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HVAC Business Review: Second Half of 2016

HVAC Business Review: Second Half of 2016

We’ve passed the halfway point — how well is your business doing this year? Mike Moore explains the best way to evaluate your company’s performance.

If you haven’t done it already, now is the time to give your company a midyear review. As you enter the second half of the year, examine your business model and determine how well your organization is performing. Take the time to rate yourself on several areas. How are you doing regarding:

1.     Replacement Sales  Is the closing rate of one of your maintenance agreement customers is 86% vs. 31% for a marketed lead?

2.     Demand Service (Opportunity) — Is this function generating tech leads of 20% and a 20% close on new maintenance agreements?

3.     Tune-ups — Is this function producing a maintenance closing rate of 63% and a renewal rate of 86%?

4.     Accessories/IAQ Sales — Are the appropriate accessories or IAQ products presented on all opportunities?

While ensuring that maintenance agreements (relationships) remain the center of the business model, your company can enjoy a bottom-line profit of 10% or more while driving customer and employee satisfaction. Use this assessment to determine your company’s weaknesses and address them before the year ends. A little self-evaluation can help you finish out this business year stronger than ever!

For more HVAC industry insights, check out the HVAC Learning Solutions blog, and follow Mike Moore on Facebook and Twitter.

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