HVAC Channel

Profits, P&L’s, Pricing and More - A Live, Online, Interactive Learning Experience
Tailored Exclusively for Carrier and Bryant Dealers
Four sessions: October 5, 12, 19, and 26, 2010

BFAD and CFAD dealers receive one day of credit when homework is turned in by December 1, 2010. You do not have to be an FAD dealer to take this class.

Here’s what Carrier and Bryant dealers say about Profits, P&L’s, Pricing and More
“I was ready to throw everything at Mike (his Carrier TM) when he told me that I had to take this class. However, now I’m enjoying it and learning a lot.”

“It’s been very rewarding and I promise to apply this to my own company. We are cleaning up the balance sheet and starting 2010 with a road map, and a clear direction for the first time.”

From a company controller:
Thank you for taking the time to put this program together. After completing all four segments, I would highly recommend it to anyone working within the HVAC industry.”

“The class is awesome, I am getting a lot out of the 1 1/2 classes that I watched and our brief conversations. (FYI- I am very impressed with your level of expertise, professionalism and the ease in which you "teach" the information, you never speak down to your attendees but you make it simple to follow, AND I speak from a newbee in the HVAC field but I have years of teaching experience in a mainly male field ( mine was law enforcement).”

Many owners enrolled their children (or managers) who will be taking over their business:

“I really enjoyed your class. I learned so much from it. My Dad even said I have told him things he didn't know. We are going to redo our departmentalization based on your class.”

“Thank you Ruth for being so patient with me. I am working with what I am finding are not good financials – but I guess that is what this class is for, to open our eyes. And believe me, mine have been opened. I am the daughter-in-law of our owners and we’re in for a lot of changes thanks to you.”

Since 1987 I’ve helped thousands of HVAC business owners and managers avoid financial mistakes, grow, and achieve the goals they want to achieve.

Profits, P&L’s, Pricing and More is designed exclusively for Carrier and Bryant dealers to give you the tools you need to understand and profit from the financial side of your business. After these four weeks you’ll recognize when “things don’t look right”. When you complete it, you should know enough to question your accountants, whether they are internal or external to your company. The only way that you can keep your hard earned money is to know that your financial statements are correct each month. You have to know the score and believe the score each month.

Are you going to have to do some work?
Absolutely. You can’t get this information into your head without putting in some effort. This is four one-hour weekly sessions with critical information, explained in ENGLISH, so you can easily apply it to your business and understand your scorecard. You’ll have practical homework, using your business’ information, or the sample business information, to get ready for the next session.

How does the Program Work?
You participate in these sessions from the convenience of your home, office, or on the road...anywhere a connection to the Internet exists. The sessions are live on HVACChannel.tv. You have the opportunity to ask questions and participate through calling in or chatting in to Ruth King, the facilitator. And, chat messages are totally anonymous. No one, not even Ruth, knows who is asking the question. You can feel comfortable asking any question…no one knows it’s you (unless you put your name at the end of your question).

If you miss a live session or want to review it, the sessions are recorded so that you have access to them 24 hours per day. When you register, you'll receive a password and instructions on logging in for the sessions.

Details about Program:
• The live sessions are October 5, 12, 19, and 26, 2010. Each session is 1 hour in length. Depending on the number of participants and the geographic locations of the participants, classes may be held at 10 AM Eastern and 2 PM Eastern time. The exact times will be given to enrollees a week before class.
• You do not have to attend the live sessions. More than 50% of the program participants watch the programs in the evenings and on weekends. You don’t have to take time out of your revenue producing days to attend class.

October 5 – Balance sheets, income statements and gross margin analysis
October 12 – Pricing, break even, departmentalization, profitability analysis
October 19 – Short term benchmarking, critical financial ratios
October 26 – Long term trend analysis, cash flow management

• You can watch each program as many times as you’d like. If you miss something the first time, the programs are available to watch again at your convenience.

• Homework is an integral part of this program. You have two options: Use your financial statements or use the sample financial statements with the program. When you use your financial statements Ruth King personally reviews them. They are kept confidential.

• Homework (for those who need FAD credit) is due December 1, 2010.

