What makes HVAC so interesting to searchers?

searcher profile

March 07, 2025

by a searcher from INSEAD in Warsaw, Poland

I have been looking at a few HVAC businesses and what strikes me is that they have a very little portion of recurring revenue (less than 10% from recurring contractual maintenance). Given that, I wonder what makes it so interesting to searchers?

Is it that I have come across the wrong HVAC businesses (and others should have more recurring revenue) or am I missing something all together?

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commentor profile
Reply by a searcher
from The University of Chicago in Nashville, TN, USA
It's a highly fragmented market, has high ticket price per visit, has good margins and is basically non-discretionary for much of the US. I see you are from Poland so the dynamics may be a bit different there but with our extreme temperatures it can quickly make a house unlivable in the summer or winter when the HVAC goes out. Not many people are concerned about getting competitive quotes when their pipes may freeze or it is 100 F / 40C out.

A lot of customer acquisition will come from responding quickly and then the "maintenance contract" model works for increasing customer retention. The main problem with it is that the multiples have gotten so high here since they are a good roll-up industry, it is tough to get the first one at financials that make sense in my experience so far.
commentor profile
Reply by a professional
from Northwestern University in Chicago, IL, USA
I’d be more than happy to chat and answer any questions you have! Please reach me out at redacted
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