Table of Contents
- Why HVAC businesses sometimes struggle to grow
- How to grow a heating and air conditioning business
- Three simple ways how to make money in your heating and air conditioning business
- Get the funding to grow your HVAC business faster
You can be great at fixing systems and landing service calls, but that doesn’t always add up to a profitable HVAC business. Maybe you’ve hit a growth ceiling, or maybe you’re working nonstop but not seeing it pay off. If that sounds familiar, you’re not alone. Many HVAC business owners get stuck asking how to make money in the heating and air conditioning business.
| “Success in HVAC comes down to more than technical skill. Profitability depends on building predictable revenue, controlling costs, and creating systems that work even when you’re not on the job,” Credibly Founder Ryan Rosett said. |
It’s common to finish the year with just a 2–3% net profit, even if your gross margin hits 50–55%. Without managing costs and pricing, the business side can completely offset your hard work.
The good news? These roadblocks aren’t permanent. With the right strategies, you can shift from simply “getting by” to running a business that grows year after year.
In this guide, you’ll learn practical ways to:
- Price your services to maximize profits.
- Upsell and cross-sell products customers actually want.
- Streamline operations to save time and money.
- Create a reliable path to long-term growth.
Why HVAC businesses sometimes struggle to grow
Growth doesn’t just happen. For HVAC companies, it’s often stalled by a mix of challenges that can pile up.
Most HVAC businesses fall closer to the median annual revenue of about $1.2 million, not the $10 million industry average that’s skewed by larger firms. This gap highlights how tough it is for smaller contractors to break into higher revenue brackets.
You want to grow, and you’re looking at some steep numbers. You might be dealing with these problems:
- Hiring and keeping the right people: Finding experienced techs is tough, and keeping them on your team is even harder. When you’re short-staffed, you end up back in the field instead of running the business.
- Cash flow: Strong revenue doesn’t always mean money in the bank. Slow-paying customers, surprise costs, and uneven seasonal demand can drain your cash and make it hard to plan ahead.
- Clunky systems: Paper notes, messy scheduling, and outdated billing methods eat up time you don’t have. Without streamlined processes, you risk dropping the ball on jobs and customer communication.
- Crowded competition: New HVAC companies are entering the market every year. Some cut prices, others dominate online. To stand out, you need a clear strategy to win customers.
- Inconsistent marketing: Word of mouth helps, but it won’t fuel consistent growth. Without an intentional marketing plan, you’re relying on chance instead of building a reliable pipeline of jobs.
| Learn how you can leverage financing for better business opportunities: |
How to grow a heating and air conditioning business
Growing an HVAC company takes more than keeping customers comfortable. You need a clear plan, strong margins, and a strategy that makes you stand out. Here’s how to get there.
1. Start with a plan that actually works
The HVAC industry is slated to continue growing, up to $130 billion by 2030. Before you put more money into ads or new hires, build a roadmap for your company. Define your target customers: are you going after residential, commercial, or both?
Lay out your core services and pricing in a way that balances competitiveness with profit. Decide how you’ll market your company and choose the channels that make the most sense, whether digital, local partnerships, or community events.
A solid business plan for an HVAC company should also include long-term goals, like when to hire your next technician or when to expand into a new service line.
2. Know your numbers
If you don’t track profit margins, you’re flying without direction.
In HVAC, margins can vary widely. Maintenance agreements might bring smaller amounts per contract but generate recurring revenue. On the other hand, replacements and indoor air quality upgrades can drive high one-time profits.
Implement job costing so you know exactly how much you’re earning per job, after labor, overhead, and materials are factored in. This data shows which services deserve more of your attention, and which might be costing you money without realizing it.
3. Play to your strengths
Stop trying to be everything to everyone.
The real growth comes when you carve out a niche. Maybe you specialize in energy-efficient installs for eco-conscious homeowners, high-end residential projects, or businesses.
Focused expertise makes your business more appealing because it signals to customers that you know their needs inside and out. It also makes your marketing sharper. Your ads, website, and sales pitch can zero in on the problems your chosen customers care about most.
4. Own your market
You don’t need to dominate an entire region right away. Growth is faster and more sustainable when you focus on building a strong presence locally.
