For Dan

Chris Reak

This is an excellent post. Honestly, I am mostly a forced air guy, with quite a bit of knowledge in hydronics and am very limited in steam. I have wrote about this same issue and would like to expand on it. I ask contractors to list three reasons a customer would buy from them. Here is what I get:

1. 24 hour emergency service
2. quailified technicians
3. honest and dependable

Are they being truthful? Most I think believe they are. Some however are hoping they are.

On the forced air side of things, the name brand is really not the selling point of the job. A 75,000 btu 90% furnace is a 75,000 btu 90% furnace. Less than 2% of consumers are what you can consider name brand specific.

So what does this mean? It means if you are selling the same services {look at the three above} and the same equipment {a 75,000 btu 90% furnace is a 75,000 btu 90% furnace} as everyone else, what is the customer going to concentrate on? The PRICE! We are forcing our customers to focus on price, and then we complain about it when we lose. The equipment is the same. Some contractors think Weil-Mclain is the best, others go with Burnham. Do not allow the customers to base who gets the job purely on price. The list is great, but come up with your own list why customers should buy from your company, laminate the sheet, give it to your techs and have them memorize the list. That way, when selling or quoting new equipment, they are offering DIFFERENT services.

Example: Company A is selling a 150,000 btu Weil-mclain boiler replacement for $2800. Offers 24 hour emergency service, qualified techs and honest and dependability. Company B is selling a 150,000 btu Burnham boiler with 24 hour emergency service, qualified techs and honest and dependability for $3500. Who does the customer go with and why? Doesn't matter if they are qualified, honest or dependable. The customer views buying the same equipment and services. Now, that being said, some customers are going to concentrate on price no matter what you do. If this happens, RUN!

Thanks
Chris Reak

And sorry this is so stink'in long!

Tom Towne

My thoughts on the Munchkin 140 $8500 post

Hello Dan

Just a couple of HO observations and possible suggestions here after reading the "Munchkin 140 over $8000 reasonable?" post. Obviously there are always going to be contractors as well as "true profesionals" here on the wall. The profesionals do things such as what Mark Eatherton posted the other day. Actual test data of reflective barier and fiberglass insulation in several different combinations with graphs. Now that is professional!!!

In my opinion what turns HO's off is the "just pay for it attitude" from some of the "not so profesional" contractors. In the end, if a HO is going to get a "profesional system" they would likely expect the proper components on a flawless job with that is a beauty to look at as well. I have seen such systems posted in photos here on the wall. My opinion is that someone would expect to pay a mid to hi quote for such a system. They just don't want to pay the top dollor for a crap job. That is what I worry about on any contracted job and I expect it is everyones main worry.

To earn money In my line of work I need to present a cost analysis for the products I sell. In all cases I do not expect my customer to buy my product unless it "makes them money". There is more work involved but I believe that heating "professionals" with photos of similar completed jobs along with actual savings numbers over there current systems would have easier sells with HO's.

DanHolohan

Got it.

And I agree. What often goes on here is that contractors work hard and they get frustrated because they're only human. Most Wallies do superb work and know that they deserve their price. I put Floyd, for example, in that catagory. He works hard, and he's passionate. I love that, but as he said, his specialty is not writing, nor is it marketing. He's a mechanical contractor and he does great work. I can't hold his coat when it comes to that, and I'll say that about most of the Wallies. I marvel at their skills.

The challenge for our industry, as I see it, lies in the marketing, however. We have to be able to tell a convincing story to the consumer, and we have to prove value. Consumers will pay the price, but we have to show them that it's worth it. Many contractors do not know how to market themselves, and they're not comfortable wearing the sales hat. They just want to get to work and put in the stuff. I understand this as well.

What I find in that Munchkin post are many lessons. You've pointed out some of them. I see others as well. I hope that the Munchkin people, as well as other manufacuturers, archive that thread and re-read it often. It is, in large part, the reason why hydronics holds such a small portion of the North American heating market. We have no survival model, as the Bean points out, and we haven't taken the time to put together at least 100 reasons why the public should do business with us.

We must prove value every time.

Please read this from this month's PM magazine:

100 Reasons

DanHolohan

Got it.

And I agree. What often goes on here is that contractors work hard and they get frustrated because they're only human. Most Wallies do superb work and know that they deserve their price. I put Floyd, for example, in that catagory. He works hard, and he's passionate. I love that, but as he said, his specialty is not writing, nor is it marketing. He's a mechanical contractor and he does great work. I can't hold his coat when it comes to that, and I'll say that about most of the Wallies. I marvel at their skills.

