As an HVAC contractor, part of your job is not just installing and servicing HVAC equipment — it’s about being able to sell it, too. In fact, depending on where you work and your company’s compensation structure, you might even receive a commission or bonus when you make new equipment sales to your customers.

At the same time, closing those deals isn’t always easy. This is especially true when you’re trying to sell higher-end equipment, such as high-efficiency heat pumps, furnaces and air conditioning systems. Fortunately, you can follow a few tips and best practices to help high-end equipment practically sell itself.

Get Specific About Energy Savings

These days, it’s all about energy efficiency and energy savings. The most expensive and high-end HVAC equipment on the market also tends to be the most efficient — and you can use this to your advantage when selling in the field. This means focusing on the potential energy savings a customer will enjoy with a new and efficient unit as part of your pitch.

This can take some careful calculation on your part, but if you can actually provide your customers with a ballpark idea of how much they could save on their energy bills (whether it be each month or each year) by installing a high-end system, you’ll be much more likely to make the sale. That’s because offering a concrete figure helps customers rationalize a larger purchase, especially if they can see that the new unit may pay for itself over time.

Talk About Features

In addition to bragging about SEER ratings and energy-efficiency savings as part of your pitch, be sure to focus on the included features that make the equipment better than the less expensive options on the market. For example, maybe the system comes with advanced filtration technology that will help to improve indoor air quality (IAQ). Perhaps (as in the case of a ductless system) the condenser unit can be connected to multiple air handlers to allow for precise zone control throughout the home.

Don’t assume that your customers will be aware of these features without you telling them. Instead, take the time to explain the highlights that make higher-end equipment stand out from the rest. This could also include extended warranty coverage or higher quality parts less likely to need replacing over time.

Bundle Products or Services

Another strategy to consider when making more high-end equipment sales is bundling the equipment with other products and/or services. For instance, when a customer purchases a premium heat pump unit, you might throw in a few years of free tune-ups and inspections as part of the deal. This can be a great way to add perceived value to the purchase, especially if you explain how much money the customer would save by getting those tune-up sessions for free.

Bundling other products with a high-end purchase is another option, though this will depend on your inventory and business model. Some HVAC companies run promotions, for example, where they actually offer a free furnace with the purchase of a new AC system (or the other way around). While that may be a more extreme example, even throwing in some free air filters or other smaller equipment can make all the difference in your ability to make a sale.

Offer Plenty of Options

Make sure that you’re offering your customer plenty of options to choose from. If you have a few high-end options available, take the time to present at least three of these to your customer. Explain the differences between each option, not just in terms of price and features but energy efficiency and potential energy savings.

Presenting customers with options to choose from makes them more likely to make a sale. If you’re simply trying to push one high-end unit on them, they’re more likely to resist. Yes, it will take a little more time to break down a few options for your customer, but this will often pay off in the end.

Offer a Limited-Time Deal

Some HVAC professionals also have luck making sales by offering special deals or pricing that is only good for a limited amount of time. Typically, these deals expire at the end of the business day they are presented, but you can choose any frame of time that works for your company. Creating a sense of urgency to take advantage of a special discount can greatly increase sales, though it will cut a bit from your profits.

Start Making More Sales Today

These are just a few effective ways to start making more high-end equipment sales as an HVAC contractor. At the end of the day, it’s all about knowing your customers and catering to their most essential needs. By taking the time to explain features and energy-efficiency savings, and giving your customers plenty of options to choose from, you can boost your sales (and your commissions as a result).

- Information provided by Carrier Enterprise

March 29 Florida Senate passed SB 360 Causes of Actions Based on real Property Improvements off the Floor.  This as a reminder is the Construction defects bill sending it to the Governor for his signature.  The bill has not yet been presented to him, but we will let you know once that occurs. 

SB 360 amends existing law with respect to causes of action based on improvements to real property. The bill shortens the timeframes within which a property owner may bring a cause of action against a builder for alleged construction defects. It also narrows the scope of certain statutory civil actions against builders for Florida Building Code violations.

