HVAC Contractors Revenue Blueprint

Service	Description	Pricing Model
AC Installation	New central air conditioning system installation including ductwork modifications	Flat rate ($3,500-$7,500 residential)
Furnace Installation	Gas, electric, or oil furnace replacement and installation	Flat rate ($2,500-$6,000)
Heat Pump Installation	All-in-one heating/cooling system installation	Flat rate ($4,000-$8,500)
AC Repair	Diagnosing and fixing cooling system failures	Diagnostic fee + hourly ($85-$150/hr)
Heating Repair	Furnace, boiler, and heat pump troubleshooting and repair	Diagnostic fee ($75-$125) + parts/labor
Seasonal Maintenance	Tune-ups, filter changes, coil cleaning, refrigerant checks	Flat rate ($75-$200 per visit)
Thermostat Installation	Smart or programmable thermostat setup and wiring	Flat rate ($150-$350)
Ductwork Repair	Sealing leaks, patching holes, reconnecting sections	Per linear foot or flat rate ($300-$1,000)

Service	Description	Typical Add-On Value
Air Quality Testing	Indoor air quality assessment and recommendations	$150-$400
Duct Cleaning	Full HVAC duct system cleaning	$300-$500
UV Light Installation	Germicidal UV systems for air purification	$500-$1,200
Humidifier/Dehumidifier Installation	Whole-home humidity control systems	$400-$800
Air Filtration Upgrades	HEPA filters, electronic air cleaners	$200-$600
Zoning Systems	Multi-zone temperature control setup	$1,500-$3,500
Drain Line Cleaning	AC condensate drain maintenance	$75-$150
Refrigerant Recharge	Adding refrigerant to AC systems	$150-$500
Capacitor/Contactor Replacement	Common AC component repairs	$150-$300
Blower Motor Replacement	Fan motor repair/replacement	$300-$600

Service	Price Premium	Target Segment
Geothermal System Installation	3-4x standard HVAC	Eco-conscious homeowners, new construction
Mini-Split/Ductless Systems	1.5-2x per zone	Older homes, additions, specific room cooling
Variable Speed/Inverter Systems	1.5-2x standard	Energy-conscious, high-efficiency seekers
Radiant Floor Heating	2-3x traditional heating	Luxury homes, bathroom/kitchen remodels
Commercial Rooftop Units (RTU)	Project-based ($5K-$50K+)	Small to mid-size commercial
Clean Room HVAC	3-5x standard commercial	Medical, pharmaceutical, tech facilities
Historic Home HVAC	1.5-2x (complexity premium)	Historic preservation, older architecture
Smart Home Integration	25-50% premium	Tech-savvy homeowners
24/7 Emergency Service	1.5-2x standard rates	All customer segments

Similar Equipment

• Refrigeration repair — Commercial coolers, freezers, ice machines
• Exhaust fan installation — Kitchen/bathroom ventilation
• Dryer vent cleaning — Uses same duct cleaning equipment
• Chimney/flue inspection — Combustion safety expertise

Similar Skills

• Electrical work — Many HVAC techs hold electrical licenses
• Plumbing (hydronic) — Boiler systems, radiant heat
• Gas line installation — Natural gas appliance connections
• Building automation — Controls and BMS programming

Same Customer Base

• Home energy audits — Efficiency assessments
• Insulation services — Attic, wall insulation
• Solar panel partnerships — Referral arrangements
• Generator installation — Backup power systems
• Water heater installation — Natural add-on for existing customers

Equipment Rental

• Portable AC units ($50-$150/day)
• Industrial fans and blowers ($75-$200/day)
• Dehumidifiers for water damage ($50-$100/day)
• Temporary heating units ($100-$300/day)

Retail Product Sales

• Replacement filters (subscription model, $15-$50/filter, 40-60% margin)
• Smart thermostats ($150-$400, 25-35% margin)
• Portable air purifiers ($200-$800, 30-40% margin)
• Humidifiers/dehumidifiers ($100-$500, 25-35% margin)

Service Packages & Memberships

Package	Price	Includes
Basic Maintenance Plan	$150-$200/year	2 tune-ups, priority scheduling
Premium Plan	$300-$400/year	2 tune-ups, 15% parts discount, no diagnostic fees
VIP Plan	$500-$700/year	Unlimited service calls, priority 24/7, parts discounts

Documentation/Report Sales

• Home efficiency reports ($100-$300)
• Commercial HVAC audits ($500-$2,000)
• Preventive maintenance reports for property managers ($50-$150/unit)

Industry-Specific Commercial Contracts

Industry	Contract Type	Annual Value
Property Management	Maintenance agreements	$500-$2,000/unit/year
Restaurants	Kitchen ventilation + HVAC	$3,000-$10,000/year
Medical/Dental Offices	Air quality compliance	$2,000-$8,000/year
Data Centers	Critical cooling maintenance	$10,000-$50,000/year
Schools/Universities	Seasonal maintenance contracts	$20,000-$100,000/year
Retail Chains	Multi-location agreements	$5,000-$15,000/location/year

