How a Predictive Maintenance Program Creates Recurring Revenue for HVAC Contractors
Predictive maintenance programs allow commercial and educational building owners and managers to only pay for what they need—similar to the popular ads you hear in many TV commercials across all industries. By using commercial HVAC data, HVAC contractors can create whole insights into what is likely needed for an HVAC asset in the next month, quarter, or year. Compiling this data into a digestible visual aid, such as the HYLTH E-Card™ that HYTECH 24/7 offers, removes surprises for building managers, and helps HVAC contractors plan for future maintenance needs. As a result, buildings use less energy and HVAC contractors have fewer emergency truck rolls all while HVAC equipment is maintained well. Even better still, the HVAC contractor is able to charge a monthly or annual fee for the monitoring services and maintenance reports.
Recurring Revenue Includes Efficient Service Operations and a Growing Contract Base
A smart HVAC system and predictive maintenance program will require the use of dashboards, software, and smart sensors and controls. Those features are opportunities for HVAC contractors to capture recurring revenue. Putting the cost of the technologies aside, the software costs that power the analytics are passed down to the end user with a markup. Valuable insights gained through proactive planning for maintenance also help contractors allocate resources and keep the workflow moving. So now a recurring revenue pays for itself and new efficiencies create savings internally for the contractor.
We’ve talked previously about how a predictive maintenance program de-commoditizes the HVAC contractor. What we also see when these programs are implemented is a groundswell of new maintenance contracts to add to a contract base; rarely does this program cannibalize a stable contract base. New customers, expanded offerings, diversified revenue sources, and operational efficiency all derive from a supported, predictive maintenance program.
Additional Ways Predictive Maintenance Improves HVAC Service Profitability
Predictive maintenance programs are associated with increased profitability for HVAC contractors due to several factors. Essentially, all revenue derives from the relationships built between contractor and building owners or facility managers. Therefore, as building owners and facility managers recognize and learn to trust HVAC contractors to only perform maintenance when necessary, they are more likely to let the experts handle planning. Additionally, this trust manifests itself as a mindshare whereas they don’t think to bid HVAC service needs; they only call you.
Of course, this has the added advantage of tracking unit data to identify and correct errors that would have otherwise cost building owners more money. Remote access and troubleshooting support technicians in their work so less time is spent on site. Smaller invoices for the customer and efficiency in HVAC labor utilization is a win/win.
To emphasize further, say a bad thermostat sensor contributes to the ill-timed start of the heating unit during summer. In a retail space with multiple rooftop units cooling the same space, they all start to work harder to keep the temperature comfortable. Instead of driving the energy bills up and adding stress to the units, a predictive maintenance program solves the problem immediately. An alert is issued, and the contractor is able to shut down the unit remotely, schedule a team to fix the issue, and effectively generate more revenue for the HVAC contractor while saving the customer money and stress.
Stabilize Your Contracting Business by Providing a Predictive Maintenance Program
As Facility Executive explains, industries are now asking for predictive maintenance programs. For HVAC contractors, getting those contracts to service units can be difficult without the experience or operational structure. Now is the time to get ahead of the game and differentiate from your competition with a predictive maintenance program. With all maintenances based on data, it creates recurring revenue streams from direct monthly payments, improved operational efficiency, stronger relationships with your customers, and, most of all, MORE CUSTOMERS!
It becomes a triple-win for the HVAC business—creating positive effects for the company, its employees, and their families. Find out how to get started by visiting HYTECH 24/7 online today.
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.