Smart HVAC Tech for Contractors to Build Recurring Revenue and Own Client Data with Dan Goodman

Summary

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Service Business Mastery: Smart HVAC Tech for Contractors to Build Recurring Revenue and Own Client Data

Guest: Dan Goodman, Building 36

Hosts: Tersh Blissett (& Josh Crouch, partial absence)<br>
Date: September 3, 2025

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Episode Overview

This episode dives into how smart automation and IoT solutions (namely, Building 36) can help HVAC, plumbing, electrical, and other home service contractors build recurring revenue, increase customer retention, and maintain ownership of valuable client data. Dan Goodman, founder of Building 36, shares how connected devices and a contractor-branded customer experience can transform a transactional job into a long-term, value-driven relationship—empowering service businesses to “own the home” and reduce customer acquisition costs.

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Key Discussion Points and Insights

1. The (Big) Problem Contractors Face

• Rising customer acquisition costs push techs to sell aggressively on service calls, sometimes at the cost of customer trust ([00:00], [11:17]).
• Traditional product sales are transactional; connected products have ongoing costs and opportunities.

“There’s a lot of pressure on a technician to get in the house and sell everything they can in that moment, even if the customer doesn’t need that. We want to say: hang on to that customer for life.”<br>—Dan Goodman ([00:00], [11:17])

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2. Dan Goodman’s Path: From Semiconductors to Smart Homes

• Studied electrical engineering at MIT, started in semiconductors, then moved to wireless startups.
• Created one of the first WiFi thermostats; pivoted from consumer retail to serving professional trades for better expertise and true relationships ([03:14]).

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3. Building 36’s Platform: What It Does

- Device Ecosystem & Automation

• Integrates across brands and protocols—Z-Wave, cloud-to-cloud, and proprietary (e.g., Lennox, Carrier, Liftmaster, Lutron) ([07:34]).
• One app, contractor-branded, controlling all connected devices: thermostats, locks, cameras, pumps, etc.
• Devices are easy to add, pre-learned in kits; setup focuses on speed and simplicity ([35:20], [36:38]).

- Contractor Ownership & Branding

• Alerts, reports, and service bookings all come from the contractor’s brand, not a third-party or manufacturer ([09:52], [11:38]).
• Monthly system health reports, alerting for faults, and a “Book Service Now” button feed directly into contractor booking platform (e.g., ServiceTitan) ([10:00], [12:34]).

"When this customer gets activated, you—the contractor—own the relationship. All the notifications come from you...the Book Service Now button goes right to your booking page."
—Dan Goodman ([09:52])

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4. Memberships & Recurring Revenue

• Contractors can bundle Building 36 services into their maintenance/Membership plans ([13:59]).
• If a customer leaves the membership, connectivity can be disabled (“golden handcuffs”), driving >90% retention ([14:28], [14:30]).
• A smart way to combat “deal shopper” mindset; aim is to hold onto customers for regular repairs and replacements ([14:30]).

"The one thing you can do is get members and keep members. And Building 36 is the ultimate way for you to hang on to your customers."
—Dan Goodman ([43:13])

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5. User Engagement & Brand Exposure

• Dan reports users log into the contractor-branded app almost twice a day ([17:42]).
• More interaction (adjusting the thermostat, checking cameras/locks, booking service) = more brand impressions.

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6. Video & Camera Services

• Building 36 offers full video solutions (security, doorbell, mailbox monitoring) with better rates and control than consumer brands like Ring or Google ([19:43], [22:41]).
• Revenue from monitoring can flow to the contractor (not Amazon/Google), with features like 24/7 recording or on-device SD storage ([19:43], [20:19]).

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7. Monitoring & Automated Service Triggers

• System can proactively flag potential failures (e.g., if the home isn’t cooling as expected), alerting both customer and contractor ([11:38], [12:02]).
• Pre-season maintenance prompts allow contractors to level-load demand, booking calls before the rush ([23:43], [24:06]).
• Full visibility for contractors into response rates and booking analytics ([24:16], [24:39]).

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8. AI and Automation Integrations

• Building 36 is API-driven and acts as a data warehouse—enabling rich automation, third-party integrations, and customized workflows ([25:28]).
• Use of AI/machine learning to detect faults; models adjust for regional differences in system use/failure ([25:28]).

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9. Energy Monitoring and Cost Reduction

• Ability to integrate third-party home energy monitors (e.g., Emporia), and even control large loads (pool pumps, EV chargers, solar), to optimize utility bills ([29:21], [30:26]).
• Discusses future direction: time-of-use utility pricing and smart demand management ([30:26]).

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10. Hardware, Platforms, and Device Flexibility

• Flat platform fee (contractor sets markup)—$10/month with free hardware, or lower fee if purchased ([39:09], [39:48]).
• Unlimited devices per home (except video, which is also bundled for upselling).
• Video and premium features are resellable for additional contractor revenue ([39:34]).
• Z-Wave range/repeaters have improved markedly; most installs complete in under 5 minutes ([36:38], [37:29]).

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11. Integration and Compatibility

• Supports most equipment with 24v controls; cloud-to-cloud integrations for proprietary brands/smart stats ([07:34], [41:29]).
• Tailored for pro installation—no DIY, reducing consumer frustration seen with some security products ([13:36]).
• Can serve multi-family, townhomes, and zoned homes with child/parent thermostat options and remote sensors ([40:45], [41:17]).

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12. Security and Data Privacy

• Cameras and sensors use stricter protocols for privacy—especially in home settings ([20:37], [21:03]).
• No open integration for consumer cameras (e.g., Google Home), unless compliant.

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13. Industry Partnerships and Lead Generation

• Building 36 collaborates with security companies, funneling AC/furnace service calls to HVAC partners ([42:03]).
• Potential for cross-industry lead sharing, expanding contractors’ reach to non-thermostat customers ([42:03]).

