What causes equipment shortages?

When supplies and raw materials (copper, steel, aluminum, plastics) are in short supply, manufacturers must slow down production. Major events, such as the Suez Canal blockage in 2020, affect shipments of these materials, thus reducing production. Additionally, semiconductors are becoming scarce. Semiconductors are being used in many pieces of equipment, such as in air conditioners as temperature sensors. The scarcity of these parts reduces the number of units and parts that can be manufactured, resulting in an equipment shortage.

How to Handle Equipment Shortages

Shortages are unpredictable and spontaneous — they could happen at any time. It’s important to prepare for whatever may come so that you can provide your client with best possible service.

Stocking up on equipment

The best way to handle an equipment shortage is to stock up!

Take inventory of the work you have conducted in the past year. What are common issues you have found in your local area? This is unique for each contractor, as we all work with clients in different states, and therefore, different weather conditions. Clients in Arizona during the winter experience different HVAC/plumbing issues than clients in Nebraska.

From there, try to maintain an inventory of equipment you used in that previous year. In the event of a shortage, you could use these materials without compromising the timely service you want to provide your clients.

Addressing ductwork

Ducts wear down because of various reasons, such as inadequate design/installation, leaky ducts, improperly sealed registers and grills, or flexible pieces that have twisted, squished, or ripped. Ducts can also face damage from insects and rodents, extreme temperatures, or the natural income of pollen, dirt, germs, mold, mildew, or dust. Ductwork might be the prime reason your clients face issues. By addressing ductwork, you could find a tangible solution, such as improving air quality through indoor filters, changing the insulation around the ducts, or repairing poorly installed work.

Ductwork materials also experience less shortage, so you aren’t left without the materials to provide this type of service. If you train your techs in this type of work, you would increase revenue, client options, and decrease your experience with equipment shortages.

Cleaning ducts

Photo by Mika Baumeister on Unsplash

As mentioned above, dust and other outside particles impact the way the ducts function. One way to avoid the challenge of equipment shortages is just by cleaning! If a client complains about this easy fix, simply use the fiber optic camera on your smartphone to show them, or swipe a gloved finger in the duct.

Once the client realizes how dingy and smelly their ducts are, they’ll be begging you to give them a thorough clean.

Conducting air returns

Almost every customer assumes they need a bigger system, but often what they really need is a thorough clean-up and more returning air. By running the blower and removing the blower door, you’ll find a sharp increase in airflow. There would only be a shortage if there is a short supply of air or an impacted evaporator coil.

Renovating existing systems

Photo by Tekton on Unsplash

To save on equipment and free up space in your stockroom, focus on the client’s existing equipment. By renovating the system, fixing minor duct issues, and adding IAQ, you could add thousands of dollars of revenue without having to purchase more equipment.

Equipment shortages are inevitable and spontaneous, especially during the pandemic. However, that doesn’t mean your business is a sitting duck with a list of unsatisfied, and impatient, clients. You can store extra equipment, pivot towards ductwork, conduct air returns, and fix what’s already there. By doing so, you open up potential revenue and while keeping your clients happy.

The post How to Handle Equipment Shortages like a Pro appeared first on Sigma Star Marketing.

With drastic weather changes across the country, HVAC and plumbing services are more essential than ever. Your business assists numerous homes in your community to maintain their air conditioners, heaters, and pipes. Broken air conditioner during a sweat-inducing heat wave? You’re at the front door. Faulty heater in the middle of a freezing snowstorm? You’ll be there in a jiffy. Clogged drains leading to a mini, lukewarm flood? Your clients know who to turn to.

As you accumulate more clients, you’re also looking to expand your business. In this case, you’ll need an expansion plan. Expansion plans map out who your company is, where it’s going, and why it plans to move in that direction. Plans also help you stay ahead of the competition because, not only does it reveal what needs improving, but pushes you to analyze the competition. With an expansion plan, you’ll be able to strategically move from one step to another, gradually expanding your business each time.

