- Premium Content -
Establish a Primary Service Area (PSPSA)
Experienced and successful entrepreneur, Jackie Rainwater, discusses why it's important to designate a primary service area and how to do it the right way.
View article.
Originally published: 06.01.07 by Jackie Rainwater
I want to let you in on what seems to be somewhat of a secret in our industry . . . partnering works!
In this instance, I mean partnerships between hvac contractors and their primary hvac equipment manufacturers and suppliers. I make this statement because I have practiced partnering successfully during my 47 years in our industry. I was with a major hvac manufacturer-distributor for 21 years followed by 21 years as an hvac contractor. During the most recent five years, I have been involved in consulting and training for hvac manufacturers, distributors, and contractors.
Early in my years in manufacturing and distribution (1961-1982), I realized that partnering with contractor-customers was a much more enjoyable, stable, and profitable way of doing business than the shortsighted "we vs. them" (sometimes adversarial!) relationships between manufacturers and distributors and their contractor-customers.
As a contractor (1982 2002), I continued partnering. It was instrumental in the success our company enjoyed. We worked closely with our primary supplier to assist in increasing its market share, sales, and profits. In response to our cooperation, loyalty, and substantial purchases, the supplier not only provided us with superior products (a given),
In order for any business relationship to be a true win-win partnership, both parties must establish trust, confidence, and respect for each other; fully understand each other's motivations and goals; and then willingly assist each other in the achievement of those goals.
Establishing a mutually beneficial, long-term relationship with your supplier- partner, requires you to:
1. Determine whether the partnership will be a good match by assessing:
Here are some of many areas to consider when evaluating this question:
Product line
Marketing, advertising, and sales support
Training
2. Plan a meeting with your key managers and the supplier's key personnel to discuss the above points in detail. This meeting may also involve someone representing the equipment manufacturer if your primary supplier is an independent distributor. The meeting's agenda should include your one-year, five-year, and 10-year goals. Plan on a minimum of four uninterrupted hours for the meeting.
3. Following the meeting, get input from your management team about the meeting. Follow up with your primary supplier on issues or problems raised by your management team.
4. After getting satisfactory response to these issues, meet with the representative as well as his manager for a final agreement for your partnership.
As you move forward with your partnering agreement, you are certain to encounter obstacles on a periodic basis. Good partners will find a way to work through these "opportunities" and enjoy success together. Sounds kind of like a good marriage, doesn't it?
Jackie Rainwater is a 46-year veteran and former owner of Peachtree Heating and Air-Conditioning in Atlanta. He built his businesses on service agreements.
Jackie Rainwater is a 46-year veteran and former owner of Peachtree Heating and Air-Conditioning in Atlanta. He built his businesses on service agreements.
- Premium Content -
Experienced and successful entrepreneur, Jackie Rainwater, discusses why it's important to designate a primary service area and how to do it the right way.
View article.
- Premium Content -
Would you like to triple your customer referrals? Increase your sales closure rate 10%? Cut your installation warranty cost 75%? Add 1% to your installation profits? Reduce the turnover rate of your installation technicians to less than 5%? Boost the pride and morale of your co-workers and your company’s reputation?
View article.
- Premium Content -
By properly managing the sales force, you can be certain that all sales leads are carefully tracked, and promptly pursued— thus bringing more money to the bottom line.
View article.
- Premium Content -
Weather-driven sales certainly are a nice windfall when they happen. However, depending on temperature extremes to grow a viable hvac retail business simply doesn’t work for the long haul. In order to grow and prosper, the business must generate sufficient valid sales leads on a year-round basis.
View article.
- Premium Content -
By educating customers about additional accessories, your company can increase sales and profit margins.
View article.