In their new Amazon Bestselling book, ‘Make More Money: 12 Profit Pillars for HVAC Contractor Success’, author Scott Ritchey and contributing author Gary Kerns give HVAC business owners the tools they need to succeed and be in the 10% of HVAC businesses still in business by year 10, and thriving.
Thirty to 35% of HVAC ownerships fail by year three, 47% by year four, and a staggering 90% of them fail within 10 years. There’s a single key reason most HVAC businesses fail: most HVAC contractors lack the business acumen needed to understand the financial ins and outs of running a successful business. In their new book, Make More Money: 12 Profit Pillars for HVAC Contractor Success, which recently became the #1 Amazon Kindle Bestselling book in Heating & Air Conditioning Engineering and Contracting Engineering, author Scott Ritchey and contributing author Gary Kerns give HVAC business owners the tools they need to succeed and thrive.
When Ritchey entered an HVAC business, he soon discovered the company he was working with was losing money, despite taking in about $2 million in revenue each year. The reason was simple: the company just didn’t understand that mark-up does not equal margin, and that an HVAC business has varying overheads between its different departments. This lack of business knowledge showed up in their pricing methods, resulting in a two percent loss in the company’s financial performance.
Worse, the company was making the fundamental mistake of thinking that all construction jobs were the same. Drastic change was needed to ensure that all jobs were competitively priced, yet would yield above-average net profits. With new visibility on each department, Ritchey helped the company see which types of construction and service work were the most profitable. By focusing on these more profitable areas, the company grew from $2 million per year to $6.5 million per year in a five-year period.
Ritchey became inspired to help other contractors suffering from the same lack of business acumen. To date, he has worked with about 400 companies and thousands of individuals, enabling them to learn important financial principles that all guarantee success in the HVAC contracting industry.
Ritchey says, “I have seen too many HVAC businesses fail by not having the financial knowledge they need to succeed. My new book will give HVAC business owners the tools they need to succeed and thrive.” He adds, “It is my goal that my readers make it past year ten in their business, instead of becoming part of the 90% of HVAC businesses that fail.”
For more info, contact Scott Ritchey at email@example.com.
Scott Ritchey is the vice president of Plumbers Supply Company. He has a demonstrated history of working with and developing sales and leadership teams in the HVAC and plumbing wholesale industry. Ritchey is skilled in P&L analysis, budgeting, and strategic planning. He has an M.B.A. focused in business and managerial economics from Sullivan University. He is a speaker, trainer, and author.
Gary Kerns is the president and owner of Superior Heating and Air Conditioning, Inc. His background has given Gary a unique outlook on the HVAC contracting industry. After high school, he joined the Air Force. After his stint in the Air Force, Gary became an apprentice with a commercial HVAC company. It was a perfect fit. Gary’s talent as a top-notch service mechanic came to the fore, and he became enamored with the idea of starting his own HVAC company and did.