Revenue & Performance

How much revenue should an HVAC service tech generate per year?

At coached HVAC shops, the median service tech sells $293K a year. The middle half of techs sell between $209K and $341K. These numbers come from each tech's own daily sales. They do not include equipment sold by a separate comfort advisor.

That is our HVAC revenue per technician benchmark. If your techs sell less than the bottom of that range, look at how they run calls before you add more techs.

Why HVAC revenue per technician benchmarks don't match

Search this question and you will find many answers. Some pages set a target as a multiple of what a tech is paid. Some count install crews with service techs. Some divide company revenue by the number of trucks.

Each method gives a different answer. Few pages say which one they used, so an owner can't compare their shop to them.

Our number is simple. It is the revenue a service tech sold, divided across the days we have his numbers, and turned into a full year.

How we measure revenue per technician

  • Sold revenue per service tech. Each tech's own sold work, from the numbers he logs each day.
  • Service techs only. We leave out comfort advisors, sole maintenance techs, and apprentices.
  • At least half a year of data per tech. Techs with only a few weeks of numbers are left out.
  • The last 12 months. We update the numbers every quarter.

One thing to know about HVAC. Many shops send a comfort advisor to sell replacements. When that happens, the replacement does not count toward the service tech's number. A shop where techs sell their own replacements will show a higher number than a shop that hands them off.

What moves the number

Revenue per tech comes from three things that multiply together. They are the calls a tech runs, the share he closes, and the average ticket on each sold job.

Adding calls is the hardest to change. HVAC also has slow seasons, so calls rise and fall through the year. Close rate and ticket are steadier, and they come from how the tech runs the call.

See the average close rate for an HVAC tech and a good average ticket for an HVAC service call for those numbers. Our article on why some HVAC techs close more calls than others covers how to raise them.

What your number tells you

Below $209K. Your techs are not selling enough on each call. Adding a tech now adds the same problem. Work on close rate and ticket first.

Between the bottom and top of the middle half. Your shop is in the middle of coached shops. Coach the techs at the bottom of your own team first.

Above $341K. Your techs sell well. If they are booked out in your busy season, you may be ready for another tech.

What we recommend

Track revenue per tech for every tech, every month. Compare the same months year over year, because HVAC is seasonal.

Fix sales before you add trucks. A new tech who sells like your bottom tech costs you money. Moving a current tech from the bottom quarter to the middle pays you right away.

The free owner assessment below shows where your shop stands on sales and the rest of the business.

Nick Hattaway headshot

— Operations Coach, Team SPG

Nick started his professional career as an Officer in the USMC. Upon leaving the Marine Corps, Nick joined the private sector and has over 9 years of experience leading and managing construction service companies. Starting as a Service Manager for a large plumbing department, he quickly demonstrated his mastery of training technicians to achieve and exceed their Key Training Indicators (KTI). Due to his success, Nick was promoted to Operations Manager and implemented and executed key initiatives that increased revenues from $7 to $10 million while producing a consistent 20% net profit for the company. As the operations manager he was integral in running all aspects of the business to include warehousing, administration, call center operations, human resources, and marketing. Nick also has extensive experience HVAC and Fireplace companies and has led multiple organizations across the continental United States as a coach, General Manager, and owner. He loves rolling up his sleeves and getting into the business operations with owners and key leaders of companies. His goal is to help provide them success so that they can increase the general quality of life for all key stakeholders. Nick is passionate about the outdoors and traveling and is excited to visit your company.

Related questions

Should I count replacements sold by a comfort advisor?

Not in the tech's number. Track the advisor's sales on their own. If you mix them in, your techs look stronger than they are.

How does the slow season affect revenue per tech?

Calls drop in the mild months, so monthly numbers fall. That is why we measure a full year. Compare a tech's spring to last spring, not to last summer.

Is revenue per technician the same as HVAC revenue per truck?

No. A truck can carry an install crew or a helper. Revenue per technician counts only what one service tech sold.

What is a good revenue per tech compared to pay?

Many pages use a rule based on a tech's pay. We think it is better to compare each tech to real techs in the same trade. The ranges above do that.

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How-to

What should my billable hour rate be? (HVAC)

Your billable hour rate must cover your shop’s costs and leave your planned profit. Divide total yearly costs by one minus your profit goal, written as a decimal. Then divide by planned billable hours. Use hours your techs can bill, not every hour you pay them for.

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How-to

Why do some HVAC techs close more calls than others?

At coached HVAC shops, the bottom quarter of techs close 52.6% of their calls or less. The top quarter close 83.7% or more. They run the same kinds of calls for the same kinds of customers. The difference is not talent. Top techs follow the same steps, in the same order, on every call.

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Benchmark

What's the average close rate for an HVAC tech?

No single average close rate works for every HVAC shop. A useful comparison starts with the calls your techs run and who handles system sales. Compare techs with similar duties, then review their full KTI. Use revenue per truck to check overall productivity, rather than judging the shop by close rate alone.

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