Results 1 to 17 of 17

Thread: Daily HVAC Service Calls - Ratio (Nexstar Affiliates)

  1. #1
    Join Date
    Nov 2011
    Posts
    3
    Post Likes

    Daily HVAC Service Calls - Ratio (Nexstar Affiliates)

    I worked in the HVAC service field for 20+ years. Today, Im a normal consumer with many acquaintances still in the industry. I know that the industry has changed since my time in the field and with the many discussions that I have had with friends, the business model has changed. Especially with Nexstar affiliations.

    I have a question regarding the ratio between demand(out) calls and maintenance calls. For the average business, is it typical to depend on maintenance calls to generate sales day to day? Or, is it typical to depend on demand calls that could then generate new customers and more work?
    I find that many companies that I have seen in my area depend mainly on existing customer maintenance calls (Service Contract) to generate sales by recommending system replacements after 9 years of system age. Very few of the day to day calls executed are from new customers. Typically, I am seeing about 30% demand calls (many from their existing customer base) and 66% maintenance calls. For me, the concept seems skewed as new customers are a necessity to grow a business. But, the majority of companies in my area are Nexstar affililiates which work by the same model of upselling to their existing customer base.

  2. #2
    Join Date
    Dec 2004
    Location
    Chicago area
    Posts
    10,912
    Post Likes
    New customer acquisition is terribly expensive. Way more-so now then ever before.

    I have no percentages, and no clue who Nexstar is.

    But i would say, yes majority of work is existing customer business, especially in commercial/industrial.

    A school for example is not often going to just call a new company out of the blue without reason to do so - ie their normal guy wronged them in some way.


    Sent from my iPhone using Tapatalk

  3. #3
    Join Date
    Dec 2004
    Location
    Chicago area
    Posts
    10,912
    Post Likes
    Also any established company just waiting around for the phone to ring would be out of business in short order


    Sent from my iPhone using Tapatalk

  4. #4
    Join Date
    Jul 2010
    Location
    US of A
    Posts
    5,963
    Post Likes
    The Nexstar companies that I know are all about growth. I used to know the percentages from where their new equipment sales come from or what their goals were but yours seem to be off somewhat. They will be broken down to cold calls, maintenance calls and service calls. They get plenty of new customers. They tend to advertise and when the extreme weather hits they "steal" their competitors customers. When the mom and pop or local utility can't come out for days or a week+ they tend to snatch those up. They also get plenty of new customers from doing low priced "clean and checks" etc. Plenty of those calls are demand calls disguised as maintenance calls.
    Signature removed Violated rule #15

  5. Likes dieseldude liked this post.
  6. #5
    Join Date
    Aug 2002
    Location
    Southold, NY
    Posts
    31,567
    Post Likes
    Quote Originally Posted by pageyjim View Post
    The Nexstar companies that I know are all about growth. I used to know the percentages from where their new equipment sales come from or what their goals were but yours seem to be off somewhat. They will be broken down to cold calls, maintenance calls and service calls. They get plenty of new customers. They tend to advertise and when the extreme weather hits they "steal" their competitors customers. When the mom and pop or local utility can't come out for days or a week+ they tend to snatch those up. They also get plenty of new customers from doing low priced "clean and checks" etc. Plenty of those calls are demand calls disguised as maintenance calls.
    What a $hity but........
    Profitable game plan.

  7. #6
    Join Date
    Dec 2018
    Location
    Phoenix, AZ
    Posts
    425
    Post Likes
    The reality is, Resi HVAC is the most common work out there. It’s generally NOT the best paying without commission apparatuses. In Arizona, 65% to 70% of Techs are Resi. Some of those Techs may be spill over into smaller LC.
    I would assume that the top 20 metro areas, all have a major Resi outfit there. How can any of those contractors compensate their Techs $150K or more by only paying $15 to $30/Hr?!


    Sent from my iPhone using Tapatalk

  8. #7
    Join Date
    Sep 2007
    Location
    Kenilworth NJ
    Posts
    2,806
    Post Likes
    Quote Originally Posted by werking View Post
    Especially with Nexstar affiliations.
    Hmmmmm Nexstar... oh yeah. Prominently featured on the baseball cap at 3:45 as Joe here explains that there is flammable fluid leaking from the homeowners immaculate capacitor
    https://youtu.be/TWbeNfVOKWo
    They used to have a contractor locator online until this video came out.... maybe it was the bad publicity?
    The same drive that motivates guys to sell at every call (even unethically) also aggressively monetizes all leads.
    Hmmmm....smells like numbatwo to me.

