How To Save $3500

HOW TO REALLY SAVE $3500 OR MORE

THEIR OVERHEAD – THE TRUTH

In the midwest, companies on average add around $3500 to $5900 onto each sale to cover the costs of operating the business. The biggest part of these expenses go to cover the cost of their properties and marketing.

THEIR BUILDINGS

Just go on google and look at the buildings and grounds of most of the heating & cooling companies that you have heard of. They are big, beautiful and the land they sit on is worth a fortune. Some of these companies have over 100,000 sqft warehouses. For the past 50 years or so, owners know that the building and land is worth more than the business. The plan is to make enough off your customers to cover the building and when you want to sell the company, the property is the real asset.

THEIR MARKETING

Marketing is a huge expense in the heating & cooling industry. If you have seen them on tv or heard them on the radio, recieved mail, email, or coupons then they are spending tons on marketing. Most large companies budget $500,000 to several millions of dollars on marketing annually. It is estimated that a company spends over $800 for every sold furnace and air conditioning system. This has to be included in the cost of the system.

THEIR PROFITS

There are several organizations that help owners guide their business today. They use what are called (kpi’s) key performance indicators to drive growth and profit. Most recommend a 30% equipment cost, 10% or less on materials, 10% or less on labor, 8-10% selling expenses, 30% overhead with 10-12% profit. These are widely regarded as the norm for the hvac industry.

OUR BUSINESS MODEL

OUR OVERHEAD

Our business model limits our overhead to 10% or less. This is our total operating budget, allowing us to save our customers, on average, 20% off of a heating and cooling system.

OUR VIRTUAL WAREHOUSE

Our vendors have huge warehouses with just about everything we could possibly need. Not to mention hundreds of pieces of equipment and parts. Furthermore, if there is something we need that they don’t have, they can overnight it from another one of their warehouses. We don’t need a huge warehouse to put vast stuff in. We have one central office. Our vendors show up between 6-7am. We unload from their trucks into our trucks. It works great, simple and efficient.

OUR MARKETING

If you’re reading this then we have obviously done some marketing. We spend very little on direct marketing. Preferably, we hope you ultimately hear about us from someone else who loved our people and company.