HVAC Business Owner Boosts Revenue and Slashes Debt

Summary

Imagine an HVAC business owner, Cory, who, despite doing over a million dollars in annual revenue, was struggling with $60,000 in debt and the need for higher-quality leads. Alex Trazosi from Acquisition.com dives deep into Cory's business, ProShine Professional Cleaning, an HVAC cleaning and ductwork repair company. Cory's main challenges were debt repayment, lead generation quantity and quality, and streamlining his booking process. His current business model generates $1,575 per HVAC unit, with a two-year growth guarantee, and $175 for dry vent cleaning. He gets 60% of his leads from paid ads, with a recent increase in Google ad spend from $3,000 to $5,000 per month, and is experimenting with Facebook ads. A significant portion of his business also comes from an affiliate partnership with an HVAC replacement company, where he strategically refers high-ticket business. Financially, Cory's business was doing $1.25 million in sales with a 38% net margin, spending just under $7,200 on marketing, and boasting a 99% show rate and an 82% close rate. Alex identifies opportunities to improve pricing, tackle debt, optimize ad funnels, and enhance reactivation emails. Initial strategies included a 23% price increase, which surprisingly led to a higher close rate, and a plan to eliminate the $60,000 debt within 4-5 months. Key recommendations focused on optimizing landing pages for ads, fixing ad creatives for better mobile readability, increasing ad spend significantly, and implementing a cross-platform retargeting strategy. They also discussed leveraging affiliate partnerships with compelling offers and focusing on outbound outreach to HOAs. A year later, Cory reports sales have nearly doubled to $2.3-2.5 million, driven by improved marketing and lead flow. He's now looking to expand with a second location.