Arkansas HVACR NewsMagazine March 2021

HVACR NewsMagazine March 2021

Business & Marketing Tips

How do you know? If you don’t operate off a pricing schedule or flat rate you are discounting your work because you have no reference point for charges. Set up minimum charges for common processes so you don’t spend time figuring up each ticket and stick with the charges. Review gross profit often to make necessary adjustments. Review your service calls and installations making sure you have 35 to 45% gross profit over time on most sales, with a goal of 12 to 15% net for minimal revenue. Be sure you are not paying the supply house for a system you sold six months ago. Review AP’s to be sure you are current on all debts owed. Make sure you have cash (not credit) on hand for repairs or short downturns in business or other unexpected costs. Be sure your debt to income ratio does not exceed 30% of annual revenue and work to keep it below 20%. Once you settle the fact you are profitable, set up a schedule of what you desire to give back to the community. When you find the single mom, elderly or disabled and you desire to help, deliver an invoice for the full amount, and write off the entire ticket! No discounts! Then when you drive away you will be Superman to the person served, the community and the industry.