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Keep your technical knowledge close in the tool bag; emotional intelligence is a highly valued personal trait that can help you run a more successful business.

We’ve all heard the expression before, “You’re thinking with you heart and not your head.” But what if both were true? On a recent Thursday night Plumbing Perspective (@plumbing_perspective) Instagram Live, guest Shreya Nagwani (@_shreymvp), sales/service expert and coach for Service MVP, discussed an interesting aspect of Service MVP’s training that translates to running a successful business. It’s called Emotional Intelligence or EQ. Almost counterintuitive—because of the opposite nature of how people can think one way and act another—the term actually makes an abundant amount of sense.

According to Harvard Business School, Emotional intelligence is defined as the ability to understand and manage your own emotions, as well as recognize and influence the emotions of those around you. The term was first coined in 1990 by researchers John Mayer and Peter Salovey, but was later popularized by psychologist Daniel Goleman. (Goleman lists five components of EQ below.)

In the realm of home service sales, emotional intelligence (EQ) often takes a backseat to technical expertise. However, it is a critical component that should not be overlooked. EQ refers to the ability to understand and manage emotions effectively, enabling individuals to relieve stress, communicate well, empathize, overcome challenges, and defuse conflicts. In the sales process, where emotions heavily influence buying decisions, focusing on logical reasoning alone can leave clients hesitant.

But how does it translate into plumbing and HVAC business? While plumbing and HVAC techs have a high IQ, and what they communicate is overly technical, a non-technician, i.e., customer, doesn’t understand what that means, says Nagwani. “All they want is safety, comfort and health for their family and their home.”

Home service technicians, typically analytical and left-brained, tend to prioritize the logical aspects of their work, inadvertently neglecting the emotional side of the sales process. The gap lies in the lack of training on communicating solutions in an emotionally intelligent manner. To successfully bridge this gap, technicians must be equipped with the skills to connect with customers on a deeper level, understand their unique needs, and present solutions that resonate emotionally.

“It’s a very emotional job,” says Nagwani, but there is a gap. “To bridge the gap would be learning emotional intelligence. How do I communicate this job, which is just a plumbing job, to something like, ‘What is the effect of this system for their family? If they have chlorine in their water and their son has eczema.’ That’s how you connect emotional intelligence to a plumbing job,” says Nagwani.

And, not only that, people buy things when they have high self-esteem, when they feel like they deserve it. “People who have a high self-esteem buy premium,” says Nagwani.

How do to techs learn how to communicate that? “What we teach—in part—in our Service MVP offerings is, how do you raise someone’s self-esteem during a visit that by the end of the appointment the client feels better about themselves as a person? What happens is they’ll pick an option,” says Nagwani. “‘I deserve endless hot water,’ for example, connecting a technician’s job over to emotional intelligence.”

Moreover, sometimes it can be difficult exude confidence, stability, empathy on a tremendously busy schedule. “It’s confidence. Even if it’s not a lack of confidence, it comes off that way. This also goes to managers and owners. If your’re giving your guys six or seven calls on the board, they would see all of the calls stacked up and it would really affect the way they ran those calls and they would burn through all of them. They are just thinking of getting in and out. That is going to affect the service to the client, the job, the revenue and the happiness of the technician.

“We have a rule where a technician can see only one call at a time and they get a long time on that call. They have all the time they need; it’s quality over quanitity. What starts to happen is, there are less upset clients, there are more 5-star reviews, they triple their revenue, literally. The confidence of the technician is really important. How is somebody going to be confident when they don’t have communications training?” says Nagwani.

By incorporating emotionally intelligent communication techniques, technicians can establish a stronger connection with customers. Understanding and addressing customers’ emotions not only builds rapport but also allows for customized solutions that meet their specific needs. Training programs, such as those offered by Service MVP, specialize in teaching teams to utilize emotionally intelligent approaches. Implementing these techniques can lead to a significant increase in revenue per technician, averaging at 297%. This approach enhances customer satisfaction, improves conversion rates, and fosters long-term customer loyalty.

