Author Topic: Any HVAC techs / owners hang out in here?  (Read 1954 times)

KarefulKactus15

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Any HVAC techs / owners hang out in here?
« on: June 22, 2020, 05:33:25 AM »
I don't imagine many are in this mmm space so I will also inquire in other spaces that cater to the trades.

I've been investigating starting up in the HVAC space. (I believe my background technician work and most recent professional work make it a good fit.)

It would be a big boost of someone with an MMM mindset is already doing / done this. (Others feel free to comment also)

My intention would be staying in the residential space, specifically:
1.) Start with service calls.
2.) Ramp up to system installs
3.) Develop a presence as a smart home friendly contractor
4.) Expand into the energy audit space
5.) Established whole home performance contractor.

Thoughts? Opinions?
Again if someone is already in the space I have some more detailed questions.

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #1 on: June 22, 2020, 07:15:13 AM »
31 views and no comments!?

Anyone can comment, share stories about your last interaction with an HVAC tech? Any improvement opportunities you see in the space?

chemistk

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Re: Any HVAC techs / owners hang out in here?
« Reply #2 on: June 22, 2020, 08:25:48 AM »
My Uncle owns his own HVAC business. He's been at it for probably 30 years.

This may be regional (he's in SE Michigan), but he's always said that if he were to start today, he doesn't know if he'd stick it out to make it profitable. He started before the more commercial HVAC businesses came in, so he has a deep client base. But, he's close to 60 and many of his longtime clients are moving to retirement homes or dying. He still gets a lot of business through referrals, because of his longtime clients.

His client base allows him to run things with a nice profit. He sells equipment near wholesale prices and makes most of his $ on labor, since he's way more experienced than your average tech so he has a lot of insight because "he's seen it all".

My brother worked under him as an apprentice for about 2 years and the end-game was for my brother to become fully licensed and buy out the business so my Uncle could retire. They butted heads too much to work together but my brother didn't want to be locked into the HVAC lifestyle either. One of the biggest drawbacks was that seemingly easy installs could turn into late night affairs because for a myriad of reasons. Well, that and the neverending stream of phone calls. Business is business and my Uncle made the choice long ago to not run emergency/off hours but despite that, the calls still come in.

I think the biggest competition comes from the bigger outfits that employ many techs (as I'm sure you're aware). My Uncle has no ill will toward them, especially since those businesses will run emergency/off hours, but he's long observed that the quality of work from those 'volume' businesses is a lot worse than HVAC guys like him because their end game is to run as many installations/repairs as possible and the techs they employ don't have nearly as much experience. I get that is pretty universal to any trade, though.

There IS money to be made. HVAC, like the other trades, will always be needed. I think your plan sounds good but the real key is to develop a strong client base. You've got to be better than the other guys and often that doesn't mean installing their A/C 30 minutes faster, but just being kind, clean, timely, and personable. My Uncle will sit and chat with certain clients if necessary but he always leaves his workspace cleaner than he left it and is never late.

It would also be worth your time to look up any local longtime HVAC businesses who may be run by someone who's getting ready to get out and work with them to buy out their business.

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #3 on: June 22, 2020, 10:57:47 AM »
I'd definitely be interested in buying a smaller outfit from someone ready to retire. If it's not listed by a broker I'm not sure how to find.

I suppose I could start cold calling.

chemistk

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Re: Any HVAC techs / owners hang out in here?
« Reply #4 on: June 22, 2020, 11:05:00 AM »
I know that my Uncle wouldn't just sell to anybody. I mean with enough cash, sure, but if it were just a fair market offer I have a strong feeling he'd turn it down. He built the business from the ground up and a lot of its success revolves around repeat business and referrals. A few of the people he's down jobs for are more or less friends to him and if his business were to be run amok by someone else, he'd not be too happy with his decision to sell. He's said before that he'd be willing to hang it all up than to hand it off to someone who isn't going to care for it. Definitely something to keep in mind if you do look into buying an established business.

But yeah the best way to try and buy one is just to call around and get to know the owners.

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #5 on: June 22, 2020, 11:39:47 AM »
I had a similar thought - but it involves establish ing myself as a one man show with good reviews for a while before starting to look for a purchase opportunity.  Should ease the concerns of who is buying and will they uphold the reputation the business was built on.

katsiki

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Re: Any HVAC techs / owners hang out in here?
« Reply #6 on: June 22, 2020, 12:42:55 PM »
No direct experience but I am convinced that a competent professional that does what he says he will, returns messages and shows up at appointments will do well in most service businesses.  Good luck if you pursue it!

You might also look into generators.  I imagine there is pretty good margin in installing and selling them.  but again I don't know directly.

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #7 on: June 24, 2020, 11:33:26 AM »
I saw that in another post that just answering the phone and showing up on time puts you above average.

