McKinney Heating and Air Conditioning offers First Class Service

McKinney Heating and Air Conditioning owner Steve Lauten, President of Total Air and Heat Company, recommends that his peers should offer First Class Service.

Note: This article is the text of a speed that Steve Lauten gave to the ACCA (Air Conditioning Contractors Association) in July 2006.  This article gives you some personal insight into how Steve runs his business with an intense focus on First Class Service.

***********************************************************

As I sit here writing this article, I’m wishing I was back on my flight to Hawaii that I took in May.  It was the first family vacation in six years with both kids and needless to say, Janice, my wife was in heaven the entire time!  It was also my wife’s first time to fly 1st Class and surprisingly some of her humble Ft. Worth roots surfaced.  Before I get in too much trouble telling stories, let me say that if the entire corporate world treated their employees like my wife treats just about everybody including strangers; we would probably be able to realize “world peace” in our lifetimes.  With that in mind here we go…

Step 1:  It’s time for 1st Class to board the plane.  Of course there are about 100 people in line that are supposed to be in the last group to board but they congest the entrance from the time of their arrival to the gate.  So I keep encouraging Janice to move forward and pass the masses in line because only 1st Class had been called to get on. Well, she feels guilty because they have been standing in line 30 minutes and we’re getting on the plane before them. I try to tell her they are just used to the Southwest Airlines stampede and to go ahead!  Well she reluctantly moves ahead, the entire time silently whispering the words “sorry” to everybody.  We finally get on the plane and get seated.

Step 2:  The stewardess brings us a choice of champagne or orange juice before we take off, and asks us what we want to drink?  My wife requested water, and I asked for a Crown and Coke.  Janice reaches for her wallet and I happened to ask why she would need it?  She quickly replies that she’s getting money for my drink!  With a smile, I informed her that the mixed drinks were free in 1st Class.  She says “OK, I will have white wine!”

Step 3:  We take off and the stewardess brings our drinks and asks if would like to have a light meal of grilled chicken pasta salad or a chef’s salad?  I say chicken and Janice passes but gives me a dirty look.  She reaches for her wallet again and I asked her “What are you doing?”  She advises me with a snip in her voice that she’s getting the $4.00 to pay for my snack. Once again with a smile, I told her the snack was free with the purchase of a 1st Class ticket and the costs of $4.00 would apply to the kids (ages 17 and 24 and the 21 yr. old girlfriend).  Well, she decides if the kids don’t get a meal, she’s not going to either.  My grilled chicken pasta salad arrived and of course I got to “share”.

Step 4:  The leg area in 1st Class on a Boeing 767 is almost big enough to have a family picnic.  The seats lay almost flat with your legs fully extended!  Several cocktails later, I’m able to achieve the best sleep I’ve ever experienced on an airplane!  Janice is starting to really get into it, too!

Step 5:  We landed in Los Angeles for a short layover.  We greeted the kids as they exited the airplane.  They were hungry and decided to eat at Burger King.  Janice calmly tells the kids that she and I will wait for dinner on the next flight!  We joyfully wait for the LA to Maui flight and can’t quit smiling about how comfortable we will be.  That extra 10,000 frequent flyer miles per person was well worth it but my wife continued to fill pity for the kids flying in coach.

So where does this fit into HVAC?  I am proud to say many of you already know.  However…….many don’t get it yet.  What kind of business are we in Heating, Venting, and Air Conditioning or keeping people comfortable?  Do we specialize in selling 1st class solutions to comfort issues, or do you run the Southwest Stampede?

It’s summer 2006, the minimum SEER is 13, there are shortages of cooling coils and condensing units and it’s not really hot yet.  Many contractors are booked 2-3 weeks out for installs.  Their install crews are working 60-80 hours per week.  Yet I still see super cheap prices in the newspaper, I still get $2,000 off coupons in my direct mail, and still get underbid by 25%-50% on a weekly basis!  Big discounts and equipment shortages don’t make sense to me.  Neither does discounting in “Peak Season”.  When was the last time you got a discounted hotel room for the Super Bowl, or a discounted airfare with less than 1-week advanced reservations?  Gasoline shortage=higher prices at the pumps.  HVAC manpower shortage=Big Summer Discounts?  There’s something wrong with the picture here!

I have always had a slogan that I hope and pray it never comes true:  “I will never go broke tired”.  If and when the day comes and it’s time for me to throw in the towel, I hope to do it with my feet propped up on my desk.  So why does our industry have price wars during peak season?  I may be wrong, but it seems to me the Oil Industry is in a race to see how fast they can break a new barrier for dollars per gallon on gasoline and our industry is seeing who can underbid each other?

So what would happen if every ACCA Contractor Member decided to only offer 1st Class Service and Installations?  Including 100% satisfaction guarantees, load calculations on every job, duct system is sealed on every job, criminal back ground checks and drug testing every employee, 24 Hour Emergency Service, a 10-year parts and labor warranty on every installation, and Permits pulled on every job, plus the highest efficiency systems?  Some of our members offer this as their normal installation.  I wonder if these companies are more profitable than the contractors that attempt to have the lowest price.  Yes, based on my research, most HVAC contractors net a much higher profit when they focus on how good of an install can they do, how they can improve their service and quality, and  customers satisfaction.  Why?  Because once the consumer understands the difference between price and value, most want the job done right. Every expert sales trainer I’ve ever met felt the key to success revolved around providing “World Class Service and Installations”.  The reality is, you can’t afford to provide the training or support necessary unless you have the profits to invest in those processes.

In closing, I want to emphasize again that all of us selling for the same price will never happen and there’s too many legal issues to even consider.  However, a day could come where our industry was profitable as a rule.  Instead of an 80% mortality rate and 20% survival rate, maybe we could flip flop that?

It all begins with planning, a process, and implementation.  ACCA-NTX is here to help you with all of these challenges.  We have the training necessary to address any issue you encounter.  Now is the time to start planning for fall.  Which classes will you and your employees attend?  How will you implement job costing, quality audits, NATE testing, and increase your service agreement base?

It’s time for all of us to experience 1st Class service and offer it to our customers 100% of the time!

Best Regards!
Steve

***********************************************************

McKinney Air Conditioning and Heating Company, Total Air and Heat, is owned by Steve Lauten, the second generation owner.  Founded in 1957 by Steve’s dad, Fred Lauten, Total Air and Heat is proud to have received some of the highest awards for quality and service that are offered in the Industry. Among those awards are the Readers Choice Awards from the Collin County Newspaper, the Trane Pacesetter Award in 2002, and designation as a Trane Comfort Specialist.  Call Steve at (972) 535-8066 for a personal consultation.