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Selling Solar to the Engineer

Selling Solar to the Engineer. First Things First…. Put aside for a moment any thoughts related to who’s solar panel is better and what the differences might be. Being successful with solar specifications is not about who has the best solar panel. This is about driving specification via…

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Selling Solar to the Engineer

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  1. Selling Solar to the Engineer

  2. First Things First… • Put aside for a moment any thoughts related to who’s solar panel is better and what the differences might be. Being successful with solar specifications is not about who has the best solar panel. This is about driving specification via… • The Lochinvar brand • Our total package • Your personal expertise and willingness to pull • it out of your bag • The quality & enthusiasm of your presentation • The mutual support we can offer each other • Lochinvar’s quote package • Your personal desire & determination • Lochinvar’s unique selling position

  3. So the Question is then??? Why should solar specifications be important to Lochinvar and your business?

  4. Why should Solar Specifications be Important to Lochinvar? 1. Looking ahead to the future. Lead, follow or get out of the way. Where would we be today without new product innovation?

  5. The Future of Hydronics December 2010 I'm watching the world change, and it's happening fast. I've come to believe that the true future of hydronics is commercial. I think that the residential business will continue to be a profitable, non-growth business - mainly one of replacement. I think that the trade will decide what gets replaced with what because the days of replacing like with like are over. Trades people are making that call these days, and if you are a manufacturer and you want to get this business, you had better get as close as you can to the trade. These folks buy from people they know and like. If you're out of touch with them, you're going to lose. Finally, I think that if you are a hydronic manufacturer who is looking to grow, you need to look toward geothermal, solar thermal (on a large scale), and district heating, because that is where the future lies.             Time will tell, but that 11% piece of the residential heating pie hasn't gotten any larger for hydronics since the 1950s. I don't see anything coming that's going to change that.             The future of hydronics is commercial. Dan Holohan http://www.heatinghelp.com/article/231/PHC-News-articles/1841/Whats-the-future-of-hydronics

  6. Why should Solar Specifications be Important to Lochinvar? 2. Demonstrates leadership in energy saving designs, green, environmental. Ask the next kid you talk to why Solar is important … 3. Solar products will assist in locking a specification on commercial projects. This will result in a stronger package. 4. Solar specifications will pull along other specifications on the water heaters and boilers. Even if solar gets “Valued Engineered” out, we will improve our odds of ending up with the water heaters and boilers and tanks. 5. Specifications are what we do at Lochinvar / Specifications our part of our company DNA…

  7. “Specifications our part of our company DNA.” In a recent study conducted by Heating, Piping & Air Conditioning Magazine, their survey placed Lochinvar as the most specified boiler with our products being specified 42% of the time. In contrast, RBI was specified 14% of the time. In this same survey, 75% of all engineers in the survey said they never have a RBI rep call on them vs. 39% for Lochinvar.

  8. Why should Solar Specifications be Important to Lochinvar? 6. Solar tank sales increase tank plant volume which is beneficial to the company’s bottom line… 7. Diversified product specifications increase revenue by expanding our brand into new markets… 8. Having Solar products in the mix will expand opportunities to meet new customer base and/or capture the attention of new customers and contacts… 9. We need to be better at integrating new technologies into our core business. “What if we would have not embraced stainless steel ?” 10. Leadership begins at the top… The Lochinvar Brand…

  9. What’s In a Brand? Brand / Noun - the persona of a company through unique, distinctive qualities that set it apart from its competitors. Name (nam) /One’s reputation

  10. MAKE IT ABOUT THE BRAND

  11. You will get Lochinvar Solar specified if you? 1st. Keep it about the package 2nd. Make it about the brand 3rd. Make it Exciting / Nuts & Bolts 4th. How it’s Made / How it Works 5th. Quality Built / A System that Works KEEP IT ABOUT THE PACKAGE!

  12. Specifications If you are not already doing these things, you have bigger problems than solar!!! • Actually making sales call… • Relationship Building… • Lunch & Learns… • Catalogs Updates… • Service, Start-Up & Responding… • Factory Visits…

  13. Specifications Some different areas in which to focus “solar” • Engineers are not on a quest to find the best panel, they want a system that works from a company they can trust to help them get it right! Build on Brand Equity. • Sole Source Supply – “No one in the industry is doing what we are doing.” Lochinvar can give the specifier the total package and peace of mind in a brand name that has stood the test of time. • Tier One Manufacturing – Many in the solar industry are of questionable quality and longevity. “Mr. Engineer, with the many years that a solar system must operate, it makes sense to rely on a company with a long term record.”

