From pricing strategies to branding and investment opportunities, Goodrich shares valuable insights that can help HVAC entrepreneurs thrive in a competitive industry. In this blog post, we’ll delve into the highlights of their conversation and explore the key takeaways for HVAC business owners.
1️⃣ Pricing is crucial: Goodrich emphasizes the importance of understanding the mathematics behind pricing to ensure a minimum 50% gross margin. Pricing dictates the margin, and controlling costs is essential for profitability.
2️⃣ Branding and storytelling: Having a relatable origin story and a memorable brand is vital for attracting customers. Goodrich shares how Gettle’s brand story, rooted in the invention of the residential air conditioner, has created a strong connection with customers.
3️⃣ Diversify lead generation: While digital marketing is important, Goodrich advises against over-reliance on web leads. He suggests exploring other lead generation methods like door-to-door campaigns and guerrilla marketing. Building a recognizable brand and creating a sales force through effective lead generation strategies can yield better results.
The Power of Pricing:
Goodrich emphasizes the importance of understanding the mathematics behind pricing to ensure a healthy gross margin.
- He suggests aiming for a minimum of 50% gross margin in the mechanical trades industry.
- By pricing services correctly, businesses can generate sustainable profits and avoid the pitfalls of underpricing.
Building a Memorable Brand:
Having a compelling brand story is crucial for HVAC companies. Goodrich shares his personal experience with Gettle, highlighting the significance of an origin story that resonates with customers. A relatable brand story can create a strong connection with clients and help sell the job before the salesperson even arrives.
Diversifying Lead Generation:
While digital marketing is essential, Goodrich cautions against over-reliance on web leads.
- He suggests diversifying lead generation strategies, including guerrilla marketing and door-to-door campaigns.
- By exploring alternative methods, HVAC businesses can tap into untapped markets and reach potential customers who may not be actively searching online.
The Importance of Profitability:
Goodrich emphasizes that revenue alone is not a true measure of success. Instead, he encourages HVAC business owners to focus on profitability and net profit. By understanding the financials and controlling costs, businesses can ensure long-term sustainability and growth.
Investing Beyond the Business:
In addition to running a profitable HVAC business, Goodrich advises entrepreneurs to consider investing in real estate, particularly industrial warehouse spaces.
- Owning a building larger than what is currently needed allows for future growth and creates a valuable asset.
- Goodrich also suggests exploring investment opportunities in ancillary services and technologies related to the industry.
Running a successful HVAC business requires a strategic approach to pricing, branding, lead generation, and profitability.
By implementing the insights shared by Ken Goodrich, HVAC entrepreneurs can position themselves for long-term success in a competitive market. Remember, it’s not just about revenue; it’s about building a profitable business that delivers value to customers and creates opportunities for growth and investment.