The Hustler
Daniel Arroyas of Service Champions in Orange County, California, sold almost $3.4 Million as a senior technician in 2016. He managed such tremendous success by being overwhelmingly thorough in how he provides his services, being willing to take the extra call, work on his days off, and passionately believing in the value he and his company provide.
by Bob Houchin
Talk with Daniel Arroyas, and you’re left impressed. Everything about him—how he freely converses about his craft, his commitment to his profession, and of course, those numbers.
The 10-year veteran of Service Champions in Orange County, California, sold $1.3 Million in his very first year as a senior technician. Every year thereafter, Daniel managed to break his own personal record. In 2016, he totaled just shy of $3.4 Million, earning him number one for all reporting AirTime companies in the “Residential Equipment Sales by a Technician” Scoreboard category. Now, as a comfort advisor, Daniel set a goal of hitting $4 Million in 2017; thus far, he’s on pace.
To think of such success, it’s very easy to assume some higher entity blessed Daniel with some innate skill. Certainly, he does have some natural ability, but it’s not what sets him apart from other sales professionals. “What’s always impressed me most about Daniel is his work ethic,” Service Champions’ owner Leland Smith made a point to share. “Daniel is a hustler. He’s driven.”
From Laid Off to Service Champions
Daniel freely admits he never envisioned himself in his current position. “I never saw myself in sales,” he said. “I never even thought of myself as a people person.” Daniel put himself through an intensive one-year technical school for HVAC, working nights at UPS to put food on the table. His first job? The farthest thing imaginable from sales—he installed systems in new track homes, a position he kept for seven years. “They’d drop 10 condensers in the middle of the street, and we’d go to work,” Daniel said.
The housing bubble burst in 2007. It killed Daniel’s employer. “I’m as loyal as they come. If you take care of me, I’m not leaving. I never thought I would leave that job,” Daniel explained. “We got really slow. They stopped building, and eventually I was laid off. I was one of the last to go.”
“At the time, I thought it was the end of the world. I was scared. Scared of change. Scared about what to do next. I was unemployed for six months. I have four amazing children and a beautiful, incredible wife today, but back then, it was just me and my son. We were living in a one-bedroom apartment. I didn’t know how I would make ends meet.”
Daniel sent an application to Service Champions. He knew nothing about the company, other than a friend persuaded him to submit it. Following several interviews, Daniel received a call. Leland Smith was on the other end of the line. He offered Daniel a position as a service technician. “I was so excited and thankful. I later told Leland that the day he called was my last day on unemployment. I was going to run out,” Daniel said. “That one call changed my whole life.”
Service Tech to Senior Tech in Six Months
Daniel quickly adapted to his new role. He proved to be exceptional at flipping replacement leads. “I made sure they were a really good turn. My leads were so solid, people would fight over them,” Daniel said and then laughed. “I would build that rapport, that relationship. I’d earn that customer’s trust and sell them a club. I was closing around 80 to 85 percent on club sales. It made the lead that much more solid. I tell our guys now, if you can’t get them to buy a club, it’s going to be really hard for us to sell them a $20,000 system.”
Six months into his tenure with Service Champions, Daniel was promoted to a senior technician and flew to St. Louis to attend Success Group International’s sales training. “I just took off with it as soon as I got back,” Daniel said. “I learned more in my first year with Service Champions than I did in my entire seven years at my previous job.”
“I love this job, man. I love this company,” Daniel said with emphasis. “Leland is the one who drives this bus, who gave me the right tools, training, and consistently puts me in a position to succeed. I know of other top guys who’ve left, and they weren’t as successful. It’s because of Leland. Not only is he the smartest businessman I’ve ever known, he has the biggest heart, too. He really cares for his employees. He’s helped me out a couple of times, on a personal level, when I needed it. It just shows so much character, being willing to do that.”
Daniel made it a point to stop our interview and stress his biggest reason for success. “If you do anything,” Daniel said to me nearing the end of our 60-minute interview, “you need to stress how much my wife has meant to my success. Her name is Ecaterine. There’s no way I’d be here without her. She takes care of our home and children. She stays on top of everything, and it allows me to stay 100 percent focused on doing my job. She’s such a support, too. We’re a great team.”
What does Daniel do in the home to enjoy such remarkable success? Let’s take a look…
How do you go about building rapport with a client as soon as you get to their home?