Concentrate your marketing in a defined area. Think of it as creating a “home turf” where your trucks, yard signs, and brand are everywhere. Sponsor local events, invest in targeted online ads, and encourage satisfied customers to spread the word. Over time, your reputation becomes stronger in that market, making it harder for competitors to break in.
Once you’ve locked down one area, expand outward with the same focused approach.
5. Price services strategically
One key driver for HVAC business growth? Your pricing strategy. This can make or break your bottom line.
The way you structure your pricing doesn’t just influence revenue; it directly affects how much profit you keep. Even small shifts in pricing can help you move from barely breaking even to generating consistent growth.
Here are three strategies to refine how you price HVAC services.
Flat-rate pricing
Customers don’t like surprises. A flat-rate model gives them clear expectations while making your sales process easier.
With this approach:
- Customers know upfront what they’re paying.
- Your techs don’t waste time calculating job costs at the door.
- You set consistent pricing for all employees, which helps build trust and eliminates confusion.
Seasonal adjustments
Demand for services isn’t steady all year. Peak seasons put pressure on your team, while off-peak months can strain HVAC business cash flow. Strategic seasonal pricing helps you maximize profits and keep business flowing.
Consider these ideas:
- Charge higher rates for emergency repairs during summer heat waves or winter freezes.
- Offer discounts and maintenance packages during slow months to keep revenue steady.
- Market seasonal service plans that prepare systems before the busiest months hit.
Bundle services
Bundling increases your average ticket size while giving customers extra value. People are more likely to say yes when they feel they’re getting more for their money.
Effective bundling examples include:
- Pairing maintenance agreements with system installations.
- Offering a “whole-home comfort” package that covers HVAC systems, duct cleaning, and indoor air quality upgrades.
- Discounting add-ons like smart thermostats when combined with larger service jobs.
6. Upsell and cross-sell services
Still wondering how to grow your HVAC business? Keep in mind that winning new customers is expensive. Selling more to your current customers is faster, easier, and far more profitable. With the right training and tactics, your technicians can turn everyday service calls into opportunities that grow your bottom line.
Train technicians in soft sales skills
Your technicians spend more time with customers than anyone else in your company. They’re trusted voices in the home, which makes them your strongest sales team if they’re trained properly.
- Teach them how to recognize customer needs during service calls.
- Give them simple scripts for suggesting add-on services without sounding pushy.
- Offer tiered pricing options so customers can choose the solution that best fits their budget.
Offer financing options
Financing is a game-changer for HVAC companies. Customers who can spread out payments are far more likely to invest in larger projects, like full system replacements or multi-unit installations.
Make financing work for you by:
- Partnering with established finance companies that provide competitive rates.
- Training your team to bring up financing early in the sales process.
- Focusing on monthly payments instead of total project costs, which makes big purchases feel more affordable.
Focus on high-profit equipment
Not all products deliver the same return. High-margin equipment like smart thermostats, indoor air quality systems, and UV lights not only improve customer comfort but also boost your profits.
Examples of profitable add-ons include:
- Smart thermostats that cut energy costs.
- Air purifiers or humidifiers that improve health and comfort.
- UV light systems that enhance indoor air quality.
Train your technicians to recommend these products when they notice specific needs, like dust buildup, dry air, or uneven temperatures, so the upsell feels personalized and valuable.
Three Ways to make money in your heating and air conditioning business
With the right approach, you can turn everyday service calls into bigger profits and steady growth.
1. Sell service agreements
Maintenance contracts are a steady stream of recurring income. Customers pay upfront or monthly, and you get a predictable cash flow year-round. These agreements also help you build long-term relationships, so when big jobs come up, you’re the first call they make.
- Offer tiered plans with different benefits to appeal to more customers.
- Include perks like priority service or discounted repairs.
- Use slow seasons to push contracts and lock in more recurring revenue.
2. Offer financing on big-ticket jobs
Large projects like system replacements can scare customers away when they see the total price. Financing changes the game. By breaking costs into smaller payments, you make upgrades affordable and increase the chance of closing the sale.
3. Upsell high-margin add-ons
Some products add serious value for the customer and profit for your business. Smart thermostats, air purifiers, and humidity control systems not only improve comfort but also carry strong markups.
Of course, putting these strategies into action takes capital. Whether you’re building out service plans, offering financing to customers, or stocking high-margin equipment, you need reliable funding to move quickly and stay competitive. That’s where the right financing partner makes all the difference.
