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It's happening everywhere, utilities both gas and electric are entering the HVACR business with a passion, and frankly it's getting overwhelming for contractors and associations everywhere around the country. Do you remember all those TV ads encouraging us to vote for utility deregulation? Remember how all the competition it would create was going to lower our rates? Have you seen your utility rates drop yet? No, about the only fallout has been that of bringing them into the HVACR market with a vengeance. Yes, utility deregulation is making an indelible mark on heating/cooling contracting, and it will irresistibly change the future of our business.
About two hours ago I was in Tampa, Florida attending a RACCA (Refrigeration & Air-Conditioning Contractors Association) meeting which dealt with our local utility's announced attempt at selling whole-house service contracts. It looks like the same program a competing utility is trying across the bay. The response was exactly what I expected from the association, contractors, supply houses, and from the utility. Everybody stood their ground, nobody listened to anyone else... and the battle is about to begin.
The program the utility proposed wasn't near as ominous as others I've seen around the country. They want contractors to sign up to service whole-house contracts they propose to sell, and say they'll pay whatever hourly rate and parts markup each company uses (uh huh). Why is the utility interested in doing this? It appears they're worried about deregulated competitors entering their market and so they want to look as friendly and fuzzy to customers as possible. Making money? That doesn't seem to be the issue here since they're planning to farm-out the money side to an insurance company (that probably sold the idea to them).
Contractors say, "This is just the nose of the camel," or "I'd rather close my doors than to be dictated to by a utility," or "They'll soon be telling us what to charge or drop us from the program." So do you see the dilemma? Both sides have legitimate needs and concerns which are valid and directly opposite, and nobody has a plan to do anything other than to threaten and butt heads in court... to the delight of the lawyers.
Do I have a better idea on how to keep utilities looking customer friendly while not getting into the HVACR and appliance business? Nope, all I can say is that we'd better learn to adapt to the idea (while fighting like heck), because utility deregulation has certainly created a paradigm shift in our business that we'd better recognize.
What are some of the alternatives? At least one contracting chain in Florida has started offering whole-house (HVACR & appliance) service agreements at prices rivaling or beating the utilities -- and they're making money. Their prices, by the way, aren't a whole lot higher that what other contractors are offering for poorly-performed HVAC "maintenance contracts." Will utility competition force us to get better and smarter?
What about signing-up to work for the utility? Yes, absolutely unthinkable for some. But, could you charge a little less hourly if they kept your people busy, while handling all the advertising and collections? I'm not advocating that anyone do this, but I'd personally rather work with them than have the electric company start hiring their own service people. And how do we keep them from squeezing our prices? Maybe someone will have to come up with some type of contractors' union. New problems create new challenges.
So, don't get me wrong. I'm not siding with or giving into utility incursions into our business after all these years of fighting. I am, however, beginning to realize that they have an interest they're not ready to give up. And that it's best to plan for a way to survive should utilities win, as they have already done in a dreadful way in several parts of the country.
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Jim Wheeler is an award-winning free-lance writer who has been in the HVACR
industry for more than 22 years. He is available to write company case
histories and
corporate brochures. He can be reached at hvacr19@idt.net
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I have found one of my most important tools is my ears. The scream of a compressor slugging liquid, or the hum of a seized compressor followed by its rattle on its isolator springs when the overload trips is unmistakable. Without hearing, we would miss the complaining bearings, the surge of an overloaded fan and for those of us with relatively good hearing, the hiss of a refrigerant leak, just to mention a few.
True, we all have ears and it's hard to leave them behind. But there are times we don't use them when they could have saved us a lot of time.
Years ago I was privileged to work for (Mart Peddie) who used the art of listening before he did anything on a job. At first I didn't catch on, but I could not ignore the results and the speed at which he would get to the source of the problem.
We were representing the manufacturer and would be called in to look at a job (residential or commercial) after the customer or dealer/contractor requested our presence.
In most cases we were met with an upset customer. I was amazed at how Mart's approach would soothe the customer. He didn't offer solutions at this point but would just spend time carefully listening and asking questions to clarify the customer's comments and concerns.
Not only did his attentive manner get more information about the problem, but also calmed the customer.
Mart's technique helped me realize that the customer, owner, operator must be considered an integral part of the HVAC system. This person has control over the entire system and, left ignored, can cause major difficulties.
Fixing an HVAC system without satisfying the customer is a job only half done. It is helpful to remember that it's the customer that pays the bills and refers your company to other clients!
After questioning a customer and carefully listening to what they have to say, I have had a "no cooling" complaint turn to a "not cooling enough" and then to "well, the upstairs doesn't cool enough". This is not always the case, but it never hurts to give the customer an opportunity to relate what the problem is and show interest by asking questions.
Talking directly to the person with the complaint is also important - getting it secondhand from another person can sometimes send you in the wrong direction.
After sending two different service techs on separate occasions to the same house to correct a noise problem with no success, I went to check it myself. I asked the customer what the problem was. He told me the air conditioner was making a noise which woke him up at night.
I agreed this would be frustrating and asked him if the noise bothered him any other time. He said he only heard it at night. I asked if we could go to his bedroom and listen for the noise while the air conditioner was running. After entering the room, we both remained quiet. He quickly responded "There it is - can you hear it?"
After ruling out some other noises we quickly honed in on a noise coming from the return air grille. The velocity of the air going over the return grille was causing it to hum. A few quick adjustments and it was gone.
The two previous service techs had headed straight for the equipment, looking for the noise. They both spent time adjusting and testing, trying to eliminate what noise they thought may be the problem.
In their rush to fix the problem they neglected to spend a little time questioning the customer and totally missed the problem.
AS HVAC service techs, we have been trained to fix problems. I have never received formal training on listening to the customer. It is, however, a crucial part of the job and should be stressed more.
We not only have to listen but be able to ask questions that will help the customer better communicate with us. Remember, they don't speak our technical jargon and they will get things mixed up at times. I have found getting the customer to demonstrate the problem often helps a great deal.
Recently a client of mine, who has a good size two-story office space with a VAV system and electric perimeter heat, asked me to check an area of the office with no heat. I was told that setting the thermostat up had no effect on the heat at all.
I asked if I could have the person who was adjusting the thermostat show me exactly what he was doing. I was introduced to the fellow and he showed me how he was setting the thermostat, but the baseboard heat near his desk remained cold. However, the thermostat that he was adjusting was not for his area and he in fact was shutting off the cooling to an interior space adjacent to his exterior area!
All it took to correct the problem was a little instruction. In fact two problems were addressed: the no heat problem and the interior space that was overheating due to the incorrect thermostat setting.
I did give the thermostat and baseboard a quick check, but it only took a few minutes to establish they were in working order. If this would have been my first step I probably would have spent extra time trying to catch a sticky thermostat.
That fellow was quite embarrassed. I assured him it happens all the time and told him that I would keep it between him and myself. On return visits I have found him to be much friendlier and helpful in solving problems in his area of the office.
Listening is a great tool and it doesn't stop at just listening to the customers. Your boss and employees all require extra attention when they speak.
Remember, we can make a simple statement very complex and confusing, so it is helpful to clarify what you have heard with questions, even when you think you understand.
This will also help you remember what you heard, besides letting those you are listening to know that you're paying attention.
I have picked up a lot from listening to my helpers and the people I am training. It seems they have an open mind that can see things from a fresh or different perspective.
Your ears go along on every service call. All you have to do is remember to use them.