HVAC contractors have been aiming to hit the 80-20 rule, which presents the goal that HVAC contractors should be flipping 80% of their calls by selling customers a new system, and then service the remaining 20% of the house visits. In the past economy, this worked well. But that was during a time where the economy sung and consumer confidence was riding sky-high. Today, things are different. Interest rates are high and consumer confidence is shaky, making homeowners less interested in replacing their entire system. That being said, now is a great time for an HVAC contractor to have more options than just “repair” or “replace.” Billy Stevens, an HVAC contractor in the Dallas-Fort Worth market, is doing just that. Stevens, who also runs the HVAC software company Sera Systems, offers a third option: the “midlife refresh.” The midlife refresh focuses on the 5- to 9-year-old equipment — the type of equipment Stevens said is often forgotten about by a lot of HVAC contractors. It only costs the homeowner $4,000 and brings the equipment back up to factory levels. And it’s profit margin? 75%.
Repair or Replace HVAC Equipment? There’s a Third Option
An HVAC Minute Video Update: April 16, 2024