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Notable Quotes & Memorable Moments

• On changing the service sales dynamic:

  “If I can build a relationship with a customer and they just come to me, I no longer have to pay to keep acquiring them.” —Dan Goodman ([00:00], [11:17])

• On troubleshooting customer device connectivity:

  “People don’t realize, like, these connected devices... even some of the best connectivity rates out there, maybe 50% of them ever get connected in the first place.” —Dan Goodman ([33:50])

• On ease of install:

  “Average install time is sub five minutes now. You just get the thing on the wall... It configures itself. All you need to do is put the wires in the right place.” —Dan Goodman ([37:29])

• On recurring revenue:

  “If you do it with us, we’re wholesaling that service fee to you and then you can sell $10 a month to that customer that you know, the market has already said, everybody knows they’re paying on average 10 to $15 per camera per month.” —Dan Goodman ([18:44])

• On security and cross-selling:

  “There’s a lot of opportunity for us to help contractors get into homes... memberships are going to be your defense against the changing world of search and AI and how you’re going to find customers.” —Dan Goodman ([42:54], [43:13])

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Timestamps for Key Segments

| Segment | Timestamp | |-----------------------------------------------|:---------------| | Dan Goodman Introduction & Backstory | 03:14 | | Connected Devices & Automation Ecosystem | 05:15-08:14 | | Integration with Brand-Specific Thermostats | 08:14-09:52 | | Contractor Ownership of Client Data/Branding | 09:52-11:38 | | System Health Alerts and Service Triggers | 11:38-12:34 | | Membership Bundling and Retention | 13:59-14:30 | | User Engagement Stats | 17:42-18:14 | | Video/Cameras: Revenue & Storage | 19:18-22:41 | | API, AI, and Automation Discussion | 25:04-26:26 | | Energy Monitoring, Load Shedding, Solar, EV | 29:21-30:26 | | Hardware/Setup Simplicity | 35:20-37:29 | | Pricing, Bundling, Upsell Strategy | 39:09-39:55 | | Multi-zone/Advanced Install Examples | 40:45-41:54 | | Security Integrations and Lead Sharing | 42:03-43:13 |

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Other Memorable Moments

• Tersh and Dan’s anecdotes on real-world thermostat install struggles and homeowner tech confusion ([33:50]-[35:20]).
• Detailed discussion of programmable scheduling and dramatic savings on electric bills ([27:47]-[29:21]).
• Light banter about old Z-Wave hardware and upgrades over the last 15 years ([37:05]-[37:29]).

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Actionable Takeaways

• Contractors: Don’t just install a product; offer a branded, recurring relationship that keeps you top-of-mind for the life of the homeowner.
• Implementing automation & IoT increases retention, reduces acquisition costs, and opens new, scalable revenue streams (service fees, video, sensors).
• Building 36 empowers you to “own the home” and the client data, not the traditional OEMs or consumer platforms.
• Security, privacy, and fast, pro-grade install are key to happy customers—DIY and retail platforms struggle in these areas.

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Learn More / Contact

• Visit building36.com
• Direct email: [e-mail] (per episode)
• To get started, contractors sign up and choose preferred pricing model and hardware bundle. Integration with major CRMs or booking widgets supported.

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Transcript

[Dan Goodman]

I want to change the way that people are doing business in the H Vac world, right? Like with customer acquisition costs so high, there's a lot of pressure on a technician to get in the house and sell everything they can in that moment, right? Even if the customer doesn't need that. Right? So like, what we want to say is hang on to that customer for lunch. If I can build a relationship with a customer and they just come to me, I no longer have to pay to keep acquiring them.

[Podcast Narrator]

Are you looking for valuable business advice to reach that seven figure revenue mark? Do you want actionable tips to properly navigate through every business challenge you encounter along the way? Let Tersh Blissett and Josh Crouch be your guide in getting you to the top here at Service Business Mastery. Tune in as they sit down with world renowned authors in business leadership and personal growth who share valuable insights about management, marketing, pricing, human resources and so much more. Let their nuggets of wisdom gold guide you in owning a thriving, profitable and ever growing business. Here are your your hosts, Tersh and Josh.

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[Tersh Blissett]

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[Tersh Blissett]

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[Dan Goodman]

Help you grow your business.

[Tersh Blissett]

Learn more at Upfrog IO. Hello everyone out there in podcast world. Hope having a wonderful day. You're listening to or watching the Service Business Mastery Podcast. I am one of the hosts, Tersh Blissett. Joshua Crouch is my co host. He may join us, he may not. His Internet literally just died on him. So the joys of not being right next to each other when we're recording podcast technology, you can't live with it, you can't burn it. I don't know what's that saying? But I'm excited to have Dan on the show today. Dan Goodman with Building 36 and if you're not familiar with Building 36, it is a it's automation like in the building side of things in your home automations and we talk automations as far as connecting software to software and that type of thing. But I'm excited to talk about automation with you, Dan. And it's been, it's great. So Dan and I, we've met in the past and we've had great conversations. So some of the conversation that we may have, it may be like, hey y', all, y' all seem like old time friends. That's because we are. And so with that being said, Dan, would you give a a short introduction of yourself, your background and your history?

[Dan Goodman]

Deep down, I'm a recovering engineer. I studied electrical engineering, computer science at mit, started my career in semiconductors. I was out traveling the world trying to get people to change their machines from gears and sprockets to processors. And as soon as there was a processor, there was data and they said, I want to get at my data. So I said, man, I got to figure this out. So I joined a wireless startup and we made these chips that were making devices communicate. One of the first things I got a design went on was a smart meter. And all of a sudden I said, man, you're going to need a thermostat to talk to this smart meter so that if electricity prices are high, you can manage your air conditioning and manage your energy bill. So I said, I got to figure out how to make a thermostat. So I started a thermostat company. We made the first Wi Fi thermostat. So we had the 3M products at home Depot. And that quickly led me to making thermostats for the security world. So like Vivint and 2 gig and Verizon, Comcast, I'm where all those guys were using my thermostats. And I like to joke, I woke up one night in a cold sweat saying, man, I'm selling thermostats to a cable company. It's like you think of a company on earth less appropriate to touch your thermostat than your cable company. So we started building 36. And really the big thing that happened to us was we realized that a lot of people were selling connected products, right? And a connected product has cost after you sell it. Normally you sell a product, once you made your profit, go sell the next one. And with connected products, it was like, no, no, no, you know, every time Apple came out with a new app or, you know, there was a security patch or whatever, it was like we were constantly having to reinvest in these products that we already sold and, you know, had no path to monetization. After the fact. So we started building 36 with kind of two intentions. One was to get out of retail and really get thermostats in the hands of the people who. Who actually know what's going on behind the thermostat. Right. And that was the professional trades. We said, we don't want to sell to consumers anymore. We want to sell to the trade so that, you know, that you could have this expert relationship. And then we wanted to help them turn this from a. Kind of a transactional. We're going to sell this thing one time and go find somebody else to this value added services offering for the trades. And that's where Building 36 came about.

