5 Important Things Most HVAC Companies Got Wrong (To Get More Customers)

Newsflash: Most HVAC companies will go through positive growth in the coming years.

Take note — most. That means not all and only the best HVAC companies will remain to reap future profits. I’ll explain why in an instant.

The HVAC industry is one of the fastest-growing and most lucrative sectors in the U.S. Statistics tell us that the HVAC market size was valued at a whopping $16.54 billion in 2021. And experts project this value to grow with a 5.6 percent compound annual growth rate or CAGR within 2022–2030.

Global warming and other extreme climates are the principal drivers behind the uptick in market demand. Moreover, the growth of real estate markets and people seeking more energy-efficient systems add to the U.S. demand.

With increasing market demand for heating and cooling services, many HVAC companies are thriving and expanding rapidly.

However, not all HVAC businesses are successful. In fact, many HVAC companies struggle to get more customers and HVAC leads to saving their businesses. Even with the help of marketing for HVAC companies, efforts fall short, and HVAC customers remain elusive.

Some HVAC companies fail for inevitable and straightforward reasons. But there’s something wrong if you’ve been in business for years yet still struggle with HVAC lead generation and growth. I uncovered the five crucial mistakes that HVAC companies commit when getting more customers.

Discover them below.

Why Do Some HVAC Companies Fail?

According to Jade Learning, there are over 100 thousand existing HVAC companies across the U.S.A.. Surprising?

You’ll be more surprised at how many more entrepreneurs attempted to start an HVAC company but failed. Running a business is not for everyone, but the failure rate is scary.

I’ll save you the trauma by giving a quick run-through of the startup failure rate as reported by Entrepreneur:

• In the first year of operation, approximately 20 percent of small businesses fail
• The failure rate of businesses will reach 30 percent by the end of the second year 
• About half of the businesses will fail by the end of the fifth year
• Only 30 percent of businesses will remain by the end of the decade

That is equivalent to an alarming seventy percent failure rate within the first ten years. Moreover, since the data is calculated across industries, HVAC failure rates may fall in the same ballpark.

This is unnerving, as it highlights the challenges that HVAC companies face in a competitive market. Many contractors fail to get HVAC sales leads or rely on weak HVAC marketing strategies that bear no fruits.

Unsettling as it is, there are known reasons why most HVAC companies fail. And if businesses lack on these fronts, they will likely experience a short dissatisfying lifespan. 

Lack of a solid business plan

One of the key reasons why HVAC companies fail is that they lack a solid business plan. This may mean not having an adequate marketing strategy or robust financial management systems.

A weak business plan can leave HVAC companies vulnerable to service demand fluctuations and cause limited market visibility. Without a clear roadmap for success, businesses may struggle to get HVAC sales leads or stay competitive over time.

To overcome this challenge, HVAC businesses must develop a strong business plan that considers all aspects of running a successful business. For example, including clear-cut HVAC marketing and sales strategies, financial management systems and customer service protocols.

Getting behind on industry trends

HVAC companies that fail to keep up with changing industry trends and advancements are also prone to business failure. Staying up-to-date on industry trends and being proactive in adopting new technologies is crucial for survival.

For instance, this may include investing in marketing strategies that drive more traffic to the company’s website. Or it may be stocking up and offering more energy-efficient systems that help customers save money in the long run.

The business landscape is rapidly changing, and HVAC companies should go along with the times. Otherwise, they risk falling behind their competitors and ultimately failing.

Weak company culture

Having a strong company culture is one ingredient to ensure longevity and survival amidst a competitive market. Your culture represents who your company is underneath the story you portray to the public.

Misalignment between culture and level only hurts your business from the inside. Weak company culture is an Achilles heel for HVAC companies that rely heavily on attracting and retaining talented employees. This results in high turnover, low morale, and poor performance.

Customers are not the only stakeholders that matter — employees matter too.

To be successful in the HVAC industry, companies must place a premium on cultivating and nurturing a positive work environment. Employees must feel valued, supported and inspired to perform their best in the workplace.

This means investing in employee training programs, fostering effective team communication, and providing avenues for career growth and professional development. 

Without these critical ingredients, HVAC companies will struggle to thrive in an increasingly crowded marketplace where customer loyalty is rare.

Poor customer service and buying experience

Another reason for failing HVAC companies is poor customer service and a lackluster buying experience. Customers today are increasingly demanding. They expect a treatment anchored in respect and wrapped in personalized attention the moment they enter an HVAC business.

Unfortunately, many HVAC companies overlook the importance of providing an excellent customer experience. Most businesses focus exclusively on attracting HVAC lead generation without considering how to guide leads down the sales funnel.

A smooth buying experience is necessary to make your customer’s time worthwhile.

Moreover, offering exceptional customer service can differentiate between a satisfied buyer and a loyal customer.

HVAC companies should prioritize streamlining and smoothing out their customer and buying experience.

Ineffective marketing and advertising efforts

The last straw determining the unfortunate fate of many HVAC companies is their marketing and advertising endeavors. Ineffective strategies and questionable tactics are the culprits behind the failure of many businesses.

