In contrast to the blockbuster action movie Avengers that blew away box office records this weekend, the trip I am planning to the AHRI Board meeting this week may have a little less action. Don’t get me wrong, there is no shortage of topics, arguments and intrigue, but an actual breakout of activity might be a stretch. After all, we are talking about a m
eeting in Washington D.C.
Just like the Avengers, there is no shortage of villains or perceived threats. However, it appears to not be a home team in the contest right now. Perhaps that is just a sign of an election year mentality.
Right now the HVAC industry seems to be a little schizophrenic. We want to promote energy savings, have proceeded to look for loopholes to avoid equipment upgrades, we want incentives for the upgrading of HVAC programs, but shy away from the installed efficiencies ideas being offered, and we never really take a ruling in the industry as real until the deadline is upon us.
So with 2012 churning the months away, the 2013 increase in efficiency mandates and the consensus agreement are starting to loom on the horizon.
This week is my update week. I get to meet with the manufacturing leaders in HVAC at the AHRI Board meeting. You never know exactly how much you will hear at these meetings, much of the real work happens in committees that meet simultaneously so following the information trail is tough.
The backdrop however will be set against the political outlook of the country. It really won’t be a technology review, it is likely to be more of an economic and policy forecast. The future of most energy saving plans today are not held in better technology, they are controlled by the ability to gain some political backing to make them acceptable to the gate keepers like DOE and EPA.
Stay tuned this week, I will blog and tweet as things unfold at the meeting. Follow me on Twitter at @dennislaughlin1
Post by: Dennis Laughlin, President, Arzel Zoning
Sometimes when things are quiet, you hear things that begin to make you think. While the HVAC industry wrangles about minimum efficiency standards, refrigerant upgrades and installation practices that deliver full value to consumers, there are continuing efforts around the country to solve the power grid issues we see every summer.The most recent addition is Southern California Edison who just joined the Demand Response Partnership Program.
The sound that is troublesome is, the voice that says, the upgrade of HVAC infrastructure has moved fast enough, the incentive for investment in energy saving programs has not provided momentum and the consumer, commercial or residential, has not really embraced the concept of voluntary demand curtailment. Many today are convinced that some of the hesitance is due to the lack of a communication protocol which could join together technologies and allow for some real planning to occur. Some point to depressed natural gas prices and say the economics just don’t work.
The discomfort with Demand Response programs is that the demand is not necessarily connected with YOUR demand, or YOUR previous efforts to become efficient. So until the game is defined, the pressure to update, focus on efficiency and coordinate your needs for energy, the consumer might just as well stand, pat and wait.
This issue needs leadership, if the utility companies become the stewards it will be an uphill battle. It is all about trust. Utilities have mandates to meet and none want to build expensive new plants, but all have revenue requirements that won’t be met by a shrinking energy bill.
It is time for an energy policy, not a carbon policy, not a tax opportunity, but a real discussion of energy infrastructure and the encouragement of every sector, commercial and residential to upgrade technology.
Why wouldn't my contractor recommend zoning for me? I was telling him I was still uncomfortable and handing him more business on-top of the thousands I have already spent and he refused to consider installing it for me even when I mentioned the benefits I had read about."
I was dumbfounded.
My only thought was the long-standing battle between variable speed equipment and zoning which still crops up once in a while. While many contractors have concerns regarding zoning variable speed equipment, today's systems can overcome the common challenges experienced when these two are combined. In the past, zoning systems did not have a way to manage the blower capacity, causing it or allowing it to ramp up to high speeds when only one zone was open. When the blower reacted to the reduction in ductwork (closed zone dampers), it became noisy, short cycled and, in general, counter-productive.
Zoning controls which have the ability to manage blower capacity allow the system to intelligently adjust to the duct capacity and deliver the air required to the distant, and usually most uncomfortable, zones. You allow the equipment to operate at a reduced capacity for more of the season while focusing that reduced capacity to the zones that are harder to reach or under a higher load.
Zoning enhances the effectiveness of variable speed equipment and the variable speed equipment allows the zoning system to have better control over the quantity of air for increased comfort.
Ultimately, it appears a common zoning misconception cost this contractor thousands in added revenue, and, most importantly, may have cost him a loyal customer. Don't let misconceptions stop you from offering a complete comfort solution. This contractor walked away from meeting the customer's comfort expectations and set the stage for someone else to come in and complete the job.
Do you recommend zoning on variable speed applications?
As a past blog article stated, too often, contractors tell customers what they need without ever discussing how a homeowner uses their home or what comfort challenges they face. You don't win lifelong customers by pushing products.
