I. Introduction
You’ve grown a successful business - and you know how important setting goals are to get there. There are so many goals you may have - but one that is important is to set goals for each of your employees, too.
When it comes to growth, sales goals must translate to each individual. So in this article, we’ll review how sales goals can help accelerate your team’s HVAC sales.
In this article, we’ll dive into helping your HVAC Sales team excel with goals.
II. Goal Setting
For many individuals - they start with a total revenue goal in mind - often $1.5M-$2M. For many sales pros, this goal can feel overwhelming at first -and requires making it slightly more tangible to focus on the impact.
Calculating that total sales means thinking about the following:
- The average close rate
- The number of home visits (either per day or per year)
- The average ticket size
Each team member has the potential to impact each lever - and focus on each one can enable your team to supercharge its sales.
III. Building on Industry Averages
Industry average close rates hover between 30-50%. Average ticket sizes often hover between $8,000-$15,000. At $10,000, and a 30% close rate, your sales team member can generate $1.5M in revenue, if they make 500 home visits over the course of the year. Of course, each lead has a true cost - often ranging from $300-500. But if you amp up your close rate, or your ticket size - you can generate significantly more revenue off that same basis.
IV. The Strategies for Increasing Sales
A. Increasing Average Ticket Size
There are many ways your team may focus on increasing average ticket sizes, but here are some we find our top tier partners are employing:
- Comprehensive labor warranties, providing customers with peace of mind and reinforcing your commitment to quality service. Introducing maintenance agreements can also prove beneficial, fostering long-term relationships while simultaneously ensuring regular business.
- Packaging and highlighting indoor air quality (IAQ) products as part of your offerings not only addresses customer concerns but also adds value to each transaction.
- Promoting high-efficiency equipment, particularly variable-speed systems, positions your services as forward-thinking and technologically advanced. They also can benefit from rebates and incentives from local and state level utilities and programs. By implementing these strategies, HVAC professionals can not only enhance their revenue streams but also fortify customer satisfaction, establishing a win-win scenario for both contractors and homeowners.
B. Increasing close rates
Increasing close rates can be done in three ways:
- Following a consistent process - it’s impossible to determine the gaps without consistently following a process. Many firms run between 5-10 step processes - which should be inclusive of rapport building, conducting a comprehensive needs assessment, running a comprehensive load calculation, presenting the best options to the homeowner, and focusing on crafting a proposal that highlights the added benefits and how your solution meets the needs identified. By following a consistent process, you’ll be in a position to evaluate and evolve how you serve your customers.
- Embedding new technology to stand out on site - often technology can be used as an aid to differentiate yourself from your competitors. Tools like Conduit Tech’s design and sales software can help demonstrate why your solution is customized for that home - and help you showcase your data-driven approach and commitment to home comfort. Field Service Management tools, and financing tools can help accelerate sales, too.
- Follow up: One piece that is often overlooked is follow up - one firm we work with generated over $2M in revenue, just from calling their outstanding quotes.
V. Bringing it altogether
Measurement is vital to be able to enable improvement - and then with it, monitoring progress and adapting. Teams can work together to both track key metrics and adjust, celebrating achievements and accomplishments.
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