Specifically, the bill:

· Revises the commencement of the 4-year statute of limitations by changing the listed potential commencement dates and causing the statute to run based upon whichever date is earliest instead of latest;

· Shortens the 10-year statute of repose to 7 years;

· Revises the commencement of the 7-year (currently 10-year) statute of repose by changing the listed potential commencement dates and causing the statute to run based upon whichever date is earliest instead of latest;

· Provides that if a newly constructed single-dwelling residential building is used as a model home, the time to bring a construction defect action begins to run from the date that a deed is recorded first transferring title to another party;

· Provides that if a project involves the construction of multiple buildings, each individual building must be considered its own improvement for purposes of determining the limitations period in the bill;

· Provides a definition for “material violations” in connection with statutory civil actions against builders for alleged Florida Building Code violations, and amends existing law to limit recovery for material violations only; and

Includes a savings clause to ensure that claimants having time remaining under the existing statute of limitations have at least 1 year from the effective date of the bill to initiate a construction defect action.

Click here for the Staff Analysis

Click here for the final bill Text

After four years this bill finally made it to the finish line and we do expect the Governor to sign it into law.  Please let me know if you have any questions or need additional information. 

- Edward Briggs, Vice President of Government Relations & Community Affairs

Tort Reform in Florida

Earlier this month members of the Florida House of Representatives introduced a tort reform bill, H.B. 837. Since then, both the Florida House of Representatives and Florida Senate have passed the provisions. The bill was officially signed into law Friday, March 24, 2023 by Gov. Ron DeSantis and will become effective on or around July 1, 2023. This bill makes significant changes to the Florida Insurance landscape.

Key provisions in the bill:

• Repeals one-way attorney fee provisions. This could result in claimants owing the carrier's defense costs.
• Reduces the statute of limitations from four years to two years excluding medical malpractice claims.
• Changes Florida’s comparative negligence system from a “pure” comparative negligence system to a “modified” system so that a plaintiff who is more at-fault for their injuries may generally not recover damages.
• Eliminates fee multipliers, which have allowed plaintiffs’ attorneys to use a multiplier on top of a “Lodestar” fee thereby securing higher fees when they prevail in litigation.
• Policy limits equal damage limits. The claimants will be entitled to a prorated share, as determined by the court or arbitrator in the case.
• No more attorney-client privilege on treating physicians for plaintiffs. There is no attorney-client privilege when a communication is relevant to the lawyer’s act of referring the client for treatment by a health care provider.
• Medical costs must be real. If the injured party has health care insurance, the amount paid by insurance should be explained and damages should not be based on unsupported medical estimates.
• Letters of protection. All letters of protection, would be divulged in the personal injury or wrongful death lawsuit proceedings. Doctors’ bills would have to be itemized and must include procedure codes where possible.
• Bad-faith claims. Mere negligence would not be sufficient to sustain a bad-faith action. It requires a good faith effort for a claimant to furnish information.

As a result, plaintiffs’ attorneys have been filing lawsuits in the thousands prior to the July 1st effective date.

-Information provided by BKS Partners, 3/29/2023

Click Here for HB 873 Bill

Resources and more information:

https://www.insurancejournal.com/

https://www.flsenate.gov/

February 2023 Activity Report Overview

Lawmakers convened in Tallahassee last month for the sixth and seventh interim committee weeks. Legislator’s then headed back to their districts for one week at home before Session officially begins on March 7th . Legislators will begin Session with 7 bills in the Senate and 1 bill in the House ready to be heard by their full chambers on second reading. While this number is slightly lower than in previous years, it’s important to note that several key pieces of legislation has already passed during the two Special Sessions. One trend we are seeing is an increase in larger ‘package’ bills, which results in fewer bills passing overall. HB 837, a tort reform bill, will be heard in its first committee today. Last week, the Governor and legislative leadership joined together to announce the package, which aims to reduce the number of suits and damages that businesses face in frivolous lawsuits. Governor DeSantis unveiled further immigration policy plans this week. His proposed legislative package would include, among other provisions, adopting more stringent hiring protocols, increasing penalties for illegal immigration, preventing local governments from issuing IDs to undocumented immigrants, and preventing undocumented students who entered the country as children from receiving in-state tuition rates. The Universal School voucher bill gained traction this week. HB 1 passed through its second committee, while its companion bill, filed by Senator Corey Simon, passed its first committee. Legislation that allows people to carry concealed guns in Florida without a permit began moving through the Senate this week. The bill, SB 150, filed by Tampa Senator Collins, also includes several provisions to bolster school security. Two of Senate President Passidomo’s priorities have passed their final committees and are ready for the Senate floor. This includes SB 102, the ‘Live Local act’ which expands affordable housing funding, programs, and prevents local governments from imposing rent controls while allowing them to increase the percentage of property tax breaks given to landlords proportional to the affordable housing units they offer. Governor DeSantis also announced his plan to spend $205 million on opioid and substance abuse treatment and prevention programs. The funding comes from a settlement in a lawsuit against opioid manufacturers.