[Tersh Blissett]

Just thermostats or do you have security cameras and stuff like that as well?

[Dan Goodman]

It can expand to everything, right? So like my house, I have 84 connected devices and one very patient wife. But I mean, it's just one of these things that the more you get to use the system, the more you're like, oh, man, I wish I had. And then you're like, of course we can do that. So, like, my house, for me, I know some of the things that I really, really couldn't live without now are like my connected locks. I can see my kids come home from school. Right? And it's like to see your kids come home from school and know that everybody's home and safe and little things. Like, I'm traveling right now, My lights are coming on at sunset. Right. I don't have to worry about that house looking dark from the street. It's like, no, I know the lights are coming on and. And then the peace of mind stuff, right. I know I've got an ejector pump in our basement. It's like, if anything happens, that pump, I'm going to get a notification.

[Tersh Blissett]

So it's an alarm type thing. So the alarm itself is connected, not the pump.

[Dan Goodman]

Yeah. So like, for the pump controller, we have a little, you know, just a little sensor that we can put right on it and get an alert if anything like that happens.

[Tersh Blissett]

And so they don't have to replace. Like, I'm thinking like the contractors who might be listening to this and they're thinking about, all right, how am I going to sell this to my clients? I don't want to have to tell them they need a whole new pump.

[Dan Goodman]

Right.

[Tersh Blissett]

So you can just attach to the current existing stuff.

[Dan Goodman]

Right? And most of them, it's the pump controller. So, like, I know Pro Series Pumps is one of our partners, and they have a pump controller that has A dry contact output. So we have a dry contact sensor that you can just put on that pump controller. So it's amazing how many devices out there have these type of interfaces.

[Tersh Blissett]

What about the ones where. So like we have like the full Google Home stuff. So like my. Even the lights that I have right here in front of me, the lights behind me, they're all on a switch and I can control that switch from my phone and they're all part of the Google home suite and which kind of is irritating at times because then like Google doesn't update and then all of a sudden like some of my lights switches I have to go to the manufacturer's app because they're no longer in my Google home anymore. So like my kitchen island lights were different because it's on a three way switch and Google Home didn't have a three way switch at the time. Blah, blah, blah, whatever. Can you put like your Google or your nest things into Building 36?

[Dan Goodman]

We integrate with by far the most number of manufacturers out there. Like my house, I've got Liftmaster garage doors and Lutron lights, Kwikset locks, Yale locks, Arachio sprinkler, you know, so we have the ability to. There's a lot of. There's a protocol called Z Wave which is home automation devices. So any Z Wave device can come into our ecosystem and then we can also do cloud to cloud connections with all sorts of other manufacturers and even proprietary thermostats. So like Lennox icomfort and April Layer has theirs, carrier has Infinity Bryant Evolution. We can all pull those into our app as well. So it's literally one app to control everything and then we can add on top of that, you know, video monitoring, doorbell cameras and all those other pieces.

[Tersh Blissett]

Okay, so what about the. So like I have a, a train T CON 1050. We're getting into the world of like every manufacturer having their own thermostat. Like you. You're going. We're getting kind of away from the Honeywells. Like obviously the Honeywells are still, they're not going out of business by any means. But like the more we put in these communicating systems, a lot of times we're getting into like you said, proprietary thermostats. Are we going to do the same with. Could we access my trane thermostat through the program?

[Dan Goodman]

Trane is coming. We've been talking to the product manager over there. So train is. Train is on its way. I'm hoping by the end of the year we'll have that one. We do have A lot of them today.

[Tersh Blissett]

Okay.

[Dan Goodman]

But the 24 volt control is still the predominant, you know, just what's out there. And there's some manufacturers like Goodman, right, in Amana that their, their high end Systems still use 24 volt controls. And they put the intelligence on the motherboard of the furnace, which to me is, you know, a smart thing to do. So it doesn't, you don't even need the proprietary thermostat. But, but from, if you're a contractor, you know, you gotta ask yourself a question, right, that you think about this product. You just went and earned this customer's business. You went into their house. The first thing that that customer is going to go do is give their information to somebody else. Is that what you want? Right? It's like with, you know, what we're doing is saying, no, this customer is yours. You own the customer, you own the customer relationship. So that way when this customer gets activated, you, the contractor owns the relationship. Right? And all the notifications come from you, all the alerts come from you. And the Book Now Book Service now button goes right to your booking page inside of our app.

[Tersh Blissett]

That booking page that goes into is that, that doesn't send them to your scheduling page. Like my, like they wouldn't send it to my scheduling page on my website. Correct?

[Dan Goodman]

No, would. If that's. So if you're using, if you're using like a service titan or something like it'll actually pop up, the service titan booking widget right inside of our app and it's completely dynamic so we can set it up to be whatever it is.

[Tersh Blissett]

What about Joe? So Joe Strip Matter, he asked about Smart AC. Are you familiar with Smart AC?

[Dan Goodman]

Of course.

[Tersh Blissett]

Does that integrate with Building 36 as well?

[Dan Goodman]

No, it's not. I mean, so Smart AC is a Delta T, right? So I put a sensor on my supply, put a sensor on my return, and I'm looking at that Delta T. But I have a question for you. If I'm looking at a Delta T and my system calls for fan, right? System calls for cool, what's the difference, right? So like if I'm sitting here looking for a broken system, how do I know what the system is doing if I don't know whether I'm calling for heat or calling for cool or calling for fan.

[Tersh Blissett]

Yeah. Admittedly, I don't know enough about Smart AC to be able to even argue one way or the other or against it.

[Dan Goodman]

I mean, it's funny, we agree on a lot. I think the premise of what we're trying to say is that at least from my standpoint, I want to change the way that people are doing business in the H vac world. With customer acquisition costs so high, there's a lot of pressure on a technician to get in the house and sell everything they can in that moment.

