HVAC Companies That Understand The Competitive Edge ‘QCDF’
All HVAC Business Owners Need To Understand
All HVAC business owners need to understand strategically what it is they must offer to compete successfully. If that means lowest price then they need to structure accordingly: minimal overhead (even if this is a customer inconvenience); finding employees willing to work at modest rate (even if they are less competent); shortcuts at the job-site (even if it shortens the life or the equipment, or increases energy consumption); warranty minimization and/or avoidance (even if this means not honoring commitments either implied or explicit); maximum capacity utilization (even if this means fewer field employees hence longer lead-times and/or critical delays during peak heating/cooling season). If the HVAC business owner does not follow the aforementioned strategy, they will quickly find a cash-flow crunch, and likely will be part of the 95% of all HVAC start-ups that do not survive their first 5 years in business.
For HVAC Companies To Stay In Business
The reality is that you cannot be the highest Quality, fastest Delivery, lowest Cost and most Flexible (hence QCDF), and still be in business for very long. Something has gotta give! The HVAC business is a labor-intensive business, the HVAC service business is extremely overhead intensive in order to respond to customer query’s in a timely basis. While we would all like to arrange our operations to extremely lean standards using the latest technology, the reality is that weather, and customer requests are inherently chaotic and hard to project.
It is best to know exactly how your company rates on each of these four competitive components. Below is a self-evaluation on how we complete, in order of priority:
This is our most fundamental competitive component. As a union company in a non-union industry (residential & light commercial HVAC) we have to be rock solid here, and back it up with customer satisfaction. Our Facebook, Yelp and Google+ reviews indeed do back this up; and we are prepared at any time to give prospective customers a list of happy customers who have had similar installations or service requirements.
We are extremely flexible within our ‘bandwidth’. Our focus is residential and light commercial, so we are limited in many industrial or large commercial applications. Our focus is on the dry-side (air not water based) as opposed to chillers and boilers, and are limited on wet side work we do. We do not work on fireplaces (gas or otherwise). Our sheet metal work is primarily heating and cooling based. However, within all of the above activities we will do anything and everything to make sure the customer is happy.
While we are not the largest HVAC contractor in our market area, we are amongst the larger ones. We prioritize serving our loyal customer base during our hot and cold snaps, over new or prospective customers, in order to keep our customer base satisfied. If this means having our technicians work overtime at regular customer rates for loyal customers, we will do so.
This is where we are at a competitive disadvantage, especially against the independent single-truck contractors who fly below permits and license requirements. As stated before, something has gotta give. However, when it comes to competing with other local HVAC contractors with great reputations, you will find our prices competitive.
If these criteria are most important to you as a customer, we may be candidates to do business together. If your priority is lowest up-front cost, then it is extremely likely we are not the best HVAC contractor for you.