The Hardest System to Fix — Your Company Reputation
Why is company reputation one of the hardest systems to fix in HVAC? Because homeowners are not just buying equipment. When they are making a major purchase that affects their comfort and requires someone to work inside their home — trust matters! A strong reputation is built when customers feel confident you will follow through and deliver the kind of experience they feel good telling other people about. When a company drops the ball on any aspect of serrvice, that damage can reach far beyond a single job.
In this episode of Cracking the Code, David Holt explains why trust still drives homeowner decisions and why reputation remains one of the most valuable assets an HVAC business can build. He shares how business systems, customer experience, and consistent follow-through all play a role in earning referrals, strengthening your brand, and helping your company deliver the results homeowners actually care about.
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00:00:00:02 – 00:00:17:01
What makes most homeowners feel comfortable is they’re not responding to some slick ad campaign. They’re actually hearing about you through their friends.
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Welcome back to Cracking the Code. I’m your host, David Holt. Please subscribe, like, comment, and share this episode so you can join us as we help the Hvac industry be better tomorrow than it is today. In this special series, we’re introducing you to the people behind the coaching program at Contractor University. One of the biggest challenges many contractors face isn’t actually technical.
00:00:41:07 – 00:01:01:10
It’s a whole bunch of other stuff. It’s financial, it’s leadership. It’s getting the culture right. It’s getting the processes down. It’s all these different things. It’s not about fixing furnaces. It’s about fixing businesses. When you think about all the different things that go on in the business, there’s tons of things we got to work on. And as contractors, we’re really good at a lot of that stuff.
00:01:01:16 – 00:01:21:04
But there’s some things we just need help with, that’s for sure. So today is going to be a little different. I’m going to actually be solo on this call. So it’s just you and me. We’re going to talk. Peer to peer. I’m a former contractor, third generation. Dad sold the business back in 1999. I’ve been doing training, coaching and consulting ever since.
00:01:21:06 – 00:01:39:13
The interesting thing is a lot of people say, yeah, well, that was 1999. You were back in the 90s, man, that’s so last century. And it is. But, you know, one of the things I learned is that people still make decisions pretty much the same way they always had. Now they got a lot more information today than they had in the past.
00:01:39:15 – 00:02:08:12
They got a lot more information that might be true, might be false, right? They got all kind of different things. But people still do business with people they trust and people that they like. And so what I want to talk about today is just a few things real quick that I know from historical perspective, but also I see it every day in our coaching calls is what is it that makes a business attractive to homeowners?
00:02:08:14 – 00:02:36:10
Well, I can tell you from experience what makes most homeowners feel comfortable with you is they’re not responding to some slick ad campaign. They’re actually hearing about you through their friends, through their family, through their network of people that they actually know and trust. And if they say, well, how how’d hold service company do on taking care of your home and all that?
00:02:36:10 – 00:02:56:06
Customer says, it’s me. And I tell you what, they showed up when they said they were gonna they cleaned up. They cleaned the place better than I left it. It was certainly they took some of my trash with them, too. They did things they didn’t have to do. They brought in my trash cans for me. A guy offered to change a light out up on the on the side of my house.
00:02:56:06 – 00:03:14:18
One of my security lights had burnt out and I didn’t have a ladder, didn’t have the ability to do it. And so, they they saw the opportunity to help and they offered it and they charged me for it. Right. You’re doing things for the people. You’re doing things for the people. You’re doing them for the right reason.
00:03:14:18 – 00:03:33:14
Now, you can’t make a living doing stuff for free. I get it, but if you charge what you need to charge in your business, if you pay yourself what your worth and you charge for what you’re worth. Guess what? It’s easy to do the other things. Those little extras, down in New Orleans, they call it land. Yep.
00:03:33:14 – 00:03:57:11
It’s the 13th donut, right? It’s a something a little bit extra. When you go above and beyond what’s absolutely required, you ingratiate that customer. That means they love you. You ingratiate that customer with just your your kindness, your ability to see things that need to be done and actually offer to help. I think about my 89 year old mother.
