Growing Your Business, HVAC Service Agreements

The time tested technique to develop a lucrative Air Conditioning service/replacement business is the “HVAC Maintenance Department Model.”

This isn’t a get rich quick or super fast growth model, but it has been successfully implemented by hundreds of HVAC companies, in all regions of the country and it works.

Here are a few details to give you an idea how the “HVAC Maintenance Department, Business Model” works.

Set up your maintenance department, independent of your service department. The purpose of the Maintence Department is to continuously recruit new customers and generate replacement HVAC sales leads. You continue to temporarily run your business as you have in the past, while growing your maintenance department.

Maintenance department tune-ups can be scheduled in off-peak seasons to help make the business less seasonal. Maintenance can be scheduled weeks and months in advance. Tune-ups are performed year round. Overtime is not necessary.

All marketing is directed toward obtaining single tune-ups from new customers. Customers are then converted to service agreement customers. A service agreement customer is worth as much as $800.00 per year in HVAC accessory and replacement sales. We also know from experience that our sales closing rate goes from 30% to 70%+ when the customer is a service agreement or service contract customer.

Following is a brief outline of how to get started.

Perform your tune-ups with your service techs, until you get the maintenance department up and running.
Develop a budget and business plan that makes sense for your business. This might be a one (1) person maintenance department or a much larger department.
Hire your first maintenance employee, a Precision-TU Specialist (PTS). This person is hired, first for people skills and then trained to perform AC maintenance.
Train your PTS in proper Air Conditioning Maintenance and dignostics.
Train your demand service techs to sell tune-ups and service agreements.
Train your dispatcher and customer service reps to sell tune-ups and service agreements.
Track your results. If monthly budgets and objectives are not achieved, introduce countermeasures to get back on track.

Growing your HVAC company does not require reinventing the wheel. All you need to do is follow the lead of some of the most successful businesses in the industry.

If you want more information or just want to chat about HVAC Service Agreements, eMail or call.

Michael Glover