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

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.

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])

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]).

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])

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])

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.

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]).

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]).

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]).

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]).

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]).

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]).

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.

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]).

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])

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 |

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]).

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.

Learn More / Contact

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