Ask any homeowner about one of the worst things that could go wrong with their house, and they’ll tell you—they’re heating and air conditioning system going out. We’ve all become rather accustomed to cool air from air conditioners to keep us comfortable on hot summer days, and the heat from our furnaces to keep us warm on a cold winter’s night.
So why is this important? It shows that HVAC jobs will always be in demand as homeowners want a quick solution when their appliances go out. But there are about 112,000 heating and air conditioning contractors in the U.S., which means the competition is pretty thick. For that reason, just throwing a bid out to a client and assuming they’ll bite isn’t going to cut it.
In this article, we’ll talk about why a high-quality bid is so important to help you land the business. Read on for a step-by-step guide for what you need to know to send out more bids and drive more conversions with customers that say—yes!
How To Successfully Bid HVAC Jobs
One thing we’ve learned in the service industry is that great HVAC repair professionals are great at doing just that—repairing HVAC units. However, the business side of the business doesn’t always come naturally. In fact, while you have to bid on a job to win the deal, most contractors tell us it is one of their least favorite things to do.
Why is that? Because they don’t have the tools to bid the job right the first time. Let’s walk through the steps to make sure this doesn’t happen to you.
1. Select Your Ideal Job
Landing the projects you want for your HVAC business starts with selecting the ideal job that you want to take on. But what does that mean? Shouldn’t you offer everything to anybody and everybody? Not exactly. It’s true that you don’t want your customers to have to call another contractor for a service you don’t offer. But that’s not really what we’re talking about here.
We’re talking about considering the job and determining if it is a job you want to take on. Do you have the time and skills for the problem at hand? Do you have the bandwidth to take it on? Is the project too big or too small? Consider what’s important to you and your business and the skills and availability of your team and only bid on projects that you can deliver on with a high degree of quality and customer satisfaction.
2. Review Bid Documents & Specifications
Before you bid on an HVAC job, carefully review all the documents and specifications related to the project. This means looking at blueprints, plans, and any other details provided by the client. Make sure you understand what the job entails, the materials needed, and any specific requirements. Use a scope of work document to make sure you don’t miss anything.
This helps you create a precise bid and shows the client that you are thorough and professional. Overlooking details can lead to unexpected costs and problems down the road, so take your time and be thorough.
3. Perform Accurate Takeoffs
This process involves measuring and counting all the material costs for the HVAC job. Use specialized software or tools to help you get precise measurements. This allows you to calculate the costs accurately and avoid underestimating or overestimating. By doing accurate takeoffs, you can provide a realistic bid that covers all aspects of the project, which helps build trust with your clients and increases your chances of winning the job.
4. Source Rates From Suppliers
Next up, know what rates you’ll need to cover with your suppliers. Contact your suppliers to get current pricing for all the materials and equipment needed for the job. Make sure to account for any potential price fluctuations or special order items that might take longer to arrive. Building good relationships with your suppliers can also help you negotiate better rates and terms.
Accurate supplier rates are essential for creating a bid that covers your costs and leaves room for profit. Always double-check these rates to avoid any surprises later on. Remember, you can’t go back to your customer after the fact to ask for more money because you didn’t do your due diligence.
5. Calculate Labor Costs
Determine how much people-power will be needed from your team to do the job. Consider their hourly wages—the average hourly rate of an HVAC technician in the U.S. is $28.74— transportation costs, and anything labor-related that needs to be accounted for in your bid. Include time for both on-site work and any necessary preparation or follow-up. Don’t forget to factor in overtime rates if the job might extend beyond regular hours.
Additionally, consider any specialized skills your team members might bring, as this can affect their pay rate. Accurate labor calculations help you avoid underbidding and make sure your team is fairly compensated for their work. The last thing you want is to pay your team and not have any profits left over from the job.
6. Factor in Overhead & Profit Margin
Most HVAC contractors shoot for a minimum profit margin of about 20%. This means that after covering all your costs, 20% of the total bid amount should be profit. To calculate this, you need to factor in all overhead expenses, such as office or warehouse rent, utilities, insurance, and administrative costs. Overhead also includes marketing expenses, vehicle maintenance, and any software subscriptions you use for your business.
Make sure to add these overhead costs to your bid to cover all expenses. Once you have the total cost, apply your ideal profit margin to determine the final bid amount.
7. Write Your Bid Proposal
Now that you’ve done your homework and understand your job costing and target profit margin, it’s time to write your bid proposal. Remember that the intended recipient of your bid proposal might not be an expert in the HVAC space. So, use terms that everyone will understand.
Also, don’t underestimate the power of a professional, computer-generated proposal vs. a handwritten document that might not be completely legible. One of the best ways to do this is to use a bid calculator or proposal tool that will make sure you don’t miss anything important and will leave you with a polished and professional-looking proposal that you’ll be proud to present to a client.
8. Submit Your Bid and Follow-Up
Once you are confident that you have properly estimated your HVAC services, it’s time to submit your bid. Make sure your bid is clear, detailed, and professionally presented. Include a cover letter that highlights your experience and why you’re the best choice for the job.
After submitting your bid, follow up with the client within a few days to confirm receipt and address any questions they might have. This shows your dedication and keeps you top of mind. A timely follow-up can make a big difference in winning the contract.
Get In Touch: 858-842-5746
Bid HVAC jobs with precision
On average, Pros increase monthly revenue generated through Housecall Pro by 50% after their first year.
See plan options and feature breakdown on our pricing page.
HVAC Job Bidding Mistakes To Avoid
Just like there are a lot of steps to creating a winning HVAC bid, there are also things not to do when learning how to bid an HVAC job. Here are some big mistakes to avoid.
