What is a Good HVAC Sales Goal?

Sometime about 20 years ago, while working for a small mechanical company, I started attending my first industry courses in the evenings – offered by most distributors at the time. This is where I started learning more about the trade during conversations prior to class, and during breaks, than I ever did in the four years of a trade school. I vividly remember one item that has always stuck in my head: A good Salesman will sell $1M in Residential Sales Annually.

If this is your goal in 2022, and beyond, I am about to offer you some tough advice to read: you are not even halfway there! If this was the goal for a ‘good’ Salesman in the year 2001, just simply adjusting for inflation, today would be almost $1.5M!

Keep in mind, this is when the industry was locked on 10 SEER equipment, less than 8 HSPF Heat Pumps, and 85% AFUE furnaces were all the rage. The average ticket at this time was easily $4,500. Since then, there have been minimum increases in SEER/HSPF/AFUE that have brought most average /minimum tickets to at least $6k. So based on this requirement to sell at least a higher efficiency since twenty years ago, along with the increase in costs of goods sold, the average HVAC Salesperson in my estimation should have a goal of at least $2M/year!

This is also for someone selling the minimum, not receiving a single pay raise for the last 20 years, and just keeping up with inflation! Let’s say you were a professional, set purpose-driven goals, and just achieved a mere 10% increase in your sales annually. This would put your sales after 20 years at $7.4M/year; not to include the inflation and efficiency increases…

So, let me pose the question: What do you feel is a fair sales target for a residential salesperson in your market? I had a conversation with a growing company owner the other day that is selling over $7M/year! I know another legend in my market that has a goal of $9M this year. What do these guys have in common that the $1M/year Salesperson does not? Motivation, Goals, and a Process…Are you 10% better than yourself last year?