You also receive:

• The Profits, P&L’s, Pricing and More course manual full of examples and explanations of the concepts covered in the on-line sessions
• Keeping Score: Financial Management for HVAC Contractors, Ruth King’s 86-page manual written “in English” rather than accountingese
• The HVAC Residential Pricing Manual – Ruth King’s manual and templates for determining service rates, overhead, departmentalization, residential replacement prices and more

And, most important:
Ruth King, an HVAC industry veteran with over 20 years helping contractors with growth and financial issues, personally reviews your financial statements (your option) and homework. She is available to answer questions and give guidance.

Your investment:

$397 – per company

More than one person per company can participate in the programs for the same investment

How to participate in Profits, P&L’s, Pricing and More:
Call us at 877-520-4321 or 770-729-0258. We’ll take your registration on the telephone. Or, complete the form below and fax it to us at 678-969-2791. Or, email to ruthking@hvacchannel.tv

YES! I want to enroll in Profits, P&L’s, Pricing and More:

Name ____________________________________________________
Company Name_____________________________________________
Street Address _____________________________________________
City _____________________ State __________ Zip Code__________
Telephone Number ________________________
Email Address: ___________________________
Dealer Number: ___________________________
Distributor: _______________________________

For the homework:

 I will use my financial statements (fax to 678-969-2791)
 Please send me the sample financial statements

Class investment:
 $397 – Profits, P&L’s, Pricing and More $ __________

Credit Card:  Visa  MasterCard  American Express
Card Number ____________________________________________
Expiration Date _______________________Security Code ________
Name on the Card _________________________________________
Signature __________________________________________________
Billing Address (if not same as above) ___________________________
__________________________________________________________
Upon receipt of registration you will be emailed the password to attend the program, the course manual and Keeping Score: Financial Management for HVAC Contractors.
Questions? Call 877-520-4321.

Fax this completed page to 678-969-2791 or email it to ruthking@hvacchannel.tv

Videocast Preparation Instructions for Distributors
1. Schedule your August 18th Transformation Videocast Launch Party
• Videocast will last approximately 1.5 hours
Live Broadcast Time: 1:00pm EST / 12:00pm CST / 11:00am MST / 10:00am PST
2. Register your August 18th Transformation Videocast Launch Party online
• Visit www.forwardthinking.honeywell.com/transform
• Select “Distributor Registration”
• Input your event information, and Honeywell will promote it on our contractor website
3. Be Creative. Have Fun.
Make arrangements for refreshments and prizes (if you choose to have them) to be delivered or picked up for your meeting.
You will need to purchase the refreshments and prizes yourself and submit expenses via MDF following the Transformation
Videocast.
4. Make arrangements to have the following equipment set-up for the videocast:
• Your computer (practice gaining connectivity as described below)
• A projector and screen to display the videocast
• Computer speakers for audio during the videocast
• A location with a high-speed internet connection
5. Make sure you have the latest version of Adobe Flash Player installed and running on your computer. You can run a check here: http://kb2.adobe.com/cps/155/tn_15507.html

August 17th — Day Before Live Videocast
1. Be sure to test your connection a day in advance to ensure that you are ready to host your event.
August 18th — Day of the Live Videocast
1. Connect at least 20 minutes prior to the videocast.
2. Videocast set-up:
• Visit www.forwardthinking.honeywell.com
• On the home page, click on the World Premier Videocast Icon
• Enter username: transform and password: honeywell
• The show will start automatically at the designated time
**For the first 30 days after the live show, the program can be accessed for additional use exactly the same way the live show was.

Connectivity Troubleshooting
1. Before, during, or after the program, if you are experiencing any problems, call:
HVAC Channel. TV Customer Care Group at 1-877-520-4321. Be sure you print these instructions and have them available when you call.

How do you differentiate your maintenance agreements from your competition’s?

Everyone knows the lowest price maintenance agreement is a recipe for disaster. When you sell on price, the minute that your competitor decides to drop his price, you’ve lost that customer. Lowering prices is a death spiral.

What makes you different?
Include more benefits in your maintenance agreements. Charge more and sell more. Give your customers something different and valuable!

We recommend indoor air quality products such as the Clean Air Lamp from Limex Technologies.

