Four New Year’s Resolutions for the HVAC Contractor
For the HVAC industry, 2021 was a lot like 2020 — and that is not a bad thing. The COVID pandemic was still on everyone’s mind, but it did not slow down the HVAC industry. Contractors put their heads down and many had outstanding years as shipments of air conditioners and furnaces once again spiked. Supply chain issues remained a problem the industry is still attempting to sort out, while the upcoming refrigerant transition was much discussed.
In fact, of the top 10 stories at achrnews.com posted in 2021, seven had to do with the aforementioned topics.
But now we turn our eyes to 2022. And since it is only January, I assume those New Year’s resolutions are still going strong. I mean, how could they have been abandoned already? If you have not established them yet, here is a nice list of resolutions for HVAC contractors.
- Raise prices. Look around — everything is costing more these days. The general public has been conditioned to pay more for the stuff they are buying. To be honest, sticker shock is rare these days. Make sure you are pricing products accordingly so you can hit your profit margins. This does not need to be a once-a-year occurrence.
- Start paying your technicians more. With so many people dropping out of the workforce, finding qualified talent is becoming even harder. And in the HVAC world, it was not easy to begin with. With inflation skyrocketing, your employees’ pay is now worth less than it was a year ago. At the very least, keep up with inflation. That will help you attract key talent but also, more importantly, allow you to secure the talent you have. After you have done resolution No. 1, resolution No. 2 will be a little easier.
- Look into the smart home market. When homeowners buy these products, they are not sure to who to hire to install them. Make sure that is you. Put “Smart Home Contractor” on your truck right next to HVAC, Plumbing, and Electricity. The margins can be insanely high, and it can also help residential contractors get through the shoulder seasons.
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If you have not already, join an industry association. The HVAC residential industry is coming off great back-to-back years. A lot of contractors I have spoken with shared that they have had record sales the last two years. When things are going well like this, sometimes business owners think they don’t need any additional education or resources.
I would argue that is just the opposite. These associations can help you grow your business the right way. They can help you make sure you are doing the correct hiring, marketing, and procedures to be sure you maintain your profit margin. Because when more people are out there buying, you want your company’s name to be top of mind. Don’t wait until the industry hits a downturn to use their resources.
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