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  1. #1
    Join Date
    Jun 2005
    Posts
    40
    I noticed in the last 6-months alot more competition out there, guys starting there own busineeses, all kinds of things (the big one that pisses me off I mean how cheap, not having commercial plates, have van, shelfing, ladder racks etc.) but have residential plates on ven to save, so instead of paying $140 year, its $140 evey 2-years. Also I dropped my price on change outs by $250, I feel after paying taxes its really about $162 Iam loosing, and I now give 2-year labor warranty (not thru any maufacturere either) MY LABOR WARRANTY. One devolopement I do work in 400 condo's I have over (had )325 of them, see more and more new trucks, also one local contractor who has been around for about 30 year (used to build his own condensers, from scratched to save $$$, known to be cheap, cheap, cheap price wise, but a butcher, he was using Goodman, switch to Coleman Evcon, he uses saver stat? t-stats which I think are junk, and he uses a flex boozka, his sons work for him, and one other guy, wouldnt want them in my house some long hair, sticking of booze and weed, no teeth, but price wise hes cheap. He goes to the devlopement I do and buys the (his shop 1/2 mile away) buys the manager, and assistent manger (woman) gift certificates to Filenes for $200 a pc. and asks can he be on the list of contractors that goes on the monthly news letter the assoc. sends out every month, theres 3- contractors on list including me, but when someone has a problem from condos with a/c, or heat pumps, they tell them out of the 3 Iam the best bet, the h.o.'s tell me this, when they call, they say they called offfice and I came highly recccommended, (its good because its all referral, not by knowing anyone) Ive been doing most of wor here , but now starting to get a little nervous, everything at the age of replacement especially the 175 heat pumps there 1989, and with new 13 seer, JESUS! Its amazing what some guys do, like I said here in Boston, its getting very, very competitive, lots of guys starting out on own, scary.

  2. #2
    Join Date
    May 2004
    Posts
    12,026
    Here is just a short thought…

    If guys didn’t drop their pants so low just to get the business then they could afford to pay their techs what they are worth. Then the techs that are doing your service and install business for you won’t quit and start their own and undercut you so often.


  3. #3
    Join Date
    Aug 2004
    Location
    Tyler TX
    Posts
    676
    Kinda worries me to, since getting my lic about 20 others have started up new companies and the area was already getting saturated. Sometimes I wonder about the wisdom of starting my biz if anyone with a set of guages, a propane torch and a mini van is going to be my competition. I planned for many things when I got started but I never though I would have to compete with companies that charge $30 for a service call and replace a contactor for a total bill of $45. I wish these guys would hurry up and go broke.
    HVAC Contractor, Tyler Texas.

  4. #4
    Join Date
    Feb 2004
    Location
    SC
    Posts
    20,677
    Originally posted by xe1000
    one local contractor who has been around for about 30 year (used to build his own condensers, from scratched to save $$$, known to be cheap, cheap, cheap price wise, but a butcher, he was using Goodman, switch to Coleman Evcon, he uses saver stat? t-stats which I think are junk, and he uses a flex boozka, his sons work for him, and one other guy, wouldnt want them in my house some long hair, sticking of booze and weed, no teeth, but price wise hes cheap. He goes to the devlopement I do and buys the (his shop 1/2 mile away) buys the manager, and assistent manger (woman) gift certificates to Filenes for $200 a pc. and asks can he be on the list of contractors that goes on the monthly news letter the assoc. sends out every month, theres 3- contractors on list including me, but when someone has a problem from condos with a/c, or heat pumps, they tell them out of the 3 Iam the best bet, the h.o.'s tell me this, when they call, they say they called offfice and I came highly recccommended, (its good because its all referral, not by knowing anyone) Ive been doing most of wor here , but now starting to get a little nervous, everything at the age of replacement especially the 175 heat pumps there 1989, and with new 13 seer, JESUS! Its amazing what some guys do, like I said here in Boston, its getting very, very competitive, lots of guys starting out on own, scary.
    ================================================== =========

    Don't lose any sleep over that kinda stuff. It's job security. The one who lowball take shortcuts...they have to to work cheap. And you know where shortcuts lead to.

    If you are honest and do a good job, all those guys are to you is job security.
    No reserve. No retreat. No regrets.

