The recession several years ago put many HVAC contractors out of business or cut their payroll significantly. With the economy now improving, contractors will need to increase their internal and field staff to support the oncoming business through the upcoming cold months.
New Home Construction
Construction was at a virtual standstill years ago with job sites shut down in the middle of projects. Selling a new HVAC system to a new construction job was just not possible. This year, construction rates are increasing considerably, requiring HVAC work and components to complete the building. Most construction is residential based, making the HVAC system relatively simple and quick to install compared to large scale construction. You can potentially install several systems a week with current forecast construction models.
As unemployment decreases, more and more people are beginning to purchase homes again. Those homes, often older models, may not have current model HVAC systems in place. Customers looking for temperature control are flocking to HVAC contractors to get their systems in place before extreme weather patterns arrive.
Older HVAC systems are slowly breaking down. With HVAC parts becoming scarcely available over time, many customers have no choice but to replace either the entire interior or exterior system components depending on their need. Along with increasing your sales through component needs, HVAC contractors are benefiting more from labor profits. Complete system removal and replacement services are extensive projects that must be accompanied with appropriate labor charges.
The Money Factor
Lack of funds often forced customers to stop servicing their HVAC units, especially if the repair amount was substantial. Banks offer easier financing now compared to past years, making it simple and reasonable to borrow money and repair an HVAC system. Offer your customers free quotes to give them an idea of the loan amount. If you work with your customers by offering flexible pricing, they will become loyal clients in the long run.
Energy efficiency is a key selling point for new HVAC systems. The government even offers tax incentives to upgrade or repair a system that isn’t energy efficient. Because most systems work on electricity, customer electrical bills soar during hot and cold weather. With more customers concerned about their environmental impact through emissions, new HVAC sales increase as people want higher energy saving appliances. Bring a few pamphlets to each service or sales call to show customers possible savings between energy conservation and government incentives.
With dramatic weather changes, customers want a reliable system for hot and cold situations. If a family has an elderly loved one, for example, they must create a comfortable interior at all times for the best care. Although HVAC sales and service has its cycles, even spring and fall offer uncomfortable temperatures that encourage customers to fix their outdated units.
HVAC contracting depends on sales and service to keep business afloat. While the very nature of the HVAC industry is cyclical, positive growth is expected due to the recovering economy. Now is one of the best times to be an HVAC contractor to take advantage of the better economic times. Everyone wants to be comfortable in their home regardless of the temperature outside.