Originally Posted by
AC Bad Dog
Mr. Seanhoang,
You post has elicited a lot of great replies focusing on developing technical capabilities and a learning mindset. I am not allowed to touch the power tools and I come to our business from a different perspective but I would like answer your question as well.
The residential HVAC business is down about 50% from 2005 and there is considerable downward pressure on prices. Big Box retailers, Sears, Utility owned contractors, Manufacturer owned contractors, large consolidated contractors, Internet Sales, and many other sophisticated marketers are stealing the best customers from small companies. Due to the fact that the vast majority of small HVAC companies come up from the technical side of the business, they are ill equipped to compete against these firms and in many cases don’t even know the Customers they are loosing.
Three Areas:
1. Marketing Systems - Small contractors are totally out matched on the Web. Referrals are great but the web is where your best customers are looking for information and looking for you.
Companies that do not have an effective web presence get what is left after those that do get the good customers.
Know what makes an effective Website. Understand what web metrics are and learn what the numbers mean. The vast majority of small companies have no web site or a bad website. Most who have bad websites have no idea just how bad they are. Many guys are actually hurting their business by creating negative first impressions with their sites. Get started with “Google Analytics”, understand the terms, Visits, Bounce Rates, Conversion Rates, and some of the other basics and you will be miles ahead of most. The Web is all about numbers and you can win here with a some effort.
2. Sales Systems- Learn how to make your sales process “pulse” in Real Time. You have 10 minutes to contact a customer back once they have initiated contact with you. Learn how to interview the customer on the phone. Try to find out as much as you can about them before you just jump in your truck and waste your time. Learning how not to waste your time with losers is a primary skill. You need to spend your time with customers who value what you bring to the table. Develop a “Retail Mindset”
The best salesman in our business are all about Confidence. They look their customer in the Eye, and tell them the truth. No BS, no tricks, no Dog and pony Show. They know the customer does not want(or have time) to watch them do their job. High End Customers do not have any time. High End customers are not impressed with your computer. High End customers expect you will do what is needed, regardless of what that is.
The Customer will decide in about 2 seconds weather you know your stuff on not. Learn never to take your eye off the customer’s and always give straight answers. Your High End customers expect that you will do what is required to make them happy. Show your customer you are Confident in your ability to make them comfortable. You can win in this area!
3. Business Systems- Due to the nature of HVAC many small guys come up through the technical side of the business and are challenged by the business stuff. At this point, many of your sophisticated competitors they are Businessmen fist HVAC guys second. Some guys never want to grow, for the ones that do, it is almost always the business skills that trip them up. Local colleges, Manufacturers, and your Suppliers are all great resources for your ongoing business education. Your HVAC partners have an interest in your success! They want to help you.
I hope you find this perspective useful. The key to learning is to develop a “Beginner’s Mind” and always leave some room in your glass for new information. I have taught HVAC classes for a long while and I always get the guy in the front row that could teach the class I’m teaching. I’ll ask him “Why are you Here?” I always get the same answer, “You can always learn Something!”
The HVAC business has been good to me, I hope it is good for you.
Best of Luck,
AC BAD DOG