When you get to a home for a tune-up or repair, customers’ guards are going be up. They think you’re going to try and sell them something. So, what I like to do is try and make people laugh right away. I make a joke right at the door. As soon as they answer the door, I’ll say something like, “Hi, I’m Daniel. I’m here to clean your pool, or I’m here to cut your grass.” And they’ll look at me for a minute—and they see my uniform and my truck—and it hits them and they start laughing. I’ll say, “I’m just kidding, I’m Daniel with Service Champions. I’m here to service your heating and air-conditioning system.” Little stuff like that goes a long way to starting the call off on the right foot.
Do you offer a sincere compliment right away to help further build rapport?
I know that’s what we’re taught. I will do that. But when I talk with customers, I try to talk with them exactly like I would my friends or family. Then it’s natural. We’re just talking and having a conversation. Yeah, their guard may still be up a bit, but I don’t let that affect me. The whole time I talk to them like I’ve known them forever. And I always tell people, I’m not going to recommend something to you unless I would recommend it to my friends or family. By the end of the call, I have clients who tell me, “Man, I’d let you date my daughter.”
How much do you rely on body language when conversing with a homeowner and knowing what to say?
I rely on it a lot. I think I read people very well. Obviously, I communicate well. A lot of success in sales is listening. Everyone wants to talk and talk. I’m a believer that I should listen to the clients. I know people are watching my body language. They can read that I’m a believer in our company and the value we provide.
Do you approach every call the same way?
Yes. Being consistent every day is why I’m successful. I do the same thing. My management team will tell you that even when I don’t sell, I’m still at the home for a couple of hours. I never prejudge calls, because my mindset is I’m going to give 110 percent of everything I have to that customer. If I don’t walk out of there with a sale, it’s okay because nobody in the country would have sold that call because I gave it everything I had. That’s why I never cut corners, even if I go there, and it’s a one-legger or a guy insists he only wants a price.
What do you mean by, “You never cut corners?”
When it comes to the technical part of it, I’m always consistent with the process. The same with my sales process. But my tune-up process, I do it the same way every time. I don’t care if I’m there for an AC tune-up, I’m still ripping apart the whole furnace. I’m getting up in the attic, taking pictures of the duct work, of the attic, and everything, and then just presenting everything to them and letting them decide. The key words I always look for from clients are, “Daniel, what would you do?” Then, I know I’m in good shape.
Then, when we’re to the point of where we’re sitting down to go over replacement options, I want them to ask, “What would you recommend installing? What would you do if this was your home?” When they’re asking your professional opinion, you know you’ve earned their trust.
You never waiver from your process? Ever?
No. I tell our young guys all the time, you might have three calls in a row, where you do the perfect tune-up, you take apart the system, take pictures, really did it the right way, and unfortunately, those three customers didn’t care. The key to success in this game is not letting that affect your next three calls. Keep doing the same, exact thing, even when you’ve been getting beat up. By doing the same process and being consistent, you’re going enjoy success much more often than not.
Someone calls for a tune-up, and you inform them it may be in their best interest to replace their system. How do you manage the customer shock?
We’re never sitting down and delivering a bomb. I get them involved. When I have everything pulled apart and I see some issues, I bring them outside and go over the issues together. That’s the key. I educate them on how their system operates and what’s not working correctly. My goal is when I walk out of that house is they will have gotten an education on their system. When they’re educated, it’s easier for them to understand what the problem is and why it’s a problem.
Your tune-ups sound like quite the production…
Oh, yes. I tell people, I’m not just there for a tune-up, I’m there for preventive maintenance. I’m not here just to clean your system, I’m here to prevent your system from breaking down on you in the middle of summertime. That’s why I leave it up to my customers. I’ll say, “If you’re anything like me, you rely on your system in the summertime to stay comfortable. You don’t want to be stuck without air when it’s 105. If you value your comfort in those situations, this is what I’m recommending. I can give you a band-aid fix, or I can go over some permanent solutions. I never just jump in and say, “You need to replace this.” That’s not how I do things. I always present the repair first. Again, if I did my job right, they’re going to ask me, “What would you do?”
They must ask about cost at this point?
Oh, yes. They’ll say, “How much is this part or that part?” Or they’ll say, “Daniel, there’s a lot of problems here. This system is 15 years old. Wouldn’t you think it best to replace it?” I get that all the time. I’ll say, “Well, that’s up to you. That’s probably at least a good option to consider. But let me finish my job here, and if you like and have the time, we can go over what’s best for you and your family.”
