HVAC Price Fixing Lawsuit Deep Dive + Proven Business Strategies for Contractors

The HVAC Price Fixing Lawsuit: What Contractors Need to Know

• Berg vs. Bosch targets consumer pricing across 30 states, focusing on end-user overcharges
• Ism vs. Trane addresses direct manufacturer-to-contractor pricing collusion
• Both suits allege manufacturers coordinated price increases instead of competing, eliminating the "price anchor" in the market
• Trane's CEO publicly discussed maintaining "pricing discipline" and achieving 20% higher profits than ever before
• Coverage extends beyond A2L transition issues to the broader pattern of coordinated pricing since 2018–2019

"When one company raises prices and another says 'you're going to raise your price with me so nobody can do anything,' there's no longer a price anchor, no longer competition — and that's the problem."

The 454B Refrigerant Crisis: Worse Than COVID

• 454B refrigerant prices jumped to $1,500+ per jug with strict purchase limits (one jug per contractor)
• Manufacturers shipped condensers empty or 1–3 pounds low on refrigerant
• Industry claimed to be "the most prepared ever" weeks before the crisis hit
• 2021 supply chain shortages caused price increases that never came back down
• Contractors had to pull out "trash" equipment that wasn't ready for market — with no manufacturer reimbursement

"They were putting out machines that weren't ready. They were trash. They were garbage. A lot of us contractors were blowing money pulling out machines that were useless."

Pricing Strategy: Stop Losing Money With Outdated Price Books

• Contractors report price increases from suppliers arriving "every day, not just every other day"
• Most contractors still change prices only once per quarter or once per year
• Price quotes are now valid for one day rather than a traditional 30-day window
• Fear and emotion prevent contractors from raising prices to match costs
• Software like House Call Pro allows one-click percentage increases to match supplier letters

"If your prices from the supply house are going up once every two weeks and you're changing your price once a quarter, you're losing money hand and fist. You can't have a price that's lower than what you're paying."

High-Ticket Sales: The Art of the $30,000 Conversation

• Modern systems are major household investments requiring slower, more thoughtful presentations
• Contractors must become trusted advisors like doctors — diagnosing and prescribing, not pitching
• The hospital analogy: doctors don't quote prices upfront, they diagnose symptoms and prescribe solutions
• Mentally rehearse the call as if you were advising your own family
• Get past the initial "no" to understand real objections, then overcome them with education

"When you go to the hospital, they're 100% selling you. You think they're treating you. They're selling. You're going to leave with a $20,000 medical bill. But they never say 'this is going to be $10,000.' They say 'these are your symptoms, you need this.' We have to be advisers."

The Four-Option Approach: Never Present Just One Price

• Repair: fix the immediate problem (with caveats about age and condition)
• Good: basic system that solves the problem affordably
• Better: mid-tier with improved efficiency and features (typically the recommendation)
• Best: premium system with maximum efficiency and comfort features
• Never recommend the top option — recommend the second-best to maintain trust

Why New Construction is "A Waste of Time and Money"

• Razor-thin margins from lowest-bid contractor selection
• Keeps crews busy but not profitable — "why be broke and tired at the same time?"
• No service relationship — builders typically abandon customers after final inspection
• Poor installation quality from cost-cutting and inexperienced labor
• Callbacks and warranty work eat whatever small profit existed
• Exception: custom home builders who value quality and pay accordingly ($60–80K systems in multi-million-dollar homes)

"You're not in business to be busy. You're in business to be profitable. If I'm gonna be broke with no margin, I might as well sit home and watch Star Trek."

Growing Intentionally vs. Growing at All Costs

• Owners chase $10M / $20M revenue targets to compete with peers, not for strategic reasons
• Taking on unprofitable work just to hit arbitrary revenue targets
• Employee dependency trap: can't drop bad clients because of payroll obligations
• Growth should align with personal goals — time with family, lifestyle, profit targets
• Don't sacrifice what you actually want for what you think you're supposed to want

"If I want to get to five million so I can spend more time with my kids, don't get to five million taking on something that takes you away from home. It's not just about the money. It's about what you individually want in your life."

Supply Chain Reality: Brazing Rods, Capacitors & QC

• Brazing rod crisis: 15% silver brazing rods became scarce and expensive — contractors are stockpiling
• Pro-press fittings emerging as an alternative (still controversial among traditionalists)
• Capacitor quality concerns: multiple contractors report defective capacitors straight from suppliers
• Pro tip: test every new capacitor with a meter before installing it (30 seconds, prevents callbacks)
• Supply house pricing inconsistencies (Johnstone example: $125 for 4 brazing rods = $31.25 each)

Marketing That Actually Works: Boots on the Ground

• Local sponsorships win — youth sports, community events, branded swag
• BNI and Chamber of Commerce: private equity isn't there. You should be.
• Referral systems dominate — homeowners trust family recommendations over any online ad
• Community BBQs with $500–$800 budgets generate weeks of maintenance bookings
• Bonus SEO play: branded QR codes that link to Google Business Profile driving directions — high "directions requests" boosts local pack rankings

"Stop making Mark Zuckerberg rich. Give $500 to your local sports team. You go to sleep feeling awesome about yourself. You're not like 'I dropped another 10K on Google LSA today.'"

Facebook Ads: The "Eighth Wonder of the World" for HVAC

• Video ads massively outperform image ads when done correctly
• Bad video ads perform worse than 100 different image ads — content quality matters more than spend
• Test organically first: post hundreds of videos, find what hooks viewers in the first 3 seconds
• Different from Google leads: you're interrupting people's day, not catching active searchers
• Run separate channels for B2C (homeowners) and B2B (contractors / coaching)

"Facebook ads are the eighth wonder of the world for business in my opinion. You can reach every single person in your town if you know how to run a Facebook ad right."

Final Advice for HVAC Business Owners

• Compete with who you were yesterday, not the shop down the road
• Define what you want from the business before chasing a revenue number
• Treat every customer like family — present every option, recommend the right one
• Show up where private equity won't: the sideline, the church basement, the BNI chapter

"The only person I'm competing against is myself. I want to be better than I was yesterday. If I'm better than I was yesterday, then I won."