Referral Partnerships

• Real estate agents (pre-sale inspections, $150-$300 each)
• Home inspectors (HVAC specialist referrals)
• General contractors (new construction HVAC)
• Insurance adjusters (storm/damage claims)
• Property managers (preferred vendor status)

Subcontracting Opportunities

• New construction HVAC installation
• Commercial tenant improvements
• National warranty service providers (First American, AHS)
• Utility company rebate programs

Government/Institutional Contracts

• Municipal buildings maintenance
• School district contracts
• Public housing authority work
• Federal GSA schedule contracts

Equipment Manufacturers

Tier	Brands
Premium	Carrier, Trane, Lennox, American Standard
Mid-Range	Rheem, Ruud, Bryant, York, Goodman
Budget	Amana, Payne, Comfortmaker, Heil
Specialty	Mitsubishi (mini-splits), Daikin, Fujitsu, LG

Supplies & Consumables

• Refrigerants: Chemours, Honeywell, Arkema
• Filters: Filtrete (3M), Honeywell, Aprilaire
• Ductwork: Hart & Cooley, Shoemaker, Metalaire
• Distributors: Ferguson?"ac Supply, Johnstone Supply, Gemaire, Winsupply

Software & Business Tools

Category	Options
Field Service Management	ServiceTitan, Housecall Pro, Jobber
Dispatch/Scheduling	FieldEdge, Service Fusion, mHelpDesk
Accounting	QuickBooks, FreshBooks
Load Calculations	Manual J software (Wrightsoft, ACCA)
Diagnostics	Measurequick, Fieldpiece Job Link

Industry Associations & Certifications

• ACCA — Air Conditioning Contractors of America
• NATE — North American Technician Excellence
• RSES — Refrigeration Service Engineers Society
• EPA 608 Certification — Required for refrigerant handling
• AHRI — Air-Conditioning, Heating, and Refrigeration Institute

HVAC Business Revenue
├── Installation Services (40-50%)
│   ├── AC Systems (20-25%)
│   ├── Heating Systems (15-20%)
│   └── Heat Pumps/Specialty (5-10%)
├── Repair Services (25-35%)
│   ├── Emergency/Same-Day (10-15%)
│   ├── Scheduled Repairs (10-15%)
│   └── Warranty Work (5-10%)
├── Maintenance Contracts (10-20%)
│   ├── Residential Plans (5-10%)
│   └── Commercial Contracts (5-10%)
├── Add-On Services (5-10%)
│   ├── Indoor Air Quality (2-5%)
│   ├── Duct Services (2-4%)
│   └── Upgrades/Accessories (1-3%)
└── Product Sales (3-8%)
    ├── Filters & Consumables (1-3%)
    ├── Equipment (1-3%)
    └── Thermostats & Accessories (1-2%)

Service Category	Typical Margin	Volume	Strategic Value
Emergency Repairs	50-70%	Medium	High — builds loyalty
Maintenance Contracts	60-75%	High	Very High — recurring revenue
AC Installation	25-40%	Medium	High — large ticket
Heating Installation	25-40%	Medium-Low	High — seasonal anchor
Duct Cleaning	55-70%	Medium	Medium — add-on revenue
IAQ Products	40-55%	Low-Medium	Medium — differentiation
Filter Subscriptions	50-65%	High	Very High — passive recurring
Thermostat Install	45-60%	Medium	Medium — upsell opportunity
Commercial Contracts	35-50%	Low	Very High — steady income
Geothermal/Specialty	30-45%	Very Low	Medium — reputation builder

Service	Price Range	Pricing Model	Notes
Diagnostic/Service Call	$75-$150	Flat fee	Often waived with repair
AC Tune-Up	$75-$150	Flat rate	Spring seasonal pricing
Furnace Tune-Up	$75-$150	Flat rate	Fall seasonal pricing
Central AC Install	$3,500-$7,500	Flat rate	Excludes ductwork
Furnace Install	$2,500-$6,000	Flat rate	Gas furnace typical
Heat Pump Install	$4,000-$8,500	Flat rate	Includes labor
Mini-Split (single zone)	$2,000-$4,500	Per zone	Ductless systems
Duct Cleaning	$300-$500	Per system	Whole home
Refrigerant Recharge	$150-$500	Per lb + labor	R-410A typical
Compressor Replacement	$1,500-$3,000	Parts + labor	Major repair
Blower Motor	$300-$600	Parts + labor	Common repair
Capacitor Replacement	$150-$300	Parts + labor	Quick repair
Commercial RTU Service	$200-$500	Per unit	Maintenance call
Commercial RTU Install	$5,000-$25,000+	Per ton/unit	Size dependent