Click here to read full report

Legislative - Weekly Recap

Lawmakers convened in Tallahassee on Tuesday for the third interim committee week. This week was the busiest yet, with the first and second committee weeks being taken up by Special Session on property insurance and the Inauguration. Many committees heard panels and presentations from agency staff, and several early filed bills had their first hearings.

Speaker Renner unveiled one of his top priorities for session, HB1, a school choice bill that would expand school voucher eligibility to all K-12 students.

The bill removes nearly all eligibility parameters on the Family Empowerment Scholarship Program, which is currently limited to households earning at or below 375% of the federal poverty level. This would enable any parents of K-12 public school-age children to receive vouchers to send their child to private school, although children from families with income below 185% of FPL or are in foster care would get priority. The bill would also eliminate almost 10,000 special needs students on waiting lists for scholarships by funding those school positions, and the bill also allows parents who home-school their children to be paid under the scholarship program.

Governor DeSantis unveiled several legislative priorities this week. One initiative, titled ‘Prescribe Freedom’, would permanently ban Covid-19 vaccine requirements and mask mandates, and protect health care practitioners’ rights to disagree with “the preferred narrative of the medical community”. In a 2021 Special Session, the legislature passed a bill that prohibits vaccine mandates for employees and mask mandates in schools, however this law is set to expire in June. The Governor’s proposal would also prohibit ‘Vaccine Passports’. The Governor has not provided bill language.  

Legislators will convene for Committee Week #4 next Monday, January 23^rd. There are four committee weeks left until the start of the 2023 Legislative Session on March 7.

Below is your weekly bill report of items we watch for you in Tallahassee. Just to let you know, I’ve highlighted bills that are moving.  If anything, you want to know more about or wish for us to engage on with lawmakers, please let me know. 

FRACCA - Weekly Legislative Update

Ordered by Bill Number

HB 0085 Causes of Action Based on Improvements to Real Property by Snyder

Causes of Action Based on Improvements to Real Property: Revises time in which action founded on design, planning, or construction of improvement to real property must be commenced; revises date on which statute of limitations period begins; provides for calculation of statute of limitations period for multi-dwelling buildings; defines "material violation." Effective Date: upon becoming a law

Current Committee of Reference: House Civil Justice Subcommittee

Actions

01/19/2023 HOUSE On Committee agenda - Civil Justice Subcommittee, 01/26/23, 9:00 am, 404 H

HB 0089 Building Construction by Maggard

Building Construction: Revises definition of term "class A air-conditioning contractor"; prohibits certain persons or entities from making substantive changes to building plans after permit has been issued; provides exceptions; requires certain persons to provide certain information to certain persons or entities; provides that certain persons are subject to disciplinary action under certain circumstances. Effective Date: July 1, 2023

Current Committee of Reference: House Regulatory Reform & Economic Development Subcommittee

Actions

01/10/2023 HOUSE Now in Regulatory Reform & Economic Development Subcommittee

SB 0304 United States-produced Iron and Steel in Public Works Projects by Boyd

United States-produced Iron and Steel in Public Works Projects; Requiring governmental entities to include a requirement in certain contracts that certain iron or steel products be produced in the United States; authorizing the use of foreign steel and iron materials in certain circumstances; requiring the Department of Management Services and the Department of Transportation to adopt rules for specified purposes, etc. Effective Date: 7/1/2023

Current Committee of Reference: No Current Committee

Actions

01/19/2023 SENATE Filed

HB 0315 Civil Remedies for Unlawful Employment Practices by Andrade

Provides limits on judgment for punitive & compensatory damages for certain claims; authorizes aggrieved party to bring civil action for certain claims within specified timeframe regardless of determination made by Commission on Human Relations. Effective Date: July 1, 2023

