If you think winning HVAC jobs means offering the lowest price, think again. The race to the bottom on pricing isn’t just hurting your profits, it’s putting your entire business at risk. In 2025, the HVAC companies that are thriving aren’t the cheapest, they’re the smartest.
Take Paul Olson, founder of Koala Cooling, as an example. Instead of racing to the bottom, he doubled down on value. By raising prices, training his team to deliver consistently, and cutting marketing waste, he scaled his HVAC company from $2.3 million to over $5.5 million in just one year.
So, how did he do it? And more importantly, how can you?
This article breaks it all down. You’ll learn:
- How to stop underpricing and start hitting 15–25% net profit margins
- Why IAQ upsells aren’t sleazy — they’re essential (when done right)
- The systems, tools, and hiring strategies that support fast, sustainable growth
Let’s dive into the strategies that can transform your HVAC business, not just for today, but for the long haul.
Why Most HVAC Contractors Are Still Undercharging
Here’s a hard truth: many HVAC contractors are working their tails off but still end up with zero profit after paying themselves, taxes, and overhead. If that sounds familiar, you’re not alone, and it’s a sign that your pricing strategy needs a serious reboot.
In a healthy HVAC business, you should be aiming for 15–25% net profit. That means after all expenses, including wages, taxes, materials, and marketing, you’re still putting money in the bank. If you’re not hitting those numbers, something is broken in your pricing or operations.
The good news? Raising your prices isn’t just about making more money. It unlocks the ability to:
- Hire and retain better talent
- Invest in tools and technology that improve efficiency
- Fund ongoing training for your team
- Build a business that’s sustainable and scalable for the long term
Want a deeper breakdown on how pricing fits into building a scalable HVAC company? Watch this full interview with Koala Cooling’s Paul Olson on YouTube, it’s packed with tactical insights:
The Profitability Check, Are You Priced Right?
Pricing is a strategic lever that directly impacts your bottom line. Here’s a simple benchmark to help you gauge where you stand:
- 15–25% net profit: You’re in a healthy zone, your pricing likely reflects your value well.
- Below 15%: You’re almost certainly undercharging and leaving money on the table.
- Above 35%: You might be overcharging, and possibly underdelivering on service or value.
Remember, price is just one part of the equation. Inefficiencies, disorganized operations, and wasted marketing dollars can quietly erode your profits even if your rates seem adequate.
Pro Tip: Don’t wait until year-end to review your pricing. A quarterly check-in lets you adjust quickly and stay ahead of changing costs or market conditions.
Stop Trying to Market Your Way Out of Underpricing
No amount of flashy marketing will fix a broken pricing strategy. Many HVAC businesses fall into common traps trying to “buy” growth, but it rarely sticks.
Watch out for these pitfalls:
- Spray-and-pray PPC campaigns that burn cash without clear targeting
- Constantly switching vendors hoping the next one will magically deliver results
- Chasing every shiny new marketing fad instead of focusing on what works
The smarter approach? Go back to basics.
- Clearly define your unique value proposition — what sets you apart?
- Be visible and consistent — wrap your trucks, post regularly on social, and engage in your community
- Build trust locally over time through steady presence, not gimmicks
Why “Joe’s HVAC” Won’t Cut It
If your company’s name sounds like a solo operator, guess what? People will treat it that way. You’re not just Joe in a van — you’re building a business that’s meant to scale.
Want to charge more, hire better people, and dominate your market? It starts with a brand that feels bigger than you.
Take a page from Koala Cooling. Their name is playful, memorable, and scalable — and their business took off like wildfire. It stands out in Google searches, sticks in people’s heads, and makes it easy for customers to refer them.
If your current branding doesn’t get people talking, it’s time for a serious refresh. Start with your website design. It should scream professionalism and trust at first glance.
More Than a Logo
Your brand isn’t just the wrap on your truck or the font you use. It’s how people feel when they call you, see your team, and talk about your service. A sharp brand builds recognition, referrals, and repeat business.
And when you’re backed by solid branding? Every marketing dollar works harder — especially when paired with smart paid ads management.