When I have the unit pulled apart and I’m talking to them, I’m actually doing my presentation right there. I’m talking to them about our company and why I love Service Champions. I explain that over half of the companies out there don’t size or install their systems properly, but at Service Champions, we take a lot of pride in what we do. We have the best installers in the country, and we have ongoing training. There’s a reason we’ve earned an A+ by the BBB, and why we have A ratings on Angie’s List, and have all these 5-star ratings. I go over all this stuff because to the average homeowner, an air conditioner is an air conditioner. It’s a commodity. I show them there’s much more to it.
Is there anything else you will say to eliminate the cost concern?
Sure. When customers ask about the cost of the system, I tell them that’s a mistake. And they’ll ask, “Why?” I’ll say, it’s a very important question because you’ve got to make sure it’s in your budget, but that should be your fourth question. And they’ll ask, “What do you mean by that? What should be my first few questions be?” I’ll tell them, your first question should be: How long is this new system going to last? Second, how much is it going to lower my electric bill? And third, how well is it going to cool when it’s 100 degrees outside? To me, it doesn’t matter how much that system costs if you don’t get any of those things correct. Customers will say all the time, “Yeah, you’re right. I never thought about it that way.” I’ll follow up by saying, I can sell you a system for five bucks, but the thing never cools your house, it leads to you having a $1,000 electric bill, and it sounds like a train. Is that something you’d really want? Of course not. But it’s only five bucks! People understand then.
How many replacement options do you offer at Service Champions?
We have five options, and I will show every customer all five. But I also ask them a lot of questions, and that’s what they appreciate, too. I’m not just there trying to sell them the most expensive option. I listen to them. If they tell me, “Daniel, we plan on being in this home maybe only for a couple of years, but we do want it done right because we want to make sure we sell the home, it’s taken care of, and the inspections are fine.” In that situation, I’m not going to try to sell them a Corvette system. Based on their answers to my questions, I make my recommendations. People really appreciate that.
Will you sell add-on services, like insulation?
Absolutely. I don’t believe it’s right to sell them a new system if they have terrible ducting. We sell three other products: insulation, ducting, and radiant barrier. I’m a big believer in ducting. With ducting, for homeowners, it’s out of sight, out of mind. So, a lot of time, people don’t want to spend that extra money. I tell them, “Look, there’s no point of you buying this high-efficiency system if you’re leaving the old, ripped up, leaky air ducts. It’s not the right thing to do. If that’s the case, I’d rather you buy a lesser system, instead of the high-end system, and let’s add ducting to it.” I’ll bundle that work with the system. I’ll tell people, if this were my home or a family member’s home, this is what I would recommend. Depending upon their reaction once we go over pricing, if they seem worried, I’ll immediately say, “Look, we have easy payment-plan options. No one plans for this. It’s an unexpected expense.”
Is financing one of your biggest tools?
Definitely. I’d guess somewhere around 70 percent are financed. With the price, I’m conditioning them to what the cost will be even when I’m doing the tune-up. I don’t want to shock them, because your average homeowner thinks they can get the job done for $5,000. I do that before we ever sit down. When we finally sit down and we talk money, I explain to them it’s like buying a brand-new car. When you buy a car, most people don’t pay cash. At Service Champions, we have no money down, easy payment-plan options. I know when people see the sticker price on a car, they don’t think they can afford it. The same with our systems. Some people don’t think they can afford it, but when you sit down with the homeowner and show them the monthly payment plans, you can see that they don’t think it’s that bad.
Even with financing, you must be getting pushback at times. Can you give me another example of how you would handle someone who’s still objecting even after offering financing?
Sure, I had a situation just like that this last Saturday. I went on a call, got to know the client, I went through my process, and when it got down to pricing. It was $27,000. His reaction was, “Wow.” I didn’t say anything; I stood quiet. He finally says my bid was literally three times more than another bid he had.
It didn’t faze me. You have to have confidence and believe in what you do. I said, “So, you’re telling me your bid is $9,000?” I said, “Great. Look, when we first sat down, and I asked you what you wanted out of this project, you said you wanted a permanent fix. You wanted this and that. There’s no way that they’re offering what we’re offering.”
He agreed with me, and he goes, “Yeah, but you’re still so high.” Again, it’s all about confidence. I said to him, “I take a little offense to that.” He asked, “Why?” I said, “I truly believe we’re one of the more competitive companies out there with our pricing.” He says, “Well, can you explain how so?”
