Leadership

Fixing a Revenue Plateau in HVAC & Plumbing: Hard Truths and Expert Strategies

date posted

03/02/25

read time

10 Mins

At Hook Agency, we illustrate the concept of the "Law of the Lid." A chaotic scene unfolds as individuals scramble over each other toward a large lid marked by limitations such as "fear" and "micromanagement." Above them, one person stands tall, spotlighted as a leader. Below, many are ensnared by obstacles like "lack of vision" and "revenue plateau." Our visual serves as a stark reminder to overcome these barriers for success.

Despite experienced hires and rebranding, many HVAC & plumbing businesses get stuck at $50Kโ€“$125K/month.

They have inconsistent performance, leadership gaps, weak sales, misaligned roles, and high expenses.

“Youโ€™ve fallen into the trap I like to call โ€˜death by Facebook.โ€™ Iโ€™ve seen too many home service companies spending money on branding, expensive marketing agencies, and training programs, thinking it will fix everything. The truth is, without discipline and constant management, your team wonโ€™t change. You canโ€™t spend your way out of poor leadership.” โ€“ Jamie Clark

At Hook Agency, we illustrate the concept of the "Law of the Lid." A chaotic scene unfolds as individuals scramble over each other toward a large lid marked by limitations such as "fear" and "micromanagement." Above them, one person stands tall, spotlighted as a leader. Below, many are ensnared by obstacles like "lack of vision" and "revenue plateau." Our visual serves as a stark reminder to overcome these barriers for success.

Fix This Now:

โœ” Keep top performers selling, not installing. Let your best tech close deals while lower performers handle installs.
โœ” Implement call-by-call management. Daily tracking, huddles, and real-time adjustments increase revenue per job.
โœ” Pay for performance. Incentivize technicians with commission-based pay to boost motivation and sales.
โœ” Track daily revenue goals. Create a daily P&L report to identify weak points early.
โœ” Fix leadership issues. If your manager isnโ€™t driving results, restructure now before the business stagnates further.
โœ” Cut wasteful expenses. Your overhead might be killing profitabilityโ€”trim where necessary.

Statistics & Hard Facts

  • A top-performing technician can close 3โ€“5x more revenue than an average techโ€”yet many owners still have them doing installs.
  • $1,500 minimum per job ticket should be the goal to maintain a healthy profit margin.
  • A 35%+ board fill rate with aged opportunities (10+ year-old systems) significantly increases conversion rates.
  • 100% of high-growth service companies enforce daily huddles and strict performance tracking.

“Leadership ability is the lid that determines a personโ€™s level of effectiveness. The lower an individual’s ability to lead, the lower the lid on their potential. The higher their leadership ability, the greater their effectiveness. Your leadership is always the lid on your success. If your leadership level is an 8, your effectiveness will never be higher than a 7. If your leadership is only a 4, you will struggle to perform at a 5. To reach the highest level of effectiveness, you must raise your lid by increasing your leadership skills.” – John C. Maxwell

Stuck and Frustrated? Youโ€™re Not Alone

Running an HVAC or plumbing business can feel like an endless cycle of ups and downs. One month, revenue looks great; the next, youโ€™re barely covering expenses. Despite hiring experienced technicians, investing in top-tier training, and even rebranding, many business owners find themselves stuck in the same revenue rangeโ€”never quite breaking through to the next level.

This is the exact struggle a home services business owner shared in a viral post that sparked hundreds of expert responses. The key question: Why are we stuck at $100Kโ€“$125K per month in revenue despite doing all the โ€œrightโ€ things?

Through deep discussion, industry veterans uncovered several hard truthsโ€”and real solutionsโ€”that could transform a stagnant business into a thriving operation.

Key Challenges Holding HVAC & Plumbing Businesses Back

1. Inconsistent Performance & Revenue Fluctuations

Your best technician is closing deals left and right, but the rest of the team is underperforming. That means some weeks are great while others barely cover payroll. The lack of consistency creates stress, poor planning, and operational inefficiencies.

