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  1. #1
    Join Date
    Sep 2010
    Posts
    6

    Hood Business Success?

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    I am curious if anyone has had much business and financial success in the commercial kitchen hood business. I have had a business transformation from lite commercial HVAC to the hood business currently dominating my list of installation projects.
    Problem is:
    Too much costs and time with everything from permitting, each individual city registration, engineered drawings, minimum of 3+ inspections, fire wrap costs, labor hours, job distance, grease ductwork fabrication costs, etc.
    I have limited success, but just cannot seem to make it work financially to justify continuing. Plenty of work but little financial success when compared to the small commercial or residential HVAC market. I have met numerous business owners who have left the business just for the reasons listed and returned to either the residential, commercial HVAC end or back to sheet-metal fabrication business.
    Please let me know your thoughts or experiences in this discipline of our business world.
    Champ1

  2. #2
    Join Date
    Apr 2010
    Location
    West Virginia
    Posts
    636
    Charge more in your bid to cover cost, and only take the jobs that allow you to make a profit that will sustain your business.

    Or you will have to source cheaper materials/labor.

    When I was contracting electrical I did some jobs were the margin was low because I thought never now if there will be a job next week. I now look back and think of the time I wasted doing low margin jobs I could have been getting decent paying ones.

    Jim

  3. #3
    Join Date
    Sep 2010
    Posts
    6
    Jim,
    I agree with you that a lot of time is wasted on low margin jobs. I feel that my business strategy will have to reflect your idea of increased bid proposals to justify pursuing this aspect of my business.
    By the way, I have been installing hoods for over 4 years now, so this is not a knee-jerk reaction to this question. I have a nice balance of both residential and commercial HVAC customers that I can re-focus my business on. This along with my sheet-metal fabrication shop, I can only hope that it will take going back to what originated my business success to continue in the future.
    As they say, nothing ventured, nothing gained.
    THANKS!

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