Light CommercialLight CommercialTime for Growth

Commercial Service, Maintenance & Replacement Sales

“The Commercial Account Manager”(CAM)

Presented by Gary Elekes – EPC Inc.

Who are you?

A company already looking for growth Departmental – Need Commercial Sales in a separate account. Need to Separate our commercial customer records. We have at least one successful, dedicated salesperson. Should hold frequent commercial sales meetings Dedicated commercial technician or skill set to do so Low overhead in the segment – light commercial bolts on

Residential

Today’s Situation

Are you already in this market As a company, maybe not disciplined

or consistent in our delivery

Available Options

Try to create a profitable stand-alone commercial business.

Focus on this market as an extension of residential (where applicable.) Have a disciplined, low-overhead

extension into light commercial maintenance, service and replacement

Company Strategy

A company needs internal growth. Primary emphasis may have been residential. Develop growth internally.

Commercial Strategy

Use existing resources to build a second predictable source of service and replacement revenue and profits.

Treat It Just Like Residential!

Maintenance Demand Service Equipment Replacements Accessories

Product/service offering

ImmediateImmediate demand service. Effective, cost-effective maintenance

agreements. Replacement of existing light

commercial units. IAQ Accessory Sales. Energy Management Control

Systems.

Goal and Objectives

Goal Move us to a new level in the light

commercial service business. Objectives

Focus on the obvious, most profitable segments - The “Low Hanging Fruit.”

Insure you have a disciplined approach. Create a Sales Plan for the CAM.

Sales Plan Development

Selling “Basic” Maintenance Programs. Each maintenance dollar brought in usually represents about 1/4 of the

annual billings to a commercial customer. Focus on the Maintenance Agreements… The demand service &

replacement business will come.

“If you build it; they will come.” The recommended compensation structure supports this thought process.

Note: You don’t want them “chasing” contractors for the big elephant!

Sales Plan Development (Cont..)1st Year Projections

Contract Sales: $ 75,000.00 ( 30% Gross Margin )

Demand Service: $ 150,000.00 ( 45% Gross Margin )

Equipment: $ 75,000.00 ( 35% Gross Margin )

Controls, IAQ, Accessories: $ 7,500.00 ( 40% Gross Margin )

Total Revenue: $ 307,500.00

Revenue

Contract Sales: $ 22,500.00 Gross Margin

Demand Service: $ 67,500.00 Gross Margin

Equipment: $ 26,250.00 Gross Margin

Controls, IAQ, Accessories: $ 3,000.00 Gross Margin

Total Gross Margin:$ 119,250.00 ( 38% )

Gross Margin

Approximate 1st Year Sales Expense: Approximate 1st Year Sales Expense: $ 50,000.00$ 50,000.00 ( 12% )( 12% )

Sales Plan Development (Cont..)2nd Year Projections

Contract Sales:($ 75,000 old $ 75,000 new) total = $ 150,000.00

Demand Service: $ 300,000.00

Equipment: $ 150,000.00

Controls, IAQ, Accessories: $ 15,000.00

Total Revenue: $ 615,000.00

Revenue

Contract Sales: $ 45,000.00 Gross Margin

Demand Service: $ 135,000.00 Gross Margin

Equipment: $ 52,500.00 Gross Margin

Controls, IAQ, Accessories: $ 6,000.00 Gross Margin

Total Gross Margin:$ 238,500.00 ( 39% )

Gross Margin

Approximate 2nd Year Sales Expense: Approximate 2nd Year Sales Expense: $ 66,850.00$ 66,850.00 ( 10% )( 10% )

Sales Plan Development (Cont..)3rd Year Projections

Contract Sales:($ 150,000 old $ 50,000 new) total = $ 200,000.00

Demand Service: $ 400,000.00

Equipment: $ 200,000.00

Controls, IAQ, Accessories: $ 20,000.00

Total Revenue: $ 820,000.00

Revenue

Contract Sales: $ 60,000.00 Gross Margin

Demand Service: $ 180,000.00 Gross Margin

Equipment: $ 70,000.00 Gross Margin

Controls, IAQ, Accessories: $ 8,000.00 Gross Margin

Total Gross Margin:$ 318,000.00 ( 39% )

Gross Margin

Approximate 3rd Year Sales Expense: Approximate 3rd Year Sales Expense: $ 72,500.00$ 72,500.00 ( 8.5% )( 8.5% )Note: With $ 15,000.00 Base ( 7.5% )Note: With $ 15,000.00 Base ( 7.5% )

A Reminder - Light Commercial Defined

Used in a place of business. Simple and meaningful maintenance agreements. DX air-cooled equipment of 20 ton capacity or less. Equipment of the size and design of normal

residential. Equipment your staff is comfortable servicing and

installing.

A Note on Service Quality

Responsiveness is a given in this market.

Top priority of customer service and dispatcher.

Separate light commercial from residential.

Dispatcher has to assess skill sets of technicians.

Pricing

Standard RTU Man hours per visit

5 Tons or less = 1.5 6.25 -10 ton = 2.0 12.5 - 20 = 3.0

Service Agreements 40 - 50% GP Replacement 30 - 40% GP

Promotion

Well-trained light-commercial sales people Build your referral network

Notify your satisfied residential customers who might have businesses (USA customers.)

Build relationships Yellow pages Existing Advertising

Commercial Account Manager

Compensation program???? Job Description/Expectations/Plan

Account Manager Job Description

1. Consistently approach NEW prospects.(3-7 per week) 2. Transition customers from “un-planned/demand” service

to an USA. 3. Provide total customer service function for key accounts

Provide a SINGLE contact for all account needs.

4. Communicate internally with ALL production

departments to insure what is sold is delivered.

Commercial Technician Spiffs

Compensation Replacement = $50 Preventive Maintenance Agreement

>$1000 = $50 <$1000= $25

Commercial Technician Job Description

Why are they different

They perceive themselves to be elite among technicians. They must have good written above oratory skills They typically have skills that allow them to receive higher pay They have a broad range of diagnostic and repair skills

Required to work on various sizes, brands, & styles of equipment-Greater variety than Residential Service

Must play a “role” in a stream-lined communication process that includes : Customer, Account manager, Dispatcher, and Management.

Weekly Review is a MustWeekly Review is a Must

Think about Light Commercial Service separately Customer Development

Existing Customers Prospects Sales Leads

Quality Service

Start your discipline now

Start with existing customers Segment your database

Keep score of progress Maintenance agreements sold Demand service Replacements

The forms

Make a good decision

Are you ready for this step? Are the core competencies of your business healthy? Do you have the right technicians? Do you have control of your dispatch? How about your salesperson?

Focus on the type of equipment you can manage.

Get the right people in place.

Vision Statement - Long term

Maximize service profitability by achieving excellence excellence in light commercial service and replacement & accessory sales.