5 Tips for Commercial HVAC Contractors to Create & Sustain Recurring Revenue
Modern, digitized commercial HVAC contractors successfully create and sustain recurring revenue. The opportunities lie within the use of a predictive maintenance program and the data that come from it. Data de-commoditizes the HVAC contractor through unparalleled maintenance offerings with help from connected sensors. As explained by John Wallace of Contracting Business, “companies are touting the vast potential of the Industrial Internet of Things (IIoT). Ideally, the IIoT can provide enhanced fault detection and more accurate predictive maintenance. It’s assumed that more data — in type, variety, and frequency — is the basis for higher value via new, algorithm-driven software.” By following these five tips, commercial HVAC contractors can provide better service, increase their service margins, and build a recurring revenue contract base.
1. Use Analytics to Reduce Confusion Over System Performance
Moving data from its raw form through analytics helps to make the insights easier to find. Thus, contractors get to be better prepared for an on-site visit. And facilities managers can realize they are getting what they expect. This is the proactive approach to HVAC maintenance that relies on visual, data-focused service notes without an arbitrary schedule or sense of paying too much. This creates a strong bond between customers or contractors, resulting in contract renewal and easy payments.
2. Eliminate Wasted Hours in Diagnosing System Problems
A common source of concern for commercial HVAC contractors goes back to limited insight into the unit’s actual performance. Without the access and application of data, technicians can spend hours diagnosing a system before they even begin to fix the issue. These wasted hours add to the total cost of ownership and eat into the efficiency of HVAC businesses. However, applying data helps to diagnose system problems and enhance service pull-through work that’s more informed. In turn, workers fix the problem faster and know when it might be time to replace, saving the valuable time of your skilled workforce.
3. Reduce Unnecessary Truck Rolls
Fewer unnecessary truck rolls are another opportunity to create and sustain recurring revenue. Since all maintenance and visits are based on data, there are limited unneeded visits. When the data indicates a problem, such as a known service alert, commercial HVAC contractors can know what’s happening, what’s needed, and how long it will take to fix in advance. This creates trust with the contractor while ensuring technicians’ time is not mismanaged. Additionally, support for the customer can be provided from afar. Instead of rolling a truck at their perceived service needs, confirmation of an issue can be verified so the technician won’t waste time with a false positive.
4. Send the Right Technician to Service Calls with the Correct Equipment
Commercial HVAC contractors save resources and truck rolls by getting the right technician to the equipment without delay. Instead of sending the best technician on a critical call that is a minor problem, other technicians can be sent that know what’s wrong and how to fix it. It saves the service contractors’ time and costs of sending the most experienced person for small fixes. The more experienced contractor’s time is more valuable, elsewhere. Save those resources for when needed most.
5. Keep Customers Informed with Automated Reporting
The biggest reason customers complain about poor insight into HVAC maintenance costs is that they lack the resources to see its performance. Utilizing data to provide annual, monthly, or on-demand reports is a true differentiator in the market while having other positive outcomes for the contractor. With the data coming from the contractor as a service, it becomes a new revenue stream through additional fees or contracts for access to that data. The best part is that customers still end up paying less than with a run-until-it-breaks approach to maintenance.
Achieve Strong Recurring Revenue by Implementing More Smart Maintenance Programs Among Your Customers
Recurring service revenue for commercial HVAC contractors’ rests on data from smart devices and an analytical mindset to turn data into actionable information. Know why and when that HVAC system breakdown might happen through analytics and informed maintenance. HYTECH 24/7 takes these 5 steps and turns them into one; partner with HYTECH and reap the benefits of recurring revenue. They assist with the installation, management, analytics, and reporting of smart devices so you have a seamless and lucrative transition into predictive maintenance and service. Their annual HYLTH E-Card shows how valuable data is to the overall condition and expectation for maintenance for a unit. HYTECH 24/7 can help make that possible. Visit HYTECH 24/7 online now to get started.
With over 40 years experience in the industry, Chip is innovating and invigorating HVAC Service contracting. Graduating from Southern Methodist University in Industrial Engineering, gaining his Professional Engineer License, and leading a $120 million mechanical contractor since 1999, Chip has achieved “HVAC Expert” status. His out-of-the-box thinking creates an exciting corporate environment and HYTECH 24/7 has become a leader in HVAC Service As A Software, predictive analytics, 24/7 monitoring, data analysis, alert monitoring and verification, condensate leak protection, digital maintenance and a patent-pending HYLTH-E Card. In his spare time, Chip enjoys his family, his faith, wake surfing, pickleball, spike ball, inshore fishing for snook, golf, biking, watersports, good bourbon, and traveling.