  9. #8
    Join Date
    Dec 2005
    Location
    Cincinnati, Oh
    Posts
    8,125
    Post Likes
    Quote Originally Posted by numbawunfela View Post
    Hmmmmm Nexstar... oh yeah. Prominently featured on the baseball cap at 3:45 as Joe here explains that there is flammable fluid leaking from the homeowners immaculate capacitor
    https://youtu.be/TWbeNfVOKWo
    They used to have a contractor locator online until this video came out.... maybe it was the bad publicity?
    The same drive that motivates guys to sell at every call (even unethically) also aggressively monetizes all leads.
    Yeah, dividing cheeks.


    You won't find many if any nexstar guys here.
    Be it yes, heavy on tuneups for equipment sales. That ratio is weather dependent. We go from 99 percent maint, to 99 service at the flick of a switch.

  10. #9
    Join Date
    Sep 2007
    Location
    Kenilworth NJ
    Posts
    2,806
    Post Likes
    Quote Originally Posted by hvacvegas View Post
    You won't find many if any nexstar guys here.
    Not openly, not anymore.
    I worked with Joe there and left the nexstar abyss less than a year before this went on the air for the exact reason shown in the video - the constant pressure to be shamelessly skamming people.
    Hmmmm....smells like numbatwo to me.

  11. #10
    Join Date
    Sep 2007
    Location
    Kenilworth NJ
    Posts
    2,806
    Post Likes
    Quote Originally Posted by werking View Post
    But, the majority of companies in my area are Nexstar affililiates which work by the same model of upselling to their existing customer base.
    The nexstar business model has a life cycle revenue on each customer. It was something like 30k when I was at a Nexstar company. That means if all you have gotten out of them is a $59.00 tuneup special, you need to keep mailing, calling, and performing 'tune-ups' until they crack and you get a replacement out of them.
    The Tune-up is the customer paying you for 15 minutes of your day, that you then get to spend looking over their equipment for things to charge them for.
    There is a difference between consciously reviewing with the customer real deficiencies and educating them on these and helping them make a good decision that may affect their health and safety.... and shamelessly looking for revenue to extract. The 'flammable fluid' shtick is a good example of the latter. That was spread at a Nexstar training WORD FOR WORD.
    It is easy to pin it on poor Joe there. But the remainder of the video is full of others doing precisely the same thing shows it is cultural. Having done a few Nexstar trainings myself I can also say it is institutional. It comes straight from the top and there is a consistent effort to get buy-in from the rank and file early and often.
    I had options and could go anywhere and make enough that I did not need to engage in this... but some guys don't have those options as readily available.
    Hmmmm....smells like numbatwo to me.

  12. #11
    Join Date
    Feb 2010
    Location
    Metro Atlanta, GA
    Posts
    727
    Post Likes
    I have a buddy that works for a company that just went the Nexstar route. The way he tells it, the top sellers get all of the demand problem calls and the rest get stuck with nothing but clean and checks. He's been in the trade for 25 years and he has the lowest callback rate in the company, but he's also one of the lowest earners there because he only sells the parts people need to get them going. He told me a few weeks ago that he hasn't done a demand service call since July or August, it's been nothing but maintenance for him while the sales techs get all of the leads.