The key to superior customer service is not meeting customer expectations, it is anticipating them. You can only accomplish this by familiarizing yourself with how a customer uses their home, what special comfort needs they have and what products they have tried in the past.
A 2010 Home Comfort Study showed only 31% of homeowners reported their contractor inquired about hot and cold spots experienced in their home.
Doctors won't write a prescription without an exam or they put their patient's health at risk. So how can you confidently sell a product to a homeowner when you haven't asked what their problems are? You are risking their comfort along with their loyalty to you as a customer.
The problem with pushing products instead of actual solutions is not realizing it can be a very short trip from uncomfortable to unhappy when homeowners are dissatisfied with the comfort levels experienced throughout their home. Their dissatisfaction can be amplified when they are still experiencing a decrease in comfort after a high-efficiency or other system upgrade installation.
To many consumers, when equipment is labeled high-efficiency it is synonymous with more comfort. However, because a new system cannot directly control the airflow, the homeowner's comfort expectations are not met.
When this type of dissatisfaction occurs, the homeowner looks to the contractor as the responsible party. By offering comfort solutions, like zoning, as an add-on to new equipment installations or as a separate quote, you can assure your homeowner immediate comfort improvement.
I will confess, I am not sure whether I heard this phrase somewhere or I dreamed it up, but I love this concept. Instead of redecorate, re-techorate. Re-techorate is my word for updating the mechanical plant of your home. It sounds so much more important than fixing the air conditioner.
For years I have heard contractors express frustration why SEER improvements were not as well received as a new granite countertop. Everyone seemed to want to redecorate or makeover the kitchen, but a trip to the mechanical room was the modern day version of the woodshed for consumers and their wallets.
There is a lot to spin in this world. Just ask any Hollywood star or political office holder. Likeability ratings are a serious business. The HVAC world could stand to learn some new marketing techniques.
Re-techorating, the modernization of your comfort center. Adding new dimensions of control and communication to save energy and maximize the value of costly energy purchases. It might take some getting used to, but it is worth a shot.
How are you presenting your new comfort ideas? Using the same old lines, same old quote format, same old brochures? Re-invent yourself today, if for no other reason than to confuse your competitors.
Today’s HVAC retrofit/replacement marketplace is being driven by the chain reaction of fear. That fear has two faces. First, people are afraid to spend money. With the stock market charging up and down the board it is hard to understand when is the right time to invest in one’s home. Secondly, as technology rapidly advances and regulations change, people are stuck wondering if the equipment they invest in today will be obsolete before the install is complete.
How can we combat that fear?
The answer is comfort. People are afraid to invest because they don't always see a tangible return dollars they put in. Energy savings aren't always as overt as people expect on their monthly utility bills. However, comfort is a benefit people can immediately experience. Comfort speaks to quality and luxury. That people will pay for, if they are told it is available. In order to provide comfort, contractors need to turn to other options like zoning, to meet customer investment expectation.
When they invest and problems are solved, hot areas of the home are cooled - cold spots are warmed, the consumer wins and the contractor does too. People are willing to pay more for experts who know how to fix the issues that people experience in their homes. Reputations are made. More importantly referrals begin to happen, making the cost of doing business fall. All good things for everyone.
There is a lot of talk these days about anti-bullying programs, all are absolutely right on target. There is no place in this world where imposing your will over anyone is wise or acceptable.
So why is it acceptable for a HVAC contractor to tell a customer what their needs are before understanding what the homeowner wants or how they will use the equipment which is about to be installed?
It’s not.
The proof is that contractors continually voice concern and frustration over customers who seek multiple bids. The assumption is that customers are cheap. The reality is they are very likely starting to push back on the bully. The guy who really did not listen, analyze, offer multiple solutions and choices, the guy who says here is what you need. End of discussion.
The American Home Comfort study documents dozens of offer rates on HVAC accessories, like zoning, which are employed less than 35% of the time. The same study shows only 50% of current homeowners are satisfied with their home comfort system.
I suggest that every HVAC contractor in the country adopt a “No Bullying Policy” with their customers. Use your knowledge to educate them and work with them, not intimidate them to agree to your plan. You may be right on their needs, but they deserve the option to make that decision on a well informed basis. If you are worried about losing business to customers who shop you, better figure out why you did not earn their business when you had the chance.
How do you engage your customers? Do you practice anti-bullying tactics?
Click here for a sales guide to help you identify and discuss your customer's comfort needs.
I just spent several days meeting and talking with 500+ HVAC educators at the HVAC Excellence meeting. No doubt that training tomorrow’s technicians is a daunting task.