I said, “You’re here for the long run, right? That’s what you told me.” He said, “Yes.” I said, “Great. I’m going to put your system in, and I’m going to guarantee you’ll love it, it will do everything I promised, and if you disagree, we’ll buy the system back from you up to a whole year. That’s one of our guarantees.”
I then said, “My system is going to cut your electric bills in half. You okay with that?” He said, “Yeah. I’m excited about it.” I said, “Great. And if ours doesn’t, again, you have our buy-it-back guarantee.” I also said, “My system is going to be extremely quiet. It has a very low decibel rating because of the way I’m going to install it. And because we install it properly, as long as you maintain it, it’s going to last you 20 years.”
I said, “Let’s flip it around to your $9,000 system. Once you see that guy’s tail lights, you’re not going to see him again. So, if there’s a problem, you’re unhappy with it, you’re stuck with it.” And he said, “Yeah, you’re probably right.” And I said, “That electric bill is going to be the same. You’re not going to have a half lower electric bill, like you would with ours. And that system is going to last you probably half the time, about 10 years. That I can guarantee you. So, if you have a system at $9,000 that’s going to cost you double in electricity for 10 years, and you’re also going to have to replace it in 10 years, I’m sorry, sir, that company actually overcharged you. It’s going to be more than our system.” He looked at me and said, “You know what? You’re absolutely right. I didn’t look at it that way.” At that point, I got the deal done and it worked out great. So, it’s just a matter of being confident.
I’m never going to apologize for my pricing. Mastro’s is a steakhouse here. They’ll charge you like $100 for that steak. They don’t apologize for charging $100 for that steak, even though I can go to Chili’s for a $17 steak. You’re paying for quality, you’re paying for customer service. That’s why you pay it. They’re not overcharging you. So sometimes you have to break it down for that client and really explain it.
Leland told me even though you’re a comfort advisor now, you still wear a uniform and carry tools. Why?
That’s 100 percent correct. I still carry my tools. I still open the system. I do it because it gets them really involved, and it helps me explain why it truly needs to be replaced. Secondly, I do it because I’m separating myself. If they’re planning to get other bids, I’m likely the only guy doing that. The guys I compete against were selling windows 18 months ago, whereas I’ve been a technician for 18 years. And even though I’m good at what I do, I don’t see myself as a salesman. I still see myself as a senior technician. That’s the approach I take with my clients.
What motivates you?
Number one, it’s my kids and my wife. They’re what drives me. Being able to change their whole lifestyle. Being able to provide everything they need—their education and their sports. I love that my wife can stay at home with the kids and not work. Money is one thing I do not want them to ever worry about.
Number two, I am very competitive, in a friendly way. It’s no secret Jim [Dotson] has always been the number-one comfort advisor in our company and the country. He’s great at what he does. I have so much respect for him. That doesn’t mean I’m not going to try and catch him. I’m going to take that extra late call. I’m going to come in on my day off.
How do you handle the highs and lows that come with sales?
A lot of what we do is so mental. I compare it to baseball. You can’t let one or two bad at-bats get to you. It’s the same in sales. You can’t let rejection get to you. I was told a long time ago that if you don’t close a call, you can kick yourself for 15 minutes. That’s okay. Make sure you do that, but then let it go. The same thing if you sell it. You celebrate for 15 minutes; then you move on.
Ecaterine is the one who taught me how to be positive. Back in the day, I’d come home after a rough day. I wouldn’t be the happiest person. She was the one who helped me overcome that. She’d always say, “No matter what, even if you have a bad day, you don’t have a bad life. You’re coming home to your beautiful children. Just let it go. Tomorrow is a whole new day. Ecaterine is the one who helped me get to the point where I’m at mentally today.
What advice do you have for someone getting into HVAC sales?
There are a number of things I would tell someone. You must be strong-minded. You have to have the right mindset. And you have to be consistent. You have to be motivated. Find your motivation. Whether it’s your family or something else. When you’re motivated, you’re going to take that job at four o’clock if there’s another opportunity instead of going home. You’re going to come in on your day off. Lastly set goals. I want to send my kids to private school. I also have a picture of a car I’d like to buy in my work truck. These things also will push you. For me, those are the four big things: the right mindset, be consistent, find your motivation, and set goals. Do these things and you’ll change your life.