Contrary to popular belief, offline advertising measures are still critical in today’s business landscape. The best advertising tactic is to converge traditional (offline) and digital (online) marketing. Focusing entirely online, as many gurus suggest, is utter nonsense.

Social media paid search campaigns, and content marketing are not the only marketing strategies that matter. Radio ads, TV commercials, billboard marketing and other offline advertising methods continue to hold their value in HVAC companies.

By aligning the offline and online efforts, HVAC businesses will better connect with their target customers and attract HVAC leads.

There are countless reasons why HVAC companies fail. However, despite the alarming numbers, we could look at the statistics positively. Seventy percent of businesses may fail in 10 years, yet 30 percent still forge on.

Therefore, surviving and thriving HVAC companies know a thing or two about how to run successful businesses. It’s not about declining demand but having the right strategies to pull your business through the ups and downs of the market.

Your business can be one of the thriving HVAC companies in the industry, and we can help you achieve that. Wizard of Sales® is the Master Strategist for many successful residential home service companies across North America.

If you need help strategizing for your HVAC business, book a call.

U.S.A. states with the highest demand for HVAC in 2023

As I’ve mentioned in the beginning, HVAC is a steadily rising industry with a respectable and healthy growth rate. With growing market size comes an increasing demand for HVAC workers and service providers.

The Bureau of Labor Statistics provided several drivers behind the thriving industry; here are some:

• Construction of new buildings and facilities
• Retrofitting or replacing existing and old HVAC systems
• Evolving environmental laws and increasing demand for energy-efficient systems
• Extreme climatic conditions

In other words, as long as we observe these things actively occurring, demand for HVAC will continuously increase. Below we’ll look at several statistics demonstrating the high demand for HVAC workers:

These are the top 10 states with the most HVAC techs and professionals employed. This indicates a strong demand in the locality for HVAC services.

Rank	State	Number of HVAC workers
1	California	32,640
2	Texas	31,060
3	Florida	30,480
4	New York	22,240
5	Pennsylvania	18,110
6	North Carolina	15,150
7	Virginia	11,960
8	Ohio	11,580
9	Georgia	10,450
10	Michigan	9,480

The data below displays the top 10 states with the highest projected increase in available HVAC positions. This indicates that the demand for HVAC services in these areas will also be the greatest across the U.S.A.

There is ample opportunity for growth for HVAC businesses operating in these states. The question is: do you have what it takes to thrive in these prosperous times?

Rank	State	Percentage increase HVAC positions (2020–2030)
1	Utah	46%
2	Arizona	31%
3	Idaho	31%
4	Colorado	30%
5	Montana	25%
6	Texas	21%
7	Nevada	21%
8	New York	20%
9	Iowa	20%
10	Washington	19%

Finally, the last table shows which states will have the highest number of new HVAC positions open within ten years. Like the table above, this represents tons of growth opportunities for businesses. All that’s left is to take advantage of this demand wave through effective marketing strategies and management.

Rank	State	New anticipated HVAC positions to open (2020–2030)
1	Florida	4,250
2	California	3,980
3	Texas	3,720
4	New York	2,380
5	North Carolina	1,760
6	Pennsylvania	1,640
7	Arizona	1,450
8	Ohio	1,410
9	Virginia	1,290
10	New Jersey	1,220

HVAC Common FAQs in Getting Customers

The only way your business survives in the next ten years is when you effectively reel in new clients for your business. Otherwise, you will fall behind competitors, spelling doom for your operations.

But based on the above information, demand is not an issue in the HVAC industry. That means there should be enough new customers for everybody to share, right?

Wrong.

Even with the increasing demand, only the best HVAC companies will manage to capture and convert the new HVAC leads. If you’re struggling with how to get HVAC leads today, that pattern will still repeat itself in the coming years.

I tried investigating the most searched queries of HVAC companies on how to get customers. These were the top results:

• How do you market an HVAC company?
• What is the target market for HVAC?
• How much do HVAC companies spend on marketing?
• How do I get more customers for HVAC?

Let’s say your business survived the ten-year failure curse. If you still ask these questions, you’re not doing a good job attracting new customers. So, what gives? What do HVAC companies do wrong, resulting in failed attempts at bringing in new clients?

Let’s discover the answers below.

What is Wrong With Some HVAC Companies?

HVAC marketing leads are the lifeline of your business. You ensure your business’s longevity and survival with a continuous stream of clients. Unfortunately, getting HVAC customers does not come easy for most HVAC companies, and we uncovered the five reasons why.

Wrong focus on customer pain points

You’re an HVAC company for a purpose, and that is to understand and address your target market’s pain points. This means identifying common issues that HVAC customers deal with, such as high energy bills or inefficient heating and cooling systems. Your marketing messages and solutions should work through these pain points.

However, many HVAC companies fail to correctly identify their customers’ needs and frustrations. This results in ineffective marketing campaigns that do not resonate with their target audience and solutions that miss the mark.

