There can be huge benefits in partnerships resulting in an increased bottom line, profitability and the attraction of talent to your organization. Adrian Mechanical Services hit the ground running when they partnered with a firm that evaluates mechanical, electrical and building envelope replacement opportunities and calculates the guaranteed energy savings and payback. The partnership came after Adrian Mechanical Services bid their first job to them three-years earlier and completed a couple more jobs resulting in them being appointed the go-to-guy for all of their mechanical work.
The company consists of a group of engineers that are not selling anything. In actuality, they are providing valuable knowledge and recommendations for building upgrades with guaranteed savings and payback. “I like that they offer solutions rather than selling equipment or controls and developing the solution around them. This is a concept we can get behind and promote,” said Adrian Mechanical Services’ President, Todd Carver. One school district saw such positive projected cash flow that they chose to add artificial turf to their football field and finance it through the additional cash generated by their savings.
This partnership gives Adrian Mechanical Services something new to market. “By selling the concept to our existing customers we can generate work. It’s a real easy sell to schools as they are able to make improvements without going to their taxpayers for millage increases,” said Carver. It gives the ability to negotiate work that has been previously bid by multiple bidders and even allows Adrian Mechanical Services to do only the work they can self-perform which eliminates the need for hiring subcontractors. Hiring subcontractors increases your revenue but offers limited profit margin.
“The impact is that we are now selling the concept to our customers that have not yet been approached, and getting opportunities through those contacts and it keeps our competitors out of the door of our customers,” said Carver. The process has changed to some degree; instead of bidding work, Adrian Mechanical Services is selling work. This has reduced the sales revenue and increased profits. Working for this group is more like a negotiated job that allows you to look for ways to help your customer.
To assist with the energy services work, President Todd Carver’s son, Andy, recently joined the business. Andy is a graduate of Ferris State University with a HVAC specific Mechanical Engineering degree. “He has experience working for a contractor outside our market area as a controls engineer. We are excited about the opportunities he is bringing to the company, and see this helping us do more energy services work,” said Carver.
Adrian Mechanical Services is progressing in a significant way with their energy services partnership!
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