Building Your HVAC Companies Business through Tune-Up’s and Service Agreements …. from HVACbooks.
We are aware of no business model superior to establishing a lucrative HVAC service and replacement business using the “Maintenance Department Model”.
This is not a get rich quick model, it has been effectively replicated by hundreds of organizations, in most areas of the country and it will work.
How does the Air Conditioning Maintenance Department Business Model Work?
You set up a maintenance department, independent of the service department. The air conditioning maintenance department continuously recruits new customers and generates HVAC business and HVAC sales leads This maintenance department keeps generating leads even when you are distracted by other AC business demands. You continue to run your business as you have in the past while growing your maintenance tune-up department. Business for the air conditioning maintenance department is not seasonal. Tune-ups are scheduled weeks and months in advance. Tune-ups are performed year round. Overtime is not necessary.
Marketing for the entire HVAC business is directed exclusively toward obtaining tune-ups from new customers. These customers are converted to service agreement customers with one, two or three year service agreements. A service agreement customer is worth as much as $800.00 per year, per customer, in accessory and replacement HVAC sales. We also know our sales closing rate goes from 30% to 70%+ when the customer is a service agreement or service contract customer. Replacement sale profit margins are higher for service agreement customers.
Following is a brief outline of how to get started.
•Perform tune-ups with your service techs until you get the maintenance department up and running.
•Develop a budget and plan that makes sense for your business. This might be a one (1) person maintenance department or much larger department, depending on your business, market area and capitalization.
•Develop a budget and break the budget down into measurable daily goals for each employee in the department.
•Hire your first air conditioning maintenance department employee, a Precision Tune-up Specialist (PTS). This person is hired first for people skills and then trained to perform AC tune-ups. If tune-ups are not available, this person puts on their marketing hat and get’s some.
•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.