Top 5 Ways HVAC Contractors Can Make More Money During The Summer
It’s summer, which means that people all over the country are going to be firing up their home air conditioners in an effort to stay cool indoors. This is good news for you, the HVAC contractor. Just as how business was (or should have been) booming with service calls and furnace replacements during the cold winter months, the summer should afford you the same type of opportunity when it comes to air conditioners. Though as you know, meeting your overhead costs and turning a profit isn’t easy — and just because you had a successful summer last year doesn’t mean that this year will follow suit.
With that being said, here’s a look at five ways you can make more money in the summer as an HVAC contractor.
- Raise Prices: While this might be an unpopular tactic, in many cases, it’s a necessary one — especially if you haven’t done so in several years. Simply raising priceson your service calls can potentially bring in tens of thousands more dollars over the course of just a few months. Demand for HVAC services is high during summer — why not take advantage of the increase in business?
- Charge More for Same-Day Service: This one should go without saying, yet many HVAC contractors still charge the same rate for a regular service call as they do for an “emergency” service call. Plumbers charge more for emergency service and delivery services charge more for overnight service — why shouldn’t you as well? That isn’t to say that you’ll lose business if someone doesn’t want to pay more of a premium fee, just explain that you can put him/her into your regular scheduling system, which offers standard prices. Think about this, however: When an air conditioner breaks on a 100-degree day, most people are going to want the problem resolved ASAP.
- Think Add-Ons: Wireless thermostats, smart thermostats, air cleaners, portable generators, surge protectors — these are all popular add-ons that HVAC contractors can also offer to their customers while servicing their HVAC unit in the home. You can even offer a certain percentage discount on these items if the customer were to purchase it on the same day as you’re servicing their HVAC system. Some HVAC contractors have even invested in greater revenue-generating add-on services, such as duct cleaning and electrical work.
- GPS Tracking: This isn’t so much a money-making tip as it is a money-saving tip. As you know, money saved goes right into your bottom line. Consider equipping vehicles with GPS tracking equipment. Not only can you map routes and service calls to more effectively and efficiently consume gasoline while your techs are on the go, but GPS tracking is also a safety feature. For instance, alerts can be programmed to deliver to managers or owners when a tech is speeding or driving erratically, so corrective action can be administered. You can also set maintenance reminder alerts on GPS units.
- Run Promos: Finally, running promotions, both while in the customer’s home and through marketing can also be a big boost to business. For instance, techs should be taughthow to up-sell customers while in the home on additional services that are offered (i.e. thermostats, duct cleaning, etc.). It’s worth noting that they should be taught not to be pushy when attempting to sell the customer on these other services. With that said, keep a running list of your techs and the add-ons that they’ve sold in the month, and reward the top sellers at the end of the month. You may even choose to give your techs commission on any add-on sale that they make — it’s up to you how to handle it. Secondly, the summer is a great time to stay at the forefront of your customers’ minds through marketing. Advertise with coupons/discounts on air-conditioning services and educate potential customers about the importance of regular, routine maintenance on their air-conditioning units in your marketing.
Summer isn’t going to last forever, so take advantage of the opportunity to elevate your profits like never before. You may even elect to implement a similar sales-boosting strategy during winter, when servicing on heaters is the most common. Don’t let the opportunity pass you by — your summer should be booming as an HVAC contractor. How much do you intend to profit from it?
Patricia Bonacorda is the President of Spartan Plumbing, Heating and Air Conditioning , a commercial and residential plumbing and HVAC Company. For 51 years, Spartan Plumbing is a licensed, bonded and insured business that has provided professional plumbing, heating and air conditioning services throughout Maryland and Washington, DC.