00:03:57:13 – 00:04:17:12
She’s got two split systems, two gas electric split systems in a house in Georgia. They’re both in the attic. What’s the chance of 89 year old woman is going to get up in the attic and check out her system? She has no idea what she’s looking at. Even if she did, even though she was married to a heating and air contractor.
00:04:17:13 – 00:04:36:07
My dad, if I asked her what refrigerant she had in her system, she wouldn’t have a clue. She’s got two refrigerators in a freezer. If I asked her what refrigerant was in any of those devices, she wouldn’t have a clue. If I asked her what refrigerant was in her car, she wouldn’t have a clue. All right, because that part’s not important.
00:04:36:09 – 00:05:06:22
What she needs is what those systems do for her. She’ll need to know what it is. She didn’t even know how it does it. She needs to know that it’s being done, that the refrigerator is maintaining temperature so the milk doesn’t spoil. The freezer is maintaining temperature, so the ice cream doesn’t melt, right. The air conditioner has the appropriate systems in place to keep her cool and comfortable in the summers, and warm and cozy in the winters.
00:05:07:00 – 00:05:25:21
All right. That’s what homeowners like. And guess what? In 1990s, when I was running dad’s heating and air business, customers were the same way. Now, for sure. We got a lot better technology today. I back in my day, I could buy a whole furnace for 350 bucks. 350 bucks is a monthly payment now on a furnace? It’s like, are you kidding me?
00:05:25:23 – 00:06:04:15
The price of stuff has gone through the roof, but the value that it provides has gotten a whole lot better. I just invested significant amount of money in renovating my home. We spent a ton of money, like a ton of money, to put in a new Hvac system. We took out two split systems, two split heat pumps, put a single inverter based mini split type outdoor unit with a variable speed indoor unit, rework the duct system, put in three zones and made a huge difference in the comfort of that home.
00:06:04:17 – 00:06:25:12
We also added air cleaners. We added fresh air ventilation. We actually downsized the equipment capacity significantly because of the zoning and because of the effectiveness of the new technology. I didn’t have that back in the day when I was running my system, my business. I didn’t have that right. We had we were lucky to have two speed, let alone variable.
00:06:25:14 – 00:06:50:04
Right? We were it just just didn’t exist. The technology has come a long way since the 90s. But you know what? The homeowners the same. They still want to be safe, healthy, comfortable and efficient. So when you think about what you need in your business, when you’re thinking about the the processes that it takes to heat and cool a house, I mean, we’re real comfortable with that from a technology standpoint.
00:06:50:09 – 00:07:16:02
But are you comfortable with the processes that are required to run your business? Are you comfortable with a financial report called a profit and Loss Statement that’s broken down so that you can see exactly just like gauges on refrigerant system, do you can you dial in the gauges and tell what’s going on? Think about this. If you’re familiar with the tool called measure quick, measure quick.
00:07:16:02 – 00:07:40:06
You put all the gauges right. You put all the sensors all over the unit, and you push a button and it starts telling you magic stuff. Well, it’s not telling you anything that didn’t exist back in the 1950s when my grandfather was in the business. It’s still measuring the same exact principles. It just measures them better, faster. And it’s got a brain in it that says if this, then that, if this, then that, right.
00:07:40:06 – 00:08:02:08
So they programed in a lot of good knowledge for, for us to make it easier for us. But the end result is, is the temperature inside the house, is the humidity inside the house what it needs to be? That’s what the homeowners buying is the result. They’re not buying what it is. They’re buying what it does. And so what I want to challenge you with is think about that.
00:08:02:08 – 00:08:27:13
If you look at what you’re doing for your customer, the technology side of it, it’s pretty cut and dried and you’re probably really good at that. When you think about the business that’s delivering that technology, that’s delivering those solutions, can you fix what’s going on in your business as easily as you can fix what’s going on in your customer’s Hvac system?