I've been researching my local market. Lot of 5 star highly reviewed businesses for HVAC. 

Is the competition that strong? Or is that signalling how happy people are to have a contractor show up and fix their issue?

I checked the local tax office and it had very poor reviews, even though the people working there are always so nice when I go.
« Last Edit: June 26, 2020, 12:14:21 PM by Kroaler »

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #8 on: July 03, 2020, 07:50:56 AM »
Bump*

Let's re word the question!

What do you want to see in an HVAC tech / business?

Here's what I've noticed with a few issues I've investigated for friends.  HVAC companies are QUICK to suggest a new system even if it isn't really needed or the ROI for energy savings doesn't justify it.

After some digging I find out that diagnostic / repair calls carry around 12% profit margin while replace carries around 45% profit margin.  - So that explains that phenomenon. It's better for the business to replace a system than to troubleshoot difficult underlying issues and possibly perform the calculations required to identify those issues.   - But I imagine a homeowner would be pretty pleased if someone could diagnose and repair the real issue when others suggested replace. (This assumes it was a high power bill or my house gets hot in the summer call and not that the system won't even cut on)

So back to me question -
What would you guys want most of all from an HVAC company when you called?

BicycleB

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Re: Any HVAC techs / owners hang out in here?
« Reply #9 on: July 03, 2020, 08:43:18 PM »
Hi @Kroaler, just noticed this thread after seeing your reply to Calimom in "Does Anyone Regret Starting a Business" thread.

I am a thrift-oriented but non-mechanical residential HVAC customer - own one house only.  When I call HVAC, there's usually a problem, so I want to know these things:

1. Who's trustworthy about charging a fair price?
2. Are you competent? (I assume HVAC people are competent, but I sure want to avoid any who aren't!)
3. How soon will you answer me?
4. When can you come diagnose my problem?
5. When will it be fixed?
6. How much will it cost?
7. Do you explain things if I want to know them, especially the aspects that determine what my most cost-effective choice is?
8. Do you do what you say?

Recently I started using Yelp and got good results. Items 1,2,3,7 and 8 are discussed in many Yelp reviews. If there was a company website, sometimes I checked it for clues. The winning candidate was a small local firm with a very good website (well above the rest) that also delivers exceptionally prompt service, and has a lower than average fee for service visit ($59? $69?).

If I were starting an HVAC business, I'd address each of these things on my website, even if it meant "If you call, I'll usually answer within an hour to give you an update on current scheduling for your job" and "Like most companies, we charge $79 for a service call. We'll explain what the problem is, how long we expect it will take to fix, and what the cost is to fix it. If you have us do the work, we usually deduct the $79 from the cost of the repair."

As a customer, I would hesitate about a new business, but might accept "We're new, we're certified by XYZ to service all major brands (specify these, and list services you can provide), and we answer the phone quickly" or some such. I think listing the certifications, brands and services would assure some customers that you know what you're doing.

PS. Maybe a site that had your city's name and then had some Q&A about local HVAC, explaining the basics of hiring an HVAC contractor for new customers and also explaining something specific about your city, would attract new homeowners - people who don't have an established contractor already.
« Last Edit: July 03, 2020, 08:52:23 PM by BicycleB »

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #10 on: July 04, 2020, 09:59:01 AM »
Thanks for the feedback.  Good thought on new homeowners that done have a guy yet.

uniwelder

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Re: Any HVAC techs / owners hang out in here?
« Reply #11 on: October 10, 2020, 02:11:01 PM »
From my own experience and reading about others on this forum, mini-split installations seem to be a high profit margin area that doesn't seem to have good justification.  The number of people that choose to diy because of outrageous or vague quotes makes me think there's a lot of room for improvement.  If word got around that you install these for a reasonable rate, I'd like to think more people would go this route.  I'm heavily biased of course.

KarefulKactus15

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Re: Any HVAC techs / owners hang out in here?
« Reply #12 on: October 15, 2020, 08:05:33 AM »
Mini splits are great for old houses lacking ductwork and the efficiency is great also.

They have one huge problem though and the first company to solve it it going to make a boat load of money:

The indoor units are ugly hanging on the wall. I can't believe LG or mitsubishi has not launched a "Decor" model yet that looks really attractive on a wall.

uniwelder

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Re: Any HVAC techs / owners hang out in here?
« Reply #13 on: October 15, 2020, 09:23:57 AM »
Yes, ugly can be an issue, but there are ways around it.  LG does have their "Art Cool" wall mount series, there are ceiling mounted versions that hide pretty well, or you can always build a wooden cabinet around the traditional wall mount units---- leave it open at the top and bottom, but obscure the front and sides.  Get a wood working buddy involved in this new business and incorporate book shelves, etc.