Answer: Let’s just do the math and we’ll show you how profitable it is!

Service Calls – This Is Your Day To Day Cash Cow

Most HVAC contractors charge $79 to $89 for a service call and should be billing around $200 (and up) per hour on average. If you’re not getting an average of around $200 (and up) per hour, you’re undercharging. A flat rate book can help you set your pricing. It’s critical to understand your costs/overhead, break-even points and how to set your pricing based on a percentage of your net profit for both service and installation departments. Installation and service departments should be departmentalized and thought of as separate as service departments have a lower profit margin/higher overhead than the installation department.

HVAC Marketing Tips:

1. Internet marketing has changed the way people shop and find local businesses.  A successful HVAC contractor should be spending between 15% to 20% of Gross Sales on marketing which nowadays includes internet marketing.

2. Never spend more than 25% of your Gross Sales on any type of marketing. If it’s more than 25% re-negotiate with advertiser or put your money into higher margin marketing channels.

PROFIT

If you’re billing at $150 an hour x 8 hour day = $1200 a day MINIMUM billing

You should be able to generate this kind of revenue with 2-3 service calls a day.

We typically generate 2-3 service calls a day for around $150 (depends on your service area). With that said, You spent $150 in marketing to generate $1200 in revenue. I would do that all day long.

HVAC LEADS EXTRAS

And what about that customers future business and/or referalls?

The lifetime value of a customer depends on your ability to communicate value to them. Whether you’re using direct mailers, emails, or follow up calls the lifetime value of a customer and their friends and family that they refer to you is worth A LOT. This is how the bigger HVAC companies do it. They build their hvac business with a solid HVAC Internet Marketing plan.

Important: If you’re not getting your customers email addresses, start doing it NOW. Email marketing is the easiest and cheapest way to stay connected with your customers. Ask about our email marketing programs.

Estimates

The national average for closing a sale is 20%. Meaning, if you went on 10 estimates you should be closing around 2 of those. Our HVAC Leads estimate appointments are very high quality because they are exclusive and not like the tire kickers and low ball prospects you find on craigslist.

Now, a typical 80+ furnace replacement gets around $2000+. An 80+ furnace, plus parts, and the appointment costs about $750 – $800.

$1200
x $ 2 (intsallations)
=$2400 (in your pocket after paying for the appointments)

Key: Some of these estimates might turn into a whole new split system or other equipment while changing out the furnace. This would positively double or triple our $2,400 profit into $4,800 or even $7,200 in let’s say a months time (just from estimates). It’s a numbers game and the numbers are in your favor.

Remember: you can charge whatever you want for installations and repairs. These are just middle of the road estimates.

Tip: If you’re not selling around 20% to 30% of your hvac leads then you might need to improve your selling chops and/or marketing presentations a bit. There are many great books on selling and marketing online and at your local bookseller or check out this great HVAC article on How To Sell HVAC Accessories.

Register Now and get the First Appointment Free! ($50 Value).

Contact Us for more information or Call 888-402-8997.