Have HVAC Questions? Ask an HVAC Expert for Answers
Welcome, my name is XXXXX XXXXX I will do my best to help you with your issueA couple things come to mind:First you may have trouble getting liability insurance if you only have sub-contractors. It's been my experience that insurance companies are reluctant to insure a company, in a business like this that requires licensed technicians, with no employees that are techs
You'll have trouble getting subs if you don't provide enough work for them. If you only plan on doing new installations your business model would be easier to put into practice. I don't see this working as a service business
I see. I contacted 5 people for quotes and received one replied. $1,538 for 1 mil general liabilty
Also, install only contractors rely heavily on new construction and that is pretty limited these days.
I would be looking to do repair also not just new install
Residential installs, replacements and repairs is what is carrying most companies lately. You'll need at least 1 service tech on staff if you plan to do this type of work
You may be aware of the IRS rules re: captive subs
a little....could you fill me in
I plan on doing residential repair and install
Any sub-contractor that works exclusively or primarily for you can and often is considered a captive sub-contractor which = employee in the eyes of the IRS
was also considering gov contracting
and local State workers comp boards
My suggestion would be to find one good HVAC tech that you can work with (maybe offer a piece of the action) and classify him as an employee
This tech will likely have other contacts in the industry (other potential subs) that will be invaluable
And it's easier to wiggle around the tax and comp rules if you have at least 1 employee to start
so hire one and the rest would be subs?
To start, eventually if you get big enough you'll probably have to put on more employees but that's something you can figure out as things progress
The IRS is getting very picky about calling an employee a sub
Suld I cover that one tech with benefits or just pay him an allow him to get his own plan
Not to mention workers comp Boards
You'll have to work it out with who ever you hire. Somebody really good will probably want benefits. Also if you want to give yourself benefits you'll usually have to offer them to your employees as well
what type of tech should I hire regarding experence in your eyes? and what would you recommend for pay?
You want a NATE certified tech as well as someone with a gas fitters license and depending on where you are an oil burner license would be a big plus . Someone with at least 10 years experience minimum. I can't make a recommendation regarding pay since I don't know where you are and what rates are in your area. Here in the suburban Boston area no body you would want to hire would accept anything less than $30/hour + bennies
I am in southern new jersey
I'd also offer 5-10% profit sharing for the right guy
I'm not real familiar with south Jersey but I believe oil burners are not uncommon and I'd expect the pay rate to be similar particularly if you're near Philly
I am 15 min from Phill
Do you believe heavy internet advertising would generate the busines needed in the beginning?
There's no way to tell. Our experience with internet advertising is that you have to have a presence but it's no better than print or yellow pages used to be. Given your unfamiliarity with with the business I'd recommend you consider "partnering" with a good tradesman who knows the business but maybe doesn't have the business acumen to make a go of it. Maybe consider buying an established business.
This can be a rewarding business but it's also a tough one to break into even for somebody who knows the ropes.
I see....I have a web designer and plan on doing some pay per click...especially in the begining
Pay per click is the best way to go. SEO, I've found is a scam
what would you say the average is regarding appointments? I mean how many phone calls turn into appointments? I would think it be high
I don't know what you're asking, do you mean cold calling?
Or do you mean what 's the typical close rate on leads
no i mean if someone calls your business it usually turns into an appintment correct
If it's service yes. If it's a new install or a replacement estimate 10% is average 20% is good
so you feel as though SEO is a scam.....curious as to why
You get a lot of promises and can spend a lot of money but results as promised seldom materialize. You'll get better page position with PPC budgeting the same money
do you have any more questions?
not at the moment...I felt this was a worthy investment so I signed up for ulimitted questions for the time being but I do need to leave for an appointment right now. I thank you for your cander and help
Rick, How do the service and repair companies handle parts? I mean do the trucks carrier what is usually needed for a days work. Also are most parts interchangeable from manufacturer to manufacturer? Or do they go off site to get the part they may need.
Curious as to what happens under those cases. Is the client charged for the time to get the part and return, or do you just schedule for the following day.
Have a great night, I will check for your response in the morning.