The goal of this blog post is to share my decades of experience in employing technicians and helping clients make better use of their staffs. The end result? Increased productivity. Your own business stands to see a productivity increase of as much as 20 percent — all without having to make a single hire.

There’s a reason HVAC contractors can and should first focus on improving technician productivity. Better use of existing coworkers creates a trickle-down effect on every other area of your business including:

• Lowering the costs related to owning and operating service vehicles
• Offsetting inventory expenses
• Buffering other costs related to necessary overhead

One of the key ways to boost productivity involves maximizing what your technicians do on the job. Many HVAC businesses require technicians to show up at work at a certain time, say 7 a.m. Idle time spent at your business is lost time, but you must pay for it. Then those technicians are paid to travel to the site, more lost time for which you must pay.

A more productive approach involves giving instructions via radio or phone and sending technicians directly to the site to begin a job. Your technicians’ time on the clock can start when they arrive on site. This approach saves you money over the long run and increases productivity.

For this productivity-boosting scenario to work, you’ll need a daily runner to interact with the technicians, conducting tasks such as picking up invoices, receipts and cash and delivering parts and messages. This employee is a go-between helping your technicians remain on the job, where you make money.

If you would like more in-depth information about ways to increase productivity in your HVAC business, give me a call, or visit my website. Ron Smith HVAC Spells Wealth is here to help your business succeed — in every way possible.

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HVAC contractors need key outside business relationships, including:

• Certified public accountant – You need a CPA who goes beyond simply preparing tax returns and financial reports. Consider hiring a CPA who works with service providers, preferably one who works with HVAC businesses. Further, your CPA should be able to offer key insight into how to improve your company’s financials.
• Banker – Because of the volatile nature of the banking industry, bankers come and go. Therefore, it’s imperative to develop professional business relationships with multiple bankers and then promote personal relationships with each one of them. Knowing you personally can influence the banking decisions that they make.
• Insurance agent – Work with an agent who will prioritize the safety of your business. Your insurance agent should keep you abreast of workers’ compensation and make sure your business is covered — at a fair price. Ask your agent to also play safety advocate, offering a dedicated representative for safety issues and providing the necessary advice.
• Board of directors – While most smaller HVAC businesses have a board composed of the owner and his or her spouse, including additional board members encourages growth. A few key outside board members ensure proper and often better perspective, as these people can ask questions and offer advice that can’t be sourced from those who operate the business on a day-to-day basis.

Are you meeting with the right people? For expert advice about developing the right professional business relationships, contact Ron Smith HVAC Spells Wealth. I’ve been helping HVAC contractors with professional consulting services since 1991, and I can help you get your business relationships on the right track.

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HVAC business planning

Here are five common pitfalls you can avoid if you prioritize the technical and retail sides of the business:

• Hiring based on technical skills only – To be sure, having well-trained, highly skilled technicians is imperative. But don’t sacrifice customer service skills and the ability to get along in a group at the altar of technical expertise. A coworker who undermines the authority of a supervisor or can’t talk to customers compromises your business.
• Long call-response times – Customers will undoubtedly call around if your HVAC business doesn’t quickly respond to calls for service and repairs. Make it a goal to offer same-day or at least next-day response guarantees. Even if you end up paying technicians overtime during a cold snap, you’re still making money.
• Limiting hours – Make it a priority to get away from the 8-to-5 business day.These hours fundamentally limit growth. It’s during this time that most people are away from the home, and HVAC equipment breaks down at all hours of the day. You’ll open up the possibility of more business with extended weekday and Saturday hours.
• Waiting for the delivery of parts – Your customers won’t understand the challenges of keeping a warehouse stocked, and they shouldn’t have to. Strategic HVAC business planning ensures that your techs can access parts when they’re needed.
• Not dealing with complaints – While dissatisfied customers can be troublesome, businesses gain key insight into their systems by developing a plan to hear and then deal with customer complaints. Develop a customer follow-up plan, and respond to complaints immediately.