Technology is emerging constantly, battling to get students from the current tech ranks is difficult in these economic times and the world of HVAC is not an immediate magnet for young people looking to enter the working world. The entire situation seems to be stacked against the professional education system. That system is based on serving the most kids and building skills that they find relevant. Somehow we need to make the commitment to keeping people comfortable and better energy stewards at least equal to being able to serve a great meal.
Right now, more kids want to become the Iron Chef than ever think about being the next Willis Carrier. I understand that, I guess, but how many chefs could stand the heat of a kitchen where no conditioned air was available? By the way folks, working in the HVAC industry has a much better entry level package to offer than flipping burgers or washing pots andpans.
Think about going to COOL SCHOOL.
Posted by: Dennis Laughlin, President, Arzel Zoning
The recent announcement that the Encyclopedia Britannica will no longer be published in paper I am sure comes as no real shock to the world. I can’t imagine sitting with a child in school today and explaining that the answers to all of their questions about historical facts and the nature of things in the world are housed in this set of books on the shelf.
Kids today are too smart for such answers. They know the world is bigger than 26 volumes, regardless of how small of a font is used.
The same is true of HVAC technicians and their interface and application of equipment. Recently, the new Manual Zr for residential zoning systems was issued by ACCA. It is a manual that took a tremendous amount of work, it exhausted the discussion of airflow dynamics in a way that is daunting to contractors. I fear, however, the role model for such manuals, the “Encyclopedia of Whatever”, is as doomed as the Britannica people have determined their own product was, sparking this week's announcement.
The Britannica people assert their online version is still the superior authority for knowledge. ACCA has adopted some of the same attitude about Manual Zr. The trouble is, Britannica competes with Wikipedia, whose largest attribute is not that it houses all knowledge, but that it starts the discussion, frames the research concepts and allows the user to target their search to the most pertinent and useful topics available. It does not seek to provide the encyclopedic experience.
HVAC technicians are familiar with the search process, they don’t necessarily accept any single source as the authority. If you think I am wrong, then why do we have the proliferation of chat boards and help blogs which seem to handle far more technical issues than any instruction manual in today’s marketplace?
Next week I will be with the HVAC Excellence group at their national educator’s conference in Las Vegas. I will be talking to 500+ technical school educators and instructors about the importance of teaching airflow when designing zoning systems. I will need to explain the recent Manual Zr and explain this encyclopedic offering.
My issue? Manual Zr spends a lot of time on what not to do.
Have you ever played the game 20 questions? Very old and elementary game, people ask questions about the item and you answer truthfully about its properties. Now let’s put a twist in the rules. Instead of telling people the properties of the item you are holding, you can only tell them what it is not.
Q: Is it bigger than a breadbox
A: It does not weigh 50 lbs.
Q: Is it red?
A: Color is not a relevant quality for this object.
Get my issue? We never really get to define the issue, proper airflow delivery for technicians who are trying to install effective HVAC zoning systems which provide comfort.
When the final meetings occurred regarding the review of Manual Zr, it was left to the industry, each manufacturer, to find a way to interface “The Manual” to their equipment. In other words we were given the job of being Wikipedia. We were the ones to provide relevancy to the current market.
So now the work begins.
But just in case you think that the reason the Encyclopedia Britannica is not being printed anymore is because print is fading, you are wrong. They are stopping printing because everyone realizes that Wikipedia is faster, more up to date and more user friendly. Even if it is not the referential authoritative high ground, people appreciate and use the tool. I don’t know what the future for Britannica will be, but any resource that is not user friendly in these times risks irrelevance.
The HVAC industry and their push for standards would do well to remember who they serve.
What are your thoughts on Manual Zr?
Valentine's Day is the one day love takes center stage. Everyone is encouraged to share their feelings of love with those who are important to them.
Well, if we haven't said so lately, we love you! Our customers are the best in the industry, possibly the world. Why? You have continued to support Arzel Zoning over the years, helping us achieve multiple industry awards, enabling us develop new technologies and are always willing to give us honest, constructive feedback.
We love you because of your continual support and letting us know you appreciate what we are trying to accomplish! We all feel extra special when we get emails (and Tweets!) like this from you:
Dear Arzel Team,
I just wanted to thank you for an awesome experience (at Comfort College). Your company is all top shelf - the enthusiasm and professionalism just oozes out of you people. The whole deal made me feel reconnected to an industry that sorely needs the pioneers that you are. Keep up the great work. I would say don't change a thing but that's one of the things that I recognized; you are where you are because you are always evolving.
~Scott Rehberg, Amy Home Services
Wow! Thank you, Scott! You leave us energized to take on the world after feedback like that! We hope we have done our best for you and your company and continue to provide outstanding support, cutting-edge zoning products and educational programs that make your business a success. We look forward to serving you throughout 2012 and beyond!