdown cooling towers that are currently in

operation for over a decade. Other triumphs include drinking water standards for cooling tower

systems. Achieving results such as this, it allows secondary use of blowdown water for

secondary use such as landscaping and LEED contributions. Another important feature carried

over from automotive quality control is complete process control on cooling tower systems that

includes Design Failure Mode Analysis. These strong engineering and quality practices with

understanding of how water chemistry and HVAC equipment perform together led to other

systems for the HVAC industry. This prompted proper chiller feed systems, a need in the industry

that was never available. Current HVAC media filtration was evaluated and the inherited problems

with those systems were re-engineered and corrected. The practice of brushing tubes at the end

of the season that is an energy drain was resolved with cleaning systems that operate during the

season on lag equipment. Evaporative Condensers that are plagued with scale are resolved with

an unsurpassed coil cleaning technique. Cooling tower basin sweepers that do not function

properly were redesigned with a basin cleaner that provides 100% protection and makes

downstream strainers redundant. This person to contact at eH2O regarding these systems is Rob

Peterson. He is very approachable and easy to work with and can be contacted at 248-231-1064.

Auburn UniversityAuburn Alabama 36849

Materials Management Facilities Management

Subject: HVAC Air Filters Under New TCPN Contractwith Support of Trane Parts Division for our PreventiveMaintenance and Materials Management Operations.

Auburn University Facilities Management during recent trials from3 major Filter Suppliers has awarded HVAC Filter Contract to TraneParts based on overall best service based on our needs here at Facilities.From my standpoint as Materials Manager we are excited about howwe can use this TCPN Contract to not only maintain our campus butalso modernize as well. Just in time shipments, better quality filters,all documentation complete and most of all superior service and technical supportfrom both Trane and Trane Supply. PreventiveMaintenance under Lee Smith are in a transition period as rezoninghas given his staff more ownership of the buildings they work in.This will no doubt expand how PM will maintain our equipment andwe know that Trane will be a large part of our success in the future.

Thankyou

Darrel Highhighdar@auburn.eduMaterials ManagerFacilities ManagementAuburn University

From: Lee, JeremySent: Tuesday, August 14, 2012 11:21 AMTo: jerry.clements@da.ks.govCc: 'Werth, George [FM] (George.Werth@da.ks.gov)'; Symko, Jonathan; Stuart VerdonSubject: The Cooperative Purchasing Network (TCPN)Attachments: TCPN Kansas (KS).xlsx; TCPN Presentation.pptx

Jerry,

It was good to speak with you yesterday. It is nice to develop and sustain a trusting relationship with you that I also

had with Galen for several years. Please see our previous e-mail discussions further below.

Please see the summary of our discussion yesterday including a description of TCPN and the inherent benefits to

the State of Kansas. Please see the attached presentation I shared with you. I understand the next step is to

discuss this procurement option with Chris Howe. Please let me know how I can continue to assist.

Consortium/cooperative purchasing is an option for you to direct purchase Trane equipment, Evapco cooling towers,

chilled water pumps, and other ancillary equipment at competitively bid prices while still complying with Kansas State

Statutes. You have the option to only purchase equipment and still traditionally bid out the labor, engineering, and

service. Consortium purchasing allows you more control to make fiscally responsible decisions for the State of

Kansas. You raised valid concerns about service based solutions potentially increasing their rates once the State is

“locked” into an agreement. I will continue to be fully transparent with my equipment, labor, and service offerings to

the state. The equipment pricing and labor rates are pre-bid through TCPN and will not change.

The Cooperative Purchasing Network (TCPN) http://www.tcpn.org/ is sponsored by the Region IV Education Service

Center located in Houston, Texas. TCPN is available for use by all public and private schools, colleges, universities,

cities, counties and other government entities in all 50 states. The State of Texas, through Chapter 8 of the Texas

Education Code, has allowed these non-taxable governmental entities to purchase goods and services through

cooperatives such as TCPN. TCPN complies with the Interlocal Cooperation Act (Chapter 791 Subchapter A and B

and Article 61.65 of Vernon’s Annotated Texas Civil Statutes). Under these laws, state agencies can legally

contract for goods and services. All states have reciprocity agreements with Texas and, through various state entities

and agencies, non-taxable entities can access the TCPN contract. TCPN procedures have been ISO 9001:2008

certified for 6 years and are independently audited twice yearly. Trane has successfully bid for an exclusive contract

to provide equipment and services for HVAC and plumbing solutions plus additional services.