The challenge for our industry, as I see it, lies in the marketing, however. We have to be able to tell a convincing story to the consumer, and we have to prove value. Consumers will pay the price, but we have to show them that it's worth it. Many contractors do not know how to market themselves, and they're not comfortable wearing the sales hat. They just want to get to work and put in the stuff. I understand this as well.

What I find in that Munchkin post are many lessons. You've pointed out some of them. I see others as well. I hope that the Munchkin people, as well as other manufacuturers, archive that thread and re-read it often. It is, in large part, the reason why hydronics holds such a small portion of the North American heating market. We have no survival model, as the Bean points out, and we haven't taken the time to put together at least 100 reasons why the public should do business with us.

We must prove value every time.

Please read this from this month's PM magazine:

100 Reasons

Tom Towne

Dan

You are a very bright man! As far as the marketing aspect goes, if little marketing is going on at this point then most profesionals would have to do very little (at first) to seperate themselves. Actually I believe this presents an excellant opportunity for growth in this market.

Thanks for the informative websight by the way!

Tom Towne

Dan

You are a very bright man! As far as the marketing aspect goes, if little marketing is going on at this point then most professionals would have to do very little (at first) to seperate themselves. Actually I believe this presents an excellant opportunity for growth in this market.

Thanks for the informative websight by the way!

DanHolohan

Thanks.

That's how I'm seeing it - as a huge opportunity. The homeowners are generous enough to be telling the industry what they would like. Some will listen, and these people will succeed.

Boiler Guy

Very valid points! Yes we as professional contractors do get frustrated with the fact that all of us get "tarred and feathered" because of what generally goes on within the trade ... It is not limited to our chosen proffession either. Howerer, It is how we individually rise above the rest that sets us apart.

Many times I have lost a job to the low bidder and been told in the same breath "I really want you to do the job, but you are $200 higher". My answer is always the same. "The other guy knows what his installation is worth ... but if/when you have troubles, please keep my card." So far I have a 65% close/call back rate using this method.

I am sure consumers in your area are no different than here. They all want an economical, good working system. Unfortunately, as mentioned above, a lot of us as trades people have difficulty selling ourselves, thinking our work speaks for itself. Taking the time to explain the nuances of our proposal vs others can be difficult when we are busy. I try to involve my potential customer in building up his/her system by providing options. I find this way they feel more of an integral part of the final solution and usually obtain a better understanding of what their needs really are.

Consumers are becoming more and more educated every day. informative sites such as this help immesurably. Some may say information is a dangerous thing. I think it makes our jobs somewhat easier and more appreciated.

There will always be those who only look at the number. I guess THEY will have to live with their sense of value.

Boiler Guy

Very valid points! Yes we as professional contractors do get frustrated with the fact that all of us get "tarred and feathered" because of what generally goes on within the trade ... It is not limited to our chosen proffession either. Howerer, It is how we individually rise above the rest that sets us apart.

Many times I have lost a job to the low bidder and been told in the same breath "I really want you to do the job, but you are $200 higher". My answer is always the same. "The other guy knows what his installation is worth ... but if/when you have troubles, please keep my card." So far I have a 65% close/call back rate using this method.

I am sure consumers in your area are no different than here. They all want an economical, good working system. Unfortunately, as mentioned above, a lot of us as trades people have difficulty selling ourselves, thinking our work speaks for itself. Taking the time to explain the nuances of our proposal vs others can be difficult when we are busy. I try to involve my potential customer in building up his/her system by providing options. I find this way they feel more of an integral part of the final solution and usually obtain a better understanding of what their needs really are.

Consumers are becoming more and more educated every day. informative sites such as this help immesurably. Some may say information is a dangerous thing. I think it makes our jobs somewhat easier and more appreciated.

There will always be those who only look at the number. I guess THEY will have to live with their sense of value.

Boiler Guy

Very valid points! Yes we as professional contractors do get frustrated with the fact that all of us get "tarred and feathered" because of what generally goes on within the trade ... It is not limited to our chosen proffession either. Howerer, It is how we individually rise above the rest that sets us apart.

Many times I have lost a job to the low bidder and been told in the same breath "I really want you to do the job, but you are $200 higher". My answer is always the same. "The other guy knows what his installation is worth ... but if/when you have troubles, please keep my card." So far I have a 65% close/call back rate using this method.

I am sure consumers in your area are no different than here. They all want an economical, good working system. Unfortunately, as mentioned above, a lot of us as trades people have difficulty selling ourselves, thinking our work speaks for itself. Taking the time to explain the nuances of our proposal vs others can be difficult when we are busy. I try to involve my potential customer in building up his/her system by providing options. I find this way they feel more of an integral part of the final solution and usually obtain a better understanding of what their needs really are.