When you create your expansion plan, you’ll want to address the following points:

• Executive summary

• Company description

• Products and services

• Marketing Analysis

• Marketing Strategy

• Organization and Management

• Daily Operations

• Finances History

• Financial Plans and Projects

Let’s get into detail with each step and how you can apply these elements to your expansion plan.

Executive Summary

The Summary outlines the intention of the business plan and helps you keep your objectives in mind. It should be short and simple.

Company Description

The Company Description condenses what your company does, who its clientele is, and your intended service area. This is the “elevator pitch” of your business, or what you’d say to describe your company if you’re given less than two minutes to speak. When writing your description, identify how your company is set apart from other HVAC or plumbing services in your area. For instance, do you offer free quotes, payment plans, 24-hour service, or take credit card payments? These details help to set you apart and tell the customer about your company’s standards.

Photo by Mark Fletcher-Brown on Unsplash

Products and Services

Identify what your company offers the public now and what you would like to offer in the future. This is a great way to check if your company is doing what it wants to do without spreading itself too thin. You may benefit from narrowing your focus to higher-profit HVAC or plumbing services. Be specific. Do you want to do residential or commercial work, or both? Do you want to focus more on installs or on repairs and maintenance?

Marketing Analysis

Now it’s time to check out the landscape. Do your research on the number of potential clients, regions, the size of the local market, and the seasons of business growth and downturn. Check out the competition, too. How are other HVAC/plumbing companies marketing to their customers? Is it mainly Google Ads or social media? Gathering statistics will help guide your marketing strategy, which is key to expansion.

​​Photo by Kaleidico on Unsplash

Marketing Strategy

Brainstorm potential marketing ideas that can lead to further growth. Consider multiple ways to connect with your prospects. Google Ads is very effective to reach most types of customers, but running Google Ads can be complicated. A marketing agency can help ensure that the money you spend on Google Ads is well spent. A strong social media strategy can also be great to reach a targeted audience. Use the marketing analysis in the previous section as a guide with these calls to action. In designing your ads and campaigns, keep in mind the ways your company is set apart from the competition that you identified in the Company Description above.

Organization and Management

Evaluate your business’ structure and how you want it to be in the future. Look to other HVAC/plumbing businesses for inspiration on what formation is smoother and more efficient. You should also analyze “pain points” for your business, or the departments that are lacking and need improvement. Here, you can look at ramping up your hiring process or providing training for your existing staff.

Daily Operations

On an average day, is your business performing with quality and efficiency in mind? Look over your customers’ feedback on review sites, and follow up with clients a few days after a completed service. Ensuring that day-to-day operations move along smoothly equates to customer satisfaction.

Financial History

Take a walk down “money lane” and analyze when your business’ funding spiked and dropped. What campaigns worked towards gains? What are the reasons for losses? How have budget cuts affected your overall profit? Similar to analyzing your marketing, analyze your finances, too!

Financial Plan and Projects

The key aspect to any business expansion is funding. Now that you have a holistic sense of your financial history, what’s the next step? This is where you can outline a three-year plan on increasing profit and cutting costs. Are your technicians racking up too much travel time because they’re heading to far-away clients? You might be able to reduce your service area to reduce travel time if more effective marketing can still generate enough customers. Cutting out some clients may seem like the opposite of expanding, but actually, the more effort you put into a particular customer base, the higher the return.

HVAC and plumbing services are essential to any type of residential or commercial building. With an expansion plan, your mid-size business will retain the clarity and direction it needs to increase its reach. Contact Sigma Star Marketing today for strategic marketing tools that will not only help develop your plan, but expand your business, too!

The post How to Develop an Expansion Plan to Grow Your HVAC/Plumbing Business appeared first on Sigma Star Marketing.

Don’t fret. Systematizing your business is the key to enabling your business to function when you take a break. This also allows you to spend less time working in your business so you have time to work on your business.