  13. #12
    Join Date
    Sep 2007
    Location
    Kenilworth NJ
    Posts
    2,806
    Post Likes
    Quote Originally Posted by FlyersFan View Post
    He told me a few weeks ago that he hasn't done a demand service call since July or August, it's been nothing but maintenance for him while the sales techs get all of the leads.
    And that would that mean that his work days are shorter... the Nexstar route says you get 3 calls per day. 3 strikes and you are out... so you need to improve your batting average they say. You get more than that in the heat of summer if they are available. They say that you work as many hours as you want - as in - if you do not sell enough to give you a full day of work, you do not get a full day of work. You must not have wanted to work a full day.
    So not only is he not getting the service calls that generate the revenue he needs to make more money, but his workday is also shorter on average, so his take home pay would be lower than it was before the shop went Nexstar. He got a pay cut likely.
    The PMs and Tune-ups are paid for 15 min of time, so it does not even cover the drive time to get there. The Boss has metrics to see that, and will give you the stink-eye look because you are costing him money because you did not find a way to get the homeowner to cough up several hundred dollars on a tune-up on new equipment. So the technician is in a vice squeezing him to do 'something' to be able to earn enough to provide for his family. That 'something' inevitably leads to swindling people. When such is exposed, liability is on the tech, who is fired for 'unethical' conduct.
    I know FOR A FACT Joe there in the video I posted above had PLENTY of instances where he CLEARLY swindled people and the ownership knew it - because I told them personally. I went on a call back of his while he was on vacation. He had sold a 75yr old retiree a programmable stat on a maintenance because it would 'save her money' on her heat bill. She was paying 700-800 per month in the dead of winter in snowy NJ because she had electric baseboard heat and she feels cold at 76 degrees indor temp. A programmable stat is useless for people who never leave the house. Here I am looking her in the eye thinking 'Joe just screwed this poor lady'. So I am calling to office and making the boss Rich Bogda tell her why she needs to keep the stat and not get a refund. I am not doing it.
    But Joe the technician gets caught on video and suddenly he is nowhere to be found. He made over 100k as a residential service tech and sold over 1 million out of his truck. That is an big incentive to look the other way - until it on the national news... Meanwhile the business owner rebranded, got a few new guys, and is at the same old game.
    https://www.pmmag.com/articles/10122...onals-union-nj
    That is what it is like to work at a Nexstar company as a service tech.
    Hmmmm....smells like numbatwo to me.

  14. #13
    Join Date
    Jul 2010
    Location
    US of A
    Posts
    5,963
    Post Likes
    Lot of things are wrong in that Youtube video. First I think it is a little ironic which company set that up. I bet they sell more IAQ add ons than any company in that area for their size especially.
    That start cap may have been off gassing with a blown membrain and I don't doubt much that it was but it wasn't presented as a suggested repair. Did it "need" a time delay? No but it would definitely be suggested.
    I really think it should have been set up better and verified before calling for repairs. I bet I could have found many things the cooperating company missed and then presented it properly. JS

    I was in a set up scam but my visit never aired. There was a loose wire on the thermostat. I half jokingly said where is the camera and they came out. I said it was obvious the way they did it and I could smell it.
    Last edited by pageyjim; 01-29-2021 at 09:37 PM. Reason: Took co. name out
    Signature removed Violated rule #15

  15. #14
    Join Date
    Jan 2015
    Location
    Bellevue, Washington, United States
    Posts
    1,926
    Post Likes
    If you do good work and use words like "fair" and "reasonable" you won't need to worry about getting more work. I don't even have an advirtising budget because I get so much work through word of mouth. If you start on your own you'll need to devote the first 3 years to making sure every single one of your clients is fully satisified with the service and as long as your rates are fair you'll get the calls. I don't use any lead generation firms or advirtising so I'm able to easily provide a better rate for my clients. Ironically if I used those kinds of services I would have to raise my rates and therefor I'd be less competitive. Just focus on your customers and you'll do just fine......

  16. #15
    Join Date
    Sep 2007
    Location
    Kenilworth NJ
    Posts
    2,806
    Post Likes
    Quote Originally Posted by pageyjim View Post
    I was in a set up scam but my visit never aired. There was a loose wire on the thermostat. I half jokingly said where is the camera and they came out. I said it was obvious the way they did it and I could smell it.
    Wow that is pretty neat. You never hear about the good guys. Good for you!
    I did a ride along with Joe there. He pulled up to the house and said 'I am gonna sell 20k here. Here and now.' They had 4 split units in a big house. He sold new caps because of flammable fluid, condenser and evap cleanings, and some other stuff on 3 of them, condemned the 4th and sold them a new unit to replace the running 4th unit.
    I tried to get the repairs he sold done in the time allotted for each.. he said 'don't worry about it, they aren't going to see the evaps if they stay dirty.' He did not do a decent amount of what he sold, and told me not to do it as well, so he could get gone and sell more at the next stop. With the new multistage high efficiency unit he sold them, the total for that and the 4hrs for 2 guys doing repairs was just over 21k if memory serves.
    There was an edit of this I didn't find quick before that had a focus on Joe there because the owner of the company he worked for called the sting unethical.
    https://www.nbcnews.com/news/amp-video/mmvo42572869592
    Part 1 shows the setup
    https://www.nbcnews.com/video/jeff-r...-1-43802179544
    The guy doing the pro side of the sting was president of the local chapter of ACCA, Bobby Ring:
    https://www.achrnews.com/articles/12...ctor-integrity
    And here
    https://www.achrnews.com/articles/12...ors-nationally
    He sounded like he figured there would be 1 or 2 bad ones out of 6, and it would be a positive story, it ended up being everyone was a scammer.
    Hmmmm....smells like numbatwo to me.