2. Leadership & Accountability Gaps

One of the biggest roadblocks? Sporadic leadership. Many HVAC/plumbing businesses have systems in place but only enforce them when revenue starts slipping. Without consistent accountability, technicians default to their lowest allowed performance.

3. Technicians Are Not Sellingโ€”or Maximizing Opportunities

If your bottom three technicians are turning in low-dollar tickets, itโ€™s not just a skill problemโ€”itโ€™s a sales problem. Many techs struggle to offer full solutions to customers and leave money on the table with every service call.

4. Misalignment of Roles & Responsibilities

If your top technician is your best closer, why is he still installing jobs? High-performing techs should be focused on what they do bestโ€”closing deals. Meanwhile, your underperforming techs need a structured plan to step up or step out.

5. High Expenses vs. Low Revenue

With $100K+ in monthly expenses, many home service businesses find themselves in financial quicksand. If revenue isnโ€™t outpacing overhead, itโ€™s time to make cuts, adjust pricing, or drive better efficiency in operations.

Expert Solutions to Break the Revenue Ceiling

We pulled the most actionable, no-BS advice from industry leaders in the discussion. Hereโ€™s how they recommend fixing a revenue plateau in HVAC and plumbing:

1. Focus High Performers on Sales, Not Installs

Advice from Norris Ayvazian & Brian Burton:

  • If your top tech is great at closing, they should not be doing installations.
  • Assign installs to lower-performing techs, keeping your top seller focused on maximizing revenue per call.
  • Consider setting up a dedicated install team so your best closer stays in front of customers.

โžก Norris Ayvazian:

โ€œIf your manager actually had experience growing a company, they’d be obsessed with metrics and execution. Someone’s resume needs a fact-check. A real growth-focused manager would be living and dying by the numbers, not avoiding revenue discussions. Your top tech should be closing, not installing. Have the lower performers do installs to support the high performer.”

โžก Brian Burton:

โ€œIf your top tech carries that opp average and conversion rate regularly, he shouldnโ€™t be installing. Have the top tech sell and the other three install for him. The only calls they run are on-call until they get their ticket averages over $1300. If they leave, at those ticket averages, youโ€™ll be better off. Then just hire two installers for your top tech. Find another version of the top tech and do it againโ€ฆโ€

2. Implement Call-by-Call Management

Advice from Kyle Hagen & Steven Crosby:

  • Daily call reviews must be non-negotiable.
  • Before techs head to a job, they should have clear expectations on sales goals and service standards.
  • Every call should be tracked, analyzed, and reviewed for missed revenue opportunities.

โžก Kyle Hagen:

โ€œCall by call management is the only thing that can save youโ€ฆ Donโ€™t wait, every day is lost revenue and greater frustration! Your expenses are HUGE!”

โžก Steven Crosby:

โ€œWould be happy to dig into their operations and help. Daily huddles need to happen, period. If youโ€™re not reviewing zero-dollar tickets, tracking performance, and setting clear expectations every single day, you might as well shut the doors now. This isnโ€™t optional.โ€

โ€œIf you could get all the people in an organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.โ€ Patrick Lencioni, 5 Dysfunctions of a Team

3. Set and Enforce a Performance-Based Pay Structure

Advice from Nicholas Sambrick & Joe Payette:

  • Offer commission or bonus incentives to reward techs who upsell properly.
  • Set a minimum job ticket goal ($1,500 per job is common in high-performing companies).
  • Track conversion rates per tech and take action if someone consistently underperforms.

โžก Nicholas Sambrick:

โ€œThe average tickets are way too low for those bottom people. Consider implementing a bonus for the techs when they reach a certain amount of sales for the month. If a tech can sell 40k for the month they get a bonus and then 10% commission on each sale above that. If they donโ€™t have commission incentives thereโ€™s no motivation to put in the extra work and take care of customers and offer the solutions they need.โ€

โžก Joe Payette:

โ€œWithout reading through all the comments. My opinion is they feel underpaid or not paid by performance or commission pay. Seems like there is no incentive to do more on each job. You may also need to raise your rates.โ€

4. Get a Handle on Your Financial Metrics

Advice from Brian Delfield & Michael Fox:

  • Your business must track daily revenue goals and job profitability.
  • Create a daily profit and loss report that your leadership team reviews.
  • If your overhead is too high, cut unnecessary costs immediately.

