Want to win on trust, not price? Check out our latest article, and see how leading installers are transforming their business models. https://info.amply.energy/blog/win-on-trust-the-heat-pump-business-model-matrix

Join the best heat pump contractors at the US Heat Pump Summit

November 18-19, 2025 | DCU Center, Worcester, MA

The annual gathering of top contractors advancing their work with heat pumps. Get world-class business and technical training from industry leaders, plus direct access to regulators, rebate providers, and energy experts shaping the future of our industry.

Get 10% off registration with code AMPLY

https://bit.ly/us-heatpump-summit

------------------------------------------------

When DR Richardson tried to install a heat pump in his Boulder townhome, the experience was a disaster. Finding rebates, sizing equipment, vetting contractors — every step was harder than it should be. That frustration led him to co-found Elephant Energy, a tech-enabled platform now operating in Colorado, Massachusetts, and Los Angeles that's redefining how homeowners get heat pumps installed.

Elephant's model is straightforward: they own the customer relationship, handle all the sales and rebate complexity, then partner with vetted contractors who show up, install, and get paid quickly. For contractors, it means consistent work with better margins but giving up customer ownership. DR calls it "the Uber of heat pumps" — a comparison that raises an important question: Is this solving contractor problems or creating a new kind of competitor?

In this episode, DR walks through Elephant's entire process — from the 60-second online quote to contractor partnerships to managing the nightmare of multi-state rebate programs. We dig into the economics, the quality assurance challenges, and what this model means for the future of heat pump installation. Whether you see Elephant as friend or foe, their approach reveals what problems homeowners and contractors are actually facing — and forces the question of who should solve them.

Key topics: tech-enabled HVAC platforms, contractor partnerships, rebate management, the future of home electrification, and whether heat pump installation is fundamentally a craft business or a logistics problem.

Key Takeaways:

• Why the customer journey for electrification is fundamentally broken and how Elephant Energy fixes it.
• How Elephant’s tech-enabled platform bridges the gap between homeowners and contractors.
• The strategic role of rebates and the hidden friction they create in the market.
• What it takes to build trust and quality assurance at scale in the HVAC industry.

Timestamps:

[00:00] - Episode Teaser

[03:18] - Introducing DR Richardson & Elephant Energy

[04:08] - Founding Elephant Energy: The Opportunity & Vision

[09:10] - Building a Seamless Customer Journey

[14:13] - The Digital Experience & Quote Process

[17:46] - Contractor Partnerships & Operational Excellence

[27:26] - How Contractors Make Money with Elephant

[33:13] - The Role and Challenges of Rebates

[44:33] - The Future of Elephant Energy

[48:33] - Recommended Resources & Closing Thoughts

Follow DR Richardson:

• LinkedIn: https://www.linkedin.com/in/richardsondr/
• LinkedIn (Company): https://www.linkedin.com/company/elephant-energy-us/
• Website (Company): https://elephantenergy.com/
• Facebook (Company): https://www.facebook.com/elephantenergyus#
• Instagram (Company): https://www.instagram.com/elephantenergy_us/
• Twitter (Company): https://x.com/elephant_energy

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to win on trust, not price? Check out our latest article. https://info.amply.energy/blog/win-on-trust-the-heat-pump-business-model-matrix

Join the best heat pump contractors at the US Heat Pump Summit

November 18-19, 2025 | DCU Center, Worcester, MA

Get 10% off registration with code AMPLY

https://bit.ly/us-heatpump-summit

----------------------------------------------

In this episode of the Heat Pump Podcast, Ed Smith and Eric Fitz welcome industry veteran Tim De Stasio to explore the evolution and future of HVAC, with a special focus on heat pumps and whole-home performance evaluations. From the technical nuances of equipment sizing and commissioning to actionable strategies for scaling home performance businesses, this episode offers an expansive view of what HVAC excellence looks like today and where it's headed.

Tim De Stasio is a seasoned HVAC professional with over 25 years in the industry. Having worked as a technician, contractor, and now a highly respected consultant and trainer, Tim recently won the 2025 HVAC Tactical Awards “Mentor of the Year.”

Key Learnings:

• The 90-day no-breakdown guarantee works — By doing comprehensive 60-point HVAC assessments that catch predictive repairs before they become callbacks, Tim can guarantee his work with zero failures to date.
• MAD Air is the hidden gremlin — Mechanically-assisted depressurization from closed bedroom doors at night causes most humidity problems in homes. Most contractors never diagnose this because they don't test pressure imbalances with a blower door.
• Size heat pumps aggressively — Manual J has enough safety factors built in. Houses have changed since 2012 energy codes. Your most inefficient heat pump can heat a home without strip heat down to 35°F or lower.
• Never lock out heat pumps below 35°F — Lock out the strip heat above 35°F, but let the heat pump run. This misconception literally killed people during the Texas freeze when contractors told homeowners to shut off heat pumps in cold weather.
• Stop installing air conditioners — The cost difference between a 14 SEER AC and 14 SEER heat pump is a few hundred dollars. Every cooling system replacement should be a heat pump, even if you're keeping the existing furnace.
• This model isn't scalable (yet) — Spending all day at one house doing comprehensive diagnostics doesn't work with traditional HVAC economics. But for boutique shops willing to charge Rolls-Royce prices and do Rolls-Royce work, there's a profitable path.
• Building science separates you from competition — Blower door tests, thermal imaging, Manual J calculations, and duct analysis show customers a level of thoroughness they've never seen. When you're doing work competitors won't, price becomes less critical.

Timestamps:

[00:03:12] – Tim’s Journey into HVAC

[00:12:57] – Technician to Business Owner to Educator

[00:18:47] – Why Heat Pumps Are the Future

[00:21:55] – The 60-Point Evaluation Process

[00:29:32] – Home as a System: Comfort Consultation Workflow

[00:46:05] – Scaling Ethical Home Performance Services

[00:51:10] – Common Heat Pump Installation & Design Mistakes

[01:05:55] – Final Thoughts and Resources

Follow Tim:

• LinkedIn: https://www.linkedin.com/in/tim-de-stasio-0618824a/
• Instagram: https://www.instagram.com/timdestasiohvac/?hl=en
• YouTube: https://www.youtube.com/@timdestasiohvac/featured
• Course Careers: https://coursecareers.com/explore/hvac?campaign=Promo1&a=TimDestasioHVAC

Follow Comfort Science Solutions LLC:  

• Website: http://www.comfortsciencesolutions.com/
• Email: [email protected]

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy

Join the best heat pump contractors at the US Heat Pump Summit

November 18-19, 2025 | DCU Center, Worcester, MA

The annual gathering of top contractors advancing their work with heat pumps. Get world-class business and technical training from industry leaders, plus direct access to regulators, rebate providers, and energy experts shaping the future of our industry.

Get 10% off registration with code AMPLY

https://bit.ly/us-heatpump-summit

-----------------------------------------------

Most HVAC companies grow by adding people, overhead, and complexity. But what if you could grow faster, more profitably, and with fewer people? In this episode of the Heat Pump Podcast, HVAC entrepreneur Mike Townsend breaks down how he's rethinking the entire HVAC business model — ditching traditional back office roles, leaning into AI, and focusing 100% on high-efficiency heat pumps. With just 10 field staff and no dedicated office, his new venture, Veteran Heating, Cooling, Plumbing & Electric, hit $600K in sales in its first six weeks. This is a masterclass in lean, scalable business design for modern HVAC contractors.

Mike Townsend is a U.S. Army veteran and seasoned HVAC entrepreneur with 30 years of experience. After scaling his previous company to $15 million before selling to private equity, he’s now starting over—with a leaner, AI-driven business model that challenges industry norms. His deep operational insight and hard-earned lessons make him a must-listen for anyone in the trades.

Expect to Learn:

• Why Mike eliminated roles like service managers and built a team of self-managed pros
• How AI voice agents and outsourced operations reduce costs and improve responsiveness
• The sales strategy behind an 80% close rate for high-efficiency heat pump installs
• Why Mike refuses to offer good-better-best options and only sells one product
• How geo-targeted recruiting and community-focused marketing give him a hiring edge

Timestamps:

[00:00] - Episode Teaser

[02:35] - Meet Mike Townsend: Army Veteran to HVAC Entrepreneur

[06:08] - Founding His First Company and Learning the Hard Lessons

[17:08] - The Corporate Stagnation That Sparked Innovation

[26:05] - Building the New Model: AI-driven, Fully Outsourced Operations

[41:20] - $600K in 6 Weeks: What’s Working and Why

[47:37] - Why Mike Only Sells Heat Pumps and How He Closes the Deal

[51:36] - Using AI & Amply for Precise System Design

[56:15] - Resource List: Tools, Vendors, and Hiring Secrets

[59:34] - Final Thoughts

The Resources and Vendors That Make It Work:

For contractors interested in Mike’s approach, here’s his go-to vendor stack:

• Accounting: Out of the Box Technology
• Web Design/SEO: CI Web Group (with proprietary AI for dynamic content optimization)
• Google Ads: Mixing Group
• Video/Social Media: Ascend Creative
• AI Call Center: Onepath
• Back Office Support: Work Hero
• Rebate Financing: Eli Build (provides 95% of rebate via ACH overnight)
• Dispatch: Philippine-based virtual assistants
• AI Sales Coaching: Noso Labs

Follow Mike Townsend:

• LinkedIn: https://www.linkedin.com/in/mike-townsend-0743a12a/
• Facebook: https://www.facebook.com/R.Mike.Townsend/
• Instagram: https://www.instagram.com/r.mike.townsend/

Follow Company: 

• Website: https://www.servicebyveteran.com/
• LinkedIn: https://www.linkedin.com/company/veteran-hcpe/

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to build the future of heat pump software? We're hiring a software engineer to help contractors measure homes faster and design systems more accurately. Check out our open role. https://info.amply.energy/sr-mobile-engineer-may-2025

Zero Homes is on the rise — and they’re hiring! Explore exciting career opportunities on their hiring board: https://jobs.lever.co/zerohomes

Contractors, this is your chance to partner with a fast-growing, innovative company. Learn how you can join the Zero Homes contractor network today: https://www.zerohomes.io/contractors

Join the best heat pump contractors at the US Heat Pump Summit

November 18-19, 2025 | DCU Center, Worcester, MA

The annual gathering of top contractors advancing their work with heat pumps. Get world-class business and technical training from industry leaders, plus direct access to regulators, rebate providers, and energy experts shaping the future of our industry.

Get 10% off registration with code AMPLY

https://bit.ly/us-heatpump-summit

----------------------------------------------

Guest: Grant Gunnison, CEO of Zero Homes

Grant Gunnison learned the brutal economics of contracting the hard way — at age 23, after his father's death, he dropped out of grad school to run the family business with 18 employees, no price book, and a filing system of manila folders. What frustrated him most was that customer acquisition consumed 25% of revenue, with contractors spending hours in trucks driving between appointments. But the real revelation came when he discovered why contractors avoid heat pumps: designing a furnace takes "about five seconds" while heat pump systems require "three hours" with no guarantee of winning the job. This $500 design cost systematically discourages heat pump installations in favor of simple changeouts.

Zero Homes eliminates this problem by removing site visits entirely. Homeowners use their smartphone for 20 minutes to create a digital twin of their home, enabling remote heat pump system design and quoting. The Department of Energy validated this approach as "just as accurate as sending a person into the home" with better consistency than manual assessments. The model completely inverts traditional contractor economics: instead of making money on equipment margins while absorbing design time risk, contractors receive install-ready jobs and get paid $180-200/hour for labor.

The approach creates unexpected opportunities, particularly in rural markets where contractors typically can't justify long drives to bid jobs. Quality control remains rigorous through 30-40 item commissioning checklists and live video calls for initial installations.

Key Takeaways

1. Customer acquisition costs are becoming unsustainable for traditional approaches
2. Specialization creates new partnership opportunities for installation-focused contractors
3. Quality installation still commands premium pricing even in systematized models

Timestamps:

[02:14] - Overview of Zero Homes

[04:54] - Why Heat Pumps?

