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I Bought an HVAC Company


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I've been aware of it for a bit.  The main difference is this time there is a hard cut off in terms of installation.  The last time it was phased out.  

It will have a big impact on multi family type installs.  We run service/warranty for some larger companies that don't install only and they are trying to navigate projects that will spill over into '23.  I've asked if the manufacturers will stop producing them at some point this year so they are not left with excess inventory but I haven't heard back.  

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2 hours ago, T’Boo Ted Marshall said:

I've been aware of it for a bit.  The main difference is this time there is a hard cut off in terms of installation.  The last time it was phased out.  

It will have a big impact on multi family type installs.  We run service/warranty for some larger companies that don't install only and they are trying to navigate projects that will spill over into '23.  I've asked if the manufacturers will stop producing them at some point this year so they are not left with excess inventory but I haven't heard back.  

So mo money for you?

I see mini-splits are the first on the list and then package units.  How will this affect regular old residential set ups?

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2 hours ago, deadshank said:

So mo money for you?

I see mini-splits are the first on the list and then package units.  How will this affect regular old residential set ups?

More opportunity I would say. We end up selling more of the higher SEER variable speed units on the resi side.  

 

  • Hook 'Em 1
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  • 3 months later...
  • 4 months later...

Update time.  Rollercoaster year is an understatement.

The Good:

  • Got an excellent Service Manager in that runs the process we want on Maintenance and Service calls.  High potential he becomes the GM.
  • Fully integrated our management system (Service Titan) with his help and it is priced accurately for all jobs.  This was a huge undertaking and if you don't have someone that really knows this system it can be a killer.  
  • Acquired a shop north of us that has about 3K customers in the database. 
  • Should finish the year with around 11% growth.

The Bad:

  • Parted ways with the seller of the acquisition at the end of September.  He was very disorganized and highly emotional.  Late night rambling email rants became ridiculous.  He did not account for his time on many jobs and that did impact profitability to a small degree. Just would not accept our process and absolutely would not accept any responsibility on many issues we tried to resolve.  Typical seller of a small business.
  • Educating the new customer based has been difficult.  It is pretty rural (Sherman/Denison area) and seller would often times bill them after services.  We collect at time of service.  I'm not a lender.   
  • Hired 2 absolute dudes for salesmen during one of the hottest summers in recent memory.  This hurt and is impacting us more right now.  The first was more of an account manager and placed little effort on outside leads and network building.  I spent a lot of time coaching him, but some guys are hunters and some are gatherers.  The second was placed in an involuntary hold a week after he started.  We quickly found out he was drinking while on company time and in a company vehicle.  He lasted less than 30 days and had over 30 opportunities for system change outs...Closed 1.  
  • Profitable production is really tight right now.  This is expected during this time of year and the schedule is full but jobs are slowing and sub crews are coming in asking for work.  This tells me it is across the board and not just here.

 

Good times....good times.....

  • Hook 'Em 8
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11 hours ago, T’Boo Ted Marshall said:

Update time.  Rollercoaster year is an understatement.

The Good:

  • Got an excellent Service Manager in that runs the process we want on Maintenance and Service calls.  High potential he becomes the GM.
  • Fully integrated our management system (Service Titan) with his help and it is priced accurately for all jobs.  This was a huge undertaking and if you don't have someone that really knows this system it can be a killer.  
  • Acquired a shop north of us that has about 3K customers in the database. 
  • Should finish the year with around 11% growth.

The Bad:

  • Parted ways with the seller of the acquisition at the end of September.  He was very disorganized and highly emotional.  Late night rambling email rants became ridiculous.  He did not account for his time on many jobs and that did impact profitability to a small degree. Just would not accept our process and absolutely would not accept any responsibility on many issues we tried to resolve.  Typical seller of a small business.
  • Educating the new customer based has been difficult.  It is pretty rural (Sherman/Denison area) and seller would often times bill them after services.  We collect at time of service.  I'm not a lender.   
  • Hired 2 absolute dudes for salesmen during one of the hottest summers in recent memory.  This hurt and is impacting us more right now.  The first was more of an account manager and placed little effort on outside leads and network building.  I spent a lot of time coaching him, but some guys are hunters and some are gatherers.  The second was placed in an involuntary hold a week after he started.  We quickly found out he was drinking while on company time and in a company vehicle.  He lasted less than 30 days and had over 30 opportunities for system change outs...Closed 1.  
  • Profitable production is really tight right now.  This is expected during this time of year and the schedule is full but jobs are slowing and sub crews are coming in asking for work.  This tells me it is across the board and not just here.

 

Good times....good times.....

Always appreciate updates on here. 
 

I have friends who work at of the big dog brand manufacturers. Said it’s a bitch on their end with the inflation, supply chain, gov regs all slamming em still. 

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  • 3 weeks later...

@T’Boo Ted Marshall thought this might be a good place to ask…

 

Could a dirty coil cause a higher amp draw that would lead to a disconnect catching on fire?  I had an electrician look, and he said the heat unit was set up as a 10kw unit on a 30A circuit and the wire was too small or it should have been set up as a 5kw heater. AC company that did the install said it was a dirty coil. 

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[mention=479]T’Boo Ted Marshall[/mention] thought this might be a good place to ask…
 
Could a dirty coil cause a higher amp draw that would lead to a disconnect catching on fire?  I had an electrician look, and he said the heat unit was set up as a 10kw unit on a 30A circuit and the wire was too small or it should have been set up as a 5kw heater. AC company that did the install said it was a dirty coil. 

If 10 kw was hooked up it alone draws -39 amps plus the blower motor -7ish amps so 46 amps was way more than the circuit was rated for. at 39 amps it was most likely a 10 gauge wire rated at 30 amps as well. So I’m my opinion yes it could cause a fire. Breaker should have tripped prior to this.
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