After my last post, I received what I thought was a great email from a friend and associate who has spent a lot of time in the HVAC field. He relays the story of how selling in that industry, like all others, has changed and not “it is all about value”. I thought I would share that email with you as another example of changing the sales process…
…In the HVAC Industry the presentations from Salespeople to the end user, whether that may be a Homeowner, the CEO of a company, or a Property Manager, have changed dramatically over the past 3-4 years with the rise of energy cost savings on everyone’s mind. We recently put together some new material for our outside Sales rep which includes some software that takes the square footage, usage, footprint, etc. of a building and takes the equipment and Planned Maintenance schedule we provide incorperating it with the functionality of the building and it’s tenants and ultimately it produces a series of graphs, pie charts and calculations that show what the monthly and yearly cost savings will be. This eliminates the need for the client to “translate”, as you call it, like they had to a few years ago when they would be presented with a piece of equipment that claimed to be 94% efficient or 14 SEER. Most of the Facitlities Managers, and just about ALL of the Financial Officers in a company are looking for hard numbers in order to justify their decisions.
Even the residential HVAC companies are going into homes and doing an energy survey. Lighting and insulation contractors are doing the same. There is no way to calculate the savings exactly because of the obvious variables; ie. usage, weather, etc. but a customer understands “you are looking at a savings of $1000.00 to $1600.00 per year on your energy costs” much better than “this unit is 94% efficient and will save you money each year”.
To your point Stephen , you have to clearly define the value and spell it out in order to get the message through.
It would be great to get more stories like this. If I do, I will be sure to share. Do you have any stories about selling value?