  17. #16
    Join Date
    Jul 2010
    Location
    US of A
    Posts
    5,963
    Post Likes
    Quote Originally Posted by numbawunfela View Post
    Wow that is pretty neat. You never hear about the good guys. Good for you!
    I did a ride along with Joe there. He pulled up to the house and said 'I am gonna sell 20k here. Here and now.' They had 4 split units in a big house. He sold new caps because of flammable fluid, condenser and evap cleanings, and some other stuff on 3 of them, condemned the 4th and sold them a new unit to replace the running 4th unit.
    I tried to get the repairs he sold done in the time allotted for each.. he said 'don't worry about it, they aren't going to see the evaps if they stay dirty.' He did not do a decent amount of what he sold, and told me not to do it as well, so he could get gone and sell more at the next stop. With the new multistage high efficiency unit he sold them, the total for that and the 4hrs for 2 guys doing repairs was just over 21k if memory serves.
    There was an edit of this I didn't find quick before that had a focus on Joe there because the owner of the company he worked for called the sting unethical.
    https://www.nbcnews.com/news/amp-video/mmvo42572869592
    Part 1 shows the setup
    https://www.nbcnews.com/video/jeff-r...-1-43802179544
    The guy doing the pro side of the sting was president of the local chapter of ACCA, Bobby Ring:
    https://www.achrnews.com/articles/12...ctor-integrity
    And here
    https://www.achrnews.com/articles/12...ors-nationally
    He sounded like he figured there would be 1 or 2 bad ones out of 6, and it would be a positive story, it ended up being everyone was a scammer.
    Yeah Joe seems like a piece of work. See how he takes a drink while saying that to the customer? I'd like to play poker with him. I am surprised he is as successful at ripping people off as you say frankly. I still don't doubt that the "professional" set up company missed a leaking or off gassing start cap. Bobby Ring and company were wearing their own shirts and not ACCA shirts, JS. I think they could have found an instructor or someone retired or not representing a local company to do the set up. I would have loved to see them called for a sting operation, that would have been interesting, especially on a maintenance as he suggested. I also find it interesting who was called for the sting. One company with a possibly questionable reputation and seemingly a few very small operations, especially considering the area. I wonder who had input there.
    Words are important. Whether something is "needed" or is recommended. When the set up co's tech says "perfect" that is BS too. I mean maybe within specs but perfect is a BS thing to say also imo.
    As far as for my experience it was weird from the start. I like to talk to the homeowner and get a history or if they have any other concerns etc and it just felt off, then when I saw the problem I actually wondered it was what it was. Those idiots in Jersey should have seen it too especially since the wire was cut. The owner of my company at the time was actually caught red handed in a sting operation years before. He was fired and basically blackballed and had to start his own company.

    Your flare is impressive btw.
    Signature removed Violated rule #15

  18. #17
    Join Date
    Sep 2007
    Location
    Kenilworth NJ
    Posts
    2,806
    Post Likes
    Quote Originally Posted by pageyjim View Post
    Your flare is impressive btw.
    My flare? Thanks!?
    I post mostly in the controls section. So I regularly post intelligently on a and then come up completely clueless on b... not fishing for a compliment, I just am drawing a blank. My apologies, I probably have a condition If I am doing something right, I'd like to know what it is so I can do it again... hehe.
    Hmmmm....smells like numbatwo to me.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •