director of Customer Relations
ServiceTitan
To many HVAC contractors, the concept of having one install crew replacing two full systems within a single day might seem like a fantasy or a direct path to compromising on quality. Yet, this feat is not only attainable, but also being performed with remarkable precision by numerous contractors. I get to see this often as our team at Go Time Success Group teaches the Best Install Practices Class, where they train technicians to do just this.
The key? Compensation alignment, efficient processes, thorough training, and stringent quality controls.
But first, why entertain such a challenge? Consider the financial implications. One install produces the same gross profit as an entire week of running service calls. Absorb that for a moment. This realization was the “aha” moment in my approach to scheduling, prioritization, and training. Also, consider the customer service implications. I cringe now when I visit with companies who brag about being backlogged and not able to get to an install for weeks. Do they realize the sub-quality customer service being delivered by not investing in their install team to handle these faster? Would you want to wait weeks to have your system replaced if you had no air and it was 100 degrees out?
Financial Implications: Breaking down the numbers, an average installation priced at $10,000 with a 50% gross margin, results in $25,000 of gross profit per week. In contrast, a service truck doing four calls per day, with an average ticket of $350 with a 65% gross margin yields $4,550 gross profits per week. Annually, this equates to gross profits of $1.3 million per installation team versus $236,000 per service truck. There's the “aha” I was talking about — $1.3 million vs $236k for the same amount of work.
Now imagine how doubling the daily installation rate dramatically amplifies these figures. If given the choice, I would even delay service calls of low priority in order to get to high-priority installs. Now before you think of abandoning all of your service work, we all know it's a critical piece to customer retention and also lead generation for installs.
To make all this possible, it's critical to examine and optimize these four critical areas:
- Compensation: Linking compensation to performance creates a vested interest among team members in acquiring the training and following the processes that drive success. This alignment significantly enhances efficiency and quality. In my personal experience, just this step alone transformed my install department from one that very few wanted to be in, to one that people were striving to be a part of.
- Training: Empowering each installer with the knowledge and certification in best installation practices boosts their confidence and productivity. Safety, communication, technical skills, and installation best practices are all items we teach. We prove to the students that shortcuts take longer and show them how to significantly save time by doing things the right way.
- Process: Imagine a NASCAR pit crew scenario, where every member is equipped with the appropriate tools and clear instructions on their role and timing. They can change four tires in a matter of seconds but, for a typical car owner, this task may take hours. This level of coordination and preparation is awesome to watch when flawlessly executed. Having such a process for your installation team will ensure that as soon as they arrive on the job, everyone knows exactly what to do and how. No wasted time or steps. This includes everything from the post-sales process to the final testing.
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Quality Control: Quality assurance is critical, and our approach includes two main strategies:
- Checklists: Employing detailed checklists using video and photos for each phase of the installation ensures completeness and confirms that each task is executed correctly and timely. With an operating system like ServiceTitan, these can be saved to the job and verified by the installation manager in real-time.
- Final Testing: Involving the homeowner in the final testing and run-through of the system not only demonstrates the quality job performed but also ensures they know how to operate the system and what to look for. This helps reduce callbacks.
Achieving two HVAC system replacements in one day is more than a demonstration of efficiency — it's a testament to the power of team synergy, advanced training, process-driven installs, and a meticulous approach to quality control. These practices not only elevate profitability but also ensure the consistent delivery of exceptional service to your customers.