Archives for February 2020

The HVAC industry is growing faster than ever, with a majority of HVAC business owners expecting to see at least 10% growth in the next year. That means there’s going to be a significant rise in HVAC continued education if dealers are going to keep up. 

Currently, more than 1 million people work in the HVAC industry… and that’s just in the U.S.! If you own an HVAC business, or work in the HVAC industry, then you know it’s not uncommon to feel the effect of labor shortage in our industry.

This is leading local dealers to more frequently hire people with little or no HVAC experience. But let’s be honest — while you desperately need skilled HVAC technicians, you don’t have the time to train them on your own, and yet you still need them to do the job, and do it well! 

Let’s take a look at how you can prep your new HVAC tech for the job.

What Your New HVAC Tech Needs to Know

If your new hire doesn’t know anything about the HVAC industry, then it’s a race against the clock to teach them everything they need to know so they can help your business succeed. To get them up to speed, sign them up for some HVAC company training, where they can learn all the HVAC essentials. 

So what do they really need to know about? We’ve made a list of the top six. 

1. System components

Every heating and cooling system is made up of major and minor components. Your HVAC tech should know the parts and pieces that work together to make a comfort system function. 

2. System design and installation 

While your HVAC tech doesn’t have to know all the details about how system design and installation tie into mechanical engineering, they should understand the importance of system design and installation.

3. Efficiency requirements

The U.S. Department of Energy (DOE) has placed minimum energy efficiency standards on the appliances and equipment we use at home every day. This includes air conditioners, so your HVAC tech should know efficiency requirements and the role they play in the HVAC industry.

4. Indoor air quality (IAQ)

There are three basic strategies to improve indoor air quality, including source control, improved ventilation, and air cleaners. Your HVAC tech should be well-versed in IAQ and understand why it’s such a big part of the HVAC industry. 

5. Comfort controls

Your HVAC tech already knows that comfort controls control the temperature, but that’s not all they do. They also help heating and cooling equipment maintain the optimal temperature setting while being energy-efficient, and your HVAC tech should know all the details about comfort controls. 

6. System options 

There are many types of HVAC systems on the market right now, from split systems to duct-free systems, and your HVAC tech should know all the options currently available, as well as the benefits of the most efficient systems.

Invest Today for Profits Tomorrow!

HVAC company training makes it easy for you to prep your new HVAC tech for the job. Once they complete training, you can confidently send them out into the field knowing that your current investment in their HVAC education will earn you long-term profits. At Grandy & Associates, we’ve developed a class specifically designed to help business owners prepare new personnel for the job. Register today! 

As a business owner, you put a great deal of time and money into your business every day. Your hard work should be apparent in your contractor business’s profitability. But if you aren’t making as much money as you thought you would be, then it may be time to look into business growth strategies so you can grow your business and increase your profit.

To get you started, we wanted to share five tips so you can maximize your profitability.

1. 1. Know your price — and charge it.

If you’re going to make any money, then you need to get comfortable with knowing your price — and charging it. Once you’ve figured out how much it actually costs to profitably run your business, then you have to set a number and stick to it. When you do, not only will you be able to cover your company’s cost of operation, but also make a profit while doing it. The customers you want will happily pay your price because they know the value of what they’re receiving. 

1. 2. Develop a cash flow budget.

Running a profitable business means you’re running it thoughtfully. If you have yet to develop a month-by-month cash flow budget for your company, then the time is now. Showing profitability at the end of the year doesn’t matter if you went out of business back in March! And odds are, you’re going to have cycles in your company. That’s why you have to plan ahead if you’re going to make it through the slower months. Put together a cash flow budget today and follow it so you can maintain cash flow through inevitable slow times of the year. 

1. 3. Recognize the profitability of your pricing. 

Depending on the markup that you use for materials, your pricing can dramatically impact the overall profitability of any job that’s completed. You have a certain amount of overhead in your company, and part of it is going to be covered by materials, while the other part of it is going to be covered by your labor rate. You have to know what the total combined profitability is for the individual jobs you do, and then make sure you’re charging enough to cover your costs and generate profit (but not so much that you price yourself right out of a job!).

1. 4. Establish a profitable maintenance agreement program. 

If you don’t have a profitable maintenance agreement program in place right now, you need to get one. If you want to get out of it at some point, then you’ll need to have two things. First, your company will have to be able to function without you. And second, you will need to have some type of guaranteed monthly income. In this business, the closest we can come to guaranteed monthly income is a solid maintenance agreement program. Put the program in place, make sure every person in your company knows how to explain the benefits of the program from the customer’s perspective, and implement it.

1. 5. Perform a monthly financial review. 

In the business world, ignorance is not bliss. You need to know your numbers, and you need to know them well. That’s why you have to perform a monthly financial review of your company. You need to look at your finances every single month and be honest with yourself about them. Most contractors only look at their finances two or three times in a year, and they’re likely outdated. If you want to be profitable, then you need to look at your finances every single month. It only takes about 30 minutes to walk through your finances, understand what they’re telling you, and make course corrections along the way.

Start Planning for More Profit!

At Grandy & Associates, our mission is to teach contractors how to run profitable businesses. That’s why we provide HVAC business help and HVAC business growth strategies, as well as many other contractor business training opportunities. We believe every business deserves to grow. Join us at an upcoming workshop so you can start building a more profitable business!