KPI	Industry Benchmark	Top Performers
Revenue per technician	$150,000-$200,000/year	$250,000+/year
Average ticket (residential)	$350-$500	$600+
Average ticket (commercial)	$800-$1,500	$2,000+
Maintenance agreement attachment	15-25%	40%+
Service call conversion rate	60-70%	80%+
Customer retention rate	65-75%	85%+
Gross profit margin	45-55%	60%+
Net profit margin	8-12%	15-20%
Callbacks (within 30 days)	<5%	<2%
Average response time	2-4 hours	Same day
Technician utilization	65-75%	80-85%
Revenue per service call	$250-$400	$500+
Maintenance plan renewal rate	70-80%	90%+

Required Certifications

Certification	Requirement	Renewal
EPA 608	Mandatory for refrigerant handling	One-time (no expiration)
State HVAC License	Required in most states	1-3 years
Contractor License	State-specific requirements	1-2 years
NATE Certification	Industry standard (not always required)	2 years
Journeyman/Master Card	Trade certification	State-dependent

Insurance Requirements

• General liability ($1-2M minimum)
• Workers' compensation (mandatory with employees)
• Commercial auto insurance
• Tools and equipment coverage
• Errors and omissions (E&O)

Regulatory Compliance

• EPA regulations — Refrigerant recovery, leak repair requirements
• OSHA standards — Workplace safety, confined spaces
• Building codes — Local permit requirements
• Energy codes — SEER/AFUE minimums by region
• Environmental — Refrigerant disposal, CFC phase-out compliance

Manufacturer Certifications

• Factory-authorized dealer programs (Carrier, Trane, Lennox)
• Extended warranty authorization
• Rebate program participation

Channel	Effectiveness	Cost	Notes
Google Local Services Ads	★★★★★	High	Pay-per-lead, Google Guaranteed badge
Google Search Ads (PPC)	★★★★☆	High	High intent, competitive keywords
SEO/Organic Search	★★★★★	Medium	Long-term ROI, local keywords essential
Google Business Profile	★★★★★	Free	Critical for local visibility, reviews
Referral Programs	★★★★★	Low	Highest conversion rate
Direct Mail (seasonal)	★★★☆☆	Medium	Effective for tune-up campaigns
Home Advisor/Angi	★★★☆☆	High	Shared leads, price competition
Nextdoor	★★★★☆	Low	Strong community trust
Facebook Ads	★★★☆☆	Medium	Brand awareness, retargeting
Yard Signs/Truck Wraps	★★★★☆	Low	Ongoing visibility
Radio/Local TV	★★☆☆☆	Very High	Brand building, low direct ROI
Email Marketing	★★★★☆	Very Low	Great for existing customers
Utility Company Programs	★★★★☆	Low	Rebate partnerships

Highest Margin Services

1. 1Maintenance contracts (60-75% margin) — Predictable, recurring, builds relationships
2. 2Emergency repairs (50-70% margin) — Premium pricing accepted
3. 3Duct cleaning (55-70% margin) — Low parts cost, labor-driven
4. 4Filter subscriptions (50-65% margin) — Passive recurring revenue

Volume/Customer Acquisition Drivers

• Seasonal tune-ups — Entry point for new customers (spring AC, fall heating)
• Emergency repairs — 24/7 availability builds reputation
• Google Local Services Ads — Highest intent leads
• Referral incentives — Best conversion rates

Top Growth Opportunities

1. 1Indoor air quality services — Post-pandemic awareness, high margins
2. 2Maintenance plan expansion — Target 40%+ attachment rate
3. 3Commercial contracts — Steady recurring revenue
4. 4Energy efficiency upgrades — Heat pumps, rebate programs
5. 5Smart home integration — Differentiation from competitors

Recurring Revenue Strategies

• Tiered maintenance memberships (Basic/Premium/VIP)
• Filter subscription programs (auto-ship quarterly)
• Commercial PM contracts (annual agreements)
• Property management partnerships (per-unit pricing)

Competitive Differentiation Opportunities

• Specialization — Geothermal, mini-splits, commercial
• Speed — Same-day service guarantee
• Transparency — Upfront pricing, no hidden fees
• Technology — Online booking, real-time tracking, digital invoicing
• Financing — Easy approval, 0% options
• Guarantees — 100% satisfaction, extended warranties

Industry Trends to Watch

Trend	Impact	Timeline
Heat pump adoption	High — Federal incentives driving demand	2024-2030
Refrigerant transition (R-410A to R-454B)	High — Equipment changes, training required	2025-2030
Smart HVAC systems	Medium — Integration expertise needed	Ongoing
Electrification push	High — Gas furnace restrictions in some areas	2025-2035
Technician shortage	High — Labor costs rising, training investment	Ongoing
IAQ focus	Medium — Continued post-COVID awareness	Ongoing
AI/predictive maintenance	Medium — IoT sensors, proactive service	2025-2030