Ron Smith HVAC Spells Wealth can take your HVAC business planning to new heights. Give me a call today.

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When you’re recruiting any type of coworker, keep three general principles in mind:

• Always hire someone with the expertise to get the job done and get it done well.
• Take your time as you make this decision to ensure that you hire the right person. Many HVAC businesses hire much too quickly and end up with a high turnover rate.
• Think of your business as being in continuous hiring mode, instead of hiring only when you lose a coworker. In this way, you and the other leaders of your business will change your mindset to one that is forever selling to potential customers and potential coworkers.

With these three guiding principles in place, you can turn your attention to where to recruit. Recruiting HVAC coworkers requires a specialized strategy because of the technical nature of HVAC work.

Follow these best practices for recruiting HVAC coworkers:

• Classified newspaper ads: With a bold style and copy that describes why your company is unique, a newspaper ad can still work. Add a phone number and the name of a dedicated coworker to field phone calls, but don’t ask for a resume yet. A phone call can help to filter the potential coworkers who are mediocre from the better candidates. Further, it’s sometimes hard to spot the ideal candidate from a stack of resumes that tend to resemble one another. Make your ad different with the use of some white space.
• Newspaper display ads: This technique will attract qualified candidates who aren’t necessarily looking for a job and so don’t find it necessary to go through the classifieds. Placing a display ad in the sports section on Saturdays is generally the best practice for recruiting HVAC coworkers.
• Reward coworkers: Put ad money toward rewarding coworkers who recommend a qualified hire, but make the terms of the reward clear, for instance a specific amount of money if the new hire stays with the company through the first six months.
• Vocational schools, military and various web based recruiting sites: Using these avenues will help you find new hires with the necessary expertise.
• Related trades: Skilled technicians in related fields, such as electrical work, can be easily trained to handle HVAC work. Further, they have other coveted skills that will increase the value of your business.

Recruiting HVAC coworkers with these best practices will revolutionize your hiring process — and its overall results. For more information, contact me or visit my website at Ron Smith HVAC Spells Wealth.

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• Use “service agreement” instead of “service contract.” The latter can lead HVAC customers to feel locked into something, when what you want to do is give them the sense that you and they have a business relationship that serves their needs.
• Give preference to your coworkers’ job titles, using the specific HVAC terminology for the jobs they do. Instead of “helper,” use “technician” or “installer”. Instead of “call taker” use “customer service representative.”
• Do the same for your tune-up service providers, and label these coworkers “precision tune-up specialists” — instead of “maintenance guys,” a fairly general term that could apply to almost any industry. Using these terms will not only boost your coworkers’ self-confidence, but also give your customers the sense that your coworkers have the expertise and training needed to handle heating and cooling work.
• Use appropriate terms for the services you provide, as well. Instead of “clean and check,” which is an old worn out passive phrase, use “precision tune-up,” an active term for the service.
• Pay attention to even the smallest of policies your business has. If your coworkers wear shoe covers to protect homeowners’ floors, don’t call them “booties.” The term “floor savers” denotes the protective action that benefits homeowners, and it shows that you care even about the small details.
• When it comes to the financials and running numbers with customers, use the term “invest”,  “investment” or monthly investment , and prefer it over terms like “buy,” “total price” or “monthly payment.” Using the former terms in all possible scenarios will give customers a sense of ownership. And because investment implies getting a return — a motivating factor — customers won’t look at it as simply buying something. They’ll look at it as a valuable improvement to their home comfort and energy efficiency.

What HVAC terminology does your business use? Once you begin to implement the preferred terms, mind-sets will begin to change, and you’ll intentionally set a strategically defined plan for your business culture — and resulting growth and success. If you would like more advice about the right kind of talk in your business, just contact me today or visit my website: Ron Smith HVAC Spells Wealth.