    For those who have fought for it, freedom has a sweetness the protected will never know.

    http://www.airwarvietnam.com/16thSOSGunners2.jpg

    Proud member of KA Club

  5. #5
    Lot more around here too. Our country is becoming service oriented, most Mfg jobs are leaving to go to other countries where corp's and stockholders can make higher profits........and they avoid taxes here too. So that leaves us basically with service, from Micky's D's to rug cleaning to HVAC.
    Hey cockroach, don't bug me! ©

    www.AskTheDiceman.com

    www.TheColdConspiracy.com

    www.Pennwood-HVAC.Com

    Bring Em Home....

  6. #6
    Join Date
    Oct 2004
    Location
    OZ Aka SW Florida
    Posts
    1,830
    Welcome To the A/C Business......Hold True...You Can;t Redo Yesterday.....But When The Ball Comes Around Don't Forget.
    Refrigeration...Finding the Wright Wrench to pound in the correct..Screw

  7. #7
    Join Date
    May 2004
    Posts
    12,026
    How true, how true...

    What goes 'round, comes 'round.

    Where did you get your start?

  8. #8
    Join Date
    Oct 2004
    Location
    OZ Aka SW Florida
    Posts
    1,830
    1977 Carrier Dealer Black Rock Ct.
    Refrigeration...Finding the Wright Wrench to pound in the correct..Screw

  9. #9
    Join Date
    Jun 2005
    Posts
    40
    so are any of you self employeds lowering your rates, or your prices (when it comes to change outs?) Another thing in Jan. with new 13 seer I dont know what I will do, Iam a 1-man operation, usually a change out was great change condenser make some $$$$ and go in 1/2 day. Now the indoor also, I dont know how Iam going to do it dont have the $$$$ to hire someone fulltime and then take time to train them?

  10. #10
    Join Date
    Dec 2004
    Location
    Derby City
    Posts
    3,964
    I would say, when you figure out how to give something of value away for nothing, you will cease to have these competition problems.

    I am interested to hear how you do this though.

    It's tighter and tougher everywhere. THAT my friend, is the reason we have to do our job better, and provide something MORE than low price.
    Everyone has a purpose in life..........even if it's to be a bad example.

    Seek first to understand, before seeking to be understood.

  11. #11
    Join Date
    May 2001
    Location
    Bennington, Vermont U.S.A.
    Posts
    13,864
    Guys I have been through this a few times since 1971 when I first started a business with another guy.

    Business is a constant learning experience. If you pay attention to the business news on TV. (The cable and ETV channel not just the blurbs you get on the 6 o'clock news). Then you will see that what is going on in the National scene does really effect your business.

    Pay attention to "housing starts", "interest rates", unemployment percentages, desposable income. These things affect your little business as well as big business. If you can read the signs then you are like an indian scout hiking through the woods.

    My sales are a little shakey this year as compared to last year's. Last year people were spending like drunken sailors. This year interest rates are up. People are a little jittery. My cost of labor is down (no overtime) and my cost of material is down. So the profit is up over last year.

    I would say just watch your spending right now. It is not a time to "down size." Instead of buying 3 filter-driers only buy 2. Call around for the best deal on refrigerant. Shop a little if you get a job. Just don't buy because it is convenient to get everything from one vendor.

    And always remember-- Nothing is as bad as the DEPRESSION of 1991!

  12. #12
    After the steel mills closed here many years ago, all the mill hunkeys suddenly became furnace men....
    Hey cockroach, don't bug me! ©

    www.AskTheDiceman.com

    www.TheColdConspiracy.com

    www.Pennwood-HVAC.Com

    Bring Em Home....

  13. #13
    Join Date
    Jun 2004
    Location
    Howell, Michigan
    Posts
    16,176
    Originally posted by xe1000
    so are any of you self employeds lowering your rates, or your prices (when it comes to change outs?) Another thing in Jan. with new 13 seer I dont know what I will do, Iam a 1-man operation, usually a change out was great change condenser make some $$$$ and go in 1/2 day. Now the indoor also, I dont know how Iam going to do it dont have the $$$$ to hire someone fulltime and then take time to train them?
    Actually I have raised my rates. It's easier to sell at a higher price in my area than be a lowballer.

    Give the customer value, let them know what the value is and stick by your guns. Don't just write your proposal on a business card or a brochure and drop it off.

    If you raise your rates, go flat rate, learn to charge what your are worth you will not only have money for a helper, but you will have money for uniforms, nice professional truck.....well, you should have that right now and everything a well run businees needs.

    Don't be embarrassed by asking too much for what you do.

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