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10 Steps to increase your HVAC business

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10 Steps to Increase Your HVAC Business "Profit Ability"...

10 Steps to Increase Your HVAC Business "Profit Ability"

The following 10 Steps are HVAC (Heating, Ventilating, and Air Conditioning) business practices and strategies that if implemented in whole or part will have a huge impact on your HVAC Business "profit ability". The ultimate goal is to get all 10 Steps implemented, but substantial success and profits can be reached if a few key practices are implemented to their full potential.

All HVAC (Heating, Ventilating, and Air Conditioning) businesses have "profit ability", that is the ability to make a profit. But the ones that make profits have solid profit strategies and practices, coupled with consistent focus on pricing performance.
Step # 1. Maximize Your Current Opportunity by Charging the Correct Price.
• Know all your HVAC costs.
• Have a profit plan.
• Know your break-even (bottom-line price).
• Build value in your offering (sales process).
Most HVAC companies leave money on the table by not having proper control or management of their pricing. Invest some time in the management of your pricing and your bottom-line will soar. Having set prices in place allows you to maximize revenue productivity and your "profit ability", and even helps in deflecting pricing objections.
Step # 2. Maximize Revenue Productivity by Setting Benchmarks for Key Performance Indicators.
• Determine Key Benchmarks that drive business revenues (top & bottom-line).
• What gets measured gets accomplished.
• Expect 50% more from everyone (stretch plan).
• Provide necessary training and tools for profit success.
• Display benchmarks and performances.
• Reward for excellence.
Managing by benchmarks is a key component to your "profit ability". Knowing your numbers, especially your profit targets, gives you a clear roadmap to follow and helps you to stay on course when your profit vision gets blurry.
Step # 3. Maximize Your Current Customer Relations.
• Follow-up after Sale.
• Send monthly offerings.
• Send a personal note to top 20% of customers.
• Provide referrals to your customers for other non-competing services (builds value in you as a resource).
• Send Thank-you notes.
• Remember special dates/events (B/day, Holiday, promotion, etc...).
The initial cost to attract and capture a customer takes a big chunk out of your profits, so keeping your customers is a huge step in your "profit ability" factor. Having a plan in place to keep your customers fresh and attracted to you allows you to re-coup your initial investment in that customer. Studies have shown that it costs up to six times more to capture a new customer than it is to keep a customer- make an investment into keeping your customers, your bottom-line will love it.
Step #4. Leverage Your Customer Base
• Harvest all of the possible opportunities from your existing customers.
• Build an opportunity database with that information and market from it.
• Extend your HVAC product / service line to up-sell and cross-sell.
• Customize your offerings so that you differentiate yourself from the competition.
• Get and use testimonials.
• Get customer feedback on everything.
Your "profit ability" skyrockets when you can create repeat sales to your existing customers. Several different studies have shown that the longer you extend the selling lifecycle of your customer base the greater the increase of your overall profits. Have a plan in place that creates irresistible offers to your customers so that you can sell to them over and over again.
Step #5. Make Your Whole HVAC Business a Salesforce.
• Provide incentives to everyone in your business to sell.
• Make your customers become part of your salesforce by providing Outrageous value and service that they "BUZZ" to everyone about you.
• Reward everyone for referrals.
• Make your suppliers a sales resource for you by referring their products and services to others.
• Make it fun to sell for you.
Imagine what would happen to yo

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    10 Steps to increase your HVAC business 10 Steps to increase your HVAC business Document Transcript