[Tersh Blissett]

Sure, absolutely.

[Dan Goodman]

Even if the customer doesn't need that, what we want to say is hang on to that customer for life. Right. If I can build a relationship with a customer and they just come to me, I no longer have to pay to keep acquiring them.

[Tersh Blissett]

Do we have the ability to send out a report? Because I know I'm pretty sure is. The app has got our logo on it.

[Dan Goodman]

Right, right, right. So it's all branded for the contractor. It has alerts. Yeah. You get a monthly heating, cooling, health report. So you'll get a report that comes out every month that shows you this is your average daily runtime. This is the average indoor temperature, average outdoor temperature. But we're also flagging that for fault. So I can identify, hey, this system's calling for cool. And the house isn't cooling down.

[Tersh Blissett]

Yeah, the temperature is taking like six hours.

[Dan Goodman]

This thing isn't recovering. And then we'll send an alert, and we can push that alert directly into your CRM. So that way, you know, you can, you can dial out on it immediately and we even give it something for, you know, for a CSR or even ultimately an AI machine to sit there and say, like, you know, here's the data you need to say that, hey, at 6:48pm Your house was set to 72, but it was 74 and rise. Right. You need help. And then, you know, we, we send that alert to the contractor, we send that alert to the customer, and they can go ahead and just click the service call book service button right inside the app.

[Tersh Blissett]

So Billy Klein asked. I own a door replacement company. I'm intrigued by the smart lock feature. So if I own the branded interface and they get in a new AC later that's compatible, who would be the branded contractor on the app?

[Dan Goodman]

So that's a great use case. So we have the ability to have multiple owners because we also make the apps for, you know, I don't know what percentage in the security world, but it's pretty high. We're in over 10 million properties on the security side.

[Tersh Blissett]

So on the security side of things, like, I'll go to some properties or talk to some homeowners, and they're like, man, I hate this thermostat because a security company controls it or I have to go through the security company's interface and blah, blah, blah. Like, I have issues. Can you just swap it out with this thermostat over here? But knowing that majority of those, like, already run through your program, like, are there some security programs out there that are not.

[Dan Goodman]

Yeah. That are not us? There's. There's quite a few that are not us. And a lot of, like, the DIY stuff is. We don't do any DIY stuff. Everything we do is professionally installed, professionally monitored. So it's all B2, B2C. But, like, some of the bigger names that you know out there are. Are using our stuff.

[Tersh Blissett]

How does that work for the contractor? Like, when they, when, when they signed up to use Building 36. Walk me through that process on there.

[Dan Goodman]

You'd sign up as a contractor, and then we've got a couple of different models, but it's basically free hardware and $10 a month. Or you're. You're paying for thermostats and your monthly fee is a little bit less. But you fundamentally, as a contractor, own the relationship with the end user customer. Right. So what you should do is you bundle our plan as part of your maintenance program. Right. So if the customer chooses to leave the maintenance program, then say, sorry, I'm going to have to turn off your connected home. And so it becomes this glue where we see over 90% retention.

[Tersh Blissett]

Yeah, you put some golden handcuffs on them.

[Dan Goodman]

Yeah, Well, I mean, it's one of these things where it's like, think about how many people buy a maintenance plan because I get a discount today, right? It's like, the discount is cheaper or like, I'm going to save more money buying the maintenance plan and getting the discount than I would to not get the maintenance plan. So it's like, yeah, I'll do that. And then all of a sudden they're like, all right, well, my time period, whatever I committed to is over. I'm going to stop. And it's like, I'll just sign up again when something breaks. And it's like, if you're doing that, you're defeating the purpose of your whole program. The whole thing is you want to hang on to these customers forever because, you know, it's like clockwork. Every four years you need a repair, and every 10 years you need a system replacement. So if you have a thousand members, right, you should expect 100 new system sales every year.

[Tersh Blissett]

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[Tersh Blissett]

So tell me this, what happens? Heaven forbid the company goes out of business that has sold, you know, 500 building 36 devices. How do you handle that? Or maybe you haven't even experienced it.

[Dan Goodman]

I would say it hasn't happened in our world yet, but it's happened on the security side that there's been plenty of security shops. So like we have provisions in our contract that like it would take a change of ownership and, and for you to be insolvent for us to then transfer those to another dealer. It rarely happens. Yeah, I mean that's, that's sort of the very extreme end of the case.

[Tersh Blissett]

Gotcha. 10 4. I naturally have, you know, a gazillion questions. Every time I talk to you, I have a lot of questions about it. So sometimes I'VE already asked the questions and I forget, is there anything that I'm missing here right now though?

[Dan Goodman]

I think the biggest thing that that is is game changing for us is the fact that we have such high user engagement. The number of times that people log into our app, I mean it's almost twice a day on average that people are logging into our app. So like our app is all branded on the inside for the contractor. So think about that, think about the brand recognition and the brand impressions you're getting. Literally twice a day people are opening up this app. Thermostats are just super engaging. And then if you want to layer on some of the other like door locks, camera. Yeah, I was going to say door locks and doorbell cameras are the two biggest things.

[Tersh Blissett]

I get like four notifications a day at least for, for my camera that's pointed at my mailbox because like every time the mail person comes, when the kids get picked up from on the bus, when the kids get dropped off on the bus. And then we always have because I have a jacked up limousine in the, in the side yard. So people ride by and then they just like slam on brakes and like slowly creep by and they're like, what's going on here? And I'll get those videos too.

[Dan Goodman]

You know it yourself. Those are super engaging. But what's, I mean think about it from, from your, your perspective. Like if you've got a shop, maybe you have electricians on staff. You're, you're doing multi discipline stuff, selling additional cameras. Like right now they're going to, to Amazon, right? They're buying a ring doorbell camera. Ring gets $10 a month. How much does a guy who install it get? Nada. Right? If you do with us, we're wholesaling that service fee to you and then you can sell $10 a month to that customer that you know, the market has already said, everybody knows they're paying on average 10 to $15 per camera per month that becomes this additional recurring revenue stream.

