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Maximizing HVAC Business Revenue: The Power of Membership Programs

How to make your home service business more profitable through memberships

The key to consistent revenue and efficient operations for a Home Service company might just be tucked away in the value of membership programs. Preventative Maintenance Agreements (PMAs) are a great job source during shoulder season. We are not just talking about revenue generation here when we consider 1 in 20 tune ups ought to lead to a replacement BUT we are also talking about keeping your valuable assets during slower months– YOUR TECHS! 


Let's be honest, shoulder season is nothing new, we know it's coming and the best way to prepare for the impact is to have multi trades to lessen the burden on the HVAC side and/ or to grow your memberships during demand time. To maintain a steady workflow and secure year-round profitability, smart HVAC businesses are looking at summer PMA sales as a squirrel gathering their nuts for winter. PREPARE and be PROFITABLE!  


Understanding the 500 to 1,000,000 Ratio:

I came across this ratio benchmark in Sera backed by decades of industry top performers. Falling short of this ratio means you risk underutilizing your techs and missing out on the steady flow of business. Here's why memberships are the game-changer in this equation:


The Value of Home Service Membership Programs

The Value of Year-Round Memberships:

Picture this: each member signs up for a spring AC tune-up and a fall heater check. These aren't just two separate services; they are two opportunities to engage with the customer, reinforce trust, and pave the way for further service offerings. With 500 members on your roster, not only is your revenue stream more predictable, but the engagement levels also peak.


Acquiring Members During Peak Season:

When the summer heat or winter chill drives the demand for installations and repairs, that's your cue to promote memberships. It's like the wise squirrel gathering nuts for the winter; except, in your case, you're securing customer loyalty and future business. This isn't just about making a sale; it's about building a relationship that withstands the cyclical nature of the industry.


Leveraging Memberships in Shoulder Seasons:

During the shoulder seasons, when HVAC calls are low and the 3 day board is not at 100%, memberships ensure that your techs remain active, and your revenue stays consistent. This is when the strategic foresight of gathering memberships pays off. This is how you avoid sending your techs home for the day. As an Home Service business owner, sending techs home due to low bookings is a horrible feeling. Not only are the techs not able to make money, the company isn't making money and you are at greater risk of the technicians you're invested in leaving for a bigger company that offers more year round work. If you have a multi trade home service company, consider introducing a 3rd home visit as a FREE PERK for members, this will be your Whole Home Inspection where you can have a plumber and/or electrician run the job and provide the member with an inspection sheet of items they should address from a toilet leak tests to circuit checks. The Whole Home Inspection is a great perk for the member but also a BIG opportunity for the company to create a list of potential issues that the CSRs can follow up with; even better if you have a CSR take on the title and role of Members Advocate.



WARNING: The other side of memberships 

THIS IS THE PART MOST PEOPLE DON'T TALK ABOUT….

Getting members is great BUT if you are not serving them during the shoulder months you are risking filling your demand board in the summer and winter with lower average tickets from PMAs. PMAs are great for committed customer pool but it is a maintenance program not a replacement or repair - In fact, 1 in 20 tune ups ought to lead to a replacement and 1 in 10 repairs ought to lead to a replacement –of course your Existing Customer Replacement Efficiency rate will skew these national average number; we can talk about Existing Customer Replacement Efficiency rate later…


Back to memberships, I have seen too often, companies not accurately preparing for their members, either by not having enough techs to fulfill PMAs or CSRS not outbounding to schedule; this results in scheduling PMAs during your peak season, YIKES!


At Marketing with a Flair, we specialize in creating membership programs that help you capitalize on demand seasons and prepare for slower months, ensuring you're not just surviving but thriving throughout the WHOLE year. Let us show you how to make memberships your strategic advantage. Connect with us and let's future-proof your HVAC business today.


This article was written by Dr. Anissa Villegas 

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