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Revolutionizing HVAC Maintenance: The Rise of Factory Refreshes

Air Conditioning Factory Refresh better Profit Margins than Installs

In the dynamic world of home services, understanding market trends is crucial for staying ahead. The ACHR NEWS Homeowner Study Results reveals fascinating shifts, particularly in the maintenance sector. 

The Repair vs. Replacement Dilemma

Interestingly, Carrier's recent observations spotlight a repair market, diverging slightly from the rush for system replacements we experienced during COVID Season. This doesn't mean growth opportunities are flatlining—far from it. It signifies a pivotal change in homeowner behavior and preferences, especially among Millennials, who now represent a significant portion of the market.

Millennial Mindset: More Quotes, More Care

The modern homeowner, particularly the Millennial, aren’t shy about seeking multiple quotes for replacement AC units. Averaging 2-3 estimates, and sometimes even four, they're determined to find the best deal, which often includes weighing the cost of repairs against full replacements. Their willingness to pay dispatch fees for these quotes underscores a discerning approach to long-term investments over immediate fixes.

Homeowners Decision process in selecting HVAC company

Lifetime Value (LTV) of the Customer: A New Focus

One of the standout strategies from the survey is the shift toward enhancing the Lifetime Value (LTV) of customers. How? By offering solutions like factory refreshes instead of defaulting to replacing AC systems. This approach not only saves the customer money but also strengthens the ongoing client-company relationship—crucial in an era where single transactions can no longer define success. Pretty much, selling a new system can sometimes end the business with that customer [single trade], so maintaining and extending the life of their current system is valuable and selling memberships is where we find the new goldmine to start digging. 

Factory Refreshes: A Win-Win Solution

Enter the concept of the AC System factory refresh—a game-changer in HVAC maintenance. Targeting systems in the 5-9 year range, this midlife revitalization offers homeowners a cost-effective alternative to full system replacements. Priced around $4,000, a refresh extends the life of existing systems and boasts an impressive gross profit margin for businesses—surpassing traditional installation profits.

Tapping into the Untapped

The survey highlights a glaring gap in the market: the 5-9 year old systems. While many companies chase after the decade-old units ripe for replacement, there lies a golden opportunity with these midlife systems. Addressing this segment can differentiate your services and address a previously neglected homeowner need.

Expectations on HVAC Lifespan

The Rise of Online Sales and Instant Gratification

Another key trend is the growing acceptance of online sales for HVAC accessories. The convenience of online shopping, combined with the immediate satisfaction it offers, appeals particularly to younger homeowners. By integrating online sales into your service offerings, you can meet this demand head-on, providing the modern homeowner with the quick and easy solutions they crave.

Factory Refresh Checklist: Ensuring Excellence 

To capitalize on this trend, it's vital for technicians to have a clear, comprehensive checklist for factory refreshes. This includes replacing critical electrical components, ensuring all connections are secure, replacing and properly aligning the drain pan, rehanging the system for optimal performance, and updating insulation with new Armor Flex. Additionally, a thorough cleaning, aesthetic touch-ups, and a full system calibration ensure that the refresh truly revitalizes the unit, providing tangible value to the homeowner.

Final Thoughts

The findings from The ACHR NEWS Homeowner Study Results 2024 shed light on significant industry shifts. By adapting to these changes, particularly the push towards factory refreshes and online sales, HVAC contractors can meet evolving customer needs, tap into new market segments, and drive sustainable growth. The future of HVAC maintenance is here, and it's all about providing value, sustainability, and convenience to the modern homeowner. Marketing with a Flair IS NOT your traditional marketing agency for the Home Service industry. We stand as the pioneering force in harmonizing operations and marketing, ensuring comprehensive support for the entire company. Dive into the future of HVAC with us, where value, sustainability, and convenience for the modern homeowner define success. Marketing with a Flair: For Those Who Refuse to Settle! 

Source: The ACHR NEWS Homeowner Study Results 2024

Summary for Factory Refresh Checklist for Technicians 

Replace Electrical Components

  • Replace capacitors and contactors.

  • Ensure all electrical connections are secure and in good condition.

  • Drain Pan Replacement

  • Remove and replace the drain pan.

  • Check for proper alignment and secure placement.

  • Rehang the System

  • Inspect and adjust the hanging and positioning of the system for optimal performance.

  • Ensure the system is securely mounted and stable.

  • Replace Armor Flex

  • Remove old insulation from refrigerant lines.

  • Install new Armor Flex insulation properly.

  • Cleaning and Aesthetics

  • Thoroughly clean the system inside and out.

  • Apply protective treatments like WD-40 or Armor All to the exterior.

  • System Calibration and Check-Up

  • Calibrate the system to ensure optimal performance.

  • Perform a comprehensive system check-up, including airflow and temperature measurements.


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