In these economic times, customers look closely at what they are willing to invest in their homes. Many won’t invest in a whole house UV light solution, yet are very concerned about their indoor air quality. The less expensive Limex option lets your customers experience cleaner air one room at a time. Once they see the difference, they may be more willing to invest in a whole house solution. Or, they may simply purchase additional lamps for other rooms.

The Clean Air Lamp from Limex Technologies uses a patented coating process which takes the technology that you are familiar with (whole house UV lights) and puts it on a light bulb. The same titanium dioxide. A different coating process. The same results.

Now you can offer a room solution or a whole house solution.

Watch this short video:

http://www.hvacchannel.tv/program_detail.php?ep=3632

Be different. Help your customers be more comfortable in their home and generate non-seasonal revenue!

Order below:

Limex Pricing Promo Code ____________

Single units – Shipping NOT included:
Home Kit: $49.97 each # desired _________
2-Pack Bulbs: $29.97 each # desired _________
Spray: $19.97 each # desired __________

Case Pricing (24 units per case) – Shipping Included:

Home Kit (2-Pack Bulbs and Spray - 24 kits per case)
# Cases ______________
1 case - $1097
2-9 cases - $1074 each
10-19 cases - $1044 each
20-29 cases - $1014 each
30+ cases - $984 each

2-Pack Bulbs - 24 per case (48 bulbs)
# cases desired: ____________
1 case - $697
2-9 cases - $684 each
10-19 cases - $664 each
20-29 cases - $644 each
30+ cases - $624 each

Spray - 24 per case
# cases ____________
1 case: $474
2-9 cases - $464 each
10-19 cases - $454 each
20-29 cases - $444 each
30+ cases - $434 each

Shipping for non case items is $5.95 + $1.00 per item.
International shipping is quoted separately.
Return Policy: No Refunds – Exchanges only with 10% restocking fee

YES! I want to invest in the Limex Products:

Name _____________________________________________________________________
Company___________________________________________________________________
Shipping Address ____________________________________________________________
City _____________________ State __________ Zip Code__________
Telephone # _______________________Email: ___________________________________

Home Kit # Cases_________ Total Price __________
Home Kit # single items _______ Total Price __________

2-Pack Bulbs # Cases ______________ Total Price __________
2-Pack Bulbs # single items __________ Total Price __________

Spray # Cases __________ Total Price __________
Spray # single items ______ Total Price __________

No Shipping in US for case quantities;
Shipping for non case items ($5.95 + $1.00 per item) $ __________
GA customers add sales tax @ 6% $ __________
TOTAL $ __________
Credit Card Orders:

Card Number ___________________________

Expiration Date __________________________

Security code ___________________________

Signature ___________________________________________

Billing Address (if not same as above) _______________________________________________

Send this order form and your payment to Business Ventures Corporation, 1650 Oakbrook Drive, Suite 405, Norcross, Georgia 30093 or email to brendabethea@bventures.com
Questions? Call 877-520-4321 or fax to 678-969-2791

Being wealthy is a system.
Being poor is a system.

Which would you prefer?

If you answered being wealthy, then you need to learn the easy system.

Learning the system is really easy.

Implementing the system doesn't take a lot of time either.

This manual gives you the system and a simple calculator. It is your choice to implement it, follow the rules, and become wealthy and prosperous.

Three ways to get this $3.99 manual and calculator:
1. Download this Piggy Bank app from the Apple Store:
Getting Started with Wealth and Prosperity
http://itunes.apple.com/us/getting-started-wealth-prosperity/id3590621831?mt=8

2. Call us at 877-520-4321 and we'll take your order over the phone.

3. Send a check for $3.99 payable to Business Ventures Corporation to 1650 Oakbrook Drive, Suite 405, Norcross, GA 30093. Include your email address and phone number in case there is a problem. We will email you the manual and calculator.

ABOUT THE AUTHOR
Ruth King is a seasoned entrepreneur who writes from experience having owned seven businesses in the past 25 years. She is presently the Founder and CEO of Ribbon, the Internet Broadcasting Network, profitabilitychannel.com, and Business Ventures Corporation, award winning companies dedicated to helping small businesses and their owners succeed. Her book, The Ugly Truth about Small Business, won the 2006 USA Best Book Award for Entrepreneurship. Ruth is passionate about helping people achieve their goals, teaching adults to read, and running marathons.

