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How to generate business year-round for HVAC

Posted by Admin on Jun 21, 2018

It's no secret that the HVAC business is season-dependent. During the hot summer, you're backlogged through fall and during cold winters, there's seemingly no end in sight!

But how do you know if you're being misled by your annual revenue numbers and could be in serious trouble if you have a mild winter or cool summer? What safeguards do you have to keep your business fully operational and still bringing in the revenue?

We interviewed Bruce Davis Jr., General Manager of Day and Nite Heating & Plumbing, to figure out how his team avoids seasonality and generates year-round business. His company is consistently one of the top home energy companies in Washington state and have increased their revenue by over 50% since taking charge.

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Whether you're in HVAC, plumbing, or electrical, everyone is very busy when it's super cold out or hot. That's a false positive when you look at how your business is performing because you're relying too much on the extreme weather. You have to think about ways to generate business in the "shoulder season", to bridge the gap between your busy seasons. 

"The way we've been able to bridge this gap is through service agreements and maintenance plans. What people don't realize is that each service agreement or maintenance plan is worth around $650 per customer. That's a big chunk of change! This is pulling from maintenance visits and industry averages for new equipment sales. The key is to find what works for your customer segment, what types of products you are carrying and servicing, and to build a business plan around making that successful.

Our business model is pretty simple, we offer multiple levels of maintenance plans for different types of equipment with varying levels of coverage. This presents the customers' options to figure out what is the best plan for their own specific needs, and also lets you hone in on that customers' buying persona." - Bruce Davis Jr.

Don't be afraid to innovate. This industry is a dinosaur at times and we are probably all guilty of being resistant to change. You should always be evaluating how you are doing things and looking at areas you can improve. At the end of the day, it's all about running a successful business so always be on the lookout for great tools, resources, and technology that can help you do that.

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