How to Increase Your Profitability in the HVAC Industry
You have to do things wisely to increase profitability
There are not one or two air conditioning companies out there. Many of them provide various services, including air conditioner repair, plumbing, heating, and more. You can just imagine the tough competition you have to face and survive to keep your business afloat and succeeding.
For this reason, you need a system in place, as you don’t just put in your effort with a shotgun approach if you want to be competitive. You have to do things wisely to increase profitability and make a name in this industry. Start with the following tips.
SETTING GOALS AND MILESTONES
Without a plan, goals, and milestones set, you might not be able to make a dent in the HVAC industry, and you will likely never profit from your effort.
Gather your team, collaborate, and set future goals. Discuss your growth and profitability plan. What’s your vision? What have you done in the past? What effort worked and what did not?
In short, you need to develop realistic goals, techniques, and strategies for your team.
Set your biggest goal first so that you can get your business to where you want it to be by the next accounting period’s end.
Think about how much revenue you need to generate. You should start with your total revenue target when developing an annual business plan.
Don’t forget to have an idea of your average deal size to help you find out how much of your current business to keep and how much new business to make in order to hit each milestone.
Define your sales process very carefully for each marketing channel you use. Remember that all the marketing channels will capture a potential buyer who can become a repeat client.
So how many of those visitors would you need to become a customer in order to hit a milestone for that channel?
It’s important to keep your eyes on the goal but also to evaluate the situation. Remember to keep track and adjust your sales plan as needed, especially when there is a shortfall. You don’t have to stick with a marketing plan if it does not work.
Here is what to do. Analyze past marketing results and check on your competitive strengths and weaknesses to find out what your marketing position is.
By shaping your company now, you can increase profitability. Track your numbers, develop budgets, and have the scripts ready to achieve your goals.
Know where your customers are and devise the right marketing strategy, including TV ads, radio ads, social media marketing, direct mail, or digital marketing, to reach out and eventually convert leads into contract customers.
Here are some tips for developing a flexible marketing plan.
- Improve your local SEO results. Create a Google My Business page, optimize your website, and get reviews in online platforms.
- Use email marketing for new and current customers to keep in touch with and stay in front of them. Email marketing also allows you to promote coupons and specials.
- Add video marketing into the mix. However, limit a video to less than two minutes to improve viewership. You can also add videos to your blogs or place them on popular service pages.
Finally, you should measure sales and revenue to determine your marketing success based on your daily effort.
You can use research surveys and studies to identify red flags, trends, and growth opportunities in the HVAC industry.
You can analyze the results from the surveys and studies against your key performance indicators (KPIs), which can help you achieve goals against contracts and measure progress.
By using these KPIs optimally, you can effectively drive actions, improve results, and book more contracts.
TRACK THE NUMBERS
Take a look at the number of opportunities that your technicians have at converting a new customer to a maintenance customer. You should measure the performance of each technician and have a table of it posted on a spot where each member of your team can see it.
You should also have each of them scored by dividing the conversions by the opportunities.
You should have a dedicated team to not just field incoming calls, but also to make proactive outbound calls. It is one of the best ways to increase profitability for your business.
Your call center staff can contact contract customers for any preventive project, such as checking the heating system before the winter.
Increasing the profitability of HVAC companies is not something that is achieved overnight. Instead, it is a result of creating a detailed plan, collaborating with the team, marketing execution and adjustments, and tracking analytics and results, among others. If you want to succeed and improve your bottom line, implement these strategies.
Publication date: 3/11/2019