ron's blog

Hello from our office and home in North Georgia near the foothills of the lower Appalachian Mountains and within a few miles of the first gold strike in the United States. As I write this blog it is 78 degrees here and a new weather record. But, I suspect that winter may return for one more time this year.

The days of highly successful HVAC residential retail contractors that concentrate their businesses on replacing equipment while ignoring the balance of the air conditioning and heating system are doomed. No, I’m not predicting they will all be out of business, but I am predicting that many will be and the others will certainly not be as successful as they have been.

The HVAC industry, like most all other industries, needs more workers. I’ve traveled extensively for decades and still do and no matter where I go I continually hear the same comments such as these: “I need two more service technicians, how can I find them?”, “Doesn’t anybody work hard anymore?”, “Why don’t the young people work like we used to?”, “Is there an on-line site where I can find installers and techs?”, “My workers are not loyal, they sometimes leave me for another 25 cents an hour”, “What must I do in order to staff up for the work I’m now doing and/or could do?”

I believe that motivating is inspiring people to take action – Hopefully positive action. The ability to motivate comes naturally to some leaders but more are not blessed with the characteristic. Clearly, companies that have motivated coworkers produce better results and have less coworker turnover.

When I started my first HVAC contracting company I did what many companies do. I tried to service too large of an area and as a result did not dominate the market anywhere. After some time I developed a plan and gradually installed it in all of the contracting companies I owned and managed. I also encourage and coach my consulting clients to do the same. The plan begins with determining three areas based on geographic and demographic considerations.

They are:

1) Our proactive/dominant area.

2) Our reactive area.

3) Our no service area.

So all of your competitors offer 24 hour emergency service and you’re a one or two-man HVAC company with limited resources, how do you compete?