Goleman’s 5 Components of EQ

1. Self-Awareness: Recognizing and understanding your own strengths and weaknesses, your emotions and moods, and the effects these things have on other people. A self-aware person is not easily offended by criticism, but rather learns and adapts.
2. Self-Regulation: To think before doing and to express your feelings maturely with restraint. Rather than being controlled by emotions and impulses, an emotionally intelligent person can control impulses and emotional responses. 
3. Internal Motivation: High EQ people are self-motivated, pursuing personal goals for reasons of self-development and self-gratification, rather than money, titles, external praise or esteem.
4. Empathy: Empathy involves recognizing, understanding and feeling the emotions of others. Unlike sympathy, empathy involves actually sharing the emotional experience another person is having. Empathetic people genuinely understand and respond to the needs of others.
5. People Skills: Emotionally intelligent people easily build trust and respect with others. They are good at managing relationships and building networks, and they avoid power struggles and deceitfulness. Their high levels of the first four components of EQ make for deep bonds and genuine, non-competitive friendships.
   Source: Forbes.com

Service MVP is an e-learning website featuring video-based micro-learning content designed to revolutionize your office, service, sales and install teams. It is the ultimate service sales training resource, where high performers increase the value of their solutions to create higher revenue and profit.

From the 2021 UPC Illustrated Training Manual, Chapter 6, WATER SUPPLY AND DISTRIBUTION

603.3.4 Double Check Valve Backflow Prevention Assembly (DC). A double check valve backflow prevention assembly consists of two independently acting internally loaded check valves, four properly located test cocks, and two isolation valves.

The double check valve backflow prevention assembly (DC) is just what it says – two check valves in series to prevent backflow (see Figure 603.3.4). The first check will close in a backflow condition. Usually one psi of backflow pressure will close the check. The second check is incorporated as a backup if the first check fails; however, there is no way to know if the second check has failed until it is tested. If the device fails, there is no means for removal of the polluted or contaminated water, which may then travel into the potable line. Therefore, the DC may only be used on low-hazard applications. Any liquid connected to the piping downstream of a DC should be a pollutant and not a contaminant.

The DC provides backpressure and backsiphonage protection. A DC may be used as meter-service protection as a containment, or on individual fixtures and appliances as isolation protection. A field test is required on installation, at least annually thereafter, after any repair and when relocated. The device must be installed a minimum of 12 inches above the surrounding ground or floor.

Over the past few years—wink, wink COVID—the industry has seen a rise in purchasing activity between plumbing and HVAC companies and private equity firms and other outside influences—coming in and gobbling up already successful contracting shops with a message of making them better. Sure, it’s a smart exit strategy as well for those looking to hang up the wrenches.

But why the flurry of activity now? “What we’ve seen from COVID is that the trades are pandemic-proof and to some extent recession proof. When money gets tight, consumers may hold off on that new car, going out to eat, but when that water heater goes out, it’s a necessity,” says Dan Foley, Foley Mechanical, Lorton, Va.

Foley continues, “Artificial Intelligence (AI) will never be able to take over this industry. You will always need someone to walk into someone’s home and make a repair, and that’s not easy to do. It’s the technician’s skill that AI cannot replace.”

According to Mike Prencavage Jr., president/owner, The Family Plumber, Los Alamitos, Calif., president, PHCC ORSB, director, PHCC National Business Development, “Working on margins is crucial for any business to succeed; however, in the plumbing industry most companies aren’t struggling with tight margins to turn a profit.”

As an example, Prencavage Jr. says restaurants and bars can stand to lose greatly if more than two ounces of alcohol is poured into any drink or if larger than accounted for portions of food are served on any plate. These private equity firms have seen that plumbing companies have a greater amount of sold labor income per invoice that can offset losses on jobs allowing for much wider margins to run a profitable business.

“Private equity firms are also looking to the future of renewable energy. With the electrification of the nation soon to be at every state’s doorstep, government grant funding has already become available to plumbing companies who are leading the way by installing energy efficient products. These grant programs. combined with the opportunity to capitalize on wider margins, are creating a buzz of interest from private equity groups to get more involved in the plumbing industry sector,” says Prencavage Jr.

Speaking of grants, on a national level, the Infrastructure Bill and Inflation Reduction Act, are ripe for the taking, if eligible.

On the flipside, private equity firms offer contractors security, not only monetarily, but though the expansion of their reach and service offerings across their respective regions, expand evolving customer bases and refine overall strategic growth initiatives.

Just last month, Grove Mountain Partners—a private equity firm investing in lower, middle market home service companies and specialty business service companies—announced the sale of Unique Indoor Comfort Holdings LLC to Ace Hardware. Nate Kukla, CEO, and the entire management team, including the brand presidents, will continue to lead the company as it embarks on its next growth phase.