TCPN will not charge the State a fee or cost for participating in this cooperative. TCPN is funded by collecting a 3%

Fee from Trane on the contract or purchase order amount on every transaction. This fee funds TCPN and supports

a large support network to assist you. In the event the State is audited, TCPN will support us in showing that we are

regulatory compliant with State Statutes. Every order is registered, documented, and stored within TCPN. TCPN

has a team of field representatives that will assist us as needed.

Along with HVAC items that George and I discussed with you yesterday, there are also several non-HVAC related

items the State can procure through TCPN. Please see the links below.

Here is a link to review by vendor listed alphabetically.

http://www.tcpn.org/default.aspx?name=tcpn.vendors&ST=KS

Here is a link to review by commodity listed.

http://www.tcpn.org/default.aspx?name=tcpn.commodities&ST=KS

The advantage of TCPN is to avoid the time and expense of going through the competitive process for each

individual participating entity. Writing specifications, evaluating bids, considering value engineering, and dealing with

the frustrations of low cost manufacturers that do not perform are a costly use of your time. TCPN allows you to

select a manufacturer and utilize competitively bid pricing to make a true life cycle decision and quickly move to

procurement. The pricing to you through TCPN is very competitive. I have specific discounts I am required to apply

to all equipment. I compared this to what I typically bid and it is in line. TCPN is currently processing orders from

over 33,000 participating entities (as of June 1, 2012). TCPN’s volume today is ~$1 Billion annually. Trane’s volume

within TCPN is ~$45 Million annually. Attached is all of the current users of TCPN within the State of Kansas. Their

volumes of purchases range from $110 with Bourbon County to over $2 Million with Stockton USD 217. We met with

the director of procurement with Washburn University (WU) late last week. We are aligning WU for TCPN

procurement as well.

In summary, the purpose of TCPN is to:

o Provide state government entities opportunities for greater efficiency and economy in acquiring goodsand services.

o Take advantage of state-of-the-art purchasing procedures to insure the most competitive contracts.o Provide competitive price solicitation and bulk purchasing for multiple government entities that yields

economic benefits unobtainable by individual entities.o Provide quick and efficient delivery of goods and services by contracting with “high performance”

vendors.o Equalize purchasing power for smaller entities that are not able to command the best contracts for

themselves.o Maintain credibility and confidence in business procedures by maintaining open competition for

purchases and by complying with purchasing laws and ethical business practices.o Assist entities in maintaining the essential controls for budget and accounting purposes.

I have supported Trane since 2004 and Topeka since 2007 and will be here for several years in the future. I will

continue to be your point of contact for questions. Stuart Verdon (TCPN) and Jon Symko (Trane) are others you can

also contact if needed. I share this with you to reinforce that this procurement option for the State is sustainable and

the benefits to the State are broader than the HVAC equipment in question.

Stuart VerdonFacilities Consultant/TCPNsverdon@tcpn.org713-459-6009

Jon SymkoSenior Account Manager Education and Government Vertical SalesTrane Commercial Systems Climate Solutions – Ingersoll Randjisymko@trane.com281-569-2880

Please let me know if you have any questions.

Thanks,

Jeremy Lee, LEED®

APHVAC, Process, Controls ConsultantTel: 785-272-3224 Cell:913-208-8215www.traneengineer.com/

Four ways to work through the 'If it ain't broke,don't fix it' problemHere’s a scenario we’ve all faced at one time or another: A prospect or customer won’t consider your offering eventhough it’s noticeably better or more cost-effective than what they are using now.

Your solution is superior, but they won’t budge from using an inferior one. Sales coach Dave Kahle calls this the “ifit ain’t broke don’t fix it” problem, and points to three basic reasons for it:

1. The perceived benefit from switching the product is not worth the time and effort the customer must invest inthe change process. Maybe he has to work off old inventory, rewrite protocols or train people how to useyour new system.