[Tersh Blissett]

That's a good point that you make there. So like my app, the, the Google app, it only stores three hours. So if something happens at like midnight then it's already wiped off the camera or the, the my app. So when I wake up I won't have any clue that you know or I won't be able to record it or whatever. How does that work with, with building 36s?

[Dan Goodman]

So we have two options. There's, well there's, there's actually a few options, right. So one is we have an SVR product. So like if you want 24. 7, like kind of a digital video recorder, we have that. Most of our cameras now have just SD cards that are doing 24. 7 recording. So you can just sit there and it, you know, it's got months of storage on the camera itself and then you can use the app to retrieve it. And then the third thing is that we're recording selectively. So when we see a person, animal or vehicle, it saves a clip. And then you go and see those clips and you know, if you want to download them or save them or protect them, you can do that. But you know, again like depending on the frequency, I think we, we allot like 3,000 clips a month.

[Tersh Blissett]

So now does that cost extra to do it that way?

[Dan Goodman]

That's included in the, that's included in that. So when they, when you buy the camera pack, you get the recordings come with that camera pack.

[Tersh Blissett]

What if I purchase it for my home, my personal home and I already have three Google home cameras. How would that work?

[Dan Goodman]

Cameras are a sensitive thing just because of the privacy on them. Like we do kind of a layer of security on these cameras above and beyond what most people have. So right now we're working on some third party camera takeover space. But that's more in the commercial world. Like if you go to a big building and you've got, you know, dozens of security cameras, we have methods to take over all those. For the home cameras we use the alarm.com cameras and just, just because of the security requirements on them, like we're not going to just let any camera come into our network.

[Tersh Blissett]

If you're not careful, they can get hacked. And then all of a sudden like all your inside cameras and everything else I forgot I have a couple inside cameras that look at like the front door so that if we get an intruder or whatever. But man, it sucks whenever like we, it's, we had snow one time, like that's the one that comes to the top of my mind. And it snowed at like, and we, I'm in South Georgia for anybody that's listening to this. So like we don't get snow ever. And it snowed and it started snowing like at 10 o' clock at night and then by 2 o' clock in the morning it was done. But we had so much snow on the ground and, and when I say so much snow, like we had 6 or 7 inches of snow and we don't get snow. So that's like crazy. But then come the next morning, half of it's Melted, you know, as soon as sun comes up or as soon as I wake up. And so then like all the recorded stuff is just because I have, you know, I could see it on the camera, but it's all gone because it doesn't save it after, you know, that three hour time period. Even the, even when it alerts me that someone's there, if I don't pick it up right then to download it, then it's gone.

[Dan Goodman]

That's just because these guys, I mean, there are a lot of. If you look at the history of cameras, a lot of these people gave away the camera, like, sold the camera, and then tried to figure out how to upsell. And what they've had to do is they've had to shrink the freemium so much to basically make the freemium not worth. Like, you have to pay the monthly fee.

[Tersh Blissett]

Yeah, no, that makes sense too, because, like, but the DAG cameras were 300 and something dollars for, and then they didn't come with charging cables and had to buy those separate.

[Dan Goodman]

I was like, this is stupid, right? No, ours are better. They're cheaper. And you can get, you can get POE ones. So, you know, these guys, so many guys are so good at running low voltage wire. Just do poe, plug them in. You never have to power over Ethernet. Oh, power over Ethernet. Yeah. So then that's easy.

[Tersh Blissett]

Or.

[Dan Goodman]

I mean, these things are relatively simple to do and the cameras are nice, but. But it, you know, it's like for. If you're an H vac shop and you don't want to worry about it, stuff like just the thermostat is a good enough start to get your hooks into that customer because you're monitoring their system, you stay engaged. We've even got a preseason test, right? So it's 70 degrees out in Boston. It's like, hey, let's test your AC. Because we know what's going to happen when it's 90 out. Everybody's going to go crazy. And, and everybody slammed, right? But if we can catch the people at 70 who turned on their AC, they may not have even realized it's broken themselves. Because honestly, you turn on the AC at 70, the fan starts to blow. You're like, all right, I'm good, right? You don't realize the outdoor unit never turned on. And then all of a sudden it's like, hey, we know that. So we tell the contractor, we give you the failed report. Now you can shift some of your business earlier in the season so you've got more capacity on that hot day.

[Tersh Blissett]

The contractor doesn't have the ability to do that. Like, the homeowner has to. Has to be the one to turn the thermostat.

[Dan Goodman]

Yeah, the homeowner is the one who hits the button to do that. But the. But the user is prompted to run it. The contractor can say, hey, I want to run some maintenance calls. And he just hits a button on our system and says, boom. And all these people get push notifications. Time to schedule your maintenance. Boom. We see 2 to 3% of people will book an appointment immediately on that prompt.

[Tersh Blissett]

Can you see if the person, like when that prompt gets sent? If someone opened their app at that point, I mean, would the contractor be able to tell that also like their open rate on the maintenance.

[Dan Goodman]

Right. They see that response rate. They see. I mean. I mean, literally what happens is the phone search ring. Right. So like we see all the digital ones, but the phone starts because you get prompted their phone numbers there too. But it's amazing. I was just going to say that we've had a number of partners that are like, all right, we're full. Turn it out. We roll them out in stages. You know, they'll do them by zip code or area and like, kind of work their way around their base. And it's like they've had seasons where like, all right, we got to stop.

[Tersh Blissett]

We're honestly, like, that's the smartest way to do it. Like, do it by the zip code. That way your technicians can dispatch to the same zip code.

[Dan Goodman]

Right. So you can get them all in the same area. And. And so we've got all sorts of. It's pretty wild to see how many customers come in through the app to book appointments.

[Tersh Blissett]

Like, when you send that blast out, can you have it so that instead of it being your phone number, it goes to the booking widget.

[Dan Goodman]

There's also a phone number there as well. But yeah, it goes right to the booking widget. There's a book now button and then it pops right up to the widget.

[Tersh Blissett]

Let me pivot a little bit. And I didn't. For those who are listening or watching this, I didn't forewarn Dan that I was going to ask this question. This is what we talk about every week, so I want to make sure that I include it in this episode as well. And that is, what's your take on AI and automation? And is there an API for this product so that you can build more automations on the back end of it as well?

