Is there anything better than stepping into a cool blast of air on a hot summer day? Maybe coming in from the snow and sleet to a comfortable and cozy room…no matter if you love the summer or winter, we all can agree on the need for heating and cooling in our indoor spaces.
In order to achieve these comfortable temperatures, HVAC systems are installed and maintained by HVAC professionals across the country. In fact, every year in the United States, three million heating and cooling systems are replaced, resulting in $14 billion dollars being spent on HVAC services or repairs. That is an incredible amount of money being spent on controlling temperatures!
If you’re thinking about trying to carve out a piece of that industry for yourself, you may be wondering what prospects an HVAC business owner might have and whether it’s the right path for you. Let’s look at some of the statistics about HVAC business ownership and examine the profits and costs that come with pursuing becoming an HVAC contractor.
How much does an HVAC business owner make?
According to ZipRecruiter.com, the average hvac business owner salary is $54,625 per year. This works out to $26.26 an hour, or the equivalent of $1,050 per week or $4,552 per month. While this may seem low, the reason is that the average pay varies by as much as $24,000, with salaries as low as $22,500 and as high as $99,500. This average varies due to the expertise, region, company size, and how long the company has been in business.
How much does an HVAC contractor make?
If you don’t own your own business and are working as a single-person contractor, your salary will depend on your schooling, who hires you, and the expertise that you have in this business. According to the U.S Bureau of Labor Statistics, the median annual salary for an HVAC contractor is $50,590 per year, which breaks down to $24.32 per hour.
Are HVAC companies profitable?
There is not a simple answer for this question, since it depends on the company. Your hvac business profit margins will vary depending on how long you have been in business, how efficient you are at providing services, and your skill at marketing yourself and fulfilling your clients’ needs.
For most HVAC companies, the owner only pockets about 6% of each dollar. So, if your business brings in $1 million dollars, then you as the owner would take home $60,000. The rest of that money goes to things like hiring labor, purchasing equipment, paying overhead, and marketing expenses. Your goal should be to increase that percentage by maximizing your profits with efficiencies and eliminating unnecessary costs.
Is HVAC a good business to start?
The idea of being your own boss and running your own business is very appealing for many people. The benefits of starting an HVAC business include managing your own time and the possibility of financial freedom. Starting an HVAC company is exciting, and there are many possibilities in this field.
If you are independent and a hard worker, starting an HVAC company may be right for you. Experts predict that the demand for HVAC technicians will continue to rise through 2026, and there are many customers searching for skilled workers to service their smart HVAC systems and manage their heating and cooling.
There are many expenses associated with starting your own business, but it’s important not to skimp on the tools that will allow you to do the best job you can. Establishing a customer base is vital for a new business, and giving yourself the advantage of smart equipment like Acumatica, an integrated HVAC field service software solution, can make the difference with new clients and retain them for years to come.
Maximize your profits with efficient software solutions
We want to help you be as successful as possible as an HVAC business owner or contractor and help put money back in your pocket. That’s why we at Circle City Software Solutions recommend Acumatica for HVAC field service management.
Work smarter, not harder, and create efficient, streamlined business processes with Acumatica’s seamlessly integrated software solutions. You can create sales reports and invoices, monitor collection alerts, generate service calendars, monitor live activity, and view your entire business from one screen. Acumatica is scalable, able to grow with your successful business and provide functions like technician tracking, dispatcher tools, administrative functions, and more. Contact us today to learn how Acumatica can help you run a successful HVAC business.