HVAC Service
The $130 billion industry where the real money is in the service contract that follows the equipment sale.
HVAC companies make most money not by installing furnaces, but by maintaining them. A homeowner buys a $25,000 heating system installed once. Then that homeowner pays $200 annually for maintenance and repairs for the next 20 years. $5,000 in total service revenue from one $25,000 installation. The installed base becomes a recurring revenue stream. A company that installed 10,000 systems owns 10,000 customers paying annually for maintenance. The United States HVAC market generates $25 billion yearly, 80% from service rather than new equipment. Installation is break even business. Service is the profit engine. This model creates durable competitive advantages.
Watch the full reel free on MoonReelz — moonreelz.com