The 7 Truths Behind the Tough Competition for HVAC Contractors
A Solution for Winning More Deals.
As a commercial HVAC contractor, you're well aware of the challenges of operating in a highly competitive industry. With so many contractors vying for the same projects, it can take time to stand out and win new business.
In this post, we'll share the main reasons why winning projects can be challenging and provide actionable solutions for overcoming these obstacles. By the end of this post, you'll come away with a better understanding of the commercial HVAC industry and how you can position yourself for success.
And, if you're looking for an extra edge, we'll introduce you to Carbon Lighthouse's Rent Program - a game-changing solution that can help you provide a better financial return to your customers while reducing costs.
So, let's dive in and explore the truth behind the tough competition in the commercial HVAC industry, and what you can do to win more deals.
- Competition: In the commercial HVAC industry, competition is fierce. With so many contractors vying for the same projects, it can be challenging to stand out. However, there are steps that HVAC contractors can take to increase their chances of winning new business.
OUR RECOMMENDATION: Are you being brought into a competitive bid scenario and do not yet have a relationship with the prospective Customer? Ask them bluntly if they’ve already chosen someone for the bid or already have a short list and are just going through a process. Many bid processes are check-the-box exercises people do because their firm makes them do them. So ask the Customer directly. Has a winner all but been selected before the RFP was issued? You’ll save significant time knowing this ahead of time. We’ve received surprisingly blunt answers when we’ve asked frank questions like this.
- Technical expertise: HVAC systems are complex, and contractors need to have a high level of technical expertise in order to win new projects. Customers are looking for contractors who can design and install systems that are efficient, reliable, and cost-effective.
- Cost control: HVAC projects can be expensive, and contractors need to be able to control costs in order to be competitive. This can be challenging, as the cost of materials, labor, and equipment can fluctuate over time.
OUR RECOMMENDATION: In projects where costs have been a significant factor, we have had success offering customers package options: bare-bones, recommended, and bells and whistles. Each package comes with different functionality and pricing, which has successfully gotten the prospect to engage with us. Contractors get access to our professional services insights when working with Carbon Lighthouse. Contact Us to learn more.
- Project management: Contractors must manage projects effectively, from the initial design phase to the final installation. Project Management requires a high level of organization and attention to detail. Project management that delivers results requires getting buy-in from 3rd parties such as architects, engineers, and subcontractors.
OUR RECOMMENDATION: Shameless plug, but worthwhile: use our project management software to stay on top of deadlines, and effortlessly communicate status with your customers. Get in touch with us here.
- Marketing and sales: To win new projects, contractors need to market and sell their services effectively. Winning requires a good understanding of the customer's needs and the ability to communicate the benefits of their services effectively.
- Bid processes: The bid process can be complex and time-consuming, requiring contractors to provide detailed information about their company, their experience, and their approach to the project. Contractors need to effectively communicate their qualifications and value proposition to win the bid.
- Reputation: A contractor's reputation is critical to winning new projects. A history of successful projects, positive customer reviews, and a strong professional network can all help a contractor to win new projects.
In conclusion, there are several factors that make it challenging for commercial HVAC contractors to win new projects. Contractors need to have a combination of technical expertise, cost control, project management, marketing and sales skills, and a strong reputation in order to be successful in the highly competitive HVAC industry.
Once a Contractor has the combination of traits, what can they do to further stand out from the pack? This is where Carbon Lighthouse’s Rent Program -- enabled by data-driven fault detection -- comes into play. For HVAC and Controls Contractors in particular, Carbon Lighthouse can offer to pay Rent to the end-use Customer for access to their mechanical spaces, roof, and data coming out of the equipment. Rent allows Contractors to provide strong financial returns to their Customers, while further helping tenants in commercial buildings reduce costs. Contact us to learn how Rent works for your Customers and breaks the split-incentive that prevents energy work in NNN buildings.