Have you wanted to grow your HVAC company but need to improve the business aspect of it? More customers, more steady business, and more revenue are probably all on the list of goals. Here we dive into HVAC business training to help your company be successful. For free tech trainings, ride-along trainings, and closing techniques, click here.
HVAC Business Training To Help Your Company Succeed
When your company only relies on repair calls, it can be hard to pay the bills. Here are some tips on how to manage and grow your business:
Control Your Service Calls Instead Of Letting Them Control You
Are you only relying on repair calls to keep your business running? Make sure that your techs are trained beyond the repair call. By making suggestions to customers, encouraging regular maintenance appointments, and knowing how to anticipate the customer’s needs before a repair is required, you can better control the stream of incoming revenue.
Go Above And Beyond During Repair calls
Training, recruiting and retaining top technicians should always be a priority in your business. Your techs are the face of your business. They are what garner good and bad reviews which impacts your business and your marketing budgets.
Your techs should know how to execute three of the most common repair types flawlessly: compressor issues, fan problems and refrigerant leaks. By employing effective HVAC business training techniques, your company will be able to grow the client base as long as the initial repair goes well.
Repair calls can turn into replacement calls if the condition of the repair is severe enough to need replacement. In addition, HVAC companies should anticipate when parts or units may need to be replaced. When your techs know how to talk to customers effectively, they are better able to upsell replacement parts and sometimes entire new units. It’s important to remember that this should be offered when it’s in the customer’s best interest. Authenticity in the service industry is important and reflects positively on your business.
After a repair call, send a quick handwritten thank you note, to show the customer you care. This develops relationships and will put you a step ahead of your competitors.
Know Your Gross Margin And Price Accordingly
Knowing your gross margin is an important concept when it comes to repairs and replacements. Gross margin, both in dollars and percentage, are calculated by the total revenue and total profit generated by the company. Gross margin dollars represent the profit made by the “sale” of the service after direct costs of equipment, materials, and labor are subtracted. For instance a sale of $100 that had a direct cost of $40 would result in Gross Margin of $60, or a 60% Gross Margin.
Repair calls have a higher margin percentage. Replacements have lower margins but higher overall dollars to contribute to overhead. Repairs have a higher margin percentage because there is less cost of materials and labor in most repairs, while replacements have a lower margin percentage due to higher equipment and material costs.
Make Maintenance & Tune Ups A Clear Part Of Your Business Strategy
Maintenance and tune up calls are a good way to keep steady business and provide great service. Regular maintenance prevents issues from occurring which not only helps with business but leads to happy customers. It will save the client from paying for a replacement piece or a whole new unit. This also helps the HVAC company gain a loyal customer on a monthly or seasonal basis. Most maintenance calls are seasonal and help preparation for the upcoming season change, keeping systems running effectively. When systems are in poor condition and ready for an upgrade, these maintenance calls make sure that your HVAC company is top of mind and already the trusted business with which to spend the big dollars for a whole new unit.
Create Service Agreements
Service agreements are important because it can turn one-time customers into long-term customers. Service agreements are different for every company with various services offered in each plan. Basic plans include annual tune ups, check ups and seasonal preparation. Including tune ups in service agreements serves the customer better by improving the energy efficiency of the unit. It also ensures the replacement of filters and makes sure regular maintenance is performed, which can be cost effective and preventative of any further issues.
Know How To Manage Your Team
Even with clear cut strategies for your techs, you need to have management strategies in place. Employing systems, training employees, and creating a positive company culture is a large part of an HVAC company’s success. For more HVAC business management strategies, click here.
If your HVAC company follows these effective HVAC business training tips, your company will excel. While repair and replacement calls are good ways to introduce your company to the customers, maintenance calls and service agreements are great ways to create a steady customer base, even through the various seasons.
The Blue Collar Success Group provides HVAC business training as well as training for plumbing and electrical businesses. After owning and managing multi-million dollar service-based companies, the Blue Collar Success Group set out to train others on how to achieve that same level of success. From team training resources, sales training, management training and more, the Blue Collar Success Group is committed to showing you how to grow a service based business. Sign up for some free tech training, ride-along training, closing techniques and more here.