Experienced HVAC professionals know one thing for certain: This is a competitive industry with a tight labor pool and compressed profit margins.

Those factors make it exceedingly difficult for dealers to grow their business while maintaining a high level of quality customer service. It becomes even harder when well-intentioned professionals shrink their profits further by falling into any number of financial pitfalls.

That doesn’t have to happen, however. Business success begins with understanding – and learning from – the common, costly errors HVAC contractors tend to make.

Mistake #1: They’re scared to charge enough. It’s understandable that business owners don’t want to appear that they are taking advantage of customers. But many don’t truly consider the cost of business to perform each job.

At the heart of this issue is the fact that many HVAC companies don’t have a good understanding of their financials. It’s critical for distributors to use their resources to help dealers determine that figure by helping them establish their overhead costs and build a price book.

Be sure your dealers also factor in enough margin to pay a quality rate – and keep a solid workforce. At the end of the day, HVAC repair is a competitive market and good employees will go to the business that pays the best. Keep in mind that an employee who produces quality work is someone who will bring in more business. In the end, it could be more economical to offer a pay raise than lose a good employee to a competitor.

Mistake #2: They don’t offer financing. Talking about money can be awkward, and it’s tempting to avoid the financing conversations for homeowners who seem like they could be offended by the insinuation that they can’t afford repairs.

There’s an easy workaround, however. Coach technicians to offer both a cash price and a financed price. That way, you are simply presenting all options without making any assumptions about the customer’s financial situation.

In the end, a cash buyer walks away feeling he got a good deal – while eight out of 10 customers will choose financing and opt for a 30% increase in upgrades.

Mistake #3: They don’t appropriately market their business. There are many inexpensive ways to drum up valuable word-of-mouth business. Technicians can follow up their visit with a text, asking for a Google or Yelp review. Door hangers, yard signs and community advertisements go a long way as well.

Often, distributors have marketing departments to maximize this value. They also contribute resources such as co-op dollars through manufacturers that can help offset the cost of anything from truck wraps to clothing.

It’s important for technicians to be backed by a comprehensive, longstanding distributor. Callbacks will eat through their profit margin quickly, so having the deep expertise of a strong distributor in their corner directly correlates to their bottom line.

Mistake #4: They avoid quoting high-end systems. Customers deserve to know all of their options, without their technician leaving out the most expensive items on the assumption that they won’t purchase them.

As distributors, we can provide our HVAC dealers with business development training that educates and empowers technicians to be comfortable talking through all systems. Likewise, we have the ability to offer industry-specific resources that technicians can pass along to their customers.

Mistake #5: They fail to partner with a good distributor. Dealers don’t need another salesperson. They need their distributor to be a true business partner, one with the resources to offer quality warranties, ongoing training and service support.

It’s important for technicians to be backed by a comprehensive, longstanding distributor. Callbacks will eat through their profit margin quickly, so having the deep expertise of a strong distributor in their corner directly correlates to their bottom line.

In the end, a well-trained, quality technician will drive a profitable HVAC operation. That, in turn, drives customer loyalty and trust at the distribution level.

Together, we can grow industry success.