  14. Specifications “The Less-Usual Suspects” • Complete Thermal Package – Lochinvar is the only manufacture that can supply the water heaters, boilers, solar package, tanks, pump stations, etc. Use this to your advantage. Promote the full package. • Fear and Liability – Lochinvar’s package will result in a better and more understood system. A system that is fully understood is a better and safer system for the engineer. “Mr. Engineer, the solar system will be in the limelight on your project, it will have high expectations of performance by the owner, it needs to be designed correctly. Let us share in the responsibility.” • Partnership - The Engineer will be secure in Lochinvar as their Solar Partner. • Think “Better-Idea.” Sell the package, nuts and bolts! • Industry Groups (Association of Energy Engineers, ASHRAE) – They want to hear from you.

  15. Solar is Cool! Solar is Fun! Solar is good for our Environment! Solar is Socially Relevant! The Concept of Solar is In Growing Demand MAKE IT EXCITING“PRO-CLEAN TANK”

  16. A Few Points About PVD Coatings (i.e. Ceramic Coating): Physical Vapor Deposition (PVD) – A coating material created from a evaporated solid PVD coatings are very hard @ 2,000 - 3,000 HV (three times as hard as chrome plate). As an example, for this reason PVD is used as erosion coatings in some aircraft engines PVD coatings are also used for decorative surfaces, to create “lifetime coatings” on door hardware and plumbing fixtures.

  17. A Few Points About Laser Welding: Laser welding creates a low heat affected zone, which eliminates distortion in the metal. Working with laser beams requires no physical contact with the metal. This eliminates the possibility of corrosion due to contaminates

  18. A Few Points About Mineral Wool Insulation: Mineral wool insulation is made of rock or slag wool, both man made products. This type of insulation is made from 75% recycled materials. Mineral wool has a higher density and can provide better insulating results than fiberglass. Mineral wool does not lose its insulating value when wet and has an outstanding resistance to high temperatures. In fact, Mineral Wool can achieve higher R-values than cellulose or open cell foam insulation.

  19. A Few Points About Prismatic Glass: • Low Iron Prismatic Glass is optically clear and offers maximum transmission and minimal absorption • It retains colorlessness and clarity over time and will not yellow • It can be fully heat tempered to increase thermal shock resistance and mechanical strength • It widens the beam spread approximately 55 degrees • It can be fabricated to large shapes and sizes

  20. Solar Industry Specifiers“In the Solar Industry, there are many specifiers” • End-Users… • Energy Service Companies “ESCO’s”… • Performance Contractors (Johnson Controls)… • Design Build Contractors… • Solar “Ready” People (Rep, Distributor and Contractor)… • Mechanical & Plumbing Engineers… • Architects

  21. Approach to the Market • End-Users… • Universities (Vanderbilt University) • Corporations (JC Penny) • Military (Ft Hood, Ft Bliss, Corp of Engineers) • Federal, State, County and City Projects (Beaumont Federal Prison)

  22. CALIFORNIA OFFERS CASH HINCENTIVES FOR SOLAR WATER HEATING SYSTEMS CPUC Establishes the CSI – Thermal Program with $280 Millions in Rebates California homeowners and businesses are now eligible to receive rebates for installing solar water heating systems. Natural gas heating customers can receive rebates up to $1,875 for residential or up to $500,000 for commercial systems. Electric water heating customers can receive up to $1,273 for residential and up to $250,000 for commercial systems. According to SunEarth President Richard Reed, these rebates, coupled with the 30% federal tax credit and volatile energy prices, make solar heating water systems more affordable than they have been in 25 years.

  23. http://www.dsireusa.org

  24. Approach to the Market • Energy Service Companies “ESCO’s”… • TLC Engineers TLC Engineers, as an example, has spun off a portion of their company that is now dedicated to both project design as well as becoming the financing arm for energy related projects. Unlike a Performance Contractor, TLC does not actually do the install, they simply do the design and the financing.

