Money Conversations for Techs
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- Опубликовано: 19 июл 2021
- In today's live stream, Bryan and Jesse have Money Conversations for Techs. Jesse is the VP of Mechanical Operations at Kalos, and he guides and supports the Kalos team with a growth-oriented mindset.
Kalos was founded in 2005 by tradesmen. The money and administrative sides of business did not come naturally to the founders, so Bryan and Jesse discuss how Kalos has evolved and how the company leaders think about money today.
The first step for any successful business is to provide customers/clients with a product or service of value. However, there must be a balance between providing something of value to customers and providing excellent customer service.
When starting an HVAC business, one of the biggest mistakes is making money the top priority. Although money is important, it can only come in when a business establishes the value of its services and communicates its value to its customers. There is no hard line for fair pricing, so the communication between the contractor and the customer needs to negotiate and establish expectations for the work performed and its price tag.
That same mistake applies to employees who want raises or promotions; those employees may feel as though they are owed more for their work, but they must establish their value before the raise or promotion happens. The goal is to avoid unmet expectations in all areas of business, whether it's between the contractor and the client or the employee and their manager.
Maintenance services are not very profitable, but you can maximize the profitability of PM jobs through efficiency and thorough cleaning/inspection.
Service repairs are difficult jobs when it comes to profitability. At Kalos, we struggled with service repairs because we never anticipated setbacks in our original price quotes. We experienced additional expenses that we didn't initially factor into our repair pricing because we failed to prepare for extra parts, trips back to the shop, etc.
Moreover, we used to try to squeeze lots of value into a single job. As a result, we would sometimes undervalue the work we performed. You can't make more money if you don't factor your time, labor, and extra parts into the quote. Even though we wanted to have low prices to help our customers, we earned very little money compared to the work that we put into the job. We overcame that financial slump by spending more time on our jobs; we spent more time diagnosing the whole system, communicated with customers about our services' value, and spent more time fixing everything on a system so that we could charge more while avoiding callbacks. Labor MUST be expensive (but valuable) if your business wants to turn a profit.
When communicating your services' value to the customer, you need to give the customer a chance to say NO to some of your services. That way, they will be much less likely to nitpick your work if they know that they did not pay for the full package of services.
Profitability comes down to doing more billable work while you're at a job site. When you become more profitable, you will also have a bit more control over the customers you choose to serve. As such, it is important to pay attention to total system performance and aesthetics to attract (and keep) the customers who value your work and maximize your profitability.
Profitable HVAC businesses also pursue mastery of valuable related fields, such as indoor air quality (IAQ), building science (duct design), and human comfort (humidity control). It is one thing to sell a customer a dehumidifier without knowing the science behind it, but it's a completely different thing to explain the benefits of dehumidification, traits of individual dehumidifiers, and human comfort fundamentals to a customer so that they can make an informed decision about their comfort.
Instilling a value-oriented mindset in yourself and your technicians is also important for profitability. Successful HVAC businesses train their technicians how to approach money conversations. Train technicians to establish value when they communicate with the customer and not to undervalue the company's services. Make sure technicians also don't project their own opinions about the value onto customers. Technicians should be methodical yet friendly, attentive, and in tune with the customer's needs when communicating value, not lazy or overly casual.
Effective business owners take what customers want and convert those to a solution; they assess their resources and tailor their plans to their customers' desires.
Bryan and Jesse also discuss:
Misunderstandings about tax write-offs
Bundling and flat-rate pricing systems
Establishing value with commercial customers
Technician skillsets
Maintenance contracts
Warranty challenges
Communicating price ranges
Treating difficult clients with respect
Read all the tech tips, take the quizzes, and find our handy calculators at www.hvacrschool.com/. 
Развлечения
100% Jesse. Money comes when you provide value. Always bring more value to others and opportunities will come. It doesn’t happen over night but when you set goals, focus and be consistent good things happen.
The money conversation with the example of the capacitor being a tough question to answer. It comes with time and confidence in the diagnostic. The Value is the answer. They are getting licensed, insured, fully stocked vehicle, business card, background checked technician, etc. When I first started I also experienced the rejection, however I’ve learned to say it like a Physician would tell the patient in a “matter of fact” but empathetic way. Never try to sell it, just tell it in a professional and confident delivery. It’s an investment whether repair or replacement in their most important equipment in their home. This is an excellent conversation. I would love to show it to my co - technicians. Thanks and keep up great content.