[Dan Goodman]

Yeah, I mean, at our heart, we are a data warehouse and Mining company. Right. Like that is what we do. Our whole heritage came from data warehousing business, right? So like you look at, we've got billions of sensors that we're monitoring on a daily basis, right? Like the number of things. And so, I mean, me specifically with AI is us training our model to identify what a broken H vac system looks like. And it's funny because there's a lot of magic to that because a broken air conditioner in Orlando looks very different than a broken air condition air conditioner in Boston than it does in San Antonio. And so really refining those models and how we do that and then everything we have is essentially API driven. So all the alerts, all the notifications we can trigger, whatever you need from that. There's all sorts of other programs that we work with a lot of utilities. So a lot of these programs, like for backup batteries or demand response, we offer revenue generating opportunities for contractors. If you get your customers to sign up for this, right, there's a rev share that comes back to you.

[Tersh Blissett]

I'm sure you remember when like Georgia Power came to the contractors and had everybody like trying to get people to sign up for a program where basically you would attach something to a condensing unit whenever they had a spike in load, they would cut people's condition units off. Is that still the case with the thermostat?

[Dan Goodman]

No. They've gotten so much smarter about it because killing the condenser outside, I mean, that your house went from like, that's like going from 100 miles an hour to zero. And like, you know, you're like peeling people off the windshield. It's awful.

[Tersh Blissett]

And people were like, please, please disconnect that. Whatever you did, disconnect it.

[Dan Goodman]

What they're doing now is they'll just adjust the thermostat by a couple degrees. But it's all overridable, right? So if you're sitting there at home and you notice it, you can just hit that button.

[Tersh Blissett]

I'm sure you have an integration with this, which would be really cool to talk about as well. But I work from home most every day. My wife works from home unless she's on military orders and my kids are home all summer. But I still like have changed. Instead of it being stuck at like 70 degrees or 71 degrees or whatever day and night.

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[Tersh Blissett]

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[Tersh Blissett]

Try that for free for 14 days and get 25% off of your first two months. At companycam.com forward/svm. I actually set up my programming for the first time. I mean I had the same thermostat for 10 years and I finally set up the, the, the scheduling and my electric bill dropped in half and it was crazy like, like I have a mini split in my office. It stays at like 69 degrees all the time but it's also 36 seer mini split. Whereas the other unit in the house is like 16 here. And moving it to 78 during the day it can get uncomfortable. But what I found is that the house actually never gets to 78 degrees. But whenever I had it set on 70 it just would cut on, cut off and just try and satisfy all day long. Whereas it never really got over 75. You know, most of the times I am at home all day, most of the days unless I'm doing an on site for somebody. But that the amount of electricity, the kilowatt usage drastically dropped and it and my electric bill went way down as well because I know that it was during the middle of the peak power usage time is whenever I was cutting my system back. Do you have a way to monitor that? Because there's a, an app. I'll have to look it up on my phone. I can't remember the name of it. Emporia Energy.

[Dan Goodman]

So there's, there's a lot of these.

[Tersh Blissett]

Monitor.

[Dan Goodman]

Yeah, Energy monitor. We have the ability to pull that energy data into the, into our app. So I show you that my house used you know, 27 kilowatt hours energy yesterday. So we have all that we can monitor at the whole home level, the appliance level, the circuit level and dial that up. We even have big load shedding devices, right. So like if you wanted to put a hard switch on your pool pump or something like we can actually come in there and kill power to big loads like that. And where we're going, and we've got a lot of this in work is integration like with solar inverters. So like if you've got solar system we can pull those into our app. EV chargers are coming and it's going to be interesting to see where the world goes. I feel like the way we buy power where it's like one price is we're not much longer for that, right? There's going to be this time of use pricing where when demand is going up, the price is going to go up with it. And so if you can get smart about banking power. And using this time versus that time, you can really manipulate how your bill is. And all of that can be automated to say, hey, I want to be comfortable, but let's think about ways that I can shift my demand over to places where it's going to be less expensive.

[Tersh Blissett]

I know there's other questions out there, but is there anything that I'm missing out on?

[Dan Goodman]

It's amazing. Like, when you get, you know, setting schedules, we do some extra cool things. I think with ours too, that, you know, we got remote temperature sensors, so if you got a hot spot or a cold spot, you can run the thermostat off the sensor. Like, I know for mine, our air conditioning thermostats out in the hallway. Probably should have had Steve Adario move it over to. To my bedroom. And they were setting up the new system, but. But it's in the hallway. Everybody closed the door at night, so, like, it moves one degree for every three degrees. Bedroom. So I just put a sensor in the bedroom. It's like, hey, during the day, run off the thermostat, but at night, run off the sensor. And then other smart things too, like where I can put. I have door window sensors, right? So it's like if the kids go out to the backyard to play and the AC is on, I just set a message like, turn the AC off, the door's open.

[Tersh Blissett]

Does it do it automatically or do you have to turn it off the system?

[Dan Goodman]

No, no, you just set up the rules, right? There are all these rules that you can come in and say, do all these things. And little things like, where it's like, hey, you come home late, my lights are out. As soon as I hit the open garage door button, all the lights turn on in the house, right? So, like, you can trigger all these other actions based on what's happening.

[Tersh Blissett]

Is there an integration with like an if this, then that, or like, you have. You basically have if this, then that built into your system.

[Dan Goodman]

Yeah, we have it built into our system.

[Tersh Blissett]

For those who are listening that don't know what if this, then that is. It's a program kind of like zapier, but it's no code at all. Like, you literally like, oh, I have this light I want to turn on remotely type thing. But yeah, I like the fact that you can do it all within your app. About your sensors, the temperature sensors, are they averaging sensors? Or, like, can you set them up as averaging sensors? Like, if you have four sensors in the house, they can take the average of the four you Can.

[Dan Goodman]

You can average them? You can program to say, I want this one during the day, this one during the night, or I want these two during the day and these one at night. You can. You can set them up, however.

[Tersh Blissett]

That's really cool. I put in a full zone system in my house because I have a long ranch doll house, and the sun comes up at one end and goes down at the other end, and I. It would be cool if I would have used that. So then I could change the thermostat, you know, or. Or the. The temperature sensor. But let me ask you this. What about whenever you have a zone.