  25. Approach to the Market • Performance Contractors (Johnson Controls)… Performance Contractors hold much of the current opportunity related to Solar. In many cases the ongoing solar projects we currently have originated with companies such as Johnson Controls and/or their solar based sub-contractors. Calling on and building solid working relationships is a must!

  26. Performance Contractors (Johnson Controls)… • You have to know the people inside these companies! Just knowing of the company is of little benefit. • You have to branch out within the company. Knowing just a few people will not help you get the specs. • Sell the concept of pre-heating? • We are not selling solar systems, we are selling solar pre-heating / solar fraction / responsible sizing. • Responsible Sizing…

  27. Approach to the Market • Design Build… Progressive Plumbing / Orlando Florida – Using this company as an example, When asked the question related to whether or not they install their own solar system, their immediate response was, “No, we simply install a supply and return connection on the roof and the solar contractors takes over from there.” With help from Lochinvar and you, we can put them in the solar business.

  28. Approach to the Market • Solar People (Rep, Distributor and Contractor)… • This may be the quickest means to an end. Sunrise Solar, All Solar and other like companies in many cases serve as the rep, specifier, distributor and contractor. Your job is to identify these guys in your markets and call on them. They will like what you have.

  29. Approach to the Market • Engineers… • Pre-Design Energy Studies… • LEED % vs. Solar %... • Lochinvar Presentation

  30. Professional Report Providing this report will get you specifications, Lunch & Learns and opportunities!

  31. This is the presentation that you need. Practice it and make changes that best fit your style. It works!

  32. Make the presentation about features and benefits such as Steam-Back, system design, sizing, rules of thumb, Solar Project Request Form, Roof Mounts, system start up, etc. Start up is a big deal.

  33. Henderson Engineers on Lochinvar / TiSUN: • Engineer Comments Included: • “What you guys have done allows us to be application engineers with your product” • “When you make it like this, it’s easy” • “We have been looking for a long time for a manufacturer to step up to the plate and recognize that solar is not all that different from what they are already doing” • “This is like specifying a boiler now”

  34. Henderson Engineers On Lochinvar / TiSUN: • Engineer Comments Included: • “You guys have no equal as far as we are concerned. If others want in, they will do all the work” • We now feel that we have a partner” • Steam Back System – “That’s Brilliant, we don’t have to worry about thermal breakdown” • Flow Valve – “Sweet” • System Drawings – “Clever” • Solar Work Sheet – “That is Great”

  35. My Best Advice “Engineers” • Remember, we  have already been successful in providing the Engineer with proposed solar design concepts using hydronics, domestic or both. • Collector and tank sizing • AutoCAD details complete with anchoring • Specifications for the complete system • Working with the consultant from the beginning is a major step to being successful with solar specification. • To be specified, a collaborate effort is required between the manufacture and rep, to provide the engineering community a complete engineered system.

  36. My Best Advice “Engineers” • As a rule, much of the engineering community is outsourcing the engineering on solar. Working with Lochinvar allows the engineer to keep those profit dollars in house. • With government work, it can be more difficult to get a flat spec out of an engineer. Therefore, relationships and trust are critical. Talk to Ike Gatlin, he is getting it done. • Avoid the word “payback”… instead use “return on investment” when the storage tank seems huge and expensive, break it down to cost per gallon. Don’t get into simple payback. Focus on Return On Investment (ROI). • Factor in rebates, tax incentives, etc.

  37. My Best Advice “Engineers” • When Lochinvar announces something like the new Crest, everyone goes to work. With solar, we have to invest in our education with reading and asking questions. It takes more courage to pull solar out of the bag. • The easiest way to get the engineer’s ear is through providing real performance data.  The “Professional Software Report” along with design parameters is a must. It gives the engineer a level of security that he did not have with solar previously.  • Educate, educate, educate…. The more you are familiar with solar the better off you are.  Take that education to the engineers they are dying for it. And yes, you will even have to learn a little structural engineering for roof tops and mounting hardware. Review the presentation and ask questions. The more you can educate yourself the more successful you will be.

  38. Approach to the Market • Architects… • Solar people say that we are missing the boat if we are not targeting the Architect. • Architects have the owners ear. • The Architect makes the decision to go solar or not. • John Mann of Sunrise Solar makes no changes in his approach to the engineer vs. the architect. • Let’s test it in your market…

  39. Promote the Package! “No one in the industry is doing what Lochinvar is doing.”

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