Eastern Energy Expo Success...
 The Urban Dictionary defines "buzz" as "Anything that creates excitement or stimulus." It might as well have been talking about the Eastern Energy Expo.
Held in Foxwoods Resort Casino in Connecticut in May, this three-way venture had "buzz" before, during and after. With a crowd of more than 4,000 (larger than seen in many years), more than 250 exhibitors and 50 education programs, the Eastern Energy Expo (EEE) answered the wish of many in the industry to combine, consolidate and condense the very busy and geographically diverse spring shows and convention season.
As always, these events are measured, in large part, by the traffic on the trade show floor and EEE would be no different. From the actual number of people on the floor to the comments from many exhibitors, EEE certainly measured up to the high expectations, perhaps even exceeding them.
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At this years' Eastern Energy Expo (EEE) at Foxwoods Resort Casino in Mashantucket, CT, I gave a presentation to a large room full of oil dealers who are starting to realize that the "information is power" saying is not simply an advertising slogan for computer companies, but more and more the most important differentiator between companies in every industry. The feedback from the presentation led me to realize that the follow up email to the show's attendees is just as appropriate for the loyal readers of ICM. So, here it goes:
Fortune Teller Follow Up
Last week's EEE at Foxwoods definitely felt a little strange. I can't explain why, but I sort of missed the shag carpets and grey "skyline" of Atlantic City. However, the skyline of mile after mile of trees at Foxwoods got me over my pining for the Jersey Shore.
Thanks to those who attended the presentation on Predictive Analytics that I gave at the Expo, and for all of the follow up afterwards. The hour-long presentation covered a lot of basics, and I wanted to share with you some of my post-presentation thoughts, prompted by comments and questions that were asked and emailed to me afterwards.
Top 5 takeaways:
1. Data's impact on the way companies must learn to run their businesses does not exclude our industry.
2. Since all customers are not the same, they shouldn't all be treated the same way.
3. Just about all of the information/data that you need in order to better understand your customers' value to you already exists in your office, and should be (fairly) readily available.
4. Taking small bites-basic segmentation-is easy to do and can yield immediate results. Starting slowly is okay, as long as you start.
5. With changes in customer demographics and behavior, if you get left behind now, you may not be afforded an opportunity to catch up.
Top-5 questions asked, based upon the data that we have worked with:
1. Can I get info from my back office software(BOS)? In most cases, the answer is yes. However, older/dated systems may have extraction limitations. If that is the case (and we do not work for any of the BOS companies), we strongly suggest upgrading to a more appropriate version.
2. Why have we taken this long as an industry to adopt new technology? I don't have an answer that is specific to our industry, as opposed to any other fragmented industry, dominated by multi-generational owners. We take our time because we are not being forced to do anything else. That is changing and in order to compete, you need to move forward.
3. My new customers don't seem to stay around as long as the new customers that I used to get. Am I alone? From the analysis that we have done, you are most certainly not alone. Customers want more, they want to pay less, they want a better "experience", they want to use technology, they want apps, they.... New customers seem to stay for about two years less than they used to stay. You need to flip around the question and ask "what am I doing to keep a customer from leaving?"
4. What makes customers the stickiest? Service contracts, price caps and budget plans seem to always differentiate customer segments. Longer tenured customers have a higher tolerance for "the occasional problem" and lower credit score customers (at least those who pay) have a harder time shopping and are more likely to stay.
5. What is one thing not to do? If you focus your customer acquisition plan only on a low-ball price and bring in customers who are not on a budget, do not have a service contract and do not have a pricing plan, you are most likely renting those customers-and they will leave to another landlord after about two or three years.
We really enjoyed putting on the presentation and we hope that, if you were there, you learned something. If you were not there and would like a copy of the presentation slides, or anything else relating to the notion of the Predictive Analytics impact on our industry, please contact us directly.
Enjoy the summer and let's all hope that next winter makes us forget this past one very quickly!
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NORA offers a Technical Workshop in Rhode Island
 The National Oilheat Research Alliance (NORA) will hold a Technical Workshop in Newport, RI on Sept. 14 in conjunction with the Southern New England Energy Conference.
Major topics planned for the Workshop include: biofuels, fuel quality, combustion/burners and efficient systems and controls. NORA is fully open to presentation proposals. For additional information contact Dr. Tom Butcher at [email protected]. Those interested in presenting a paper at the workshop should submit an abstract as soon as possible by email to Tom Butcher. The Conference venue is the Hotel Viking, 1 Bellevue Ave., Newport, R.I. Rooms will be $239 per night. They will be reserved at 800-556-7126 and reservations should be made by August 14, 2016.
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WESROC gets new VP of Business Development
President and CEO of Independent Technologies, Inc., Daryl Ingalsbe, announced the
appointment of
Boyd McGathey as the new VP of Business Development for WESROC Remote
Monitoring Systems. McGathey most recently served as
Executive VP and COO at Ferrellgas, the nation's
second largest retail propane marketer.
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Advanced Fuel Solutions announces addition
of six NJ locations
Advanced Fuel Solutions, Inc. (AFS) is pleased to announce the addition of six New Jersey locations to its growing roster of marinas representing Slipstream Premium Marine Fuel.
The locations are: Morrison's Marina (Beach Haven), MarineMax (Somers Point), Causeway Marina (Manahawkin), Drum Point (Brick), Southwicks (Beach Haven), and Chadwick Island Marina (Lavallette). The locations will be serviced by Slipstream distributor Taylor Oil Company, an early adopter of the brand. Slipstream is commercially blended with fuel performance enhancers to help ensure greater efficiency and improved engine performance. The premium additive brand offers treatments for gasoline and diesel engines, helping to eliminate fuel deficiencies, optimize performance and reduce maintenance costs and downtime.
