Zoning for Existing Homes

Consumer Research

• American Home Comfort Study conducted by Decision Analyst

• 30,000 homeowners surveyed– Replacement, add-on, & RNC buyers

System Improvements to Existing Homes

Most Desired0%

10%

20%

30%

40%

50%

60%

Greater Energy EfficiencyBetter Air Pu-rificationMore Even Temps

Most Impor-tant

0%

20%

40%

60%

80%

100%

Greater Energy EfficiencyBetter Air Pu-rificationMore Even Temps

System Improvements to Existing Homes

Willingness to Spend to Improve

Energy Eff by 25%IAQ by 25%Comfort

Close RatesAdd-on/Replacement Segments if Offered

Close Rates30%31%32%33%34%35%36%37%38%39%

Duct Mounted HumidifierMedia Air CleanerZoning

Close RatesAdd-on/Replacement Segments Based on Home Value

up to$150K $150K-$300K $300K +0%

10%

20%

30%

40%

50%

60%

Duct Mounted HumidifierMedia Air CleanerZoning

What Consumers Say About Room Temperatures

At Least One Room is:0%

10%

20%

30%

40%

50%

60%

70%

80%

Too Cold in SummerToo Warm in WinterToo Cold in WinterToo Warm in Summer

Contractor VOC Research

• Interviews with contractors at ComforTech • Outbound phone interviews with Aprilaire

customers• Goal: To establish the top reasons why

some dealers offer zoning and others do not

“I don’t sell zoning because...”

• I need better training from the manufacturers• It seems like I have to buy parts from various

manufacturers to put together a system• I need sales training, identify the problem, here’s how I

solve it, what it means to you as a homeowner• Sales people will often sell a homeowner on zoning only to

find out that the home can’t be effectively zoned• Would really like to see better selling tools…good leave

behind materials would be a good start

“I sell zoning because…”• It solves problems for customers• Many people are “stuck” in their homes and are willing

to look at zoning as an option to make their homes more comfortable

• I have easy access to ductwork• Improperly installed HVAC systems give me an

opportunity to correct problems in many homes in my market

• Zoning is easier today with wireless thermostats

Conclusions - Contractors Want:

• To be reminded that an opportunity exists• How to spot a house that’s a candidate for

zoning• A clear in-home selling message• Strong manufacturer support• Right products for the application

Recap

• Opportunity exists—$120,000,000 market• Over 40% of homeowners desire the product• Over 60% say it’s one of the most important

improvements they can make to their homes• When quoted, 36% bought zoning systems• No geographical limitations• $2500—$3000 per job• Dealers are looking for a partner to help them technically

& most importantly, with the sales process

Right Products for the Application

• Contractors want a complete line– Zone panels for all installations– Dampers for any duct size and type– Thermostats

• For all installations• Flexibility of a wireless thermostat

Zone Panels

Conventional Heat/Cool Heat Pump

Equipment Single Stage Multi Stage Single Stage Multi Stage

# Zones 2 3 4 2 3 4 2 3 4 2 3 4

Model 6202

Model 6203

Model 6303

Model 6404

Model 6504

DampersFeaturing Flexible Link™ Power-Closed Design

• Round Dampers– New ductwork– Flex duct

• Rectangular Dampers– Fabricated sheet metal duct– Duct board

• Round Slip-in Dampers– Round hard pipe ductwork

• Bypass Dampers– Static pressure– Barometric

• Right product for all applications

Thermostats

• Touch Screen Thermostats– Home Comfort Control– 8600

• Premium Thermostats– 8400 series, including the 8476

• Specialty Thermostats– 8570 w/6504– 8710 wireless

8710 Wireless Thermostat

• No wires to run• 2 piece design• Makes zoning easier• Keep in mind

– Never should be a primary stat– Regular battery replacement– Use 6404 with vacation setting

So, when is the best time for a contractor to sell zoning in

existing homes?

Actually, there are a number of best times…

• Planned change outs• Planned maintenance calls• To existing customers when temperatures

change– When it begins to get hot– When it begins to get cold

Planned Change Out

• Homeowner is planning on changing out old HVAC equipment– Improve reliability– Improve efficiency– Improve comfort

• Best time to address system performance issues– Uneven temperatures– Occupancy patterns– Manage expectations

• If they don’t buy today…– Will understand zoning benefits as outside temps change– Excellent prospect for follow-up

Planned Maintenance

• Regular system maintenance usually part of a service agreement

• Tech is there to service, not sell• Brief assessment conducted by tech

– Brief set of questions that the tech can ask to determine need– Room temperature readings– Comfort advisor follow-up– Tech spiff for leads that turn into jobs– Add to database

Existing Customers

• Keep an active list of zoning prospects among current customers

• New installations/service agreements– Especially those who have been exposed to

zoning’s benefits

• Targeted direct mail when it starts to get hot/cold with a solution message