Bidding Too Low
The chances are you are not a millionaire without any financial responsibilities. It’s more likely that you are in business to make money. So, don’t underbid your projects. Make sure you follow our tips in the bidding process to cover all your costs and desired profit margin. Additionally, pay attention to pricing from nearby competition. Understanding the market rates helps you stay competitive without undervaluing your services. A bid that’s too low might win you the job, but it could also lead to financial losses and compromise the quality of your work.
Ignoring The Full Scope of Work
If you miss part of the initial scope, not only can it lead to customer disappointment, but it can be very expensive for you as it is hard to go backward and ask for more money (especially if the customer can prove that they shared the missed scope with you). Thoroughly review the project details and make sure nothing is overlooked.
Using an HVAC software estimating tool can help you catch all the necessary details and create accurate bids. This tool can streamline how to bid on HVAC jobs by ensuring all aspects are considered, from materials to labor.
To avoid missing critical elements of the scope, consider the following:
- Review all project documents and specifications.
- Conduct a detailed site visit.
- Consult with your team to gather insights.
- Use an HVAC software estimating tool for accuracy.
- Confirm all client requirements and expectations in writing.
Not Using Modern Bidding Tools and Software
Being in the service industry has a lot of moving parts. From scheduling to ordering materials, tracking project progress, and managing customer relationships, there’s a lot to juggle. Relying solely on manual methods or outdated systems can lead to errors and inefficiencies.
Modern bidding tools and HVAC software estimating tools are designed to help you streamline your processes and increase accuracy in your bids. These tools can automate many tasks, such as calculations, documentation, and even follow-ups, saving you time and reducing the risk of mistakes.
Not using these modern tools can put you at a disadvantage compared to competitors who leverage technology to enhance their efficiency and accuracy. Investing in reliable software can make a significant difference in how you bid on HVAC jobs, helping you create more precise estimates and manage your projects more effectively. Embracing technology not only simplifies your workflow but also demonstrates professionalism, making you more appealing to potential clients.
Win More HVAC Bids With These Strategies
Now that you know how to build a bid that leaves you with a healthy profit at the end of the project, let’s get a bit further into the weeds on things you need to do to increase your win rate.
Use an HVAC Bid Template to Save Time & Increase Efficiency
Using an HVAC bid template is an invaluable tool for HVAC contractors looking to enhance their bidding process and secure more jobs. By using a pre-designed template, you can significantly reduce bid preparation time, increase efficiency, and ensure consistency in your bids.
Luckily Housecall Pro has an HVAC Bid Template plus many more available, so you can enhance your efficiency, accuracy, and professionalism in bid submissions. This not only helps in winning more contracts but also in building a solid reputation for your HVAC business.
The template covers all aspects of an HVAC job, from labor and materials to additional costs and timelines. With intuitive fields and pre-set options, you can quickly fill in necessary details without missing critical components.
Download your free HVAC bid template so you can submit bids more quickly, and win contracts without the headaches.
Analyze The Competition
We shared earlier that there are just shy of 112,000 heating and air conditioning contractors out there. That’s a lot of other contractors to complete with. Doing your homework on who else is serving your community will make a big difference in helping you not just in pricing your services, but also in knowing how competitors are engaging with prospective clients.
Here are some things to study about your local competition.
- Pricing Strategies: Understand how your competitors price HVAC services. This includes their base rates, any additional fees, and their profit margins.
- Service Offerings: Analyze the range of services they provide. Are there any services they offer that you don’t, or vice versa?
- Customer Reviews: Read online reviews to see what clients appreciate about their service and what they criticize.
- Marketing Tactics: Look at how they market their services. This includes their online presence, advertising methods, and promotional strategies.
- Response Time: Assess how quickly they respond to inquiries and service calls. Speed can be a significant factor for customers in choosing a contractor.
- Quality of Work: Whenever possible, gather information on the quality of their work, including any certifications or awards they may have received.
- Client Engagement: Observe how they engage with their customers before, during, and after the service. This can include follow-up communications, customer service practices, and loyalty programs.
Present Your Proposals Professionally
How you present your bid to your prospective customer is almost as important as what you include in the bid. Here are some tips on how to present a winning bid.
- Timely Delivery: Without fail, deliver your bid promptly. This demonstrates reliability and respect for the client’s time.
- Send Electronically: Email your bid to the client so they have an electronic record and paper trail. This makes it easy for them to review and share with others involved in the decision-making process. It allows makes it easier for you to follow-up.
- Clear and Concise Format: Present your bid in a clear and easy-to-read format using clear language that the layperson will understand. Use headings, bullet points, and organized sections to make the information easy to consume.
- Professional Presentation: Include your company’s branding and contact information. A well-designed proposal reflects professionalism and attention to detail. And, this is a great way to help build brand awareness and recall.
- Personalize the Proposal: Tailor the bid to the specific needs and concerns of the client. Highlight how your services will benefit them uniquely and make sure you include everything in scope and don’t miss any of those important details.
Review And Refine Your Bids
Last but not least, be sure to do a thorough review of your bid once it has been put together and before you send it. This might seem like overkill especially if you are using proposal software, but things do get missed. So, be sure to give your bid a once-over before sending it on its way.
Streamline Job Bidding & Estimating With HVAC Software
As an HVAC contractor, you have a lot of pressing demands and customers that want your services yesterday. Don’t let a cumbersome or manual estimating process cause you to lose business. With HVAC software from Housecall Pro, you’ll quickly see your conversions start to soar.
So, still wondering how to bid on HVAC jobs? The answer lies with Housecall Pro. Get started with your free 14 day trial today.