Current Committee of Reference: No Current Committee

Actions

01/20/2023 HOUSE Filed

Download information here

- Submitted 01/20/2023 by: Edward Briggs, Vice President of Government Relations & Community Affairs

The new facility also contains an AHRI-certified laboratory

NEW CONSTRUCTION: A-Gas is completing the construction of its latest refrigerant separation towers at its Rhome, Texas plant. (Courtesy of A-Gas)

After recent heavy investment in the expansion of their capacity in the U.S., A-Gas is completing the construction of its latest refrigerant separation towers at its Rhome, Texas plant. The expansion project, which began earlier this year, represents A-Gas’ continued commitment to deliver cutting-edge technology aimed at substantially increasing the quantity of reclaimed refrigerant gases, bringing new capacity online in 2023 to supply the U.S.

“The demand for high-quality reclaimed refrigerants grows yearly,” said Mike Armstrong, president of A-Gas Americas, “As the United States phases down virgin HFCs, technologies like this will provide an efficient and valuable service to our customers and supply partners. Through the utilization of existing products, we can minimize waste, extend product lifecycles, limit emissions, and provide more circular economy solutions to our customers.”

Expanding the recovery and reclaim of refrigerant gases is essential for the implementation of the production and consumption phase down of HFCs under the AIM Act. Recovery and reclaim, along with other refrigerant management practices, could prevent the emissions of 90 billion tons of carbon dioxide-equivalent, according to The 90 Billion Ton Opportunity: Lifecycle Refrigerant Management, a recent report by a trio of environmental groups.

A-Gas’ new separators will be operational in early 2023 and will more than double the separation capacity at the current site — addressing a critical need highlighted by the NGO report. A-Gas also added an AHRI-certified laboratory at the Rhome plant, making it their second AHRI lab in the U.S.

The new separation equipment and AHRI lab will enable the reclamation of mixed refrigerants received from customers across the U.S.. Even the most complicated mixes of refrigerants can be separated into valuable components and reconstituted into AHRI-700-certified products through this technology. In bringing this capability online, millions of additional pounds of reclaimed refrigerant can be safely returned to the marketplace annually.

“This technology continues to push forward responsible lifecycle refrigerant management in the U.S.,” said Taylor Ferranti, commercial vice president of refrigerant management at A-Gas. “It ensures our valued customers have access to a long-term, sustainable supply of reclaimed refrigerants for all their needs without compromising their values. Our Rapid Recovery network can continue to safely recover refrigerant while our reclamation processes bring that material to AHRI-700 grade for future use.”

Ferranti added, “In 2022, A-Gas is proud to have had a record year for reclamation. Our investment in this technology shows our continued commitment to supply the industry with reclaim, supporting the circular economy.”

Article Courtesy of ACHR News

SEER to SEER2 Conversion

As you may know, the DOE has changed the testing procedure used to rate the efficiency of HVAC equipment to be more representative of installations in today’s homes. Equipment will now be rated according to SEER2. The DOE is also raising the minimum standards for efficiency for both straight cool and heat pump products. While it varies between equipment type, minimum efficiencies are increasing about 7-10% or 1 SEER point.

The chart to the right illustrates the relative comparison of today’s SEER and the new SEER2 ratings.

Starting January 1, 2023, INSTALLATIONS of RESIDENTIAL STRAIGHT COOL SPLIT PRODUCT must meet the new SEER2 requirements. Inventory of existing residential straight cool split products must be sold and installed prior to this date. Tropic Supply started stocking SEER2-rated residential straight cool product in September of 2022 to ensure a smooth transition.

The sale and installation of RESIDENTIAL HEAT PUMP SPLIT PRODUCT AND ALL RESIDENTIAL PACKAGE UNITS will be regulated based on the DATE OF MANUFACTURE. As a result, Tropic Supply will continue to stock current models of residential heat pump split systems AND residential package units through the first quarter of 2023. New SEER2 rated residential heat pump splits and package units will start to arrive in the first and second quarter of 2023 to ensure a smooth transition.