When you systematize your business, you develop a clear, organized understanding of how and what to get done. The clearest way to represent this is to document it. Your documented instructions will explain to each employee exactly what to do, when to do it, and how to do it. Here are the steps to follow.

Organize Your Priorities

Create a list of your weekly and daily tasks. For example, how often do you follow-up with recent customers? How many times a year do you call customers for a seasonal tune-up? Then, estimate how long it takes you to do each task. If following up with clients takes up almost half of your day, consider if you can delegate this task to another person on the team. Prioritizing which tasks could and should be in your schedule helps clear up time on your calendar, so you have more time to do the tasks that really matter such as planning to grow your business.

Establish the Hierarchy

Every business has a hierarchy, who reports to whom, and who delegates to whom. It’s important to make this clear. Imagine that everyone is a new employee (regardless how long they’ve been with the company). When new employees onboard, they learn each person’s name, title, and placement within the company so they know who they report to. Make sure that this hierarchy is clear for every employee.

Create the Instructions

Now that you know which tasks your team does and how each team member functions, you can create instructions. Make sure to number each step, use clear language, and explain a task as you would to a new employee. Don’t expect the reader to know jargon only your team understands—be clear! Additionally, identify the people involved in the task. For instance, identify who the employee should report to once they start and complete the task, as well as who they should ask when they need assistance.

Gather Feedback

The only way to tell if something works is to test it. Ask your employees, whether seasoned or unseasoned, whether these instructions are accurate and clear. Their feedback will help you tweak it so that it isn’t just clear, but effective. 

With these steps in mind, it’s time to systematize your business! A systematized workflow is like a well-oiled machine. And once that machine operates on its own, you’re able to take a break or take on new tasks to grow your business.

The post How to Systematize Your Business for Growth appeared first on Sigma Star Marketing.

Here are five tips for getting the most out of your Google ads budget.

1. Bid on keywords that convert.

It’s easy to find keywords that attract clicks on the associated ads. But clicks don’t have any value unless the people clicking become customers. Figuring out which keywords lead to customers requires analyzing a lot of data, which is usually beyond the capabilities of any contractor trying to manage their own ads. If your agency is not managing very many Google Ads accounts in your industry, they may not be seeing enough data to learn which keywords will lead to customers. Especially if you are their first customer in your industry, they will be learning on your nickel.

2. Adjust keywords and bids frequently.

“Set it and forget it” might work for some kitchen appliances, but it is not a good way to manage Google Ads accounts. To ensure your money is well spent, your bids have to be adjusted frequently based on the results your ads are getting. A well-run Google ads account for Plumbing or HVAC Contractors will typically require more than 100 bid adjustments a month, will bid on over 250 keywords, and will include over 1,000 excluded keywords. To adjust your bids, you need to consider how competitive (and therefore expensive) the bidding is for specific keywords at various times and days of the week. You may also need to change your ads to respond to changes made by any of your major competitors.

3. Drive traffic to a custom landing page rather than a generic page like your home page.

If your ads are sending people to your home page, you will be missing a lot of customers. Studies show that people clicking on an ad are up to 3 times more likely to turn into customers if they are sent to a landing page customized to work with your ad. Your ad should focus on a reason for people to come to your site. Some people may prioritize faster service while others may be looking for a lower price. Your landing page should match your ad so that the landing page is the most effective for people who click on that ad.

4. Make sure your ads are not shown outside your service area.

You can define the geographic areas in which your ad will be displayed. Being too generous with the target area is a sure way to waste money. If the campaign includes areas outside your service area, you are paying to display ads to people who will never become customers.

5. Match the hours that the ad will display to your service hours.

If you don’t offer service during certain times of the day or days of the week, your ads should not be displayed during those times. If you offer only emergency service during certain times, the ads displayed during those hours should be designed to catch the attention of people who need emergency service.

These five tips will help you get the most return from the money you spend on Google Ads.

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