Recently, we’ve noticed a new trend in the local HVAC industry. More and more small HVAC businesses are being bought out by private equity companies, which isn’t usually good news for homeowners.
At Genuine Comfort, we want our customers to stay informed about developments in the Utah HVAC industry so they can make smart decisions for their homes. In this blog post, we’ll explore recent trends in Utah HVAC, the pitfalls that come with large corporations, and why it’s best to opt for a smaller, independent business next time you need HVAC services.
Changes in the Utah HVAC Industry
As a leading HVAC service provider in the Wasatch Front area, we have watched as countless local HVAC companies have been taken over by private equity. We’ve seen large corporations from outside the state — California and Arizona, for example — buy these smaller businesses and change their philosophies in an attempt to maximize their profits.
However, this shift isn’t specific to Utah, or even the HVAC industry — all over the country, small, service-based businesses are being bought out by private equity companies and changing the landscape of the home service industry.
The Pitfalls of Big Corporations in Utah HVAC
You may think that big corporations come with more resources, expertise, and power. While this may be true, when it comes to the Utah HVAC industry, being bought out by private equity companies is not usually good news for homeowners.
Of course, these pitfalls don’t apply to every private equity company. There are plenty of companies that value their employees and truly care about customer satisfaction. In this blog post, we’re focusing specifically on those who value their profits above all else.
Profits Are Priority
Picture this: You’ve worked with a local Utah HVAC company for a long time. They always take good care of you, charge fair prices, and emphasize quality customer service. One day, this business gets bought out by a private equity company, and suddenly, prices rise substantially. The genuine care and rapport you previously enjoyed is gone, replaced with a desire to maximize volume and raise revenue as much as possible.
These big companies are known for price gouging, which means you have to pay a lot more without getting more in return. They completely change the culture of these small businesses, prioritizing profits above all else. In fact, the goal of buying out these businesses is to sell them again for a profit, starting the cycle over again.
Deceptive Deals
In their efforts to bring in more money, these businesses will sometimes turn to scams and dishonest tactics. For instance, you’ve probably seen advertisements for an extremely low-priced service call — something like $29. They do this so they can get their technicians in your home, and nine times out of ten, they’ll find something “wrong” with your HVAC system and upsell you on everything they can.
It turns out that the $29 service call is just a bait and switch. Other times, it’s an offer for a free furnace with the purchase of an air conditioner. There’s always a catch with those types of deals — maybe you get the furnace free, but they charge an outrageous amount for the labor. You have to be really careful; if the deal seems too good to be true, it probably is.
Why You Should Opt for a Smaller HVAC Company
Small, independent companies are the way to go. Local businesses truly care about making the community a better place by providing quality products and services, meeting your unique needs, and charging fair prices. When you look out for the little guys, they’ll look out for you, giving you the outstanding experience you deserve.
However, not all small businesses are created equal. Just like not all private equity companies are bad news, not all independent companies are good. Whenever you hire a contractor to provide home services, it’s essential that you perform thorough research, read reviews, and seek estimates from multiple sources.
The Genuine Comfort Promise
At Genuine Comfort, we promise to provide you with the excellent service you need. We recognize that our success is thanks to our loyal customers, which is why our top priority is to take good care of you and exceed your expectations.
If you need Utah HVAC service, give us a call and we’ll come out and give you an estimate at no charge. Our estimates are transparent and easy-to-understand, so there’s no surprise fees or hidden costs. Contact us today to get started!
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