Pricing your HVAC service part 3: Fix the problem and the minimum to charge

[@speedyslim1]

At 25 years old , I really appreciate the tons of information that you provide, I’m currently in the position of starting my own Hvac company and your videos give me all the hope I need to keep going . Thanks man !

[@hvacmillionaire]

Thx so much!!!

[@alsur272]

Thank you Kelly, for your insight keep sharing your experience. Much respect!!!!

[@acrepairnearme]

Awesome man! Totally agree. We have to charge! And make a good profit! Reduce unnecessary expenses. But use quality and sometimes expensive tools. The tools is a key to be self confident. Things like, ultrasonic leak detector. If you are able the show to the customer where is the exactly a leak. He will trust you more then 3 other companies just before you. And he will buy a new system from you.

[@briandurussel1377]

This is why he actually can work for himself and have a decent life. He is not doing favors, he is doing business.

[@charanjitjammu693]

Nice video Kelly. Thank you.

[@hvacmillionaire]

Thx CJ!

[@addybra8685]

What amazing information.. thanks for sharing it.. 🙏🙏

[@hvacmillionaire]

My pleasure 😊

[@raganoheatingacinc.4643]

Not sure if you mentioned recommended net profit on installs.

[@hvacmillionaire]

It varies depending on the season. We shoot for no less than 22-30% during the peak seasons and it can go as low as 8-15% during slower times.

[@slairconditioningandheatin8663]

shouldn't the cost of good sold(cogs) include more than just the salary of the highest paid technician? I am trying to determine my overhead percentage, won't that fluctuate as your overhead increases or decreases.

[@Dc9689]

If you have two guys running a service call ( tech and apprentice) are you calculating for both of their wages or just the one? Also how do you create a flat rate system for service when prices vary so much between furnaces? Ex. Inducer for a Trane may cost twice what it costs for an Amana.

[@hvacmillionaire]

I use a spreadsheet that you put in your price on equipment then most of the labor and materials are the same except for certain systems that take communicating stats but you just make sure to pair those with the correct systems. Once you decide what your gross margin is that you want then add in your commission percentage or spiff it calculates the price for you. We don't add extra for an apprentice riding with an experienced tech.

[@heatncool]

21:54 "one man working out of his van, garage should be no less than 375 hr. Wow. Man thats definitely flat rate. Should I try that starting out In January?

[@hvacmillionaire]

Get the book “On the shoulders of giants” by Jack Tester. Read it.

[@heatncool]

@@hvacmillionaireon the shoulder of giants! Sounds like a plan 😂 my business is a giant. Not bad. I'll ride that... I'll make sure i tester. Thanks Kelley

[@myers326]

Are you counting owners salary as overhead in these equations ? Also when you say your business showed 2-4% profit are you filing as a corporation with you as an employee or is this as you as a llc and that’s all the money you and the business made?

[@hvacmillionaire]

I said industry average is 2-4% for Hvac businesses being reported.

[@xtremecomfort7799]

How can I go back and see part 1 and Part 2?Thanks!

[@hvacmillionaire]

Just go to my channel and you should see all my videos. 👍👍click on “hvacmillionaire”

[@xtremecomfort7799]

@@hvacmillionaire Thanks Guy!!!I Appreciate it!!!

[@1984juant]

What if you work like 4 hours of actual work a day, shouldn't I double it those 25 an hours to 50?

[@slairconditioningandheatin8663]

what crm are you using?

[@hvacmillionaire]

Service Titan

[@slairconditioningandheatin8663]

@@hvacmillionaire If you were a 2 man operation would you still use Service Titan.

[@hvacmillionaire]

@@slairconditioningandheatin8663 we used Housecall pro before switching to ST so I would go that route.

[@slairconditioningandheatin8663]

@@hvacmillionaire thanks