CMX 2004 - Plumbing & HVAC

Hot Seat
Know your
customer
Acommon complaint from contractors
in competitive bidding situations
is that another contractor
will take a job away by offering a lower
price, without explaining to the customer
that he is also offering inferior
equipment.
And at the other end, there are many
customers who rightly complain that
the contractor didn’t provide what they
expected. This holds true on everything
from the smallest residential job to the
largest commercial project.
For example, the customer is assured
by one contractor that the furnace that
they are suggesting is just as good as the
furnace that another contractor recommended,
but at a reduced price. Based
on the information that everything is
equal except the price, the customer
accepts the lower estimate.
But the old adage that one gets what
they pay for applies. The customer will
likely experience a noticeable difference
in comfort and energy costs.
The same holds true in large commercial
projects, where the manufacturer/wholesaler/contractor
has low-balled
the bid to get the job, and then ‘cheapens’
the mechanical/HVACR component
to avoid loosing money. It is difficult for
the building manager to get changes
after the installation is complete.
But this is why it is so important to
know the customer. Some contractors
think they have to offer the absolute
minimum price to get a job. But price
isn’t the major factor for many customers,
particularly where they are also
the end user.
It’s a sad reality today that many
commercial buildings are built with the
lowest possible capital cost in HVAC
systems because it is the tenant, not the
building owner, that pays operating
costs. The same applies on the residential
side where once a tract home is sold,
the builder is no longer concerned
about the heating and air conditioning
system. And, with brand new equipment,
it usually takes a long time for the
building/home owner to realize that
there is something better available. (Or,
let’s face it, even where the customer
knows better, who wants to replace a
brand new system?)
But most customers have expectations
when it comes to their HVAC/
mechanical systems. They know what
they want in terms of comfort, efficiency
and longevity and if it will cost more
to meet those expectations, they are
willing to pay. But they rely on the contractor
– the expert – to supply the right
system.
Even where the customer is overly
price conscious, it is important that the
contractor doesn’t install a system that
he isn’t comfortable with. Regardless of
the ‘great deal’ for the home/building
owner, if the system doesn’t work well
the customer will still complain to
friends and business associates about
their ‘lousy heating system.’ They won’t
bother to mention that they beat the
contractor down on price.
It is important to give options. The
‘good, better, best’ selling philosophy
has been around for some time. It’s an
established fact that few home or building
owners will go with the lowest-cost
alternative when presented with a number
of options, along with a good explanation
of the pros and cons of each.
As a general rule of thumb, the higher
the capital cost on equipment, the
lower the operating cost. If the contractor
can show the customer that the
higher cost/higher efficiency equipment
will actually prove less expensive in the
long run, the sale can become relatively
easy. Ever increasing energy costs mean
that the payback will actually be shorter
than with an estimate based on today’s
rates.
And with technology constantly
changing, it is important to take advantage
of the seminars and information
provided by manufacturers to keep up
to date. The customer looks to the contractor
for expert advice.
I don’t want to preach, but knowing
the products, offering options, and
sizing up the customer are all key
elements in sales success.
Incorporating
Plumbing Piping
and Heating magazine
and HVAC/Refrigeration
magazine
March/April 2004
Volume 14, Number 2
ISSN 1499-5271
Editor
Simon Blake
(416) 614-5820
sblake@nytek.ca
Executive Editor/President
Ronald H. (Ron) Shuker
(416) 614-5816
rshuker@nytek.ca
Contributors
Roy Collver
John Carr
Ron Coleman
Warren Law
Publisher
Bill Begin
(416) 614-5819
bbegin@nytek.ca
National Sales Manager
Jim Gillen
(416) 614-5817
jgillen@nytek.ca
Design and Production
Tim Norton
production@nytek.ca
Circulation Manager
Pat Glionna
Corporate Services
Anthony Evangelista
PLUMBING & HVAC PRODUCT NEWS Magazine is
published six times annually by Nytek Publishing
Inc. and is written for individuals who purchase/specify/approve
the selection of plumbing, piping, hot
water heating, fire protection, warm air heating, air
conditioning, ventilation, refrigeration, controls and
related systems and products throughout Canada.
It's Time for a Change!
Go with what works.
ATOFINA's Forane 408A and 409A were
designed and tested to make R-502 and
R-12 retrofiting easier. They eliminate oil
changes, save energy and are good for
the environment.
Head Office
Nytek Publishing Inc.
451 Attwell Drive, Toronto,
Ontario, Canada M9W 5C4
Tel: (416) 242-8088
Fax (416) 242-8085
POSTMASTER: Send all address changes and circulation
inquiries to: Plumbing & HVAC Product News
magazine, 451 Attwell Drive, Toronto, Ontario, Canada
M9W 5C4. Canadian Publications Mail Sales Product
Agreement No. 400076296. Postage paid at
Winnipeg, MB. Annual Subscription: $34.00 plus
$2.38 GST, single copy $5.00 plus $0.35 GST in
Canada; United States $40.00 U.S. One year subscription
in U.S.: $40.00 US, One year subscription
foreign: $65.00 U.S.
Copyright 2004. The contents of this magazine
may not be reproduced in any manner without the
prior written permission of the Publisher.
FORANE ®
We're there for you.
Circle Number 106 for More Information
With ATOFINA products
you get the performance
and after-market
support you need.
1-800-567-5726 • www.atofinacanada.com
AF2003-01
We acknowledge the financial support of the
Government of Canada through the Canada
Magazine Fund toward our editorial costs
A member of:
Canadian Institute of Plumbing & Heating
Canadian Circulation Audit Board
Mechanical Contractors Assoc. of Canada
Ontario Plumbing Inspectors Association
Hydronics Marketing Group
American Society of Heating Refrigerating &
Air Conditioning Engineers
Heating Refrigeration Air Conditioning
Institute of Canada
Refrigeration Service Engineers Society of Canada