Arkansas HVACR NewsMagazine May 2023

HVACR NewsMagazine March2023

Tech News

Step Right This Way! Snake Oil Sales

Westerns on big screens in the 1940’s, 1950’s and television in the 1960’s and 70’s remind us of the traveling medicine shows, complete with magic acts, Indians, and singing dudes, that were a front for peddling elixirs, tonic water, and rheumatoid cures.

dependent upon how many repeat customers or service agreements you have. Also, with new ideas and products popping up in the HVACR industry, we must keep our wits about us. We are about to witness an abundance of products and services aimed to lower heating and cooling costs while lessening demands on utilities. Many of these competing products will run counter to lowering customer bills. If you believe in free market, you understand that electric only, can ultimately bring higher price for a general commodity. It’s advised to make deliberate moves as moneys set aside may not become available prior to the end of the 2023 summer rush. Many states that accept IRA moneys will be slow to get the funds rolling due to a lack of process. The moneys should run over a course of six to ten years if done correctly. The HVAC industry witnessed widespread low performance with the Better Building Initiatives (2010), due to a rush to market with money to counter a sluggish economy. First point is, converting homes to all electric, is not a new idea. “Gold Medallion Homes” was initially launched in 1957, with a conservative Ronald Reagan as spokesman for the program. The idea of the program was to move to multiple fuels for generation of power and electricity only as the end consumer product. The

Little has changed, other than the format. From the back of a wagon to early evening television and internet adds. Folks are always trying to pry a dollar out of someone’s hand. While HVACR is a legitimate business, we need to make sure what we deliver, matches what the manufacturer claims. With the opportunities that are about to be upon our trade with tax credits, and outright payments for systems, and appliances, we must take advantage. You now have a foot in the door. Will you be the business that develops customer relationships, or will you grab the money and run? If your company is new, I can make a prediction. At the end of the funding cycle of six to ten years you will have a business that is marketable*, or you will have a boat, RV, deer lease with a portable building on it, and possibly a note on a $140k truck and several suppliers with notes over thirty days due. That * indicates a market value of 3 to 8 times EBITDA. EBITDA is earnings before interest, taxes, depreciation, and amortization. That 3 to 8 wide swing is