XDR Bootcamp Study Guide - Day 5 - Commercial Service & ICP

Vocabulary flashcards covering the key terms, workflows, and ICP definitions from Day 5 of the XDR Bootcamp Study Guide on Commercial Service & ICP.

Commercial industry sectors

Retail, hospitality, healthcare, education, office environments, strip malls and more

Commercial model

B2B (business to business). Deals are tailored to each business and often need detailed contracts

What commercial shops care about (1)

Long-term stability of the business and workforce: getting paid on time and protecting the bottom line

What commercial shops care about (2)

Reputation in the business and community: consistent quality keeps contracts and wins new ones

What commercial shops care about (3)

Company culture with a family feel: trade work is often passed down through families

Commercial pain point: profitability

Making jobs profitable from quote to completion. Biggest spend buckets: headcount, equipment/materials, insurance (if construction-heavy)

Commercial pain point: cash flow

Keeping enough working capital and cash flow. "Cash is king," since big jobs take time to get paid

Commercial pain point: labor

Labor management and technical expertise. Happy, productive, safe employees keep the talent pipeline going

Commercial pain point: retention

Customer retention and satisfaction. Repeat customers drive service revenue, pull-through work and future projects

Commercial pain point: systems

Ineffective systems and disconnected data. Most field software is built for residential, so commercial is underserved

NOT a commercial pain point

Customers feeling ripped off and not empowered to decide. That's a residential pain point

Commercial Office Manager

Manages the schedule, invoicing, collecting payment and accounting

Commercial General Manager

Manages profitability and workforce efficiency

Commercial Owner

Usually handles bidding for projects or contracts. May still run jobs in the field

SLA (Service Level Agreement)

The agreement or contract between a commercial shop and a business: pricing, response times, recurring services (filter changes, maintenance, drain cleaning) and fees. Tracked in ServiceTitan as memberships

What's true about SLAs

They outline the agreed statement of work, the cadence of recurring service and price. The NTE is agreed before work starts

NTE (Not to Exceed)

Dollar cap a tech can diagnose and fix up to without extra approval. Over the NTE = call the customer for approval

Billing terms

Payment terms the shop offers the customer to get paid on time, like a 1% fee after 60 days or 5% off if paid early

PO (Purchase Order)

A way to show permission was given and to track a transaction. Often needed when booking a commercial job

Demand service

A one-off "fix what's broken" request outside the scheduled maintenance in an SLA

T&M (Time and Materials)

Bills for actual hours and materials used. Used because commercial scope often isn't clear up front or can change

Commercial workflow step 1

Customer (Suzy's Cupcakes) reports broken AC to their property manager (Bob's PM), who calls the HVAC shop

Commercial workflow step 2

The CSR books the job and adds the NTE ($500) and the PO number to the job notes

Commercial workflow step 3

Tech is dispatched and the site contact gets a notification

Commercial workflow step 4

Tech diagnoses (finds the unit, serial number and location on the roof), stays under the NTE and does a T&M repair

Commercial workflow step 5

Invoice goes to the property manager with the PO number. If unpaid by month-end, a statement is sent, then payment is mailed

Commercial vs Residential: buildings

Commercial = larger, more complex buildings. Residential = homes, smaller and simpler

Commercial vs Residential: equipment

Commercial = high volume, mostly on rooftops. Residential = lower volume

Commercial vs Residential: face time

Commercial = sometimes face-to-face. Residential = always face-to-face

Commercial vs Residential: pricing

Commercial = time and materials. Residential = flat rate

Commercial vs Residential: estimates/invoices

Commercial = managed from the office. Residential = managed in the field

Commercial vs Residential: payment terms

Commercial = NET 30 / NET 60. Residential = due on receipt

Commercial vs Residential: job length

Commercial = longer (about 4 hrs). Residential = shorter (about 2 hrs)

Commercial vs Residential: recurring service

Commercial = SLAs, contracts or service agreements. Residential = PMAs, memberships, service agreements

Commercial vs Residential: new leads

Commercial = referrals, word of mouth, lead aggregators. Residential = inbound marketing

Commercial Service ICP checks

Commercial vs residential %, service vs construction %, property management %, and the contact's title

Commercial requirement

50%+ of revenue must be commercial. A 50/50 split counts as commercial

Commercial work definition

B2B work for businesses like retail, hospitality, healthcare, education, strip malls and offices

Service vs construction (commercial)

70%+ must be service and replacement. 0-69% service (31%+ construction) = Commercial Construction

Property management (commercial)

30% or less to stay Commercial Service. 31-100% = Commercial Construction (lesson)

Who runs Comm+

Comm+ team runs Commercial Service, Commercial Construction and Residential Construction

Commercial approved titles

Owner/Co-Owner, Service Manager, General Manager, Office Manager, VP, C-Level, Director of Operations

NOT approved commercial titles

Office Admin, Dispatcher

Commercial title question

"What is your title?" Ask it open-ended, don't lead

Industrial ICP

Not required in the XDR talk track, but missing its rules can cost you credit

Industrial definition

A single job site with multiple addresses, or manufacturing, plants/factories, government facilities, airports, etc.

Industrial routing

31%+ industrial routes to the Comm+ team

Industrial and on-premise techs (lesson)

If the shop is an on-premise contractor or has ANY on-premise techs, the whole opp is Off Books

On-premise techs sellable if 4+? (lesson)

False in the lesson. Heads up: the current 8/4 sheet says on-premise techs can be ACP if they meet the tech count

Industrial pro tip

Bookmark the Appendix of the ICP Talk Tracks. If you see industrial on a website, remember the 3 industrial rules

50/50 res/comm scenario

Routes to the Commercial team

100% residential service but 31% property management

Routes to the Commercial team because PM is over 30%

Commercial Workflow Activity

Fill out ONLY the Commercial tab of your Industry Workflow sheet copy and paste the link

Workflow activity resources

Day in the life of a commercial shop, Commercial Feature Slides, Commercial narrative deck, Commercial industry page