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 [email protected] ManagerFacilities ManagementAuburn University
From: Lee, JeremySent: Tuesday, August 14, 2012 11:21 AMTo: [email protected]: 'Werth, George [FM] ([email protected])'; 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/[email protected]
Jon SymkoSenior Account Manager Education and Government Vertical SalesTrane Commercial Systems Climate Solutions – Ingersoll [email protected]
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.
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