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The Big Problem With Low Bidding HVAC Contractors

Updated May 3, 2022

In this episode with David Holt, we delve into the world of HVAC and discuss some of the challenges faced by this industry. Holt is the National Comfort Institute’s Director of National Accounts. One of the primary issues that Holt highlights is the problem with low-bidding HVAC contractors. While this may seem like a great approach at first, in reality, it’s not. Low bidding can actually have negative consequences for both businesses and customers. For one, bending over backward to win contracts often means cutting corners, which can compromise efficiency and longevity. Moreover, by undervaluing our work in this way, we are doing a disservice to our industry but also to our customers. They are ultimately the ones who end up paying the price in terms of poor performance and increased energy bills. The HVAC industry needs to be more aware of its own value in order to thrive in the future.

Low Bid HVAC Contractors Cut Corners

As an HVAC business owner, it can be tempting to low bid your services in order to get more jobs and increase your bottom line. However, this strategy often leads to a lot of problems in the long run. For one thing, low-bidding HVAC contractors often cut corners on materials and labor in order to make a profit. This leads to lower-quality work and unhappy customers who will likely complain to others. In addition, relying on low bids can cause contractors to underbid themselves on future jobs, which means they may not be able to afford basic expenses like employee salaries or necessary equipment upkeep. Ultimately, the wiser choice is to find a more sustainable business model that balances profitability with quality work, training, and customer satisfaction.

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HVAC Contractors Think Everyone is Looking for the Lowest Bid

The HVAC industry has long been plagued by the problem of customers only shopping for the lowest price. This is a major problem because it means that many companies are forced to undercut each other on price. Consequently, this leads to lower quality work and less satisfaction for customers. It also means that companies are constantly having to compete on price. Their ability to invest in quality equipment and training for their technicians is not possible. Ultimately the HVAC industry gets stuck in a vicious cycle. Everyone is looking for the cheapest option, which leads to lower quality work and fewer satisfied customers. It’s time for the industry to break out of this cycle and start focusing on quality instead of price.

Quality HVAC Workmanship and Products Cost More

HVAC systems are important for any home or office, but too many people who install them don’t have the qualifications to do it right. Customers rely on your expertise to install them and make sure they do what you say they can do. So when they don’t:

  • Save money on energy bills
  • Make them feel comfortable
  • Solve their dust or allergy issue
  • …they become unhappy with HVAC professionals

Subpar workmanship creates unhappy customers. A company that focuses on quality workmanship and customer satisfaction will never be the cheapest. But they will be more likely to get repeat business and referrals. In the long run, this will provide better value for customers and help to improve the reputation of the HVAC industry.

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