    • 10 Steps to Increase Your HVAC Business"Profit Ability"The following 10 Steps are HVAC (Heating, Ventilating, and Air Conditioning) business practices andstrategies that if implemented in whole or part will have a huge impact on your HVAC Business "profitability". The ultimate goal is to get all 10 Steps implemented, but substantial success and profits canbe reached if a few key practices are implemented to their full potential.All HVAC (Heating, Ventilating, and Air Conditioning) businesses have "profit ability", that isthe ability to make a profit. But the ones that make profits have solid profit strategies andpractices, coupled with consistent focus on pricing performance.Step # 1. Maximize Your Current Opportunity by Charging the Correct Price.• Know all your HVAC costs.• Have a profit plan.• Know your break-even (bottom-line price).• Build value in your offering (sales process).Most HVAC companies leave money on the table by not having proper control or managementof their pricing. Invest some time in the management of your pricing and your bottom-line willsoar. Having set prices in place allows you to maximize revenue productivity and your "profitability", and even helps in deflecting pricing objections.Step # 2. Maximize Revenue Productivity by Setting Benchmarks for Key PerformanceIndicators.• Determine Key Benchmarks that drive business revenues (top & bottom-line).• What gets measured gets accomplished.• Expect 50% more from everyone (stretch plan).• Provide necessary training and tools for profit success.• Display benchmarks and performances.• Reward for excellence.
    • Managing by benchmarks is a key component to your "profit ability". Knowing your numbers,especially your profit targets, gives you a clear roadmap to follow and helps you to stay oncourse when your profit vision gets blurry.Step # 3. Maximize Your Current Customer Relations.• Follow-up after Sale.• Send monthly offerings.• Send a personal note to top 20% of customers.• Provide referrals to your customers for other non-competing services (builds value in you as aresource).• Send Thank-you notes.• Remember special dates/events (B/day, Holiday, promotion, etc...).The initial cost to attract and capture a customer takes a big chunk out of your profits, so keepingyour customers is a huge step in your "profit ability" factor. Having a plan in place to keep yourcustomers fresh and attracted to you allows you to re-coup your initial investment in thatcustomer. Studies have shown that it costs up to six times more to capture a new customer than itis to keep a customer- make an investment into keeping your customers, your bottom-line willlove it.Step #4. Leverage Your Customer Base• Harvest all of the possible opportunities from your existing customers.• Build an opportunity database with that information and market from it.• Extend your HVAC product / service line to up-sell and cross-sell.• Customize your offerings so that you differentiate yourself from the competition.• Get and use testimonials.• Get customer feedback on everything.Your "profit ability" skyrockets when you can create repeat sales to your existing customers.Several different studies have shown that the longer you extend the selling lifecycle of yourcustomer base the greater the increase of your overall profits. Have a plan in place that createsirresistible offers to your customers so that you can sell to them over and over again.Step #5. Make Your Whole HVAC Business a Salesforce.• Provide incentives to everyone in your business to sell.• Make your customers become part of your salesforce by providing Outrageous value andservice that they "BUZZ" to everyone about you.• Reward everyone for referrals.• Make your suppliers a sales resource for you by referring their products and services to others.• Make it fun to sell for you.Imagine what would happen to your "profit ability" if you got everyone involved harvestingopportunities and then converting them into leads and sales. The burden of having a huge salesforce can be lessened by turning non-revenue producers into revenue producers simply bycreating a selling environment throughout your business. Making this happen will have a hugeimpact on your profits.
    • Step #6. Have a Plan to Attract the Correct and Best• Employees (Rank Best to Worst).• Customers (Best fit).• Vendors (products).• Partners (banker, lawyer, accountant, etc...).• Opportunities (networking).• Marketing.• Ideas.Dont settle for second best, it costs you profits. Always look to improve the people and ideasyou surround yourself with until you find the best possible fit for you and your "profit ability".The people around you are the conduit to your success; they provide the power and energy thatconnects your success to profits.Step #7. Make Your HVAC Business Agile• Automate as much as possible• Outsource what you can• Keep overhead as low as possible without sacrificing quality and customer experience• Dont get it unless it is "YES" to this question; "Will it help me generate revenue and profits?"• Cross-train employeesIt is much easier to acquire costs than it is to shed costs. Make sure that you position yourbusiness to run lean and mean. Dont overburden the "profit ability" of your business withunnecessary overhead. Picture a wagon-train; you want more horses in your business thanwagons.Step #8. Keep Changing and Growing• Stay in touch with current HVAC market conditions and adapt to changing needs.• Challenge assumptions from within your industry (Be a Leader).• Experiment with new ideas, processes and products.• Never stop asking questions.• Never stop learning.• Grow from mistakes.Never assume when it comes to making a profit. Profit slippage easily occurs when you takeyour "profit ability" for granted, or you become lazy in learning, stubborn with change andhappy with status quo. Profits are fleeting moments that will slip away if you loose focus andstop growing.Step #9. Share Your Success• Have a profit sharing plan.• Say "Thank-you" and mean it.• Give to your community.• Have a balance in your life.
    • Dont be greedy; give the people around you personal "profit ability" and watch your "profitability" skyrocket.Step #10. Always Deliver More Than You PromisedKeep all your promises.• Always follow-up.• Take care of problems.Your words and actions can increase or decrease your "Profit Ability"!Julian Arhire is a Manager with DtiCorp.com - DtiCorp.com carries more than 35,000 HVACproducts, including industrial, commercial and residential parts and equipment from Honeywell,Johnson Contols, Robertshaw, Jandy, Grundfos, Armstrong and more.Tags: HVAC, HVAC engineers, HVAC contractors, HVAC recruiters, HVAC jobs,Heating, Air Conditioning