Grove Mountain brought together 12 independent service-providing businesses, beginning in June 2021, with the acquisition of three related companies: Moncrief Heating & Air, Unique Indoor Comfort of Philadelphia, and Werley Heating & Air. It added nine other companies in the Eastern region of the U.S., including Clay’s Climate Control, Detmer & Sons, Canella Heating & Air, A-Total Plumbing, All Phase Electrical, Dick Hill & Son, Carolina Custom, Rye Heating and Air, and Jackson Plumbing and Heating & Air.

“We are grateful for our partnership with Grove Mountain and are proud of what we have built and accomplished,” said Nate Kukla, CEO. “Now, we are excited to be part of the Ace team which will allow us to leverage their combined financial and operational capabilities and expertise. Since day one, Unique has been passionately dedicated to an employee-centric, high-integrity, and customer-focused culture. Ace shares in our mission and values and brings a plethora of resources to allow us to continue and grow the business.”

Also, this month, Auctus Capital Partners—a leading financial services and investment banking firm focused exclusively on creating value for the lower middle market, which specialize in merger and acquisition advisory, institutional private placements of debt and equity, financial restructuring, valuation, and strategic consulting—announced its role as exclusive advisor to The Precision Group and its affiliated entities, supporting the environmental and infrastructure services leader in completing a majority recapitalization by PowerVac, a Pillsman Partners LLC and Peninsula Capital Partners, LLC portfolio company.

The Precision Group is comprised of three separate yet complementary companies that serve a diverse array of commercial, industrial, and municipal customers. Founded in 1992, Precision Industrial Maintenance, Inc. provides environmental remediation, industrial cleaning services, hazardous and non-hazardous waste transport and disposal, and other industrial waste services. Martin Environmental Services, Inc. was acquired by Precision Group in 2002, adding new services in asbestos and lead abatement, and disposal services. Precision Trenchless, LLC was formed in 2013 to focus on environmentally-friendly pipe rehabilitation using less disruptive technologies, such as UV-Cured and other Cured-in-Place Pipe Lining (CIPP) methods, potable water line rehab to minimize air, water and soil pollution and support advanced monitoring services.

The group of companies operate as a unified provider of services to several broad regional markets with strong projected growth through 2026 — including the sewer and pipeline rehabilitation market with a compound annual growth rate (CAGR) of 4.6%, as well as trenchless pipe rehabilitation (4.8% CAGR), and liquid waste management (3.7% CAGR).

“Underpinned by significant government support for the repair of aging infrastructure, pipeline rehabilitation and wastewater management services are seeing record investment.  In addition, an ever-growing awareness of ESG issues has been driving strong investor demand,” says Muhammed Azfar, CEO and managing partner, Auctus.

More to come on this topic.

According to the EPA, residential leaks—not including commercial water leakage in this country—wastes nearly 1 trillion gallons of water annually.

It’s a widespread problem. Not long ago, Washington Post journalists wrote about a guy, Sam, who went to his rural vacation home south of Chicago.  Following a long winter, he found the entire basement flooded with eight feet of water. It sat there for weeks because of a burst pipe. In such an instance—especially if the leak happened in the summer—the risk of mold, including the toxic Stachybotrys chartarum (black mold), is substantial.

Post reporters also wrote about a woman who lives on the 35th floor of a condo building. While she was out one day, the water to her drinking water filter broke. Half a day and many gallons of water later, she was able to stop the leak, but a lot damage had already been done: the water had cascaded down through several floors of the building, causing significant damage.

The ravages of water from hidden leaks can be devastating, expensive.  Even permanent.

The good news is that today’s wireless technology can either alert you instantly that there’s a problem, or even shut off the water main automatically or remotely. Some of these devices sense water and send an audible alarm along with a text or email alert so whether you are home or away, you get the alert.

According to Kenneth Fox, VP of Sales and Business Development for Escondido, Calif.-based Leak Defense, a Watts Brand, there are a wide variety of solutions, some being far more durable and effective than others.

Says Fox, the best technologies, including the Leak Defense system, continuously monitor properties for hidden leaks and—if one is detected—automatically shuts off the water and alerts homeowners, property managers or plumbing professionals.

“We’ve found that an on-site control, or mobile app, are the best, easiest way to control water flow,” he added. “With multiple ways to monitor, you’ll always feel protected against potential loss, expense and hassle from water damage.  Our full line of accessories allows Leak Defense to work with any type of residential or commercial plumbing system.”

For commercial systems, leaks can very easily cause frustration among tenants and legal liabilities and lead to remediation hassles and great expense.

At the very least, not being protected from the risk of water damage from hidden leaks can be stressful. According to Fox, Leak Defense has helped thousands of commercial and multi-family building owners and facility managers easily monitor and protect their properties.

