The Service Roundtable Business Alliance Will Support Solar Contractors

The Service Roundtable (www.ServiceRoundtable.com), an Internet based contractor business alliance is launching a dedicated business support program for solar contractors, company officials announced today.

The “Solar Roundtable” will be headed by Jim Hinshaw, one of the top sales trainers in the solar industry. Since 2007, Hinshaw has trained over 1,000 solar contractors on the sales and business side of contracting.

“Most solar contractors know the physics of solar,” noted Hinshaw, “But my experience is that many have questions concerning sales, marketing, advertising, that sort of thing. The Solar Roundtable can help solar contractors answer their questions and solve their problems on almost any topic: business, application, engineering, employees, compensation, advertising, marketing, and sales.”

Since 2002, for a $50 monthly subscription, the Service Roundtable has provided contractors with sales, marketing, and business management tools served over the Internet. Examples include direct mail letters and post cards, consumer newsletters, social media marketing pieces, service agreements, eBooks, training tools, business forms, operations and management tools like pricing calculators, recruiting ads, interview guides, policy guides, employment applications, and more.

The Service Roundtable also hosts moderated peer support groups where contractors post questions about their business and receive input, guidance, and support from other contractors and industry consultants.

In 2010, the company added a free buying group, called Roundtable Rewards. Members receive discounts and cash rebates based on purchases from a variety of vendors who use the program as a way to boost sales and reduce marketing costs.

In addition to solar, the Service Roundtable serves HVAC, plumbing, and electrical contractors. The company also operates Service Nation Press, the Retail Contractor Coalition product and company branding program, and Service Roundtable MoneyMail turnkey monthly email marketing program.

Service Roundtable contractors hail from all 50 U.S. states, most Canadian provinces, the United Kingdom, Europe, Australia, the Caribbean, and Oceana. For more information visit www.ServiceRoundtable.com or call 877.262.3341.

Solar Can Brighten Your Company’s Outlook

Are you tired of fighting economic headwinds?  Why not try a business opportunity with massive federal, state, and utility tailwinds?  Why not add solar to your business mix?

Solar is a natural add-on for HVAC contractors.  You’re already well positioned as home energy experts with consumers.  You already have relationships with your customers.  You know how to sell high ticket items.  You know how to use financing.  You know how to utilize government and utility incentives.  Plus, HVAC contractors tend to be the best marketers in the service trades.

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Ten simple steps to becoming greener

The following is from my latest article in Contractor Magazine...

It's amazing how many articles fill the trade press about "green" plumbing. Most plumbers are aware of the growing consumer awareness about the environmental impact of the choices they make in lifestyle and purchases. Yet, many are uncertain exactly what being "green" really means.
Green practices can affect the products and services you sell, the way you operate your company, and the way you live your life. Few people, including the leaders of the green movement manage to uphold all three areas (it’s that lifestyle thing that trips up many of eco-leaders).
It's your call whether you can credibly claim to be a green company. Whether you believe you are green or not, you can offer green products and services. You can also begin adopting green practices in the operation of your company. This is smart business.

All else being equal, people usually select greener products when given a choice. Often, people will pay more for green products. Thus, greener offerings are more marketable and can be more profitable. Similarly, green business practices are often efficient business practices.
Without addressing lifestyle, here are 10 ways you can make your company more environmentally responsible at Contractor Magazine.

Message to the California Solar Industry... Shut Up!

Electric rates in parts of California are staggering.  Try PG&E's punative 50 cents per kilowatt hour for heavy electricity users.

Apparently PG&E has a five tier rate structure.  The top rate gets slapped on the biggest homes in the hottest areas, which are owned by the most affluent.  Get tagged with $0.50/kWh and the affluent will invest in all kinds of energy reducing technology, creating a bonanza for California's solar industry even without additional rebates and tax credits.

PG&E wants to simplify the rate structure from five tiers to three.  The proposed change will dramatically reduce the top rate from $0.50/kWh to $0.30/kWh, but expand the number of people paying $0.30/kWh.  For solar contractors, this should be good news.  The market has broadened.  A lot more Californians just became candidates for solar, especially when the tax credits are figured in.

Unfortunately, some are griping.  ""It feels like this is PG&E's way to thwart the solar industry," complained a solar contractor in a Silicon Valley Mercury-News article. "If the rate changes go through, the savings I am experiencing now and those projected into the future would decline substantially."

A solar manufacturing executive ranted, "I'm very concerned about it.  I don't think this was done with any consideration of how it will impact solar in California. California has sent a strong signal to the market that we want to promote solar. But if you implement rates that discourage solar, it undermines all of the hard policy work that has already happened. You can't have one foot on the gas and one foot on the brake at the same time."

It's one thing to be seen as pro-solar.  It's another to be seen as pro-electricity price gouging.  Why not lobby the state legislature for an unfunded mandate to require every homeowner to buy solar?
 
Everyone likes solar, right now.  It's as warm and fuzzy as a stuffed polar bear.  And if individual homeowners are independently assuming the first costs for solar installations, there's little basis for anyone to object (though some still do, as noted in an earlier post about homeowners associations and solar).  Solar's got great PR!
 
Lobbying for artificially high, punitive electric rates to make the technology feasible in the market is not good PR.  It's horrible PR.  It's akin to Toyota lobbying for $5.00 per gallon gasoline to get Prius sales back on track.  It's like kicking puppies.  It's the type of action that will cause a backlash against solar and the green movement in general.
 
The California solar industry needs to to the rest of the solar industry a favor and SHUT UP!

An Electric Service Truck? Or not?

