Harnessing Technology for HVAC
Help customers find software solutions for their inventory issues
There are countless ways to use new technologies to increase sales in HVAC distribution, whether it’s with a state-of-the-art software system, such as sales-tracking and -management software, or various inventory-management services. The key is picking an area of a contractor customer’s business that needs improvement and investigating all of the technology that could be applied.
I have been working with customers who have struggled with inventory problems that leave their technicians hunting for parts, which cuts into company profitability. It is important that service technicians act like lawyers: They should always be charging for their time. If a technician has to drive to pick up a part, he or she cannot always charge for that time, and that can cut into the profit that should come out of that technician’s calls for the day.
It is important to fully understand how problems like that can sink the ship. I've helped implement technology to keep contractors’ service trucks fully stocked and on the road, so that technicians rarely have to leave a job site and can continue to charge for every minute of their labor.
To make placing orders at our online store simpler, I create parts descriptions that are easy to understand. Coupled with QR codes that can be scanned with any smartphone, they help a technician easily create a parts order. The order then goes to the service manager to approve or disapprove. If the order is approved, it is automatically submitted to our online store, and the product is received by the customer the following day.
The use of this technology has allowed an unprofitable service department to regain control of its billable work time, which — of course — has made it possible for the department to become profitable. Chances are, if you work for any distribution company, there are many technological tools at your disposal. The question is whether you are putting them into action or not.
A good territory manager will use all the tools available to assist customers in succeeding. Distribution professionals need to understand where their customers might have difficulties, and then figure out what technology will best solve their problems.
It could be as simple as downloading various apps that could help a technician troubleshoot a problem unit, or implementing sales-tracking and -management software that you've had success with. Encouraging contractor customers to use that software could help them to better manage incoming leads and opportunities.
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I find that most salespeople are reluctant to employ technological solutions for fear that they are not going to have the effect that they hoped for, or that they will make a mistake during implementation. You must embrace technological solutions in our field or you will be left behind. If you can find a way to take away a customer’s problem and make things much easier for them, you will have a loyal customer for whom pricing is no longer such an issue.
It all starts with asking your customers detailed questions about running their business. A simple, “How’s it going?” or, “Are you staying busy?” will get you nowhere. You need to start asking deeper, more probing questions if you are going to partner up and be of some real assistance to your contractors. A few sample questions: How many service calls on average do your techs run on a normal day? How often do your techs have to run to get parts, and are they able to charge for that time? (The answer is that they almost never charge for the time spent picking up a part.)
I agree you should not charge to pick up a part that you should have on your truck. That is a problem that has to be eliminated, but if the consumer has a dinosaur of a unit and is refusing to replace it, you cannot be expected to have a part for 25-year-old system on your truck, and you should charge for your time to get what is needed for the repair. The customer knows roughly how old their equipment is and will understand the need for your tech to find the right part.
You cannot charge for a common part that should be on the truck, and that is where you can offer technological solutions to keep trucks stocked. That can probably help technicians each run at least one more call per day. If the average service call generates $300 and you have five techs, you just added $1,500 extra dollars in revenue a day, or $7,500 per week, or $30,000 dollars a month.
The legwork to set up a technological solution can be extensive, but once completed you will have aligned yourself with the contractor and will have become part of his or her team.
I have been providing training for my contractors to teach their techs the importance of having trucks stocked properly. The average tech thinks the service department is a giant money maker when in reality it is typically the least profitable part of a contractor’s business. The overhead it takes to run a service department — including salaries, benefits, vehicle payments, vehicle insurance, building rent (or mortgage), and utilities — is high, and if you can help contractors understand how much they should be charging per call, and help them find ways to keep trucks properly stocked in order to minimize the time techs spend running for parts, you will become more than a salesperson, you will become a trusted adviser.
Happy selling!
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