To avoid this problem, take the time to conduct market research and listen carefully to feedback from your existing clients. Gaining a deeper understanding of what drives their purchase decisions enables you to develop better solutions and marketing messages.

There are seven common buying journey pain points that HVAC companies should know:

1. Financial pain points
2. Productivity pain points
3. Online research pain points
4. Product cost pain points
5. Check out pain points
6. Tracking and delivery pain points
7. Multi-channel shopping pain points

While every customer faces distinct pain points, all customers across industries have three primary pain points: fear, shame, and guilt. No customer wants to experience any of these things. Your goal is to alleviate these pain points for customers.

Not identifying the things that matter most to customers

In my years of observing customers across HVAC companies, I observed a common pattern among things customers care about. Generally, customers search for six things when buying HVAC units. The only difference is that each aspect’s degree of importance varies depending on the customer. 

Here are six things customers care about:

• Safety
• Performance
• Appearance
• Comfort/convenience
• Economy
• Dependability/durability

Ideally, you should aim to strike the perfect balance among these six in your product offerings. After all, it’s impossible to effectively capture all six without making compromises. So, the next best thing is to find your priority among the choices.

It falls on your salespeople to determine which matters most to the customer. They must have the skills to cut through the smoke screen and determine customers’ buying motivations. Only then will you offer a solution specific to your customer’s requirements.

But how do you find out?

The secret to this is by digging into your customer’s underlying felt needs. Strip everything away, and only three things matter most to people: money, energy, and time. When you find out which among these underlying felt needs they value most, you figure out what solutions to sell.

Lack of compassion toward customers

The cornerstone of strong customer service is compassion. You will struggle to attract new customers and grow your business without compassion.

A lack of compassion can manifest in many different ways, including the following:

• Failing to understand the needs and concerns of customers
• Assuming their needs and wants
• Skimping on putting in the time and effort to build meaningful relationships
• Lack of empathy and understanding

HVAC customers are sensible people. They will smell through a company’s insincere attempts at customer care. As a result, selling your products and services to customers becomes increasingly tough. Conversely, displaying genuine compassion can be the difference in securing loyal customers.

Here are five tips for HVAC companies to deliver compassion to customers:

1. Be a tireless and patient guide for customers
2. Avoid words that leave a negative impression on customers
3. Add more human touch to your communications
4. Respect your customers’ time
5. Go above and beyond their expectations

Not providing a basic answer to simple customer questions

The simplest question that customers ask is, “how much?“

But countless HVAC companies sweat profusely and internally panic when presented with this question. As a result, the best thing they utter in response is, “it depends.”

Of course, this is the most sensible answer because client needs and situations differ. Therefore, it’s impossible to give an accurate answer.

However, how would you feel if a salesperson threw a vague answer back at your face? It’s not pretty.

Knowing how to answer this age-old query is key to building bridges and rapport with customers.

Here are some tips for answering the dreaded “how much” question:

• Provide an honest price range
• Let customers know that many factors could influence the price
• Steer the conversation in a way where you can better understand their situation and give a more accurate quote

Craft some good lines using these principles, and you come up with a better answer than “it depends.”

Having no idea what customers really want

Customers to have three pain points: fear, shame, and guilt.

They also have three pleasure points: identity, purpose, and adventure.

On top of those, customers have three underlying felt needs felt needs: money, energy and time.

How do you navigate through these things and understand what customers really want?

Simple. You get to know your customers better and classify them according to their buyer archetypes. 

Why?

Each buyer archetype has varying modulations and priorities in their pleasure points, pain points and underlying felt needs. Knowing your customers is key to knowing what they want. This information gives you the headroom to propose a solution that fits their exact needs.

Here are the buyer archetypes:

• Transactional shoppers — they will bargain and haggle with you for the last ounce of profit you can sacrifice. There are two types of transactional shoppers:
  • Oxygen thieves — No amount of argument or value will ever change their mind, hence, only stealing your oxygen. They always settle for the lowest bidder.
  • Birkenstock Professors — You often find them in the wilderness rocking bathrobes and wearing a pair of Birks on top of socks. They often search for the best value for money. 

• Relational buyers — they are willing to pay the right price for the right solutions. There are two types of relational buyers:
  • The Joneses — People who have money but are afraid of making the wrong choice. They make sure the solution they choose is perfect, thus, are willing to pay a reasonable premium for competent convenience.
  • Daddy Warbucks — Loaded with money and time, they are financially free to experience the best of life’s pleasures. Happy to pay a premium for a genuine experience. Plus, they have the means to buy the best if that means exclusivity.

Knowing all of these things is crucial to the survival of HVAC companies. By overcoming these five things, you understand your customers better and open the doors for continuous business.

Here’s the thing: mastering all of these fronts is challenging. You’ll need all the support and guidance you can get for your business. The good news is that Wizard of Sales® can help you strategize and re-align your company with your customers.

If you need help, give us a call and let’s future-proof your HVAC company.