If a company’s financial information is organized according to the traditional HVAC Retail Chart of Account, there is no need to worry about losing money. To make it simple, here is the formula:
Operating Expense Dollars/Gross Margin% = Break Even $
Then for your minimum Daily Revenue
Break Even/Number of workdays in a year (235) = Daily Minimum Revenue
Served their customers well and grew their closing ratios to over 50%.
The first step is to move away from the presumption that you need to have the lowest price to get business, whether it is service or equipment sales. With one or two adjustments, everyone that we work with raises revenue quickly with one or two simple adjustments, without losing business.
Determine why each call generated a call-back. Of the 6 or 7 reasons that may be possible, there are one or two issues that can probably be managed better.
The right starting place would be to attend a ‘Business Building Boot Camp’. As you experience and gain knowledge from the workshop, you will find ways to resolve issues and learn the proper adjustments to make an impact.
Follow up support is provided for those that attend the entire workshop. Participants will have 2 months of unlimited assistance gratis. If you prefer ongoing consulting, the investment will be only $499.00/month (by phone and Zoom support) On site consulting would be determined by the number of days on site.
What does it take to attract talent? Studies have shown that about 60% of those employed wish they were working somewhere else. Knowing where they are looking is the key to finding good candidates.
Actually overhead is necessary to be profitable. The real question is how to right-size expenses.
There is a false presumption that is common in business; that the more we pay in labor the less that is left over for profit. You can learn how to keep your staff the best paid, while being profitable and still maintain competitive pricing.
You can build a business model that ensures your employees, including technicians will have work all year. This model has been used by thousands of contractors.