Service Companies

Introduction

As a service company focused on supporting HVAC systems in a variety of buildings, your primary concern is customer satisfaction. Your skilled technicians and mechanics already provide excellent service, reducing comfort complaints and performing recommended preventive maintenance. Now you can add the building tune-up and enhanced O&M to help your customers lower their operating costs and improve building performance.

Business Opportunities

By adding the building tune-up and enhanced O&M to your services, you can offer a program beyond the typical maintenance packages and become known as an innovator with a great solution.

  • Become a partner in addressing your clients' building performance needs.
  • Attract new customers who have not been willing to talk to you. Your competition may not be offering these services...yet!
  • Revisit existing customers to offer this new service.
  • Visit your competitors' customers to offer this new service.
  • Building tune-ups can lead to equipment-replacement business you might not otherwise get.
  • Enhanced O&M is a continuing service that strengthens your cash flow.
  • Position your company as environmentally responsible.
  • Team with engineering professionals to offer more robust services.

Talking Points

Building tune-ups and enhanced O&M services provide many benefits to building owners. As you address your customers' questions, here are a few points to make:

  • Bottom-line savings are immediate.
  • Enhanced O&M results are measurable and verifiable. You can easily track:
    • dollars saved,
    • energy saved,
    • reduction in complaints, and
    • reduction in unscheduled service calls.
  • Better building performance improves the value of your customer's investment.
  • Green buildings are in demand. BPS may influence LEED-EB qualification.
  • Green buildings attract tenants and employees.

Potential Revenue

The following scenario provides a picture of the revenue potential of adding BPS to your service offering:

Joe runs ABC Service Company and is currently selling $5,000,000 in maintenance contracts at a 50% markup. He projects a 5% growth in business each of the next five years. This year he began offering the building tune-up and enhanced O&M services, and forecasts 10% of his customer base will upgrade to the enhanced O&M and 5% will purchase the building tune-up. He estimates that new business to replace equipment will add another 30% of the new revenues as a result of BPS. His markup is 50% for enhanced O&M, 40% for tune-ups, and 50% for capital projects.

Summary of assumptions used for the business model
Current annual contract sales: $5,000,000
Projected growth: 5%
BPS Addition  
Enhanced O&M: 10% of service contracts
Building tune-up: 5% of service contracts
Capitol projects related to BPS: 30% of other BPS sales

Entering these assumptions into the Business Model Tool for service companies produces the results shown in the figure below.