2 Ways to Increase Your HVAC Business' Bottom Line

2 Ways to Increase Your HVAC Business' Bottom Line

HVAC businesses are experiencing more demand for products and services that improve the comfort of homes across the country. Whether it’s better indoor air quality, increased energy efficiency, more comfortable living spaces or smarter products, wholesalers and distributors have the opportunity to grow by offering an expanded assortment of solutions. As your trusted partner and advisor in the HVAC industry, GE Appliances Air & Water is here to help you stay ahead of the curve.

These tips can help you better connect with current customers and drive new business.

1. Be a go-to resource for product innovations and industry trends.

When you position yourself as an important source of knowledge for customers, chances are good they’ll reward you with more business.

Want a great place to start? Help them stay up to speed on innovative HVAC products that make smart homes smarter. For example, smart thermostat systems are now in 24% of households and continue to grow in popularity. Many GE Appliances Air & Water Solutions products — including our lineup of ductless mini-split systems — include GE Appliances’ SmartHQ technology, designed to make owners' lives easier, provide peace of mind and enhance performance.

But what about keeping customers informed of industry-wide changes and trends? You can play a critical role here as well.

In addition to advising them on the growing demand for sustainable HVAC systems, beginning Jan. 1, 2023, the minimum efficiency standards for air conditioning and heat pump units will increase. Do your contractors know that the standards each system must meet will vary by region or that the Southwest (Arizona, California, Nevada and New Mexico) will be the most stringent? By understanding these changes, you can better guide your customers to the right solutions that will meet their — and the Department of Energy’s — requirements.

But knowledge is only half the battle. Carrying products that are compatible with this dramatic shift in standards is crucial. That’s why GE Appliances Air & Water Solutions developed a new line of residential ducted HVAC products that not only provide quality comfort to homeowners and easier installation for contractors, they have already been tested and built to meet all 2023 efficiency standards including SEER2, EER2 and HSPF2.

The key to success with this strategy is educating your staff and passing that knowledge along to your customers. Furthermore, a diverse set of product offerings can help you attract different types of contractors and satisfy existing relationships, but only if you have the knowledge to convey their importance.

2. Focus on what provides real value to your customers.

Some wholesalers and distributors take a commodity-based approach to building their bottom line either by trying to sell more of a few products or by selling the same quantity each year but reducing costs. These businesses focus their efforts on attempting to acquire the same or similar products at a lower cost. While this is a traditionally sound method to increase your bottom line, there are other ways.

Be a business partner that teaches contractors how to grow their businesses, and in turn, your business will grow.

One of the best ways to start is by reviewing customers’ rolling 12-month purchases. Are they repeatedly purchasing a product on a regular basis but in smaller quantities? If so, it might make sense for them to buy in bulk and save money — not only in product costs but also shipping and transportation.  

Another great way to help your customers is to offer and create a business essentials training program. While most contractors are experts in their craft, they may need help running the business side of their operation. Areas such as accounting, financial statements, marketing and cash flow management are essential to running a successful contracting business. Why not create a mini-program for your customers to help them learn about these topics and incorporate them into their business plans?  

These are just a few innovative ways to add value beyond supplying them with products.

Be an early adopter of emerging technologies that can benefit your customers.

As technology constantly evolves, stay connected with the manufacturers you trust and work with them to stay on top of the newest innovations. A great example of this is how the newest heat pump HVAC systems — like the GE Connect Series — can provide heat even in extremely low outdoor air temperatures. This technology has evolved over the years and is now a much more viable option for many regions of the country. By keeping in contact with your manufacturing partners, you’re better able to stay ahead of the curve with the latest product information and recommendations.

Go beyond the bottom line with GE Appliances Air & Water Solutions.

No matter how you build your HVAC business, GE Appliances Air & Water Solutions is here to help. From expert insights to HVAC products you can rely on, we have what you need to keep your business moving in the right direction.

For information on partnering with us, get in touch with one of our experts today.