[Dan Goodman]

System at a home, you have one kind of main thermostat that is kind of the brains, and then all the other thermostats connect into that one.

[Tersh Blissett]

Look the same, or do they look like. You can tell, like, this one's the. We have both options, and the other ones are child.

[Dan Goodman]

We have both options. So there's one that look identical, and then there's ones that are lower cost. Right. Like a monogamy model.

[Tersh Blissett]

Like, honestly, for me, what I enjoy, like, is to have, like, a sensor that kind of blends in with the wall almost. But then you control it all from the main monitor or from your phone.

[Dan Goodman]

Right, exactly. And that's, you know, that's essentially what we have. I mean, you have the ability to just put the thermostat at the equipment. You could put a little sensor on the wall. I mean, this thing ours is about, you know, it's about an inch tall, about a quarter of an inch deep, and it blends into the wall. It's tiny. So those are really nice. But. But one other big point about the thermostat is that, you know, the main one that's kind of the parent to every other device in the house, it's all connected via cellular, right? So AT&T or Verizon, it has a WI fi backup, but you never have to mess with trying to figure out Nana's WI fi password, right? You go in a house and it's like, hey, how do we get this thing you literally just put on the wall? Give it power, it's done. People don't realize, like, these connected devices that are sold out there, even some of the best connectivity rates out there, it's like maybe 50% of them ever get connected in the first place.

[Tersh Blissett]

Oh, yeah, yeah, 100%. Like, I'll go in. I went into, like, we put in a system, and they put in. It was a 20 seer Bosch, I believe it was and we put in Honeywell, T Con or T6. I think what it was T6 Pro. And I went back to do the quality control check with the technician and I never could figure out how to hook up the WI FI on this. And I was like, the technician is supposed to do it for you. Like that's part of our checklist. But then when I went in and did it, it wasn't intuitive. Like it, it took like knowing how to do it. And then like I just went to another job the other day, a technician sold a attic fan. And I was like, I'll go do it. I'll go put in the attic fan. That's not a problem. And as soon as I get there, they got the owner of the house was like, hey, y' all hooked up my WI fi last time. Now this is like a Linux system. We don't put in Linux. There was a Linux, nice Linux thermostat. S40 I think leaves what it was. I was like, okay, let me hook it up. And so then like, I don't know anything about Linux because I don't install Linux unit. And so I'm, I'm like over here googling things, trying to figure out how to hook this thing up. And it was like, there's a PIN number that should pop up. And I was like, no PIN numbers popping up. And this guy, he's in his 70s and he's like, I can't see it, I can't hook up the wifi, all this other stuff. And I'm like, oh. And I'm over here like completely finished with the install of the attic fan. And I'm still spending 30 minutes trying to hook up his wifi on his thermostat.

[Dan Goodman]

So you know what you have to do with ours? You have to plug it in so we give power to it and then that's it. So the one you have, you have one test, one thing, you have to type in the customer's cell phone number into the screen of the thermostat.

[Tersh Blissett]

With that being said, how does the Z wave connect to everything else? It just, it finds all the stuff.

[Dan Goodman]

When you get, we have kits, we call them the Essentials Kit. When the Essentials Kit comes with, with the thermostat, all those devices are already pre learned in. So all you have to do is you plug in the smart plug, you pull the battery tab on the water sensor, you're done. And even then adding a device, you literally on the screen of the thermostat. There's a smart home menu. You hit Add device and then there's a button on like the water sensor or there's a button on the door window sensor. You press the button or pull the battery tab and then they just magically learn in and that's it.

[Tersh Blissett]

So like one of the issues that I had with, with my Z Wave system that I have or I had was that the condensing unit was like through four walls from my, my thermostat. And so it would always lose connectivity to the outdoor unit. Like the indoor unit was trying to talk to the outdoor unit and they would lose connectivity all the time. And it was such a pain. I ended up. Well, the program is not even in existence anymore. I do have like six boxes of them over here in a closet.

[Dan Goodman]

But a couple things have happened. One is that the, the chips, with each iteration they've got significantly better range on them. The other thing that Z Wave has is that anything that you have plugged in, if it's got power, it will repeat the signal. But now, I mean like our thermostat, we take it out into an open field. I mean the thing goes like 6, 700ft, no problem, right? So it's like we, we used to look at how many hops do you need and all these other things and it's like we, it just doesn't, it doesn't come up anymore.

[Tersh Blissett]

Yeah, because used to like when we, when the train.

[Dan Goodman]

Yeah, the old Nexus stuff, they, they.

[Tersh Blissett]

First came out, you had to have like a Z way bridge sometimes. And I was like, oh, that was a, that was a pain, right?

[Dan Goodman]

No, and that's, I mean, you know, that was, it's kind of a long time ago. I was gonna say that's like 15 years ago.

[Tersh Blissett]

Yeah, that was a long time ago.

[Dan Goodman]

It's like I remember again. Then it's just like, wow, that was actually a long time ago.

[Tersh Blissett]

Showing my age there.

[Dan Goodman]

Yeah, I know, I know. But no, all the, all the new stuff, I mean our stuff, like our technicians, like the average install time is sub five minutes now. So like you just get the thing on the wall and it, and it also configures itself, right? So you plug the wires in the right place on the thermostat. It knows it's a heat pump, it knows it's a, you know, multi stage system. All you literally need to do is put the wires in the right place and it'll configure itself.

[Tersh Blissett]

But the thermostat itself is the base. Like you, you must have the thermostat to make like the. The cameras work or any of the other things, right?

[Dan Goodman]

Yes and no. So a lot of the Z wave sensors need at least a thermostat. We have a hub. Like, so if you don't have the thermostat, you could also get this box that all the devices could talk to. But the thermostat is clearly the. The thing that makes the most sense for H vac guys to be putting in.

[Tersh Blissett]

The reason I asked that is like. Like, if you're going to like the train, that has to have it, or like you said, you integrate with some of them, but you have to have some of them are like DC voltage. No if, ands or buts about it, right?