โžก Brian Delfield:

โ€œIf there is no map then how do you know where you are going? There will sometimes be a detour, but the target is always the same. If you do not have a target/goal, how does the company know where to aim? You need daily revenue trackingโ€”expenses vs. salesโ€”so you see problems before they hit.โ€

โžก Michael Fox:

โ€œThe root of your problem this week is not enough opportunities to guarantee each tech has 2-3 jobs per day. Then the secondary issue is the value per job is too low on 3 out of 4 technicians. You have to understand your traffic machine, your CSR, and your sales machine. That includes training to ensure every order is $2,500 minimum which is what would pay the bills and guarantee healthy profit.โ€

โ€œYou canโ€™t rely on outsiders to build your company, or hope for a knight in shining armor to save you. You need a repeatable process that you can track, refine, and enforceโ€”every single day.โ€ – Ken Goodrich, Goettl Air Conditioning

5. Hold Leadership Accountable

โžก Advice from Ryan Redding & Jamie Clark:

  • If your manager isnโ€™t actively driving sales and operations, why are they there?
  • Leadership must be obsessed with metricsโ€”daily huddles, performance tracking, and goal setting should be mandatory.
  • If leadership avoids tough conversations, restructure leadership now before it kills growth.

โžก Ryan Redding:

โ€œYour revenue might not be the real problemโ€”consistency is. It sounds like things slide when revenue is good, and panic sets in when itโ€™s low. That kind of cycle makes it really hard to scale. Leadership isnโ€™t just about stepping in when things are badโ€”itโ€™s about holding the line every day, especially when things are going well.โ€

โžก Jamie Clark:

โ€œYouโ€™ve fallen into the trap I like to call โ€˜death by Facebook.โ€™ Iโ€™ve seen too many home service companies spending money on branding, expensive marketing agencies, and training programs, thinking it will fix everything. The truth is, without discipline and constant management, your team wonโ€™t change. You canโ€™t spend your way out of poor leadership.โ€

Step-by-Step Action Plan to Fix Your Revenue Plateau

โœ” Reassign your top closer to sales onlyโ€”keep them off installs.

โœ” Start call-by-call coaching todayโ€”no more guessing on results.

โœ” Create a performance-based pay structureโ€”bonuses for top earners.

โœ” Track revenue dailyโ€”get a real-time handle on profitability.

โœ” If leadership is weak, change it. Someone must drive accountability.

โœ” Trim unnecessary expensesโ€”every dollar wasted is a dollar lost.

The Hard Truth About HVAC & Plumbing Growth

If your business has been stuck at the same revenue level for months (or years), itโ€™s not a flukeโ€”itโ€™s a leadership and accountability problem. You canโ€™t train your way out of weak execution. You need a culture of ownership, daily accountability, and a clear plan for revenue growth.

Your Next Move? Take Action.

Whatโ€™s the biggest challenge your HVAC or plumbing business is facing right now?

๐Ÿš€ Need help driving leads and optimizing sales? Letโ€™s talk strategyโ€”because doing nothing is the only thing guaranteed to keep you stuck.

Learn How To Do Google Local Service Ads Yourself (Free DIY Course)

Want to know how to start getting Local Service Ads leads on your own?

๐ŸŽฅ 3 original videos designed to help you get started on LSA Ads.

๐Ÿ”ฅ Get the ‘Google Guaranteed’ badge to use in other marketing as well.

๐Ÿ“ˆ Only pay per lead, and start getting more leads soon!

Is there you or someone on your team that would like to take it? Enter their info (or yours) below!

Ready to take the leap?

Let's talk about what's possible for your business.

Book an Intro Call