Our Problem: The Competition Gives Our Industry a Bad Name

By Harper Willis

The Owner: Gennady Tsakh

The Business: Absolute Mechanical is a Brookline, N.H.-based firm that installs high-efficiency boilers and generators in people's homes.

Annual Revenue: $700,000
The Problem: Tsakh is a certified Master Plumber, which means he's qualified to install high-efficiency boilers. Regular plumbers are not. But that doesn't stop them from installing them anyway and when things go wrong customers tend to blame the product, not the poor service.

Tsakh estimates his company loses 50% of potential customers because some go to another company that offers cheaper (and often incorrect) installation, and others choose a regular installation instead of a high efficiency.

"Half of our work last year came from fixing poorly and illegally installed boilers in people's homes," says Tsakh.

If installed properly, these high-efficiency boilers can pay for themselves in five to seven years and last as long as 30 years. When not installed properly, they can be less efficient than regular boilers.

Another problem: High-efficiency installations cost around $15,000. Normal installations, if done properly, should cost around $12,000. But contractors cut corners to get the price down to between $5,000 and $7,000.

"The boilers break down faster when installed improperly, but the average customer isn't thinking ahead," says Tsakh.

In fact, bad installation practices are so rampant, says Tsakh, that customers have come to expect boilers to break down and require frequent maintenance and replacement. So when Tsakh tries to explain the economic benefits of installing high-efficiency boilers to potential customers, many simply don't believe him. "We have dozens of case studies to back up our claims, but it doesn't matter," says Tsakh. "People are going to believe their neighbor who's telling them how crappy their high-efficiency boiler is."

The company doesn't have the budget for a huge marketing campaign, so they need to find a creative solution to the problem. "We're not so worried about the competition," says Tsakh. "Our main concern is how do we educate our customers without forcing it down their throats?"

What the experts said:
Don't educate, engage:
Although you naturally want to educate potential customers about bad installation practices, keep in mind that consumers don't want to be "educated." They simply want to achieve their goals, which in this case involve efficiency and sustainability. Resist the temptation to call out competitors by name or as a group; that would serve to cement the existing perception that "those boiler guys don't deliver what they promise."

So think engagement, rather than education, in a way that will make YOU stand out. YOU are the expert in helping people achieve their energy-saving and money-saving goals.

You also have a great opportunity, via public relations, to become known as the local go-to person with questions about high-efficiency systems. Make it personal. Have photos and videos of "good" versus "bad" installations, and then reach out to area TV stations and newspapers. That kind of move offers real help for the coming winter and helps you, too.

Then, to tie it all together, consider replacing the photo of your facility on the front page of your website. (Consumers care about their homes, not your facility.) Instead, add pictures of you and your team as well as news clips and video.

-- Jim Karrh, Ph.D., www.TheMarketingDoctors.net
Deal with the problem in a few different ways:
1) Educate:

Customers need accurate information to make an informed decision; that means reaching out in a variety of ways to combat word of mouth. You should put the word out via Yelp, ehow, and other online resources with correct information. You should also reach out to local reporters, explain the problem and offer your expertise on the value of these boilers -- AND the importance of getting a certified Master Plumber.

2) Differentiate:

There's a certification issue here. You should highlight that you are a Certified Master Plumber on your website, and in anything you write or post or are interviewed about. You should also contact the certification body and see what resources they have to protect the value of the certification.

3) Enlist allies:

Besides the certification body, you should contact the manufacturer of the boiler and enlist support there. You might also contact "green" affiliates or professional associations to combat this problem. It's not just your problem: Illegal/improper installation affects the manufacturer and the entire category of products AND installers.

-- Virginia Randall, President, Virginia Randall Communications