Get a copy of the template eMail: mg@hvacbooks.org

Request budget template.

Get a free copy of this template, email: mg@hvacbooks.org

Planning is an essential function for HVAC Companies.  Initial efforts may not be as accurate as we would like, but succeeding efforts, as the organization grows, become more accurate.

Budgeting requires the planner to rationalize their plan on paper.  If you can’t make 1+1=2 on paper, you will have a difficult time making it work in reality.

Budgets should include the actions required to produce the data in the budget and real life.

HVAC Excel Budget Template

• How will you book each tune-up and service agreement?
• How many replacement leads will be produced?
• How many leads will result in replacement install?

You should be able to follow the actions.  As an example:

• A direct mail/postcard campaign produces a tune-up sale at the rate of (2) per hundred pieces mailed. 
• The tune-up costs are known, and the PTS will convert 80% of tune-ups to maintenance contracts (if properly trained). 
• One out of ten tune-ups (annual) will produce a replacement lead. 
• The salesperson will close 75% of tune-up/service agreement leads for an average $7500.00 Sale.

The opportunity manager (sales manager and maintenance department manager) can be charged to the maintenance department budget or to the replacement department.  We like to think of the maintenance department as a profit center, but its primary purpose is a lead generation tool for the replacement department.  You could even include all costs including the salespeople and charge the entire cost to the replacement department.

The same budget process should be used for the replacement department and the service department.

When your budget plan is complete you have your KPI (key performance indicators) and individual goals.  Each employee should know what is expected of them and how they will be measured.  A PTS should convert 75% of his tune-ups to service agreements, 10% of single tune-ups to replacement leads and 5% of his service agreement tune-ups to replacement leads.  He should perform 800 to 900 tune-ups per year.

The salesperson should close 25% of non service agreement leads and 80% of tune-up and service agreement customer leads.

The opportunities manager should insure the PTS and salesperson achieve their goals on a daily basis or develop and implement countermeasures to correct the problems and meet the budget.

Addition of a one PTS and the maintenance department with a second PTS added six months later should increase residential sales by $500,000. to $600,000. The first year.

Download the excel budget template or email a request and we will send it to you.

mg@hvacbooks.org