00:08:27:15 – 00:08:49:00
If the answer to that is, I probably could use a little help in some areas, well, that’s why our coaches are there. Every one of our coaches has experience in the field doing what you do now. We’ve got some that have technical expertise. I’m not one of those guys, right? I’m actually a business guy. I’ve got a Bachelor of Business Administration degree from the University of Georgia.
00:08:49:03 – 00:09:04:10
I never actually turned a wrench on a heating and air unit. Now, that may make you say, well, I don’t need to listen to you. You’ve never turned a wrench on a heating there. Yeah. I would never tell you that. You should listen to me on how to repair an air conditioning system. You can listen to me on how to design one.
00:09:04:12 – 00:09:27:13
The one I just designed for my house is killer. You would love to have it in your house, too. It’s a nice three zone system. Nice variable. I mean, everything’s variable. Speed it, and it works like a champ. The crazy thing is, the highest power bill. Two years ago, around 600 something dollars is down now. The highest power bill last year with the unit running at a higher outside temperature, was actually about 300 bucks.
00:09:27:15 – 00:10:06:11
So 50% discount. Discount if you will, on Georgia Power Company in this case. And that’s a beautiful thing. So it’s not what it how it does it that matters. What matters is what is the customer going to get out of it. So thinking about the technology, thinking about your business, if you could, if you do a great job on the technology side, but somehow another you don’t show up on time or somehow another you invoice them the proper the improper amount, you don’t invoice them the proper amount, or you ordered a part for a repair and you just never showed back up to put it in right.
00:10:06:11 – 00:10:32:04
You dropped the ball systemically in the business operations side. When you drop the ball in business, you dropping the ball on your reputation with that customer and the reputation. I promise you, is just as important today as it was in 1956 when my grandfather started our business, and certainly is just as important as it was in 1999 when we sold the business.
00:10:32:06 – 00:10:53:19
So just a little tip. Our coaches have the experience to walk you through the process. Are best practices. Library has more tools in it to help you grow your business than I can shake. I mean, there’s I mean, I haven’t even been able to look through all of them yet. It’s just a lot. Well, we can walk you through the stuff that’s important to you right now.
00:10:53:19 – 00:11:19:06
We know we’ve been there. We’ve done that. So that’s my little spiel on coaching and the best practices library that we’ve got at Contractor University. I hope that you’ll take advantage of the resources that we have so that you too, can help your customers enjoy the safest, healthiest, most comfortable and energy efficient home. And you and your crew will be finally paid what you’re really worth.
00:11:19:08 – 00:11:44:21
We’ll help you get there. All you got to do is ask for the help. So that’s a good thing. That’s a really good thing. So I love coaching. I love coaching with contractors. I don’t do very much of it right now because I’ve got a whole lot of other things on my plate here. But I got three really good coaches right now and probably will be adding more as more calls come in so that we can handle more of your problems, take them off your shoulders.
00:11:44:21 – 00:12:07:17
We’re not going to put them all on ours. We’re just going to help you get through them a little bit easier. So just a just a guidance thing. And we have the resources to help you get there. So again, my name is David Holt. I’m actually the director of education and coaching for Contractor University. And I really look forward to you engaging with our family of coaches and account managers.
00:12:07:17 – 00:12:44:23
They are great too. They’re great folks there. It’s a beautiful thing when all of us are working together to help your business deliver a better result for your homeowners. So it’s really been interesting conversation with myself today. I appreciate myself sharing my perspective with you. That’s a good thing. So for those listening, if you are part of contractor university coaches like me, Joel, John, Bob are available to help you think through things like pricing and profitability and financials and and business planning and what do we do for human resources and all those kind of fun things?
00:12:45:05 – 00:13:02:07
We got all those things covered and a whole lot more. So thanks again for joining us. And thanks to everyone listening to Cracking the Code, where we make Hvac business fun, simple and stress free. Don’t forget, subscribe, comment, like and share this episode. And until next time, keep on cracking.
