When the Great Recession started in 2007 and the stock market subsequently crashed, home and business owners clamped shut their wallets. Nationwide, some industries saw steady declines in sales, forcing deep cuts and mass layoffs. Others – like HVAC – barely felt a twinge.
HVAC has long been considered “recession-proof” – an indispensable industry resistant to economic instability. Indeed, reliable cooling and heating will always be necessary for healthy living, but that doesn’t mean HVAC business owners shouldn’t be prepared for an economic crunch. If we learned anything from the past two years, it’s that preparation is essential to robust business.
The EverRest Group, the nation’s leading HVAC contractor success organization, believes all HVAC companies should be recession ready. We have some tips:
1. Reconsider your marketing strategies
During an economic downturn, business owners look at all angles to keep costs under control. One place not to cut – marketing. Marketing improves customer relations, increases customer loyalty and develops brand identity.
Rather than cutting marketing expenses, work to find new ways to reach customers. Consider:
- Expanding the company’s email database by contacting old leads and former customers.
- Using content marketing to educate, inspire and inform customers.
- Analyzing the competition’s marketing strategies to get some new ideas.
- Improving the company’s social media accounts to connect with existing and new customers.
The EverRest Advantage: Wonder how other HVAC companies do it? Want to speak to like-minded professionals? EverRest’s lively training programs, held at our beautiful education complex in Montgomery, show contractors how to implement the EverRest process while connecting them with others having similar challenges. Can’t make it to our Peak Performance Training Center in Alabama? Our dynamic online training seminars and webinars provide much of the same information, only accessed from the comfort of your couch.
2. Offer financing
Let’s face it, replacing an HVAC unit can be a financially daunting prospect for most homeowners, particularly during an economic downturn. Many homeowners can’t afford to buy a new unit outright. HVAC companies that offer financing increase customer buying power and boost overall satisfaction. Financing also gives HVAC companies a competitive edge in a tight market.
The EverRest Advantage: EverRest’s exclusive partnerships make it easier for HVAC companies to succeed in all business areas – financial, marketing, operations and sales. Each partner company has experience with the HVAC and construction industries to provide specialized services. In the economic realm alone, our partners help HVAC contractors position themselves for the future.
3. Reduce overhead and expenses
Cost cutting doesn’t have to be huge or painful. Minor cuts and thrifty shopping can add up to significant savings. Try:
- Shutting off all the office lights at night
- Using motion-sensor lights for storage rooms and offices
- Shopping electricity rates (if that’s a local option)
- Using programmable thermostats
- Sealing leaks in the building envelope
- Checking toilets for water leaks
- Going paperless for invoices and other customer interactions
- Reviewing credit card bills and bank statements for unnecessary charges
- Itemizing equipment and trucks regularly
- Keeping vehicles in good working order
- Having technicians take defensive driving courses for an insurance discount
- Donating obsolete inventory for a tax write-off
- Using cash-back credit cards
- Incentivizing technicians with performance bonuses
- Expecting payment upon completion of services
- Asking the customer, “Are you aware of today’s service charge?” before beginning any work
The EverRest Advantage: EverRest is the only HVAC contractor success group with a 20% net profit HVAC company. Hans Heating & Air, owned by EverRest president and founder Hans Luquire, clearly demonstrates mastery of the EverRest process. Every month, EverRest publishes detailed Hans Heating & Air performance reports that show precisely how we get it done.
4. Build cash reserves
A cash reserve, or an emergency fund, can mean the difference between surviving or thriving. Experts say saving three to six months of operating expenses provides a good buffer in hard times.
HVAC companies that need better control of their finances should conduct a cash flow analysis that shows how money flows. Use financial modeling for a path to smart money management.
The EverRest Advantage: When you join The EverRest Group, you get decades of HVAC business knowledge and expertise. EverRest has helped thousands of HVAC companies achieve the goal of 20% net profits with our proven method. In addition to training programs, online resources and partnerships, you get access to our proprietary materials, including spreadsheets, call center scripts, newspaper ads and more.
In uncertain financial times, everyone – from business owners to homeowners – feels anxious about the future. Even though HVAC is considered recession-proof, business owners need a sustainable operating model to thrive through an economic downturn.
The EverRest Group’s approach to HVAC sales is like no other – providing a clearcut path to 20% net profits. The EverRest method puts technicians in 4 to 5 homes a day year-round, opening the door to endless earning possibilities.
EverRest’s motto, “Make Your Own Weather,” is foundational for the company’s method. EverRest rejects the notion that HVAC is a seasonal business. Instead, EverRest believes HVAC companies can use every season – not just summer and winter – for earning opportunities.
Through the EverRest process, HVAC companies and their employees can excel in sales, customer service and technical skills. EverRest’s tools help HVAC companies reach peak performance, even during uncertain times.
We don’t just talk success. We are success.