[Dan Goodman]

Yeah. So in those. In that case, there's two options. I mean, like, shoot, you could. You could make stuff work on our system, you can make stuff work with our system without even needing any hardware at all. So, like, I could make a system with your, you know, call it your Lennox I Comfort thermostat, plus your Lutron lights and your Liftmaster garage doors, and I can pull all those into our app that would be branded for you.

[Tersh Blissett]

Okay. And then you just pay a monthly fee to monitor it.

[Dan Goodman]

Exactly. You're paying to access to our platform in the app, but yeah, you're paying the fee to. So you get access to that. But literally everything you're going to get in the app, and you just go into our app and hit add a device. And then you, you know, you'd say like Lennox, and then you'd enter your Linux login, you go to liftmaster. Similar type of deal.

[Tersh Blissett]

Is it a flat fee per device or how does that work per home?

[Dan Goodman]

So, you know, the only thing that's actually we. It's a flat fee every month, regardless of what you want to add. You want to add, you know, 50 light switches, a sprinkler, and it's just to get access to the platform. So we charge per platform, you know, per home. And. And that's it. The only exception is video. And we. We wholesale video. So. But again, the idea is that you're taking video and marking it up and, and making all that additional revenue off of it.

[Tersh Blissett]

Typically. Are you seeing the contractor pay that and then they mark it up and then for video?

[Dan Goodman]

Yeah, for sure.

[Tersh Blissett]

Like, for, like, what is the normal fee like for your, like your. Your usage fee for platform?

[Dan Goodman]

I mean, so it depends if you're taking. If you want free hardware, it's 10 bucks a month, and if it's, you know, call it $7 a month or.

[Tersh Blissett]

Okay.

[Dan Goodman]

You know, we kind of in that sliding scale. But. But you said just to make the math easy, you said there's a $5 and a $10. Right. You know, it's like most people are taking their maintenance plans at like $25 a month. And we see, depending on what you add, like, they're, you know, some of our partners are saying, hey, I want to do full parts and labor. Right. And they're going out $75 a month. The average plan, I feel like, is between 25 and $35 a month. And maybe it's an additional, you know, another 10, $15 if you want to add a second system on there.

[Tersh Blissett]

Oh, yeah, yeah, yeah. That makes sense. We don't have a ton of like multiple system homes around our area. A lot of times the builders are trying to throw like a 4 ton in there and then put zone systems in.

[Dan Goodman]

Right.

[Tersh Blissett]

And they're the homeowners pissed off because it doesn't work. And no, it's hot and cold spots in the house.

[Dan Goodman]

And that's. I mean, the temperature sensors help a lot. In that case, what about whenever it.

[Tersh Blissett]

Is, like, we have a lot of townhomes or, or like triplexes, fourplexes, and it's like upstairs, downstairs, zone system.

[Dan Goodman]

In that case, you. You'd have two different thermostats and, you know, you'd have one master, one. One child and be able to control it like that. And, and so it would just look like two different thermostats. But those situations, I mean, it's critical. Like, the temp sensors help a lot there because when you have that stratification in a home, you know, the top floor is hot and the bottom floor is cold. And, you know, really getting those sensors dialed in so that you can be comfortable, it's. It's. It's an art form. Right.

[Tersh Blissett]

Josh did ask. Even though Josh isn't here, he did ask in the chat. He was talking about a cool feature. I don't know what feature you're talking about. He's behind in the conversation. But does it work with the modulating slash variable speed systems?

[Dan Goodman]

So it, again, it depends on the equipment manufacturer. Anybody using 24 volt controls, we can throw our thermostat on. It'll work. Again, a lot of the modulating variable speed stuff use the proprietary controls. And so for those, we do what we call cloud to cloud integration, so we pull those into the app. But like carrier Rheem Lennox. Right. And even some just standalone thermostats, like we Integrate with Ecobee some of the Honeywell stats so that, you know, our platform incorporates a lot of these.

[Tersh Blissett]

Yeah, that's about all the time we have building36.com Dan, I appreciate you hanging out with us. You want to. To share before we wrap things up?

[Dan Goodman]

I got one more thing for you. Is that because we make the thermostats for a lot of the security players out there, we actually have a program where we're setting up a relationship between the security providers and the H VAC providers because the security guy wants a thermostat on the account because it makes a better customer in the security world. But they don't want the phone call that says, I got a broken thermostat. Because it's not a broken thermostat. It's broken air conditioner, it's broken furnace. We can actually funnel some of those leads back to the H VAC partner in a given market. So we're looking, you know, it's like. Like I said, we're in. We're in over 10 million properties. We got about 1.2 million homes with thermostats. And that's. That's growing leaps and bounds. And so, like, there's opportunities for us to help contractors get into homes of our security customers that don't have thermostats to say, hey, I'll tell you what, you know, let's install a thermostat. It's 200 bucks. But if you sign up for my maintenance plan, you know, we'll do it for free or 99, whatever the deal is.

[Tersh Blissett]

Yeah, yeah.

[Dan Goodman]

But there's a lot of opportunity for us to help you get into home, so that's really cool, dude. There's a couple of different ways that we can help you get to market, but the one takeaway I have for you is that memberships are going to be your defense against the changing world of search and AI and how you're going to find customers. If you have customers that are members, they're going to buy from you.

[Tersh Blissett]

Yeah.

[Dan Goodman]

You can do is get members and keep members. And Building 36 is the ultimate way for you to hang on to your customers.

[Tersh Blissett]

That's cool, man. Dan, I appreciate you coming and hanging out with us. If anybody has any questions at all, is it cool building 36 the best place for them to go?

[Dan Goodman]

Yeah. Or you want to reach out to me directly? Danilding36.com I'll get you to whoever you need to talk to to get you the answers you need.

[Tersh Blissett]

Cool, man. I appreciate you, man.

[Dan Goodman]

Thank you Church. Appreciate it.

[Tersh Blissett]

Absolutely.

[Podcast Narrator]

Thank you for listening to this episode of Service Business Mastery. Now that you are equipped with essential business advice from this impactful conversation, you are one step closer to becoming the successful owner of your dreams. If this episode has been helpful to your business journey, don't forget to subscribe to the show, leave a rating and share it with other owners as well. Visit servicebusinessmastery.com to learn more.