Consumers are becoming more and more educated every day. informative sites such as this help immesurably. Some may say information is a dangerous thing. I think it makes our jobs somewhat easier and more appreciated.

There will always be those who only look at the number. I guess THEY will have to live with their sense of value.

Boiler Guy

OOPS

Sorry for the triple post ..... Damn computers!

DanHolohan

> This is an excellent post. Honestly, I am mostly

> a forced air guy, with quite a bit of knowledge

> in hydronics and am very limited in steam. I

> have wrote about this same issue and would like

> to expand on it. I ask contractors to list three

> reasons a customer would buy from them. Here is

> what I get:

>

> 1. 24 hour emergency service 2.

> quailified technicians 3. honest and

> dependable

>

> Are they being truthful? Most I

> think believe they are. Some however are hoping

> they are.

>

> On the forced air side of things,

> the name brand is really not the selling point of

> the job. A 75,000 btu 90% furnace is a 75,000

> btu 90% furnace. Less than 2% of consumers are

> what you can consider name brand specific.

> So what does this mean? It means if you are

> selling the same services {look at the three

> above} and the same equipment {a 75,000 btu 90%

> furnace is a 75,000 btu 90% furnace} as everyone

> else, what is the customer going to concentrate

> on? The PRICE! We are forcing our customers to

> focus on price, and then we complain about it

> when we lose. The equipment is the same. Some

> contractors think Weil-Mclain is the best, others

> go with Burnham. Do not allow the customers to

> base who gets the job purely on price. The list

> is great, but come up with your own list why

> customers should buy from your company, laminate

> the sheet, give it to your techs and have them

> memorize the list. That way, when selling or

> quoting new equipment, they are offering

> DIFFERENT services.

>

> Example: Company A is

> selling a 150,000 btu Weil-mclain boiler

> replacement for $2800. Offers 24 hour emergency

> service, qualified techs and honest and

> dependability. Company B is selling a 150,000

> btu Burnham boiler with 24 hour emergency

> service, qualified techs and honest and

> dependability for $3500. Who does the customer

> go with and why? Doesn't matter if they are

> qualified, honest or dependable. The customer

> views buying the same equipment and services.

> Now, that being said, some customers are going to

> concentrate on price no matter what you do. If

> this happens, RUN!

>

> Thanks Chris Reak

>

> And

> sorry this is so stink'in long!

DanHolohan

> This is an excellent post. Honestly, I am mostly

> a forced air guy, with quite a bit of knowledge

> in hydronics and am very limited in steam. I

> have wrote about this same issue and would like

> to expand on it. I ask contractors to list three

> reasons a customer would buy from them. Here is

> what I get:

>

> 1. 24 hour emergency service 2.

> quailified technicians 3. honest and

> dependable

>

> Are they being truthful? Most I

> think believe they are. Some however are hoping

> they are.

>

> On the forced air side of things,

> the name brand is really not the selling point of

> the job. A 75,000 btu 90% furnace is a 75,000

> btu 90% furnace. Less than 2% of consumers are

> what you can consider name brand specific.

> So what does this mean? It means if you are

> selling the same services {look at the three

> above} and the same equipment {a 75,000 btu 90%

> furnace is a 75,000 btu 90% furnace} as everyone

> else, what is the customer going to concentrate

> on? The PRICE! We are forcing our customers to

> focus on price, and then we complain about it

> when we lose. The equipment is the same. Some

> contractors think Weil-Mclain is the best, others

> go with Burnham. Do not allow the customers to

> base who gets the job purely on price. The list

> is great, but come up with your own list why

> customers should buy from your company, laminate

> the sheet, give it to your techs and have them

> memorize the list. That way, when selling or

> quoting new equipment, they are offering

> DIFFERENT services.

>

> Example: Company A is

> selling a 150,000 btu Weil-mclain boiler

> replacement for $2800. Offers 24 hour emergency

> service, qualified techs and honest and

> dependability. Company B is selling a 150,000

> btu Burnham boiler with 24 hour emergency

> service, qualified techs and honest and

> dependability for $3500. Who does the customer

> go with and why? Doesn't matter if they are

> qualified, honest or dependable. The customer

> views buying the same equipment and services.

> Now, that being said, some customers are going to

> concentrate on price no matter what you do. If

> this happens, RUN!

>

> Thanks Chris Reak

>

> And

> sorry this is so stink'in long!

DanHolohan

And that means . . .

Those are the three words that most contractors never say. They'll say "24-hour service" or "qualified technicans" or "honest and dependable" and then assume the customer understands all the implications of what those expressions mean. If the contractor would just follow the statement with those magic words: "and that means . . ." and then go on to list the benefits that the features deliver to the customer, a lot more jobs would get closed on the first visit.