Operating a Successful Air Conditioning and Heating Repair Business

29.03 2010

Operating a Successful Air Conditioning and Heating Repair Business

An HVAC business can offer stable revenue and remarkable growth opportunities. An expanding installed equipment base essentially guarantees the future success of this prosperous industry. This article examines how to run an air conditioning and heating repair business

Getting Started in HVAC

An HVAC repair business is most often started by a technician who has learned the trade through previous employment. These budding entrepreneurs hope to capitalize on their experience while building a company that reflects their own style and philosophy.

More often than not, the new business owner is well versed in the operational aspects of the industry. They understand how to diagnosis and repair malfunctioning heating and air conditioning equipment and complete the job efficiently and effectively. Obtaining the proper tools and gauges, purchasing a truck with the appropriate racks and bins is an effortless endeavor for the emerging contractor.

However, in learning how to run an air conditioning and heating repair business, the sales and financial responsibilities of the company are often misunderstood or ignored. These are areas that can ultimately lead to a catastrophic business failure when continually neglected.

The Business Plan

Like every business, a heating and air conditioning company requires a sound business plan. This document serves as a blueprint for the successful implementation of company’s strategies and business initiatives. The business plan should include elements such as market identification, sales strategies, services and product offerings, as well as detailed financial planning and specific methods of execution. Bright Hub offers a number of informative articles that can help in the formulation of a comprehensive business plan.

Job Costing and Pricing

As with any service related business, accurate job costing and an appropriate pricing matrix are critical tools for the air conditioning contractor. There are numerous software packages that provide job costing features as well as inventory tracking, scheduling, employee management and a host of other useful programs.

Flat rate pricing systems offer a simplified solution for establishing consistent prices that are all inclusive. The flat rate job costing method combines materials, labor, trip charges, equipment rentals and any other essential costs that are part of the repair or replacement process. With this method, the installer can quickly provide a price to the customer that is transparent and insures a reliable profit margin on each job.

Vendors

Establishing productive relationships with local vendors is a key element for the successful heating contractor. Prices for equipment and supplies are not static, and the contractor’s pay history, purchase volume and loyalty to the vendor all play into this equation.

Vendors will also usually provide valuable free training, attractive advertising programs as well as occasional performance incentives such as trips or merchandise. A productive vendor relationship can enhance a company’s bottom line in a variety of ways.

Sales Strategies

The key to a successful heating and air conditioning business is the development of reliable, repeat customers. There are essentially three key areas of revenue generation that should be carefully cultivated.

Regular or emergency service calls occur when there is some type of equipment failure. The peak in service call activity typically follows the first serious change in seasonal temperatures. To some extent, this allows for a degree of sales planning and forecasting, but due to the uncertainty of the weather, it is the least reliable of all the revenue streams.

Continue on to the next page for more tips on running a heating and air conditioning business.

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