During the shoulder season, HVAC contractors can focus on business fundamentals, inventory, training, and maintenance to stay busy and generate revenue.
I’ve seen a few contractors regularly hitting million-dollar days, but the lesson is more about what successful contractors do that enables them to hit goals like this.
When multiple cognitive biases reinforce one another within a group, irrational beliefs will take over. This, according to Charlie Munger, is the Lollapalooza Effect.
While profit is essential to keeping the lights on, if making money is the only goal on the table, we may be headed down a road that leads to nowhere. But, what if the motivation were actually service itself?
Extreme temperatures create urgency, and that translates into more sales; either from an actual failure or from the fear that an older system may fail under the added strain.
As the market continues to grow, increasing HVAC system efficiency will be vital due to the increasing amount of regulation designed to reduce energy costs and the impact on the environment.
Selling systems at a higher price point makes good sense, especially when the economy is growing, unemployment is low, and credit is readily available. Unfortunately, this has not been the case for several years.