Welcome to IAQ Series #1 The IAQ Business Model
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Transcript of Welcome to IAQ Series #1 The IAQ Business Model
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Welcome to IAQ Series #1The IAQ Business Model
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Your Hosts for Todays Conference are:Gary Elekes in Nashville, Tennessee
Gary Oetker in Plano, Texas
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Conference Objectives:
Review IAQ fundamentals in regards to sources of indoor pollution, solutions to IAQ problems and the business opportunity this represents.
Review the elements of the IAQ Business Model.
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Review IAQ fundamentals and the IAQ business environmentReview IAQ business opportunityReview sales and marketing approaches to IAQ Review IAQ business measurements and recommendationsReview implementation of IAQ business modelAgenda for Conference
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YesterdayLoose Homes & Natural VentilationIAQ Solutions Total Comfort & Duct CleaningToday Energy Conservation / Tighter HomesPressure Problems In HomeNew Technology & Improved StandardsGrowing Concern About Liability & LitigationThe FutureNew Construction TechniquesWhole House Approach to IAQOpportunities for Contractors to GrowIndoor Air Quality
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Americans spend 90% of their time indoors50% of this is within their homeIndoor air pollution is 2 to 5 times worse than outdoor air pollutionHealth AffectsRespiratory problems50 million Americans suffer from allergies60% of all allergies are caused by mold12 million Americans have asthmatic episodes yearlyAsthma has tripled in the last 20 yearsIndoor Health
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Biological ContaminantsPollenHouse Dust MitesMoldBacteriaVirusesPet DanderCombustion PollutantsGaseous PollutantsOther Sources such as Radon and AsbestosIndoor Air Pollutants
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ContaminantsSporesEnzyme FilamentsToxic GasesTo Grow & ThriveDirt/Organic MaterialMoisture/HumidityIll effectsHealthStructural Damage to HomeMold
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Humidity ProblemsOversized Cooling SystemsMismatched Indoor Coil (particularly with on high efficiency equipment)Pressure ProblemsLeaky ductworkLack of Return AirPoorly Designed Air Distribution SystemPoorly Installed Air Distribution SystemHVAC Contractor Practices Affecting IAQ
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Pollutant Categories
BioaerosolsVolatile Organic Compounds (VOC)
Particulates
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Source ControlEquipment CleaningDuct CleaningDuct RepairDuct Renovation
Cleaning the Air (Filtration)Various MERV Rated Air CleanersHEPA Filtration SystemsGermicidal LampsIndoor Air Solutions
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VentilationFresh Air Intake HRVERV
Humidity ControlDehumidifiersHumidifiers
Indoor Air Solutions (cont.)
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Various Methods of Air FiltrationGermicidal LampsVarious Methods of Ventilation (including HRV & ERV)Duct CleaningTesting & Diagnosing IAQ ProblemsDuct Repair & RenovationAir BalancingOther Related Trades (Home Insulation & Renovation)
Applicable HVAC Products & Services
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IAQ Growth Potential
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Existing Comfort AdvisorsBundled With Equipment Replacement Separate IAQ Offer
Service & Maintenance TechniciansAccessory Sale
Dedicated IAQ Sales People & Installation People
Sales Approaches
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Marketing to Existing Customers (service strategy)Technician Set Sales Leads Direct Marketing to Customer Base Acquiring New Customers (advertising strategy)Conventional Advertising & Direct MarketingSpecial Offerings Applicable to Both AboveAir Testing (I.E. AirAdvice) Other ConsiderationsPricingCompensationMarketing Approaches
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Sample IAQ Price Sheet
INDOOR AIR QUALITY OPTIONS
Retail PackageMonthly Investment
PACKAGE 1 BASIC
DUCT CLEANING
$ 2121.00 $ 1803.00
$ 36.06
PMAC 20C HI EFFICIENCY MEDIA AIR FILTER
UV LIGHT
PACKAGE 2 - DELUXE
DUCT CLEANING
$ 2872.00 $ 2441.00
$ 48.82
HUMIDIFIER
PMAC 20C HI EFFICIENCY MEDIA AIR FILTER
UV LIGHT
PACKAGE 3 - PREMIUM
DUCT CLEANING
$ 3371.00$ 2865.00
$ 57.30
HUMIDIFIER
ELECTRONIC AIR CLEANER (APRILAIRE 5000)
UV LIGHT
PACKAGE 4 - SUPREME
DUCT CLEANING
$ 3841.00$ 3264.00
$ 65.28
HUMIDIFIER
PURE AIR (PC020) OR AMAIRCARE 4000 HV HEPA FILTER
INDIVIDUAL OPTIONS
Multiple items discount of 15% may be applied to custom packages.
HUMIDIFIER
$ 751.00DUCT CLEANING PER SYSTEM
UV LIGHT
$ 595.00UP TO 15 OPENINGS$ 581.00
ELECTRONIC AIR CLEANER
$ 1,250.00UP TO 20 OPENINGS$ 690.00
PMAC 20C HI EFF MEDIA A/F
$ 836.00UP TO 25 OPENINGS$ 764.00
PURE AIR (PC020)
$ 2,400.00UP TO 27 OPENINGS$ 947.00
AMAIRCARE 4000 HV HEPA FILTER$ 2,400.00OVER 27 OPENINGS QUOTE
HUMIDIFIER PMAC 20C UV CLEANSER HEPA FILTRATION PURE AIR
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Sample IAQ Technician Spiffs
IAQ and Accessories Spiff Schedule11/04/03
UV Cleanser/single
$125.00
UV Cleanser/dual
$100.00
Dynamic Air Cleaner
$50.00
4 Pleated Filter (MF120)
$50.00
Duct Cleaning & Sanitizing
$50.00
Air Handler, Furnace or Condensor
$50.00
(10 SEER Excluded)
Plus Agreement
$10.00
Addtl Plus Agreements
$5.00
Cool Cap
$10.00
Surge Protector
$10.00
Sales Lead
$50.00 plus 1% of system only sale.
(Complete System)
Complete Duct System
10%
(Not Misc. Duct Work/Repair)
Equiguard
6%
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Separate Department or Division
Easy when IAQ is sold separatelySeparate Department Income StatementTechnician Accessory SalesDuct CleaningDuct Repair & Renovation
How do you handle IAQ sales that are bundled with equipment sales?Measurement Considerations
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Parts/Material20%Labor18%Equipment 0%Allocated Fringe Benefits 7%Sales Commission10%Total Cost of Sales55%
Gross Margin45%
Direct Cost Model - Duct Cleaning
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Gross Margin Percentage40% to 50% Depending on mix of products & servicesSome IAQ products cost as much as the HVAC equipment
Gross Margin Dollars Per Day$300 to $750 per IAQ Technician (depending on mix of products and servicesBusiness Recommendations
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DiscussInvolve PersonnelConcludeGet Buy-In on DecisionsCommitAll Hands in Team GoalCreateIdea to reality stuff!ExecuteAccountability to do WorkFeedbackMeasurements & ReportAdapt PlanAdapt as Needed Start from the top againHow To Implement
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Questions & Answers