I haven't taken the time to read the other 76 comments, but I'm sure 95% of them are speaking on the quality guidance offered in this video. As a younger but middle aged tech, who was previously a mechanic in a shop, who now enters residences daily I have never been able to figure out some of these key distinctions. Quality customer service and being able to communicate have always been a strong point of mine, but as with the mechanically inclined, I prefer to have a methodical thought of how to execute, or why, I execute these conversational points. If you take nothing else from this video, understand just how important and valuable expertise and attention to detail is. Labor costs money, but there is always a way to be tactful instead of just saying "well it's labor cost" I wish my other crew members had my enthusiasm to watch this 2 hour long conversation because it seriously changed my life. Thanks guys for another quality video. Love and respect the dedication y'all have.
As a commercial guy, I definitely need to hear stuff like this, but then also hear it again and again. I make a bad 1st impression but then earn their trust through time. Definite improvement in my soft skills are needed.
After 30 years as a technician, I have only worked for one company that gave me a raise without me demanding one or quiting and then being asked later to return for more money. And I have worked for a dozen or more companies. Even when I was one of the highest income producer in the service department I was not offered a raise. As long as you work for what their willing to pay, thats all you will be paid.
I agree! Ideally the company will see and appreciate that you are providing so much value but reality is that most companies while they may know you provide value are not going to automatically give you a raise. This is why in almost every industry people will change jobs for 15%+ raises year to year
I just can't believe how much "value" I've received from this video. Really!! Very helpful in how I interact with customers.
The MOST valuable video I've watched in a long time. 20+ years in the industry this was so helpful for me. Thanks for making me a better technician. I hate talking money but putting value in the conversation makes the conversation go so much differently.
I'm into fair pricing myself. Just pay what it's worth. That including quotes for customers, and worker's salaries. Some customers are cheap and rather pay less for a crap repair and you lose their business. Some owners are cheap and rather pay less for a crap worker and lose an efficient worker. Im new to the trade, I told my company when they asked me how much I wanted, told them to pay me whatever they wanted out of school. I didnt know where my skills and efficiency were at. Now I have an idea of what would be a fair salary for my skills and results and on my 90 days I'll make my case. If we agree, I ll continue to show results and keep evolving and if we cant agree, I ll find another company. That's just business.
Much needed conversation for all HVAC business. Thank you
Wow! I think this is one of the best videos I’ve ever watched as far as on the business side! I feel like you were just talking to me! You basically just summed up how I run my business but when you were first starting and just doing stuff to get done so you can do more calls but not really make any profit. I’ve learned a ton about value and love how u guys explain it this will help so much. Can’t thank you guys enough for putting so much info about every aspect of Hvac I love what you guys do and thanks for being so generous with your time it means a ton to a lot of us!
I would love to work for these guys... They are on a whole nother level
❤. Good video and may I add. Nothing in HVAC is 40 bucks. 😂 😂😂
Thanks for all videos and advise👍🏼🙋🏻♂️💪🏼
Very helpful conversation. Thanks!
I like you Bryan can fix anything and so many of our customers only ask for me wich is nice and all but I as well have trouble communicating the money part of things to them so this was very helpful for me so thanks guys.
Thanks for all that info that you’re sharing 👍🙏🏼
Amazing conversation; learned so much
Thanks for your time.
This was a Great 🗣 Conversation
The warranty part of the conversation is an interesting one. Isn't the labor *handling* costs associated with a smaller priced part the same as a higher priced part? Many times, you still have to order it in (Motor, Coil, Inverter, Board, ect), shipping costs and still have to return to effect the repair.
Thanks for making it real.
Customer feels they are being nickled and dimed because they have a hvac service call every few months. Yet they have 80 RTUs on the roof that are 30 years old and no maintenance program. Yep, been there. I laugh all the way back to the truck.
i totally agree after installing 6 mitsubishi inverter splits in my own home ,,,
Good stuff y’all
VP Jesse can hold his own with Bryan. Thumbs up. What does Kalos think about selling manufacturer's 10 year labor warranties?
Do you have any videos that discusses RTU
38:27 Lors forbid its gunna happen on the weekend😂😂😂
How do you discuss check the refrigerant charge without getting the system up and running again or how do you discuss the possibility of needing to add some with the customer
It is important to do as complete of a diagnostic as you can. If a repair needs to be made before you can perform further diagnostics, just tell them. If you discuss the prices and possibilities of outcomes and just be honest most people will be cool with you. Try to inform them as much as you can, but don’t try to scare them.
Exactly. Sometimes it’s important to explain you will need to fix one component but let them understand until that is fixed, there may be another component. TRANSFORMER for example, no power coming in to air handler, you need to address that before learning a fan relay or fan motor may have also failed. Just an example The customer would rather the upfront transparency.
Some parts of the country like Kentucky have greedy power companies that do not install capacitor banks on their lines. That’s why I use twice the capacitors that I did in Atlanta with hotter summers.
They aren’t just paying for the fix per se. they are paying for your time and expertise.