301 Day Maintenance Agreement Growth Challenge
February 18, 2010 through December 15, 2010

Everyone knows that a strong maintenance agreement base decreases seasonality, increases cash flow and increases replacement sales. Would it be ok to increase your maintenance agreement base by 20%, 50% or even 100% this year?

Maintenance agreements are essential for a stable, profitable HVAC company. Dramatically increase your residential planned maintenance agreement (PMA) enrollments using a systematic process.

This program uses traditional elements in a non-traditional way. First, this program is not a one day seminar where you go to a specific location, get information, go back to your office and forget 90% or more of what you learned.

You implement what you learn every day. Learning and follow up is accomplished through monthly on-line sessions and turning in results each week. I review all homework and I am available by telephone and email for questions and issues as they arise.

Explode your maintenance agreement growth this year.

For more information
http://www.hvacchannel.tv/program_detail.php?ep=3503

or call 877-520-4321

Financial statements are a tool. The first few times they are confusing. However, when you work with them the light bulb goes off and they become easy to read. Make sure that you start 2009 with proper financial statements – correct these seven deadly mistakes so you make good business decisions based on sound financial information.

1. Negative cash. Your banker is not going to allow you to have a negative cash balance in your checking account for long. Negative cash on your balance sheet means that you've written more checks than you have money in the bank. Some bookkeepers are notorious for doing this. They print out all of the checks and then wait until the cash comes in to pay them. This totally distorts both your cash and your accounts payable.

2. Inventory on your balance sheet is an even number. If your balance sheet says that inventory is $1,500, this is a dead give away that the inventory is a "guessed" number. You need accurate inventory figures to know if you have too much money tied up in inventory.

3. A balance sheet that doesn't balance. When the balance sheet doesn't balance, warning bells should be going off in your head. No bookkeeper who knows bookkeeping should ever give you a balance sheet that doesn't balance. And yes, I've seen plenty of them! If you bookkeeper can't pass my bookkeeping test, he or she shouldn't be doing books for your company. Anyone who doesn't have the test and would like it, please email me at rking@ontheribbon.com.
4. Negative payroll taxes payable. The likelihood that you overpaid your withholding taxes by thousands of dollars is slim to none. If you see negative financial withholding on your balance sheet, then something was probably entered wrong...and that means two things were entered wrong.

5. Negative loan balances. Again, the likelihood that you paid more than the bank required to pay off your loan is slim to none. If you see negative loan balances on your balance sheet, then look for the entries that are wrong.

6. No rent (or utility bill, etc.) or extremely high rents. This usually means that one month has double overhead expenses and another month has no overhead expenses. One month you earned a great profit - no expenses. One month you earned no profit or were at a loss - double overhead expenses. Both months financial statements are wrong. Make sure that the overhead that you expect in each month is there.

7. Inconsistent gross margins. If a department's gross margin widely varies from month to month the most likely cause is a sale in one month and expenses against that sale in another month. Make sure that you match sales and expenses in each month! (There are other reasons that I will cover in future Contractor Cents).

Start 2009 on the right foot with proper financial statements!
For a free copy of Ruth King’s 86-page manual, Keeping Score: Financial Management for Entrepreneurs, send an email to rking@ontheribbon.com.

Terror begins when emotions take control and logic disappears. From my award winning book, The Ugly Truth about Small Business, learn these critical survival strategies for success:

1. Pick yourself up, dust yourself off, and keep going.
All entrepreneurs face terrible days. Have the confidence that when bad things happen, you can face them, deal with them, and get through them. You never know how long the terrible things, the dark days, will last. However, you know that there is light at the end of the tunnel at some point. You continue towards that light and eventually you will emerge.

2. Learn to deal with your emotions.
When the terror hits we react emotionally first. Find a way to release the emotions quickly so that you can start thinking logically again.
Try to address the problem. What can I do immediately? What can I do tomorrow? Next week? Next month?” And, do what you can do every day to solve the problem.

3. Find a physical way to deal with the on-going stress.
Even though the emotion of the situation doesn’t last long, getting through the dark days can take weeks, months, or even years. This can be extremely stressful on you. You have to find a way to decrease the effects of stress on you.

Exercise helps a lot of entrepreneurs. I started running at the age of 44 and ran my first marathon three weeks before my 46th birthday. I often say that I would be a basket case if I didn’t run. For me, running gets rid of the stress.