LEARN MORE: Learn more about these changes here: www.ruud.com/HVACKnowZone https://www.youtube.com/user/alliedairenterprise/videos

State Insurance Commissioner David Altmaier said he will consider the 8.4% reduction on new and renewed workers' compensation policies recommended by the National Council on Compensation Insurance. The licensed rating agency assessed data from 2019 and 2020 to recommend the new lower rate on behalf of workers' compensation insurance companies. In a report submitted to the state, the national insurance organization found a consistent decline in wage replacement claims from injured employees seeking workers' compensation benefits. Florida's roofing industry is backing the new rate reduction, citing a fear that rates will increase in the future due to the "Great Resignation," and an uptick in less-experienced roofers, accompanied by an increase in demand for housing and construction, plus rising medical costs and a tight reinsurance market. "Due to all of this we are here today because of the uncertainty of the insurance market, we are asking for the consideration to freeze the current (roofers') rate class code," said President of Florida Roofing and Sheet Metal Association Matthew Criswell. Altmaier did not definitively say whether the rate will be frozen or reduced but did say he will consider public comment on the issue until Oct. 7 while his actuaries continue to review the report. If Altmaier approves NCCI's recommended 8.4% reduction effective January 2023, workers' compensation rates in Florida will have decreased by nearly 74% over a 20-year time span.

Florida Politics / NCCI Testimony

Treaty to cut HFC use

Segments of the HVACR industry are hailing the ratification of the Kigali Amendment, an international agreement to cut the production of refrigerants that are a major contributor to global warming when they escape into the atmosphere.

The move is expected to create domestic jobs and boost U.S. exports of air-conditioning and refrigeration products. The Kigali Amendment, already agreed to by more than 130 other countries, was ratified by the U.S. Senate on a bipartisan vote, 69-27, on September 21.

Senate Ratifies Kigali Amendment - By Matt Jachman, ACHR NEWS

Decarbonization and the HFC phasedown are spawning innovation in the HVAC industry.

The current environmental trend right now is electrification, which is part of a broader global strategy to decarbonize economies around the world. In the U.S., the federal government, along with numerous states, has pledged to aggressively reduce — and potentially eliminate — carbon emissions over the next few decades. This typically involves encouraging Americans to replace their fossil fuel appliances like gas furnaces with electric heat pumps. But most heat pumps and air conditioners currently use R-410A refrigerant — or even R-22 in older units — which is a high-GWP HFC that the federal government is in the process of phasing down.

In response to this conundrum, a raft of so-called “clean tech” startups and other research groups are looking for ways to reduce carbon and refrigerant emissions through the use of new cooling technologies. The result is a number of promising innovations, which could bring significant changes to the HVAC industry.

Decarbonized Cooling
One such startup is Blue Frontier in Boca Raton, Florida, which recently made headlines when Bill Gates’ clean energy investment fund, Breakthrough Energy Ventures, announced it was spearheading a $20 million investment to accelerate new company’s ability to bring its “ultra-efficient sustainable air conditioning technology” to market. According to Blue Frontier’s owner and founder, Dr. Daniel Betts, this investment will help the company realize its goal of significantly reducing greenhouse gas emissions by decarbonizing building cooling.

Blue Frontier Air Conditioning System.
NEW SYSTEM: A prototype of Blue Frontier’s new air conditioning system, which is expected to be commercially available in 2025. (Courtesy of Blue Frontier)

“Blue Frontier solves the problem of the high energy and power consumption of traditional air conditioning and the increasingly high climate change impact due to that energy consumption,” he said.

“Blue Frontier air conditioners consume 50% to 90% less energy and also store energy at a fraction of the cost of batteries, so that low-cost, low-emission electricity can be used to provide cooling during evening peak load times.”

Blue Frontier’s packaged rooftop air conditioner contains a novel heat exchanger that both cools and dehumidifies air through the use of a salt solution (liquid desiccant) that removes humidity from the air without increasing its temperature, explained Betts. This dry air can then be cooled through the indirect evaporative cooling process, which separates about 30% of the dry air, flows it adjacent to the rest of the air within the heat exchanger, and subjects it to evaporative cooling. This process cools down the 70% remaining bulk air without increasing its humidity, creating conditioned, low-humidity air.

Click here to read full article - By Joanna R. Turpin, ACHR NEWS