Photo:  Ford

Will contractors populate their service fleets with electric vehicles?  Ford is counting on it.  The company will begin selling the Transit Connect Electric this summer.

The Transit Connect Electric is a half ton, commercial van with a range of 80 miles (60 miles if the air conditioning's running), top speed of 75 MPH, and capability of climbing a 20% grade.  It's uncertain if the performance figures are for a fully loaded vehicle or an empty one.  It's likely, the latter.

Charging using a 240 volt supply takes six to eight hours.  With a 120 volt supply, it takes 16 hours to fully charge.

Initially, the product will only be sold through fleet purchase.  It will be built in Turkey and shipped to Michigan to be fitted out as an electric vehicle.  Service will be offered at any Ford dealership.

Total cargo space is 135 cubic feet.  The load length is 72.6 inches.  Floor-to-ceiling is 59.1 inches.  Width is 47.8 inches.

On the surface, it looks like Ford might have a winner.  Contractors operating with tight geographic areas might be able to use the Transit Connect Electric for light duty, like maintenance calls.  Those who drive 30 miles between calls are not candidates.

The economics of operation look attractive.  In December 2009, the average commercial electric power rate was $0.0973 according to the Energy Information Administration.  The average price at the gas pump was $2.60.

The Transit Connect Electric is supposed to charge off a 240 volt outlet.  But what amperage?  None of the articles mention amps.  The best case is to assume a 15 amp circuit.  This means the Transit Connect Electric draws 3,600 watts while charging (240 volts X 15 amps).  Over eight hours, that results in 28.8 kWh (3,600 watts/1000 = 3.6 kW X 8 hours = 28.8 kWh).

At $0.0973 per kWh, this results in a cost of $2.80 to fully charge the Transit Connect Electric for its 80 mile journey.

The gasoline powered Transit Connect gets 23 MPG.  To travel 80 miles, the vehicle uses 3.48 gallons (80 miles/23 MPG = 3.48 gallons).  At $2.60/gallon, the same 80 mile trip costs $9.04 (3.48 gallons X $2.60/gallong = $9.04).

The electric vehicle saves as much as $5.57 per day.  If operated 250 days per year, that's an annual saving of $1,560.31.  This is real money.

The Transit Connect Electric seems like a winner.  Use it as a maintenance vehicle, plaster "electric powered 'green' vehicle" all over it, position the company as environmentally responsible, earn green points, and save money.  This looks as good as the decision by hotels to ask guests to save the earth by using dirty towels and sheets.

Everything looks good, except for the one missing piece of information.  What does it cost? 

The gasoline powered Transit Connect lists for $22,245.  How much could the Transit Connect Electric cost?  At $27,000 it would offer a three year payback.  That's very doable.

According to a Fox News report, "people close to the project have previously indicated that it likely will cost at least $50,000 before various green tax credits are factored in."

Gulp!  At least $50,000?  Unless there are $20,000 of dollar-for-dollar green tax credits, it's hard to see the Transit Connect Electric going anywhere.  Maybe this is why Ford is planning on 1,000 vehicles in the first year and no more than 5,000 thereafter.  It seems Ford's not counting on contractors populating their fleets with electric service vehicles after all.

Green "cred" or not, will any contractor pay a $28,000 premium to save up to $5.57 per day for a limited use vehicle?

One Out of Three Consumers Opt to Replace Rather Than Repair

According to a report from Consumer Reports, one out of three consumers with broken products, such as electronics and appliances, didn't even bother to seek a repair or stopped somewhere in the repair process. Instead, they simply replaced.

"If your appliance is eight or more years old, usually it makes sense to buy a new one," recommends Consumer Reports.

Accordingly, you should always offer customers a replacement option with every repair on every product. While you might be able to repair it, the customer might prefer a bright, shiny, new one.

Few companies excel at the promotion of product replacements like Apple. As an article appearing on Yahoo notes, Apple's made replacing batteries next to impossible by soldering them to the casing of iPods and iPhones.

The Yahoo article quoted Anthony Magnabosco, the owner of San Antonio based Milliamp, which repairs iPods and iPhones. Magnabosco said, "When Apple sealed up the first iPod in 2001 with a battery that you couldn't remove, they were sending a signal that they were not intended to be repaired. I believe they want people to come in and buy a new one when the device isn't charging anymore."

Apple has clearly benefitted from its emphasis on product replacement.  The Yahoo article notes, "Soaring stock prices and ramped-up revenues aren't built on third-party maintenance and consumer patience."

When presenting a replacement option, be prepared to address the environmental considerations.  As Consumer Reports notes, "Although junking nearly new products can make economic sense, it makes no environmental sense."

Consumer Reports is referring to consequences of disposal and the energy consumed in the manufacture of the new product. Thus, your replacement option should include a disposal plan for the old product that recycles as much of the product as possible and responsibly disposes the rest. Since most new products tend to use less energy or water than those being replaced, you should note the savings. Greater efficiency reduces homeowner utility expenses and the impact on the environment.

By reducing the environmental consequences of product disposal and noting the beneficial consequences of more efficiency, you reduce the guilt that might impede environmentally conscious consumers from doing what they really want to do, which is replacing the old, breakdown prone product with a bright, shiny, new one.

3 Questions With Steve Saunders

This edition of the 3 Questions For Small Business Podcast features Steve Saunders from Tempo Air and TexEnergy Solutions. Steve gives background on the spin off of Tempo Air from TD Industries, using an ESOP. Next, Steve addresses how Tempo has responded to the contraction of the new construction market by addressing home energy. Finally, Steve offers his projections for the future direction of the air conditioning industry.

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