Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast #90- Listener Q&A: HVAC Pricing Strategies and Plumbing Business Valuations
Jan 25, 2024
In a lively Q&A, the hosts tackle strategies for HVAC business owners facing overwhelming demand. They discuss the merits of raising prices versus hiring more installers to manage workloads effectively. The conversation shifts to valuing plumbing companies, particularly those heavily involved in new construction, highlighting the challenges and risks involved. Practical advice on seller financing and the importance of realistic valuations provides listeners with valuable insights for business growth.
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Use Price To Manage Capacity
- Increase prices when you're consistently booked out to shorten lead times and capture higher value.
- Treat price as a moving lever tied to capacity so you sell fewer jobs for more revenue per day.
High Close Rate Can Signal Underpricing
- High close rates and long backlogs indicate price is too low, not just high demand.
- Selling less work at higher prices creates availability and increases daily revenue per tech.
Add Talent And Force Short-Call Discipline
- Hire more installers or specialty techs to compress lead times and enable more closeable changeouts.
- Implement a short-call board (e.g., three-day) to force ownership of lead flow and growth.