“With modern systems, the status of all leak detection components—from smart controls to sensors—should populate information on a convenient, user-friendly dashboard,” said Fox. “The technology should be capable of catching all types of leaks, including those hidden in under slabs, behind walls and in ceilings.”

Like a security system with ability to shut the door!

Contemporary leak detection and prevention systems should also be effective at turning off water automatically if flow settings are exceeded, or shut off water to selected zones or the entire building. They should also allow manual stopping of water via control or app, and provide round-the-clock monitoring and alarming of all devices—much like contemporary security systems, but with the added capability of shutting the shut the door to deny entry.

To have this remarkable capability, a Leak Defense valve must be installed on the main water line and downstream of the primary shut-off valve, pressure regulator, irrigation line and fire sprinkler line. All components “talk to each other,” with set parameters that allow total system shutoff if conditions warrant it.

According to Fox, the Leak Defense Point of Leak Detector (POLD) is an excellent solution, when coupled with Leak Defense flow sensors, for residential homes or commercial locations to simply and easily protect a property from catastrophic water damage. These multi-point electronic leak detectors can be placed anywhere there’s a high risk for plumbing leaks, typically near appliances and fixtures; they will close the water supply valve and send an alarm if moisture is detected.

“Leak Defense products are available through our over 2,000 nationwide installers, wholesalers and rep firms,” said Fox. “Installer and facility manager training is conducted nationwide.”

Luxury Condo Puts a Stop to Leakage

Sunset Pointe near St. Petersburg, Florida, is a luxury condominium complex on a barrier island off the Florida coast. Since 2017, three of four six-story buildings have been built and occupied, with a fourth one now under construction.

Today, all 130 occupied units, each exceeding $1 million in value, contain a Leak Defense system.  Their technologies were installed after three leakage incidents—all within a six- month period in 2018—created more than $150,000 in damage to many individual units, common areas and an elevator system.

“We haven’t had a single loss or insurance claim after completion of the [Leak Defense] products,” said Vince Pusateri, board president of the Sunset Pointe Condo Association.

 Three separate incidents

Pusateri, an early resident of Building 1, was the building president at the time the incidents occurred. The first was in a laundry room, when a hose connecting to a washer sprung a leak.

The second occurred in the middle of the night. A water softener system in a utility closet sprung a leak, and the condo owners awoke to find themselves wading in six inches of water. The water also spread to the two units next door, into the walls of units below, and into the elevator area.

“In a condo complex where there are common walls and floors, a leak in one unit affects not only the people there, but also the people around them,” said Pusateri. “In addition to structural problems, there can be damage to rugs and furnishings—and, potentially, black mold if things aren’t taken care of quickly.”

 Installing leak defense

Following a third incident when a hot water tank line sprung a leak in a pantry, a building maintenance engineer suggested several leak detection solutions to the Building Governance Committee. Ultimately, the committee (chaired by Pusateri) chose to install Leak Defense.

The system is comprised of several components. The first is a proprietary valve installed on the incoming waterline to each condo unit; once installed, the automatic water shut-off control valve monitors water flow 24/7/365.

The second is a wireless touchscreen control in each living unit, allowing residents to set the system to fit their family’s lifestyle needs. For example, if high-volume overnight water use would be unusual, the control can send an audible alert; it can also shut off the water intake. The control could also be connected to a third-party monitoring company to make sure an alert is attended to even if the owners are away.

Point-of-leak detectors can be placed at any potential trouble spots to detect leaks, such as in the laundry room or under a bathroom or kitchen sink.  Finally, a mobile app allows easy, remote monitoring.

 “We liked the sturdy unit [control panel] and the company’s good track record,” Pusateri said. He also pointed to other features, such as being able to set the system for how long water could run before activating an audible alarm, and ease of operation.

Condo owners in Building 1 agreed to the installations, as did the owners later in Buildings 2 and 3. Pusateri said that most condo owners have 6-10 sensors in their home; locations are up to each owner.

“What I also liked is that sensors can detect a change in water pressure, even behind a wall,” said Pusateri.

He added that for reliability in a storm, the system is backed up with an uninterruptible power supply (UPS), which plugs into a wall. “In Florida, we have a lot of lightning strikes and power surges,” Pusateri noted, “but with UPS battery backups, we’re covered.”

When Building 4 is completed in 2023, Leak Defense systems will be installed to protect those units in the condo complex. “We’re happy with Leak Defense,” Pusateri said. “It has the best track record; it’s rugged, and we don’t want any further damage.”