At the end of December, after all the holiday parties and extra calories I always look forward to getting back into a routine. Thanksgiving, Christmas, New Years Eve—all great times to get reacquainted with family and relax. But then comes January 1st.
The ultimate “reset” button.
I’m not sure why we value the calendar year so much but most of us do. January is a time to get back to basics and figure out what you are going to do to move forward in the New Year, both personally and professionally. Many join a gym and vow to shed some pounds. Others pledge to improve their financial situation.
As a business, contractors have several critical things they can do to increase profits and efficiency in the coming year. Here’s a few to focus on.
- Adjust your rates. You work hard and should be making more money. Many contractors that we come into contact with don’t charge enough to make a reasonable profit. With flat rate pricing you can raise your rates with very little push back from the customer. That’s because you present the customer a price before you begin the repair. 91% of US homeowners prefer to know the price upfront. Even raising your rates just $15 an hour can make you $15,000 more per year for each tech (based on one thousand calls per year with an average of one hour per call). That’s a big difference.
- Increase your knowledge on technology. Technology is changing so fast across all fields including HVAC. With smart technology and artificial intelligence making tasks more efficient and profitable it’s good to keep up with the latest improvements.
- Sell Maintenance Agreements. If you aren’t selling them already, signing up customers for maintenance agreements can provide steady income and steady work during slower times of the year.
- Look for ways to push past the status quo. Focus on a few areas of the business that need help and take action.