A while back, in January 2022 to be exact, we dedicated this newsletter to address some of the challenges we might be facing this year…
Unfortunately, they ALL came true. Check out our January 2022 issue here ➡
This has left our industry concerned. Mostly, we’re worried about how much prices have increased, what’s going on with backorders, and how to fill that open position with a great employee.
So, we’ll cover what’s exactly happening in our industry right now, how to navigate it all, and why you shouldn’t really be worried because your competitors are experiencing the exact same things. More on that in a few.
We’ll also be covering:
- How “not cooling” season is coming in hot. We’ll explore the little things you can do right now to have a big impact
- The power of email marketing – specifically, how it can build better relationships with your clients
Inflation, Shipping, and Summer… “Oh My” or “Okay?”
Our industry is set and ready for quite an expensive summer. Why, you ask? Well, there’s:
- Prices for components and equipment are between 100-300% more today than this same time last year
- HVAC’s supply chain is experiencing 3-8 week shipping delays
- Shanghai’s 50 million lockdown and Ukraine/Russia war are affecting semiconductor production
- Labor shortages are still a pain point, especially as we enter the busy season
So, is this an OH MY or OKAY situation? We think it’s a strong OKAY. Here’s why:
- Every single industry is experiencing this – not just HVAC
- Your local competitors are 99.99% likely in the exact same boat as you
- An increase in prices for products, parts, and services is expected
You might feel reluctant to increase prices because your most loyal customers might shop around for better prices But let us let you in on a little secret… THEY WERE ALREADY DOING THAT BEFORE.
In times like these, it’s critical you don’t do things that can hurt your business, such as:
- Take part in the race to the bottom on quotes – know your worth
- Don’t cut corners on jobs to profit – it’s not good for your reputation or the industry
- Skip the section below with valuable tips on how to respond to the “not cooling” season 🔽
The juicy cherry on top of inflation and shipping delays has to be that we’re also entering “not cooling” season. On top of figuring out to source products and shipping ETA’s, you’re getting 10+ calls a day from customers who need you.
Here are a few things you can do to run a better business despite all of this.
With your reps, dealers, and customers. It’s the difference between knowing and not knowing. Talking is how you get a sense of what’s happening with inventory and delays and find out about limited inventory you can get your hands on. The businesses that are actively communicating, mitigate negative surprises.
The top objection is affordability. Remove that objection by presenting financing options to every customer, every time. Offer it automatically in your quotes, bring the subject up, know what apps to recommend, and present the option. Most homeowners aren’t aware they can finance HVAC and IAQ upgrades.
Buy American Products
You know, shipping delays are only 3-8 weeks if you’re waiting for something to cross the ocean on a boat. Shipping delays and price increases aren’t as much of a concern if it’s already here. Maybe it’s time to consider American-made products.
Software geared towards advancing our industry has come a long way. In today’s market, there’s software available for:
- Managing customer service tickets, payments, quotes, and more. Learn how software can help improve workflow ➡
- Recruiting and hiring top HVAC talent for your business is personal and hard. Software and service like WizeHire can help ➡
If you typically only purchase equipment or materials after getting a job, maybe it’s time to rethink that strategy. With shipping delays taking 3-8 weeks, it may be wise to bring some products in-house. It could be the difference between gaining and losing a customer.
The best part of this is that it doesn’t have to be 10 extra condensers. Heck, you may not have the space or the money for these big-ticket, large items. But what about 10 air filters, IAQ monitors and controllers, or whole-home purification devices.
Talk to Us
Seriously though… We have local KGG reps ready to help you bridge any gaps or challenges your business is facing. Contact us here ➡
Personalize Content via Email Marketing
It’s tough to know where to start when it comes to email marketing for your HVAC business. You want to make sure that you’re targeting the right people with the right messages, but how can you be sure?
Without the right tools and strategy in place, segmenting your audience can seem impossible. You might not even know where to start.
To help, we put together a lil’ guide on email marketing for HVAC manufacturers, distributors, and contractors. This guide will help you understand who your target audiences are and how to create email sequences that get results.
But first, what email software should you use?
- Mailchimp – super easy to use, free service, with some paid options
- Klaviyo – more bells and whistles, very powerful – costs money
- HubSpot – super powerful, very expensive
Secondly, what is an email sequence?
An email sequence is an effective way to nurture leads and build relationships with customers. By creating a series of informative, useful emails, you can stay top-of-mind with your audience and build a strong foundation for future sales.
Finally, what are segmented audiences, and why are they good for email sequences?
Let’s say you have a large database of customers. It’s important to properly segment them before sending email sequences. This will help ensure that the right message is being sent to the right person at the right time. Otherwise, you run the risk of turning off potential customers with irrelevant or poorly timed content.
Developing email sequences require lots of frontend work. But once you’ve created these emails for each audience, that’s it. You set it and forget it. Once they subscribe, they are placed into an email sequence bucket, and the emails automatically go out.
This is a whole process. It’s important you go ‘Flash Slothmore’ slow…
There should be separate emails for distributors and contractors to feed them with messages that bring them value. The way you talk to them, and the content you include in your email are very different.
Segment your audience by the type of contractor you work with. Your content will be different for audiences that:
- are customers vs potential customers
- sell IAQ vs don’t sell IAQ
At the most basic level, these emails will be broken up into people who are customers and those who are prospects. If you want to get fancy, you can segment the emails by:
- service maintenance customers vs not
- had a major repair done vs a small job
- positive review vs negative review