Arkansas HVACR NewsMagazine May 2026

HVACR NewsMagazine May 2026

State National Chapter News

more than the time you were there. For example, if you are there for 4 hours, you must have factored in 5 hours just to recover the windshield / travel time. That doesn’t even consider the time spent doing paperwork; i.e., writing the ticket and explaining the ticket to the office. Oh, and don’t forget, you had to load the truck, empty the truck, and, and, and. Notice I said you must factor in for the windshield / travel time. The homeowner will evaluate you by the time you actually spent at their home. That means your pricing must include the burden of costs not visible to the homeowner. Just to make the math easy, let’s say you want to charge $100 and hour. You must charge $125 per hour to cover this real but hidden cost and that is if you spend 80% of your time at the home. The Math: $100 ÷ 0.80 = $125. The burden must also include the many other factors we mentioned. So, what are you to do? 1 st Get with your accountant. Determine your total costs of operating your business. (This assumes you have an accountant that provides you with a P&L and Balance Sheet. In order for them to do that, you must provide them with complete records of all your financial dealings, income and expenses. No more receipts in the shoe box or stuffed in your drawer.) 2 nd Determine how many hours you billed your customers. 3 rd Consider getting an advisor like Ruth King that will help you understand the accounting records and help you consider your options and plan for the future. This advisor should be someone that has

experience with the HVACR industry and understands service businesses. Find another HVACR contractor, perhaps in another city, that will share their experiences. A mentor will become a trusted friend and important part of your success. One thing this writer is sure of, Ruth King can make a positive impact on your business and your life. Running a business is not like being a tech. A tech works hard, goes home, and can forget the day. A business owner works hard, goes home late, and can never really get the responsibilities out of his or her mind. Makes you wonder why anyone would want to own a business. Well, some of us had an itch and just had to scratch it. Some make a good living and some make a lot of money; but, it is never a 40 hour a week job. The responsibility of serving your customers and your employees is always present AND it is worth it. However, you need a “Ruth King” in your businesses life. Following good financial advice will put you on a path to success. Of course, there are no guarantees; however, it will certainly tilt the odds in your favor. Financial success is about serving your customers, your employees, your family, and your community. It is about having the ability to help folks that really need some help. You can’t do much for others if you ar en’t financially successful yourself. Twelve folks attended the Ruth King, Pricing for Profit seminar. We trust they have information that will prove helpful. Next time, we look forward to even more. If you want to know more about Ruth King, you can contact her at 770-729 0258 or rking@ontheribbon.com 4 th