Many other entrepreneurs run, bicycle, or do some form of exercise. One took up karate and is going for her black belt. The exercise helped them deal with the inevitable hard times. Many times it is during exercise that entrepreneurs get the ideas that help them through the rough days. It helped decrease the effects of stress.

4. Believe in what you are doing.
Time after time entrepreneurs told me that the belief in what they were doing got them through the dark days. Every time something bad happened, they reminded themselves why they were doing what they were doing and continued on.

At each obstacle remind yourself that it is important and continue through. If you truly believe that what you are doing is important, this belief alone can help you through the dark days.

5. Be flexible.
First write the plan to resolve the situation. However, realize that the likelihood of following that plan to the letter is nil. You have to learn to be flexible. If a specific situation doesn’t happen, you need to have a plan to go around it, go through it, or go in a totally opposite direction.

6. Rely on people you trust outside the business.
Most of the time when someone asks us how business is, we say, “Great”, even if we don’t have a clue where next week’s payroll is going to come from and sales are slow. As a rule, entrepreneurs don’t trust anyone when discussing their business. And, even if we are doing great, we don’t want anyone to know how great.

If your business is a partnership, you still need to find outsiders whom you can discuss situations with. The outsiders can provide perspectives that even the partners can’t see because they are in the day-to-day running of the business with you.

Finding people you trust is critical. These are colleagues and true friends who you can rely on to listen and provide support and comfort as you are going through the dark days. For some entrepreneurs it is their spouse. For others, they tell their spouse nothing about the business.

Find people you can be brutally honest with. These associates should also be brutally honest with you. They can provide a sounding board, advice, and encouragement as you are going through the terror.

7. Make a list.
When you put things on paper you often see the realities of what is happening. Lists help a lot. You can put your thoughts down on paper. You can often see that things aren’t as bad as they appear in your imagination.

All entrepreneurs go through terror. You go through fear of the unknown. Eventually the unknown becomes known. Then the dark days turn into light. Sometimes the darkness lasts for minutes, other times for years. Have faith that you will get to the light.

I was reviewing past Contractor Cents (my weekly ezine that I've written since 1999. Send me an email (ruthking@hvacchannel.tv ) if you'd like a free copy each week). I found this one from 2003. Here’s what I wrote then. I was amazed that it is still applicable today.

Here’s what I wrote in 2003:
The economy is uncertain. No one has a crystal ball. So how do you prepare and keep your business moving in a positive direction?

Some people are focused on doing only the things that they have to do to get by right now. Others are forging ahead and not allowing the political climate to affect how they act. Obviously, you want to find those who are not afraid of spending money. However, spending money still has to make sense. The likelihood is that people may stop spending a lot of money on things that they think may be discretionary. Or, they may spend money on their houses rather than traveling which would be good for our businesses. Either way, now is the time to change your marketing focus.

In uncertain economic times most people are concentrating on ways to saving money. They want to decrease costs. So, your message to them must be how they can save money by using your services. How do your service agreements save them money? How do they lessen the fuel costs increases that most everyone has experienced this winter? All of the information that you give to the customers must focus on things that they are interested in right now. And, that is writing smaller checks to utility companies.

Your service technicians must focus on saving money. Sure, the other benefits of replacing systems and service agreements still apply. However, the customer is likely to discount them now and not use them as a reason to buy simply because they are focused on decreasing costs.

Back to 2008:
Perhaps we go through uncertain economic times every five years? The reality is that we are in a cyclical business and will always have good times and slower times. In 2008, consumers think air conditioning is a necessity; not a luxury. Like gasoline, people have to have it. They may not be buying 18 SEER equipment. However, they are still buying.

Service has been very strong in most areas this year. I’ve seen more compressor replacements this year than last. I’ve seen more “fix it” than “replace it” too. Whether it is service or replacement, people are still buying.

Remember to get one new customer per day. Continue your service agreement generation programs. Your stable customer base will take you through the good economic times and the slower economic times.

About 10 days ago I had the opportunity to sit in the back of a meeting room watching a presentation to Atlanta mortgage brokers.