• Timeliness – Keep your word, and show up at your customers’ homes at the time you promised. This goes for services from replacements to tune-ups. And if a team of technicians is involved, make sure you all arrive in a timely fashion. Your customers will begin to count on you and consider your timeliness a quality contractor value for products that you can cross-sell and up-sell.
• Quality – This should be a given for any owner looking to build HVAC customer success. But think of quality in the eyes of the homeowner: If you’re selling a particular product, and you tout it as being able to perform in a variety of ways, that’s the quality your customer will expect. Make sure the product or service delivers —every time.
• Ethical – It goes without saying, businesses that don’t operate on ethical principles won’t last long. Word gets around. But that word can work both ways. Build your business on ethics, and the good word will get around. This ethical behavior should cover every facet of your business, from your technicians’ appearance and your pricing to the behavior of your representatives and your business documents.
• Convenient – What does a company that is convenient to do business with look like? And can you deliver that convenience in the three most important areas? Service and replacement systems are a retail business, and for HVAC customer success, you need to structure your business hours like other retailers, not contractors. Convenient means evening and Saturday hours. Convenient payment terms are important, too. This means offering low monthly payment options, as well as simple explanations of payment terms. Finally, examine your communications from a customer’s point of view. Does a live person answer the phone? If you have an automatic phone system you’re operating as a contractor, not a retailer.

At Ron Smith Consulting & Coaching, we’re here to help HVAC owners succeed in all facets of their business. Please contact us.

Over the years, I’ve held ownership positions in 17 businesses, and it’s my desire to pass on the principles that have proven effective in each and every business.

Consider the following HVAC business advice that can help to move your business to the next level:

• Stay grounded in the basics. Fundamental business principles that move you along one step at a time work, so don’t deviate from them. Taking risks is necessary, but too many “Hail Mary’s” can leave you open to a major disaster.
• Hire quality people, and don’t skimp here. Quality coworkers make for a quality company. Mediocre people result in mediocre companies.
• Quality coworkers need training, too. Develop a comprehensive training program that will help your coworkers and your business succeed.
• Have a plan in place to deal with problems. This is a critical piece of HVAC business advice. Your plan should address noncompliance with procedures and performance requirements.
• Don’t think of yourself as a manager — even if you have to be one. Instead, think of yourself as a leader — and lead your coworkers to where you want and need to be.
• Look for potential in your coworkers, and draw that potential out.
• Stay flexible, and change with the times. If other HVAC businesses are changing more quickly than your business, you’re likely to be left behind.
• While your products are important, don’t market them. Market what your company is: That’s your brand.
• Set long-term goals, and use them as your daily guide. That’s HVAC business advice 101.
• Train technicians in customer service. Your customers will expect technical excellence, but they’ll be impressed by excellence in customer service.

Certain business principles are tried and true. They work in every industry and business type, and HVAC is no exception. If you’re looking for proven HVAC business advice, give me a call. I’m happy to help you evaluate your business and make recommendations for improvement, based on HVAC business advice that works. At Ron Smith Consulting & Coaching we’re committed to your success.

While your company will certainly benefit from the repeat business residential service agreements afford, two other key groups also benefit: Your customers and coworkers.

Further, smart HVAC contracting businesses know that residential service agreements help to overcome three major barriers to building a lasting, profitable business. They are:

• Acquiring well-trained coworkers in all facets of the business and keeping them
• Creating revenue during the off-season
• Beating out competitors offering lower prices

Here’s how a residential service agreement benefits all three groups: coworkers, customers and owners.

Coworkers

Simply put, with a base of customers needing your services year-round, you’ll guarantee more work, which allows you to hire quality coworkers without having to reduce hours during the off-season or lay anyone off. And a company that can’t provide stable, consistent work might force quality technicians to seek employment elsewhere.

You’ll also be able to hire more competent coworkers in other facets of your business, such as customer service and sales, and keep them employed throughout the year.

Customers

The benefits for homeowners are well known and generally depend on the plan you develop. In most scenarios, a residential service agreement program should allow homeowners to net:

• Discounts on any emergency service repairs, parts and/or labor
• An HVAC system that requires fewer repairs
• A longer-lasting system
• Priority customer
• Emergency service any time of day or night
• No overtime charges
• Higher energy savings and lower utility bills
• Increased home comfort
• Better home safety

Furthermore, with consistently high-quality work and repeat visits, homeowners will become better informed  about the value of your services.

