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🔧 1. You’re Winning Work, But Losing Margin

Too many HVAC owners assume a booked job = a profitable job. But the truth?

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The Reality:

• You’re not factoring in full labor cost (wages + downtime + tax load).
  
  
• Jobs in July aren’t earning the same as jobs in January.
  
  
• One crew outperforms another by 20%, but you’re charging the same.
  
  

Fix It:

• Break jobs into types: Service, Install, Maintenance, Emergency.
  
  
• Track average margin by type—at least monthly.
  
  
• Compare crew mix on each: Do certain techs or combos pull better gross profit?
  
  

→ Quick Win: One owner found 60% of their service jobs were losing money once full labor load was accounted for.

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Read: Booked Solid, So Where’s the Cash?

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📊 2. You Don’t Know Your Real Hourly Cost

Gut feel isn’t a system. If your hourly rate came from what the other guy charges, you’re already behind.

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The Reality:

• You haven’t recalculated overhead in 12 months.
  
  
• Fuel, insurance, and tools are up—but rates haven’t moved.
  
  
• You can’t tell if a $5K job made you $500 or lost you $300.
  
  

Fix It:

• Add up full monthly overhead.
  
  
• Divide by average hours billed.
  
  
• Now you’ve got your actual hourly break-even.
  
  
• Add target margin (15–20% minimum) to set your floor.
  
  

🧮 Use our “Price to Profit” worksheet to do this in under 10 minutes.

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Read: What Numbers Should I Be Watching?

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🧠 3. You’re Guessing by Season Instead of Testing

Some jobs just don’t pay the same year-round. Volume doesn’t fix that, only visibility does.

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The Reality:

• Your spring install special doesn’t actually boost profit, it just boosts workload.
  
  
• Maintenance plans are underpriced relative to summer labor cost.
  
  
• Seasonal shift in tech availability isn’t accounted for.
  
  

Fix It:

• Run margin by season for top 3 job types.
  
  
• Set seasonal pricing floors (raise when labor or demand spikes).
  
  
• Use bonus pay tied to gross profit—not just job volume.
  
  

📈 Client Example: After adjusting for seasonal gross profit dips, one shop restructured pricing and boosted Q2 profit by 19% without adding any jobs.

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Also Read: How Do I Stop the Margin Slide?

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💥 Final Takeaway:

You’re not just trying to “get jobs”—you’re trying to build a business that pays you right for doing them. That means pricing off real data, not old habits. Start tracking margin by job type, crew mix, and season, and watch your numbers jump without adding a single van.

📥 Grab the “Price to Profit” worksheet and start running the numbers like a pro.
[CTA: Get the Worksheet]

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➡️ Bonus Resource: Do Your Prices Need Revisions In The Coming Year? (HVACR Business) 

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