I realized that there are 40% less brokers in Atlanta than there were a year ago and about 40% of the market has dried up. The presenter asked, “How many of you are having better year in 2008 than you did in 2007"? In a room of about 75 people 6-7 hands went up. About 10% were having better years than they did in the past!

Why? These 10% realized the market had dramatically changed. Instead of fighting the market, wishing that it would change to “the way it was”, and bemoaning the differences, these people found a way to take advantage of the changed market. They changed their attitudes. They changed the way they looked at the market and found a way to satisfy the new needs of the market.

Ten percent were doing even better! They weren’t listening to the doom and gloom of the media. They were creative and found a way to increase their business; even in a “down market”. In crazy economic times there are always some who survive, thrive, and do incredibly well. It’s all about attitude.

So how do we thrive in crazy economic times in the HVAC industry?
1. Keep your attitude positive. This is probably the most important, and perhaps the hardest thing to do. Turn off the negative news. Listen to positive audio CD’s and read positive, uplifting stories. Don’t get caught up in the negative spiral.

2. Ok you say. Being positive won’t increase my revenues. You’re right. Be proactive rather than reactive. If the telephone isn’t ringing, call customers and prospective customers. The phone will start ringing. What are you going to do for customers that saves time and cuts their costs? You’ve got the attention of commercial and residential customers with these two benefits. They want to save time and cut costs now more than ever.

3. Keep marketing. Those monthly postcards do work. Will they produce phenomenal results the first month? Not unless you just happen to hit the market exactly right. However, over a year to two year period you will see dramatic results. Keep going, even in the slower times of the year.

4. Give out as many business cards as possible. When was the last time you gave your business card to the manager or owner of the restaurant that you regularly go to? Your service technicians and inside employees need cards too. They meet people all the time who could use your company’s services.

5. Resolve not to have “all of your eggs in one basket.” If one customer has more than 20% of your business, you may be in trouble if that customer goes out of business or decides to use a competitor. Find other customers.

Your positive attitude will help you do all of this and have a better 2008 than you did in 2007.

Oren Harari keynoted a conference that I attended last week.
He talked about the fact that most businesses (and definitely
a lot of businesses in our industry) live in “commodity hell”…
his words, not mine. When we do something different to
differentiate ourselves from our competition, within a few months
our competition has discovered our differentiator and has started
to copy it. Differentiation gone. Back to “no difference” in the
customer’s mind.

Customer satisfaction is a commodity response to a commodity
industry. You need to “lead your customer to an impossible place.”
The words, “Wow, dazzle, thrill, delight” should be answers to
your customers’ experience with your company.

So, how do you do it when information about our companies, our
competitors, and sometimes our customers is available to anyone
who knows how to use the Internet search engines? According to
Dr. Harari, our Achilles Heel is sticking to what generated
profits in the past. Our challenge in the copycat economy is to
keep ahead of the imitators who are definitely watching us.

What does that mean? The customer is looking for something
that will justify in her mind to use our company’s services
rather than a competitor’s. All she has to do is look in the
Yellow pages, make a few telephone calls, and see the “sameness”
of all the contractors listed. Even if you say “We don’t use the
Yellow pages” you need, at the very least, a line listing, so that
your current customers know where to find you.

So what can you do that’s different, can be done at a competitive
price and will wow a customer? Talk to your customers when
you don’t need to. This means emails, postcards, and phone calls
to remind them to change their filters. Many contractors do
newsletters. Make a long term commitment to continually stay
in touch with your customers. If you find an article or a white
paper with information that will help them stay more comfortable
in their homes…send it to your customers. Most will appreciate
your thinking of them.

What is the customer experience like? How does a customer get
greeted when she calls on the telephone? What is the technician
doing to educate her, keep her home neat and clean? Check the
batteries in her smoke detector? There are many, many ways that
you can differentiate your company from your competition. It
takes work and keeping ahead…because your competition is lazy
and soon will be copycatting your new actions…making you come
up with something new to stay ahead of the pack.

We can stay in the pack, grumbling about prices, technician
Shortages, and the weather. Or we can differentiate, get noticed
by our customers who appreciate and will pay for the value we
provide. This will generate more revenues and profits and a lot
less grumbling. The choice is yours.

Note: Oren Harari’s book, “Break from the Pack: How to Compete in
a Copycat Economy,” is available at all bookstores.