Presentation on theme: "No Heat Service Calls…. Your customer’s don’t like them any more than you do! Presented by: Leo Verruso Advanced Fuel Solutions."— Presentation transcript:
No Heat Service Calls…. Your customer’s don’t like them any more than you do! Presented by: Leo Verruso Advanced Fuel Solutions
An Unplanned Service Call Customer Perspective Emotional: Fear of unknown Why They were just here – 6 months ago! Timeline of events: Calling you now, but issue began long before Do I have time for this today? Phone number lookup The wait The rest of the day What they had planned Financial concerns: With agreement coverage –Hope it is covered Without coverage –Better not cost a lot.. I buy their oil!!!!
Financial concerns: Unscheduled = Costly With agreement coverage Another no-charge event Without coverage What can I charge without driving my customer away? An Unplanned Service Call Company Perspective Emotional: Is this phone ever going to stop? Is it my supplier? Timeline of events: These calls interrupt my ‘real’ work Emergency call = unscheduled = hard to plan Getting there fast is never fast enough
What is the cause of some of these calls? Sludge build-up on oil burner nozzles and fuel line filters
Sludge Restricts Fuel Flow Adversely Affecting Performance. Dirty System Clean System Plugged Filters, Nozzles & Strainers
What does it Cost? 1.To send a technician to a home for a service call that can be avoidable? 2.Rebuild the confidence of a customer who believes that the fuel is causing this issue? 3.To reduce the occurrence of these avoidable, emergency service calls?
Cost to Keep a Technician on the Road Hourly wage Hourly allocation of benefits –Hourly equivalent of health, time off, etc… Cost of vehicle on the road –Just think of this.. IRS average is $0.56/mile So… a 30 mile round trip service call costs you $15.00+ just for transportation Cost of uniforms, sundry items
Sample.. $ 24.00 - hourly $ 15.60 - benefits (inc OT) run @ 65% of hourly comp $ 11.63 - service vehicle »30,000 miles / year, 290 work days, 103 miles per day. 103 x $.90 = $93 ÷ 8 hours = $ 11.63 $ X.xx - sundry purchases
The Benefits Piece… $ 15.60 - benefits (inc OT) run @ 65% of hourly comp $24.00 / hr employee earns $50k straight time (2080 x $24) Add in all the taxes, OT & benefits… check the W2 of your $24 employee A $75,000 W2 = 50% wages –to- benefits ratio or $ 12.00 / hour A $85,000 W2 = 70% wages –to- benefits ratio or $ 16.80 / hour
Sample, cont. $ 24.00 - hourly $ 15.60 - benefits (inc OT) run @ 65% of hourly comp $ 11.63 - service vehicle »30,000 miles / year, 290 work days, 103 miles per day. 103 x $.90 = $93 ÷ 8 hours = $ 11.63 $ X.xx - sundry (rags, degreasers, torch gas, pipe tape) purchases, uniforms, etc..
Another Calculation Option Technician W-2$ 80,000 Van (30k/yr @.90)$ 27,000 (7 mpg / 4300g @ 3.50 = $15k) Sundry items$ 3,000 Cost (conserv.)$ 108,000 # of calls completed / yr:1,200 Labor cost per call: $ 90.00 Cost per call: $90.00 + parts
What is the cost of one of these calls? 1.5 hours, including driving or unproductive time $60.00 per hour labor cost (all in) Cost of nozzle, filter, strainer, etc Opportunity of doing other billable, proactive work Any negative consumer perception
What Can Be Done? Condition Fuel for Optimum Performance Stabilizes fuel during summer fill Helps protect service department revenue for a healthier business Minimizes filter, strainer and nozzle service calls Improves consumer perceptions with oil Cleans and protects fuel systems
“Synergy” People & Technology ADVANCED DISPERSANT Helps clean storage tank gradually. Continuously cleans entire fuel system reducing filter and nozzle plugging CORROSION INHIBITOR Prevents rust in heating oil systems, trucks and storage tanks METAL DEACTIVATOR Prevents sludge formation generated from yellow metal contamination MIDDLE DISTILLATE TRI-STABILIZER Keeping ULSHO, biodiesel, Bioheat® fuel fresh over an extended period of time. Essential component during summer fill.
Tri-Stabilizer Keeping ULSHO, biodiesel, Bioheat® fuel fresh over an extended period of time. Helps control sedimentation that plugs filters, strainers and nozzles. Essential component during summer fill. Fuel darkens and degrades over time in a storage tank. The darker color indicates that gum and sludge has formed. ASTM D-1500 Color Ratings
Dispersant Gradually disperses tank sludge allowing it to pass through the fuel lines, filters and strainers into combustion. Results of ASTM D6468 Accelerated Stability Test, Reflectance @ 180 mins. UntreatedTreated
Corrosion Inhibitor Prevents rust from forming throughout entire fuel handling system. Unprotected systems will increase plugged filters, strainers and fuel lines. Result of NACE TM-01 Corrosion Test National Association Corrosion Engineers UntreatedTreated50 PPM100 PPMUntreated
Metal Deactivator Reduces fuel degradation caused by interaction with yellow metals, (copper). Heating Oil will darken and degrade over time, copper lines in heating oil systems accelerate this occurrence. Results of ASTM D 6468 Accelerated Stability Test, Reflectance @ 180 mins.
What does it Cost? 1.To send a technician to a home for a service call that can be avoidable? 2.Rebuild the confidence of a customer who believes that the fuel is causing this issue? 3.To correct the source of these avoidable, emergency service calls?
Costs? 1.Should be a profit center, like any premium product that is consumed 2.Any cost to introduce the fuel additive is offset by the financial benefit to the company – typically in multiples 3.Financial benefit is immediate
How it Gets Done….. Fuel conditioning can occur at the terminal supply point level Can occur at your fuel storage tank inbound supply Can occur at via injection pumps Can be splash blended at the truck level
The Premium Brand Opportunity We have only discussed today, operational opportunities Marketing opportunities are equally important If you are going to do it – take credit for it!
What’s In It For The Customer Neutralizes yellow metal effects on HHO Protection for oil tank and components – extending system life Lower frequency of repair Fewer fuel related service calls DispersantStabilizer Metal Deactivator Corrosion Inhibitor
What’s In It For The Customer Price “Cheaper than some-more than others…Not all fuel is the same” Our fuel contains our unique conditioner that reduces the frequency of repair, improves the performance of your system & keeps fuel fresh Value The price of a gallon of fuel is important, but more important for you is what you are getting with that gallon of fuel; experience, safety, product support, local-family run business, etc Service Prompt, professional service to provide total peace-of-mind
Industry Issues Refining Principals Summer Storage Fungible Nature of Supply
Advanced Fuel Solutions Fuel Quality Review & What It Means To Your Customer Specializing in Improving Fuel Quality
At Your Service Leo Verruso Advanced Fuel Solutions (978) 258-8360 firstname.lastname@example.org www.yourfuelsolution.com
Brookhaven Fuel Performance Study, Phase I Pipeline fuels were clearly better than waterborne fuels Additives did improve fuel stability Tank inspection and tank design impacted fuel quality Practice good housekeeping and treat unstable fuel with an appropriate additive
Brookhaven Fuel Performance Study, Phase I Unstable fuels lead to particulate and sludge formation Fuel degradation materials lead to fuel instability which increases with time Co-mingling incompatible fuels resulted in unstable fuel Poor thermal stability leads to coke / carbon formation on nozzles
Cleans and protects fuel systems Minimizes filter, strainer and nozzle service calls Stabilizes fuel during summer fill Improves consumer perceptions with oil Helps protect service department revenue for a healthier business and stronger bottom line