KEI L Relies on Vast Experience To Add HP Services
Originally published: 09.01.10 by
HVACR Business Staff
Milton Baum is co-owner of KEIL Heating and Air Conditioning, Riverdale, N.J. which has built an internal HP services program.
Why did you decide to add HP
services? Did customers ask for it?
Did you see compelling research?
Or did you pick up on the trend on
KEIL Heating and Air Conditioning
has always been at the forefront of
change. We have performed complete
heat loss/heat gain calculations since
the late 1980s. We have had all of our
technicians certified in air balancing,
and carbon monoxide and combustion
analysis. We have NATE-certified
technicians, take advantage of manufacturers’
training, and use the Eastern
Heating Cooling Council for additional
training. HP just seems to be the next
logical step in doing what is right for the
Why is it right for homeowners?
With energy costs continuing to rise,
and electrical distribution maxed out,
the only way for homeowners to control
increasing energy costs is to make
efficiency changes to their homes. HP is
the change most homeowners need. We
decided that possessing the knowledge
and certifications necessary to assist homeowners
in tightening their homes and
increasing efficiency of their major appliances
was in everyone’s best interest.
We feel that as time goes on, the focus
on HP will increase, and we want to be a
part of that as it is a win-win for everyone
What have you had to invest in to
Our investment to this point has been
minimal. We sent three people to take
the Building Performance Institute (BPI)
training classes for Building Analyst
and Envelope (Shell) at a cost of $1,500
per person, including testing. This
was scheduled through Conservation
Services Group (CSG), which administers
the Home Performance with Energy
Star program in New Jersey.
In order to complete the field-testing
and to perform the basic requirements
for testing a home, KEIL purchased a
Minneapolis blower door, a Minneapolis
Duct Blaster system, and a TrueFlow air
handler flow meter through CSG for a total
equipment cost of just over $5,000.
In that our company was enrolled in
the CSG program before April 26, 2010,
KEIL was eligible for incentives on the
BPI training and equipment purchases
through the State of New Jersey. These
state incentives cut our training and
equipment costs roughly in half, from $10,000, down to $5,000 Beyond the certifications for Building
Analyst and Envelope (Shell), KEIL will
have to incur costs of certifying at least
two people for
Heating and for
through BPI as
through the State
of New Jersey
have been eliminated.
these classes costs
$750 per person.
costs of classroom
training and acquiring
the tools, there is also the ongoing
cost of continuing education to keep
each of the BPI certifications current.
This includes travel, food and lodging
expenses, plus the costs of the seminars
themselves. Add in the cost of an
infrared camera with a week’s worth of
out-of-state training, and you can add
on another $9,000 to $15,000. Before
long, we will have invested between
$20,000 and $30,000 to be proficient
in the Home Performance field, and this
is without purchasing any type of insulation
What are your goals in terms
of revenue generation or
percentage of business?
We created a DBA
(Doing Business As)
— KEIL Home Energy
Solutions — to perform
all of the Home
through. Once we have
completed all of the
training and received
all of the certifications,
we plan to market HP
as a new service offered
through KEIL Heating
and Air Conditioning.
Our goals for revenue are somewhat tied
to the New Jersey state incentives. When
we first entered the Home Performance
with Energy Star program, the homeowner
incentives were capped at 50% of the total cost up to $10,000, plus
zero-interest financing for the additional
Since the time we started our training,
the state’s program has been suspended
and then reinstated with incentives
capped at 50% of the total cost
up to $3,000, plus the zero-interest financing.
With these new changes in the
state’s program, there will be far fewer
homeowners interested in participating.
KEIL has never been the type of company
to put all of its eggs in one basket,
so once we are fully certified, we will begin
the program slowly and build it up
based on demand. We fully believe in
HP as the future of our industry, which
is why we moved ahead with the training
in the first place. But we will never put
ourselves in a position where should the
homeowner incentives go away again, it
could hurt our business.
Why did you choose not to go
the franchise route?
With over 100 years of experience in
the residential hvac industry, we feel that
our in-house systems are strong enough
to format a HP services system that will
work well for our customers and us at a
fraction of the cost of a franchise.
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