Lennox is the leader in advanced, energy-efficient HVAC systems that provide reliable comfort for light commercial buildings. From retail stores to restaurants, schools to healthcare facilities, Lennox HVAC systems are designed to improve comfort, reduce total cost of ownership, protect indoor air quality and simplify installation and maintenance. Choose from a wide range of innovative systems including Lennox VRF, Packaged Rooftop Units, Solar-Ready Systems, Commercial Controls, Split Systems, Mini-Split Systems, Heating Systems, Indoor Air Quality Systems and Energy Star® Products.Calculate your markups carefully to earn a profit. Comstock Images/Comstock/Getty Images HVAC companies that service residential and commercial heating and air systems have an important job -- no one likes to be hot in the summer and cold in the winter. Even though people need your services, they don't want to pay an exorbitant amount to get their HVAC systems repaired or replaced. At the same time, you need to make enough money to pay your staff and your bills.

Break-Even PointBefore you decide on how much to mark up your materials, know how much you need to make on the job to break even. Add up all your bills and divide that by the number of jobs your staff typically complete in a month. Calculate the number of hours the job should take, how much your staff person makes per hour -- including costs such as health insurance and workers' compensation -- how much your charge per hour and the cost of the materials. If you need $50 per hour to cover all your staff costs and you charge $100 per hour for labor, that's $50 toward your break-even point. If you need a profit of $100 per job to keep yourself in business, mark up the materials accordingly so they make up the other $50. Markup vs. MarginMarkup and your profit margin are calculated differently. The amount you mark up your materials doesn't equal your profit margin percentage. Understand the difference so you can more accurately set your markups to make the profit you're expecting. For a part that you paid $100, marking it up to $150 gives you a 50 percent markup: multiply 100 by 0.50 to get a $50 markup.

To get your margin, divide the markup -- in this case $50 -- by your cost, $100. You get 0.33, or 33 percent. In this example, a 50-percent markup equals a 33 percent profit margin. Parts MarkupA standard markup in a non-retail business is 100 percent, meaning you charge the customer twice what you spent on the part or material. This requires accurate bookkeeping and estimating skills because prices change constantly. Know what you spent on each part before you can mark it up correctly. Your overall cost for the job also includes a labor markup, charging more per hour for your technician's time than you pay him. These two markups can work together to make your business profitable. When you mark up your materials by 100 percent, you typically mark up your labor less, such as 25 percent. Overall MarkupInstead of setting a percentage to mark up your materials, provide overall job estimates. Decide how much you need to make on each job and provide an estimate that increases the total by a percentage instead of breaking labor and materials into different pieces that need to be marked up.

For example, if your actual labor cost, including insurance and commissions, is $400 and your materials are $300, your total cost to do the job is $700. Mark that up so you get a net profit of 30 percent by dividing $700 by 0.70, and you get an increase of $300, for a total customer cost of $1,000. Set your overall markup percentage based on your break-even point to ensure that the job makes enough to pay your bills and, hopefully, makes a profit for the company. heat pump and ac comboReferences Contracting Business: Get Scientific With Your Ability to Price for ProfitMr. air conditioning unit pipes Contact Us : : 866-2MrHVAC (866-267-4822) Home Site Info Latest Articles How We Can Help Products Free HVAC Stuff Privacy Policy Category: Calculating Gross Profit MarginService Snitch: Heating, Air Conditioning, & Refrigeration Repair (HVAC/R): Don’t Get Blown AwayHousing Zone: Remodelers Exchange: Protecting Your Margin and Mark-UpHome Tech Publishing: Handyman: Economics of the Handyman Business Photo Credits Comstock Images/Comstock/Getty Images Suggest an Article Correctionportable air conditioning units cheap

TRADITIONAL FLAT RATE pricing gives the customer one option and forces them to “take it or leave it.” THE NEW FLAT RATE offers customers a menu of choices. By giving customers more choices, you’ll increase the likelihood of a sale. Our friendly staff can quickly schedule an appointment with a professional technician. We give exact appointment windows (30 min. in the morning, 60 min. in the afternoon) so you don't have to wait all day. We can even call ahead when your technician is driving to your home. When your technician arrives, he will carefully diagnose the problem, explain the needed repair or service, and quote the price before starting any work. We don't charge by the hour. Your technician will take the time to ensure that the repair is done right. We stand behind all of our repairs with a two-year warranty. Includes parts and labor $104.50 for 1st lb. of R22 Freon* Replace typical blower motor Replace typical hot surface ignitor

*$76.40 each additional lb. Our precision tune-ups include all factory-recommended procedures to keep your system working at its best. And, because our goal is to make customers for life, our precision tune-ups are free of high-pressure sales, gimmicks, and hidden fees. (Other charges may apply if equipment is located in an attic or crawl space. Pricing represents a $50 Off-Peak Discount and can only be offered in the Spring and Fall.) Gas or propane furnace tune-up Air Conditioner or Heat Pump tune-up Read: Why we don't offer service agreements Indoor Air Quality Accessories Actual pricing may vary depending on ductwork configuration and ease of access. These prices represent our most common installations. Install Aprilaire 2210/2410 whole-house air cleaner Install Aprilaire 5000 whole-house air cleaner Install Aprilaire 1830 De-humidifier Install Aprilaire 500M whole-house humidifier Install Aprilaire 600A whole-house humidifier