HVAC Business Operations
Complete operations reference for HVAC contractors and service companies. Covers residential and commercial pricing, technician productivity, seasonal planning, equipment margins, EPA compliance, and growth strategy.
What This Covers
Pricing & Revenue
Service calls: $89-150 diagnostic fee, $150-500 standard repair
Installation: Residential systems $5,000-15,000 (equipment + labor), commercial $15,000-100,000+
Maintenance agreements: $150-300/year residential, $500-2,000/year commercial
Emergency/after-hours: 1.5x-2x standard rates
Target gross margins: 50-55% service, 35-45% installation, 60%+ maintenance agreementsLabor & Technician Management
Technician pay: $22-35/hr (journeyman), $35-50/hr (senior/master), $18-22/hr (apprentice)
Billable rate: $95-175/hr residential, $125-225/hr commercial
Revenue per tech: Target $180,000-250,000/year
Utilization target: 75-85% billable hours
Truck rolls per day: 4-6 service calls, 1-2 installs
Spiff programs: $50-200 per maintenance agreement sold by tech, $100-500 per equipment upsellSeasonal Planning
Peak seasons: Summer (cooling) Jun-Aug, Winter (heating) Nov-Feb
Shoulder seasons: Spring tune-ups Mar-May, Fall tune-ups Sep-Nov
Revenue split: 40% cooling, 35% heating, 25% maintenance/other
Staffing: Scale 20-30% temp labor for peak, cross-train for shoulder work
Cash reserves: 3 months operating expenses minimum for off-peakEquipment & Inventory
Top brands (residential): Carrier, Trane, Lennox, Rheem, Goodman, Daikin
Markup: 40-60% on equipment, 100-200% on parts
Inventory turns: Target 8-12x/year on common parts
Must-stock parts: capacitors, contactors, fan motors, thermostats, refrigerant, filters
Vehicle inventory: $3,000-5,000 per truck in common partsCompliance & Licensing
EPA Section 608: Universal certification required for all techs handling refrigerant
EPA 2025 AIM Act: HFC phasedown β R-410A production cuts, R-454B transition underway
State contractor license: Required in most states, continuing education 8-24 hrs/year
NATE certification: Industry standard, higher close rates for certified techs
OSHA: Confined space, electrical safety, refrigerant handling, fall protection for rooftop units
Building permits: Required for new installations and major replacements in most jurisdictionsKPIs & Metrics
| Metric | Target |
|--------|--------|
| Revenue per technician | $180K-250K/year |
| Service agreement retention | 80%+ |
| First-call fix rate | 85%+ |
| Average ticket | $350-500 (service), $8,000-12,000 (install) |
| Maintenance agreement attachment | 40%+ of service calls |
| Customer acquisition cost | $150-300 |
| Google review rating | 4.5+ stars |
| Callback rate | <5% |
Marketing & Lead Generation
Google Local Services Ads: $25-75 per lead, highest intent
Google Ads: $15-40 per click for HVAC keywords
Cost per lead target: $50-150
Conversion rate: 60-70% for inbound service calls
Review generation: Ask after every completed job, target 5+ new reviews/week
Referral program: $50-100 credit per referred customer
Maintenance agreement database: Your most valuable asset β recurring revenue + replacement pipelineGrowth Playbook
1.
$0-500K: Owner-operator + 1-2 techs, residential service focus, build review base
2.
$500K-1.5M: 3-5 techs, add installations, hire dispatcher, maintenance agreement push
3.
$1.5M-3M: Dedicated install crews, commercial entry, service manager, fleet 5-8 trucks
4.
$3M-5M: Commercial contracts, energy efficiency audits, building automation, 10-15 techs
5.
$5M+: Multiple locations or territories, new construction partnerships, property management contracts
Technology Stack
Field service management: ServiceTitan ($250-500/mo), Housecall Pro ($65-200/mo), Jobber ($70-200/mo)
Dispatch: GPS fleet tracking ($25-40/truck/mo), route optimization
Flat rate pricing book: Required β eliminates technician pricing inconsistency
Customer communication: Automated appointment reminders, on-my-way texts, review requests
Proposal software: Digital quotes with good-better-best options increase average ticket 25-35%Usage
Ask your agent about HVAC business operations, pricing, compliance, seasonal planning, or growth strategy. Works with any AI agent platform.
For complete industry context packs with deeper operational playbooks, visit the AfrexAI Context Pack Store.