It isn’t easy to grow a large company– 64% of HVAC companies have less than 3 employees and only about 33% of companies even make it to ten years of business.

We also know that many of the obstacles that contractors face are due to the structure of their business model– many contractors believe that a customer-first model is offered through service calls, but shifting from a service model to a sales model rapidly impacts your revenue and growth. Let’s break it down:

What are the problems with a service model? Cost and conversion. 

The average cost to acquire a service call is $403.21 but the average revenue per service call is only $257.00. So a contractor loses $295 in operating profit per service call (even with a 42% gross margin) and hopes and prays that the customer stays with them for the next service call in 3-5 years and there is finally a return on the investment of the original service lead. 

And let’s be honest, typical lead generation options have conversions that just fall flat, on average Home Advisor leads only convert at 15% and PPC leads are even lower at 3%.  

So you’re overpaying for leads that don’t convert and then losing money on those that do, of course this model doesn’t work! Plus, you get stuck pushing every tech for a turnover and most techs like to work on systems not sell new units. 

So how are other companies maintaining profitability? It’s simple, they became sales focused!

Replacement leads fill in the revenue gaps in your business. The average cost to acquire a sales call is $500 but the average revenue is $8,000. So a contractor gains $2,860 in operating profit per sales call (again at a 42% gross margin) and the entire sales cycle is less than a week, depending on your install schedule. Contractors experience an immediate return on the investment of the original sales lead.

Thrive Digital clients experience an average 35-40% conversion on inbound lead to sales call and 35-40% conversion rate from sales call to installed systems. Our leads are qualified and ready for a replacement system.

Let’s just compare the math:

Your competitors know that a strategic replacement sales model that uses service calls to enhance seasonal sales fluctuation provides the most profitable and consistent business blueprint.

See what Thrive Digital can do for you! Unlike other lead providers, we focus on quality, not quantity. Our leads are highly- targeted, qualified and ready for conversion.