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Eric DeGesero, FMA, comments on important Industry requirements
As of now, two
important industry matters are occurring as of July 1 and there is a possibility that there may be a third.
ULSHO:
As of July 1, only heating oil with a sulfur maximum of 15ppm can be sold in New Jersey. There is a caveat-heating oil with a higher sulfur content (not exceeding the existing 500ppm maximum) that is
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DeGesero |
in inventory in the state as of June 30, 2016 can be sold until the inventory is exhausted. Over the past few weeks I have been asked by some FMA members what the difference is between ultra-low sulfur heating oil and ultra-low sulfur dyed diesel fuel as there may be price differentials between the fuels. The simple answer is I don't know. I counsel members that diesel may have some properties such as cetane and lubricity that might not be present in heating oil, but that they should check with their suppliers as well as their customer to ensure that the proper fuel is being used in any given application.
HVACR: As of July 1 an HVACR license will be required to take out a permit for HVACR installations. This means a raised seal will need to be stamped on the permit. If you do not have your seal yet, your ID card should suffice. Home improvement contractor registrations will no longer be accepted for HVACR installations. Please note, this is how things should work; however, they may not work this way in every instance at the inception. Please let me know what, if any, issues you encounter so FMA can report to the Board on your behalf.
By way of reminder, since February 17, 2015, the installation and replacement of heating and air conditioning equipment, emergency generators, water heaters and gas piping at Residential Group R-3, R-4, and R-5 dwellings (one and two family homes, town homes no more than three floors high, group homes serving no more than 16, etc.) can be performed under one mechanical permit. There is no need for separate permits (mechanical, fire, plumbing). If an electrical permit is needed, that will continue to be a separate permit. If you are told by a municipal inspector that you have to take additional permits. Please communicate with me so I can remedy the situation.
PGRT : TBD. As we have been chronicling, legislation is pending, which would increase the PGRT on gasoline by as much as 23c/g as of July 1 (diesel increase not until 1-1-2017, as of now). Things are very fluid on this matter and tomorrow will be a very long day in Trenton. FMA will provide an update as soon as there is more to report on.
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Tankless water heater
Laars introduced the new Mascot ST condensing tankless water heater. The natural gas or LP-fired unit offers an ultra-high 0.96 energy factor (EF) efficient stainless steel heat exchanger, full 10:1 modulation is available in a 199 MBH size and produces a plentiful supply of domestic hot water to meet the needs of the modern home. The condensing heat exchanger is a self-cleaning design that allows condensate to flow down along the tube walls and out through condensate collection system. Uniform heat distribution also reduces stress points in the heat exchanger. Combined with erosion-and corrosion-resistant materials, the result is a durable, long lasting design. The Mascot ST includes an advanced control system, primeless condensate trap, zero clearance installation and venting up to 100 feet in PVC, CPV & Polypropylene.
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Beckett announced the FREEZE RES or freeze resistance feature built into all AquaSmart Controls. Freeze Resistance programming can help provide additional protection against freeze-up by circulating water if the AquaSmart control, burner or ignition control locks out. FREEZE RES notifies the technician that a continuous call for heat has existed for at least three hours. FREEZE RES is not an error code and does not lockout the burner or override the call for heat. In the FREEZE RES mode, the circulator will only be energized if there is a call for heat from the conditioned space.
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MEMA assembles leaders & experts to testify on heating oil regulations and guidelines
MEMA assembled a team of industry leaders and experts to testify in Boston at a public hearing on proposed regulations and guidelines that will eventually allow retail home heating oil companies in Massachusetts to receive renewable energy credits for selling BIOHEAT/biodiesel to their customers.
"These regulations relating to credits for BIOHEAT sales are some of the most progressive in the country and when the rules are finalized they will have a very positive impact on retailers, consumers and the environment," said MEMA's Michael Ferrante.
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Southern New England Energy Conference
Southern New England Energy Conference will be held on Monday, September 12 - Tuesday, September 13 at the Newport Hyatt in Newport, RI.
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Biofuels, Biodiesel and Bioheat®
These three terms are being heard from every quarter of the oilheating industry. Often they are used interchangeably---this is not correct. Each one has a specific meaning and knowing the difference matters. Here are very short definitions to help keep them straight. These are not meant to be technical definitions, but a usage guide.
Biofuel: a fuel derived directly from living matter. Often used as a generic term that may include various fuels such as biodiesel or ethanol. Usually considered renewable.
Biodiesel: a very specific product produced in a very specific way to meet very specific specifications. The feedstock to create biodiesel can vary and may include soy oil or tallow. Here is what the National Biodiesel Board has to say about it: "a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100,
and meeting the requirements of ASTM D6751." If not... it's not biodiesel.
Bioheat®: A registered trademarked name whose definition is a liquid fuel that is comprised of a blend of petroleum #2 distillate fuel (heating oil/diesel) and Biodiesel (see above). To meet the definition, the petroleum component must meet the ASTM D396 standard and the biodiesel component must meet the ASTM D6751 standard. If those two criteria are not met, it can not be called Bioheat®.
Remember, biodiesel is a biofuel but not all biofuels are biodiesel. Also, biodiesel is the only acceptable biofuel component in Bioheat®
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Gas Appliance Service/Timmie McElwain
Upcoming Training Sessions
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