Owners

With well-trained technicians committed to your business and a larger group of satisfied, repeat customers, HVAC company owners are positioned to grow their businesses. And the cycle of benefits then repeats.

In particular, your company will benefit because the equipment-replacement sales cycle decreases; you’ll be better positioned to inform homeowners about indoor air quality equipment and other accessories; you’ll create a more stable work environment with more available sales opportunities and increased customer retention; you’ll have a better cash flow; you’ll gain more referrals; and you will have created a stable of satisfied customers and coworkers, making both groups easier to work with.

For more expert advice on developing a residential service agreement, feel free to contact me today.

In any HVAC business, you have non-customers, or people you’ve never done business with, and customers. The latter category is the group you should focus on to increase HVAC customer retention.

You can break these customers into four subgroups:

• Service agreement holders
• Non-service agreement holders for whom you’ve performed service, maintenance or installation over the past two years
• Non-service agreement holders for whom you’ve performed work within the last five years
• Past customers who don’t hold a service agreement and whom you haven’t performed any type of work for within the last five years

With these customer groupings in mind, you can begin to formulate a plan to increase retention, as the various types of HVAC customer retention options below will either effectively target one subgroup or several:

• Reward programs – Give service agreement holders a discount for renewing their programs prior to expiration. Alternatively, you can offer a guaranteed price protection for renewing.
• Filter programs – Increase your company’s exposure by dropping off free filters to customers who don’t yet hold a service agreement, and include a brochure that offers a discount for signing up.
• Use tried-and-true methods – Send birthday cards and seasonal greetings cards to all sub-groups, a low-cost method for getting your name out there.
• Drive by – During their down time, between appointments, or in the off season, give technicians a list of past customers you want to pursue, and have them drop by unexpectedly. This can be an opportunity to give out advice, conduct a home consultation or allow homeowners to ask questions.
• Give back – Consumers today look for values and qualities in a company that they can get behind, such as a business that gives back to the community or shows a commitment to going green.
• VIPs – Implement a program to reward your long-standing, loyal customers, such as a discount on parts and labor, or a special promotion.

At Ron Smith HVAC, we’re happy to help you develop a strategy to increase HVAC customer retention. Call me today, or explore Ron Smith HVAC’s highly-informative website.

Do your coworkers feel equipped with the proper maintenance tools? Without the right tools, the overall performance level of your crews can decrease — especially if they don’t feel safe.

Here are a few of the basic maintenance tools every coworker should have:

• Safety goggles – Accidents happen, but with HVAC equipment, where many components are under high pressure and where fuel is used, protecting your coworker’s eyes is paramount. Consider making it a requirement for your coworkers.
• Gloves – Because of the specialized, often toxic, cleaning solutions used to remove HVAC-system buildup, as well as the soot and soil that go along with the job, all coworkers should wear these. Latex gloves are one option, but you can also provide coworkers with the option of purchasing fitted work gloves.
• Hard hat – Some HVAC contractors require coworkers to wear a hard hat, which may seem extreme to some. However, because your coworkers spend the majority of their field time in a cramped basement, crouching and then getting up, the likelihood of a head injury — which your insurance must cover – occurring is high.
• Footwear – To protect your coworkers’ feet, protective footwear should be worn. This can prevent an injury should someone drop heavy equipment or a tool.
• Masks – It’s common for HVAC workers to get respiratory infections, because of the environments in which we work. Wearing a mask will protect the respiratory system when cleaning boilers, furnaces and ductwork. In some cases, it’s recommended that HVAC workers wear a respirator with a HEPA filter to prevent illness due to factors such as asbestos.

The importance of safety cannot be underestimated. When your coworkers feel safe, and they have the right maintenance tools, you can expect them to perform well. If you’d like to discuss further the idea of creating a safe working environment, I’m happy to help! Contact me anytime.