IAQ Sales Without the Sleazy Pitch
IAQ isn’t an “upsell.” It’s essential to long-term system performance. Skip it, and you’re setting your customer (and your callback rate) up for pain.
Poor IAQ means:
- Filters clog faster
- Coils get dirty
- Systems wear down early
Offer IAQ not to pad a ticket, but to protect your customer’s investment.
Let Customers Choose
Instead of pushing products, educate. Walk your customer through what each IAQ level offers. Let them decide what peace of mind is worth to them.
Here’s one example you could take inspiration from:
- IAQ 1000 (~$1,200): Electrostatic filter
- IAQ 2000 (~$2,100): Adds UV light
- IAQ 3000 (~$3,000): Includes ozonator
“Confidence comes from clarity. When your techs understand the tiers, whether it looks like this or your own version, they don’t have to sell. They simply present clear, helpful options.”
Train Your Techs to Sell Like Pros, No Scripts Needed
Forget stiff scripts. Train your techs to:
- Ask the right questions
- Explain benefits in simple terms
- Make recommendations based on actual needs
This is sales that feels like service. And it works.
Match Every Dollar With Real Customer Value
Speed = value. When your team can respond quickly, your customers feel taken care of. That peace of mind? It’s worth real money.
Don’t be afraid to charge for premium service — as long as you deliver it.
How Better Training Means Fewer Callbacks and Happier Customers
Poorly trained techs don’t just miss details — they hurt your reputation.
Great training leads to:
- First-time fixes
- Better upsell opportunities
- Happier customers (who actually leave reviews)
Want to build a team that delivers? Start with the right people. This list of The Best First 5 Hires for HVAC and Plumbing Companies will help you fill your weak spots and scale faster.
The Art of Explaining Simple Fixes So Customers See the Value
Even a fast capacitor swap or a cleaned drain line deserves a little storytelling. Let the customer know:
- What went wrong
- What you did to fix it
- How it prevents bigger problems
This turns a $200 fix into a $1,000-value experience — without changing the price.
Systems, Tools, and Tricks to Multiply Your Success
You shouldn’t have to reinvent the wheel every week. If something works, write it down. Build systems that your team can follow — and grow from.
Use video walkthroughs (Loom), AI tools for documentation, and simple processes to make it all repeatable.
Filling Your Weaknesses With Superstar Team Members
You’re the visionary. So hire people who can handle the day-to-day. Focus on:
- Phone and admin help
- Sales or marketing support
- Ops-minded folks who clean up chaos
Using Video and AI to Get Millennials & Gen Z Up to Speed
The next generation learns differently. Want them to retain your SOPs? Record a video. Add it to a library. Make it easy.
Training doesn’t have to be boring — it just has to be repeatable.
💡 Bonus resource: Check out this video for real-world tips from contractors doing it right.
Recruit Like a Ninja
Tired of flaky dispatchers? Consider parents who want part-time, remote work. They’re dependable, organized, and often better than full-timers.
Record once, train forever. Simple onboarding means:
- Less time wasted
- Faster ramp-up
- Fewer mistakes
Turn Your Techs Into Educators and Salespeople Without the Sleaze
Your techs are in the best position to educate. So don’t just teach them to fix stuff, teach them to explain why it matters.
Educated customers say yes more often. And your techs? They feel like pros, not pushy salespeople.
Want more referrals, higher margins, and faster growth?
Build a brand, raise your prices, and back it all up with systems. You’ve got this, and we’re here to help when you’re ready to scale.
Repeat After Us: Price for Profit, Brand for Trust, Train for Scale
Pricing isn’t just math, it’s a message. It tells customers whether you’re the cheapest guy in town… or the one who gets it right the first time.
IAQ is a service that protects systems and gives homeowners cleaner air. When you educate instead of push, customers actually thank you for it.
And scaling? It doesn’t have to mean chaos. The secret is systems. Document what works. Train your team to repeat it. Hire people who fill your gaps, and give them the tools to succeed.
Here’s your move:
Audit your pricing. Tighten your training. Build a brand that makes competitors nervous.