2. The potential change infringes on a well-established relationship. Maybe your competitor performs otherservices that would be jeopardized. Or lets your buyer use his condo in Florida. In either case the relationshiptrumps your benefit.

3. The risk isn’t worth it. Every decision comes with a perception of risk and a perceived cost. What happens toyour decision maker if the switch doesn’t work out as you say it will? What grief does that cause thecustomer? What emotional turmoil, job stress and personal pain does it cause?

As is almost always the case, the solution becomes clearer once you analyze the problem – especially when you lookat the situation from the point of view of the prospect or customer.

Here’s a scenario we’ve all faced at one time or another: A prospect or customer won’t consider your offering eventhough it’s noticeably better or more cost-effective than what they are using now.

Your solution is superior, but they won’t budge from using an inferior one. Sales coach Dave Kahle calls this the “ifit ain’t broke don’t fix it” problem, and points to three basic reasons for it:

1. The perceived benefit from switching the product is not worth the time and effort the customer must invest inthe change process. Maybe he has to work off old inventory, rewrite protocols or train people how to useyour new system.

2. The potential change infringes on a well-established relationship. Maybe your competitor performs otherservices that would be jeopardized. Or lets your buyer use his condo in Florida. In either case the relationshiptrumps your benefit.

3. The risk isn’t worth it. Every decision comes with a perception of risk and a perceived cost. What happens toyour decision maker if the switch doesn’t work out as you say it will? What grief does that cause thecustomer? What emotional turmoil, job stress and personal pain does it cause?

As is almost always the case, the solution becomes clearer once you analyze the problem – especially when you lookat the situation from the point of view of the prospect or customer.

Reduce the effort or increase the benefitMost customers have too much to do and not enough time in which to do it. They don’t need another project. So, ifthe reason they don’t budge is that the benefit of changing doesn’t seem worth the effort, you must either reduce theeffort or increase the perceived benefit.

Some options for reducing the effort:

Offer to do as much of the work of changing as you can. For example, work with IT to provide necessarydata in a format that’s easily imported into their existing system.

Show them an Action Plan and Timetable that breaks the project into smaller and less daunting parts.Perhaps you can use a plan that worked well for an existing customer.

Offer to train key employees in the through the details of your solution. Make it less costly in time and effort.

On the other side of the equation, you can make the benefit appear bigger and more attractive. Consider theseapproaches:

Dig deeper into the numbers to show more compelling financial justification. If your 5% savings in unit costdoesn’t move the needle, express it in terms of annual top line or bottom line payoffs.

Show the effect of your solution on the customer’s processes in terms of productivity, efficiency or time tomarket. Estimating the “soft costs” saved can make your argument more compelling.

Forecast the impact on the customer’s customer, or his upstream and downstream supply chain.

Reassure and reinforce established relationshipsWhen the prospect or customer is in bed with a competitor (figuratively speaking of course), the landscape getstougher to navigate. Much depends on the nature of the relationship that is already in place.

For example, the competitor may be providing other services or products as part of a package deal. The competitormay inventory product for them, or provide special packaging or terms.

The countering strategy in this case is to find out as much as possible about the existing relationship and either: (1)meet or exceed what the competitor is delivering, or (2) reassure the customer that their existing relationship is notgoing to be affected by giving you the piece of business that is on the table. Again, emphasize the benefits ofworking with your organization, and be open to taking a “fallback” position.

Reduce perceived riskRemember, risk is perception, not necessarily reality. You can reduce the customer’s perceived risk with acombination of tactics that go beyond the guarantees and warranties everyone offers.Here are some strategies to consider:

Make the product seem more real by having the buyer see it in operation in a different customer’senvironment.

Show people successfully using your product or service — for example, showing pictures or video of othercustomers using it. Back this up with letters of recommendation and testimonials.

Bring the customer into your facility, and let him or her meet the people who make things happen for you.

A final thoughtCustomers will often take action to avoid intense pain rather than achieve some vague benefit. If you can identifysignificant pain the customer is experiencing, and show how your solution makes the pain go away, you will providethe customer with the kind of significant motivation needed to shove all three of the reasons we’ve discussed heredown the list.