Any HVAC business owners in here?

[alex3610]

Full time I am a firefighter, and it isn't nearly enough to make ends meet. A friend from work has a small HVAC business on the side that I have been helping him out with recently. After high school I was a shop boy/helper at a plumbing and heating place so I know a little bit, but no formal education in the trade. My buddy is licensed/insured etc. and operating a legitimate business.

My question is, where do you guys find most of your work? We rely heavily on word of mouth. We do mostly change outs of heat pumps and some gas furnaces, and then the every day service calls. We have played around with some advertising but it seems like it is all a scam. Ran an ad in a local paper, 6 month minimum contract. Learned an important lesson about commissioned advertising salesmen. Very poor return. I have actually gotten us far more business off free ads on craigslist. The val-pak mailers and such seem to be way over saturated with HVAC contractors. We are working on a web site, but it seems like the big players around here have all the top search results cornered. These guys do a ton of work but advertise like crazy on the tv and radio, probably spending $500k a year easily on advertising. Obviously we can't compete with that but we have very little overhead so we can usually beat them pretty good on price. Anybody got any tips they care to share? Thanks in advance.

 

[NELCO]

Alex, I think you answered your own question...Word of mouth is one the best ways to get buisness. Your Craig's list ad seems to work. I would offer your existing customers some type of bonus/reward plan for an actual referral for a change out or service call. You can base the reward on a percentage of profit on the referral job. Another idea would be to contact your customers and offer them a tuneup for the hvac unit once a year and change the filter, check operation, etc at a discount since they are already a customer. Since your overhead is low that is a huge plus. I would start there. Hope this helps.
Nelco

 

[!!!PainTrain!!!]

We are not a singularly dedicated HVAC business but it does make up the majority of our off season service generated revenue. We are capable of doing PM, change outs, and new home/light commercial installations.

The best and most effective advertising is word of mouth. Having professional technicians who are courteous, efficient, and prompt can make all the difference in the world. Make sure your vehicles are clean, your employees are clean cut and professional looking, and provide excellent customer service. If you say you're going to be there at 8, arrive at 7:45. Generally, treat every customer as if they are your only customer. If you do that, the WOM advertising will produce itself.

Another important part of running a successful HVAC business is captured revenue generation. This means having current customers become repeat customers. One way to do this is to offer Service Agreements. I give each changeout/install customer a free annual agreement. This agreement gives them annual cleanings, adjustments, and inspections of their equipment. For example, if you have a heat pump installed, well come out in the spring and once in the fall to service that unit/system. The agreement can also offer some type of incentive such as xx% off the installation of a product like an upgraded thermostat or air quality system.

The point is to interact with each customer as much as possible. These interactions build trust and comfort between the customer and marketer. Not only that, but the agreements ensure they are getting the PM their equipment needs to operate efficiently and to retain any factory warranties.

 

[Brutal Metal]

Another important part of running a successful HVAC business is .

I think your forgot marking up R-22 1000%

 

[zporta]

Try local phone books. I know not everyone uses them but should put out a decent return for the cost. Also make sure to advertise on your vehicle. And pass out lots and lots of business cards to get started

 

[!!!PainTrain!!!]

I think your forgot marking up R-22 1000%

Lmao.

I've heard some dandies recently on what people have been quoted and charged for R22. Most recent was a customer who was quoted 3500 for a coil change and 2000 for 15lbs of freon plus 350 for "installation and hazmat fees."

:lol1:

 

[!!!PainTrain!!!]

Try local phone books. I know not everyone uses them but should put out a decent return for the cost. Also make sure to advertise on your vehicle. And pass out lots and lots of business cards to get started

Phone books are not too terrible. Just make sure you're reading the fine print. I'd have a basic listing for sure but I wouldn't mess with anything much more than that. Also be careful, a lot of print advertisers are presenting contracts that run a year in advance as well.

There is no need to run 1/4 page or larger ads or bold/color your ad.

 

[NELCO]

PainTrain, You nailed it!!!!!!!! You were awesome.... Brutal come on 1000% mark up????? That is not going to work!
Nelco

 

[alex3610]

Thanks guys, some great info here! New business cards are on my list of things to do this week, and I think adding info on the back about a referrals program is fantastic idea. I have also been thinking about ordering magnets with the card image on them. We are going to have to sit down and draw up something service contract wise, that really is a no brainer.

These advertising sales people really kill me. Get lots of cold calls off our craigslist ad from them and they always tell you the same pitch about how many leads you are gonna get. But they always want a 1 year contract. I always tell them if your product is so great, let me try it for 1 month and if what you say is true I will stay with you. Haven't had one take me up on it yet.

 

[Brutal Metal]

PainTrain, You nailed it!!!!!!!! You were awesome.... Brutal come on 1000% mark up????? That is not going to work!
Nelco

You'd be surprised how many DUMB people get suckered from fly by night as well as large HVAC companies on R-22 these days. I guy on Yellow Bullet said he paid $200 last week to have 2lbs added:nonono: The last 30lb tank I got was $150 and you can still find em all day long for $350. They want you to believe the stuff is so scarce even though Dupont and others have invented an alternative..