If I did not install their system, there is no 10 yr parts warranty from me! I sometimes will cover for a competitor selling my brand, while he’s out of town, I’ll take care of their customer. Usually they can’t get their original low-baller installer, their buddy or they are a DIY’er and purchased online. In the last case, good luck getting warranty parts.
Tell your boss union scale or quite.
Well said fellas. And for that 5 percent of people still busting balls over repair cost we have the golden ticket still left to play. " OK, DO IT YOURSELF FELLA " if you loose the customer than you did your company a favor. Don't want problem customers.
Expectations are premeditated resentments.
Thanks!
Thanks for all the advice . Been in trade for long time and still wacth all your videos over n over .
I work for a commercial company and their service rates are 90 dollars an hour. I wonder how they stay in business. We have some really lousy customers that are focused only on the cheapest labor rate. The equipment is 40 to 50 years old and crap. All I hear all day is how much time was spent on calls and maintenance. People rush from calls to calls, and call back rate is high. They hire the least skilled guys , most out of school with no experience and pay cheap wages. How they stay in business is beyond me. 15 years ago I worked for a company and they charged 160 dollars an hour with a 40 dollar travel rate. hired skilled techs, pay was good and never heard a thing about time on calls. They had very little call backs and company had great customers. Equipment was top notched . Customers did not mind paying more for better service. Bottom line. You get the customers you deserve.
You say that if a customer has a very bad experience, with a system that you installed, that you would replace the system with a new one at your expense. You say that you can do that because your company is profitable enough to absorb it. Then later you say that you charge customers, of your equipment installs, full unwarranted price for a failed capacitor on a system that has a valid part warranty because it is too costly absorb the "part" cost of that repair. I am having a hard time imagining a company that will give one customer a free installation of an air conditioner but cannot afford to absorb the cost of a truck stock capacitor. Those two policies seem to be very inconsistent with each other.
We do degrade sells technicians because regardless of the starting intention they end up being money motivated instead of customer / equipment oriented. Humans will always take the smoother road especially when more pay is in order. I am making a blanket statement that is very accurate. You can normally spot them especially in ohio, they'll be wearing a white shirt and smell good and be clean 😉
True, I heard of a sales tech hitting an old lady with a $700 bill for a new float switch and a thermostat. Im new to the trade (commercial) and luckily I ve only being around honest techs so far. No ripping off, and quoted are always discussed with customers before anything is done.
I agree the guy standing in front of the customer is the face of the company and has to represent the company as if he was the owner. Too many customer interface employees throughout America don't get it.
If the customer wants to watch me, it won’t cost any extra since I’ve already quoted them on this trip. The next trip out, I’m gonna be charging extra.
Hmm, disagree with the conversation around the hour and a half. You have a problem with the mfg ( which you have a relationship with) and are swindling the end user. What happened to charging enough at the beginning (install) to take care of these possibilities?
You are assuming that they did the install. Thats not always the case. If the manufacturer warenty covers the part but not laber, thats on them, not the tech who is trying to make a living.
I don’t go out on quotes to new customers. If they are mine already, gladly. I was wasting 2-6 hours per week. They’ll get the high estimate over the phone. If they really want me to come out, then I’ll take off the service fee when I do the job.
Your wealthiest “appearing” customers will give you the most problems. They will rarely offer you anything to drink or eat. They always know someone at work or have a low-baller friend that will cut them a “better deal”. Guess who they call when it breaks? Sorry, I’m booked up for months.
Around 26 minutes, you said you had to go back on one out of five residential service calls. You’re doing something wrong if you’re going back on more than one out of 25 or maybe your selling Goodman. That’s a whole weeks service call load for me. If you’re not making the expected profits, you’re not charging enough for your services, you’re low-balling change outs, your expenses are too high or you’re taking too much for yourselves.
If you’re starting your own business. Do you like I did, look around at what everyone else is charging that has been in business for the last 20+ years. That should tell you where you need to start.
$375+$75= $450.
All the videos out there are exactly that just a cap, just a contactor, just a backed up drain, fix it and go 🙄
HVAC technicians worlds best mechanics and worlds worst businessman. Only one reason to go into business is to make more money than if you were working for someone else. 80% of the HVAC businesses are mom and pop operation with no business experience whatsoever.
The best HVAC companies I worked for were those run by businessmen who had little to no hvac experience. Never ran a service truck or did an install. Some of the worst companies i worked for were run by former HVAC techs and former service Managers. The really worst were those run by women who ran the company after their husband service tech had died from stress of running an hvac business.
my company charges over 300 bucks for a capacitor. How you get away with 65 dollars? How you stay in business?
What company is that? If I may ask
@@joselanda8316 a company in north Carolina.