[11:41] - Building a Marketplace for Home Electrification

[15:10] - The Homeowner Journey

[17:58] - Contractor Economics: Making it Work for Everyone

[29:35] - Quality Control & Design Process

[35:56] - The Risks & Rewards of Partnering with Zero Homes

[43:05] - Advice for HVAC Entrepreneurs

Follow Grant Gunnison:

• LinkedIn: https://www.linkedin.com/in/grantgunnison/
• Facebook: https://www.facebook.com/grant.gunnison

Follow Zero Homes:  

• Website: https://www.zerohomes.io/
• LinkedIn: https://www.linkedin.com/company/zerohomes/
• Facebook: https://www.facebook.com/people/Zero-Homes/61577379394691/ 

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to build the future of heat pump software? We're hiring a software engineer to help contractors measure homes faster and design systems more accurately. Check out our open role. https://info.amply.energy/sr-mobile-engineer-may-2025

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Join the best heat pump contractors at the US Heat Pump Summit

November 18-19, 2025 | DCU Center, Worcester, MA

The annual gathering of top contractors advancing their work with heat pumps. Get world-class business and technical training from industry leaders, plus direct access to regulators, rebate providers, and energy experts shaping the future of our industry.

Get 10% off registration with code AMPLY

https://bit.ly/us-heatpump-summit

 ----------------------------------------------------------

In this episode of the Heat Pump Podcast, hosts Ed Smith and Eric Fitz are joined by Nate Adams, a renowned expert in building science and home performance. Known as the "House Whisperer," Nate brings years of experience in optimizing HVAC systems to improve comfort and energy efficiency. He shares his perspectives on the challenges and opportunities in the field of electrification for residential homes. The conversation centers around practical approaches to sizing HVAC systems, the importance of feedback loops for understanding system performance, and the role of electrification in creating more sustainable and comfortable homes.

Key Takeaways:

• The importance of sizing HVAC systems correctly to improve both comfort and energy efficiency.
• How heat pumps offer a superior experience compared to conventional heating and cooling systems.
• Why many HVAC systems are often oversized and how this negatively impacts comfort.
• The value of monitoring system performance and gathering real-world data to optimize HVAC solutions.
• A comprehensive look at Manual J calculations, the issues with input data, and why “being aggressive” with inputs is the way to size systems correctly.

Timestamps:

[00:00] - Introduction to Nate Adams

[03:34] - The House Whisperer's Approach

[06:14] - Nate's HVAC Career Path

[12:46] - Electrification and Heat Pumps

[17:57] - The Debate on Heat Pumps and Furnaces

[21:34] - The Misconception of Manual J

[24:53] - Understanding Manual J Calculations

[32:23] - Feedback Loops for Better Comfort

[36:34] - Aggressive Sizing for Comfort

[45:28] - The Challenge of Scaling HVAC Solutions

[57:00] - Closing Thoughts

Follow Nate Adams:

• LinkedIn: https://www.linkedin.com/in/natethehousewhisperer/ 
• Website: https://www.natethehousewhisperer.com/ 
• Instagram: https://www.instagram.com/natethehousewhisperer/?igsh=bXNyeTAwNGkybWk4#

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Ready to design heat pump systems that really work? Grab our free manual S cold-climate heat pump selection tool—the same systematic approach that helps contractors get sizing right the first time: https://bit.ly/heatpump-manual-s-free-tool

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Shawn LeMons has worn nearly every hat in the world of building performance and HVAC. From growing up in off-grid homes to earning top building science certifications and co-owning a heat pump contracting business, his journey is full of lessons for contractors.

In this episode, Shawn joins hosts Ed Smith and Eric Fitz to talk about:

• Why Manual J is the best wrong tool we have
• Designing systems at 11,000 feet and the balance of math + judgement
• How referrals and diligence outcompete paid marketing
• The importance of tradespeople’s dignity, mental health, and sustainable growth

Whether you’re scaling a contracting business or sharpening your design process, this conversation offers both practical strategies and grounded wisdom.

Timestamps:

[00:00] - Introduction

[02:23] - Early life lessons in unique homes

[15:12] - Why focus on heat pumps

[19:21] - Incentives, early adopters, and Colorado’s growing demand

[28:23] - A homeowner-first sales and design process

[36:38] - Looking ahead: shop ownership, recycling, and team wellbeing

[39:12] - Mental health in the trades and valuing hands-on genius

[43:53] - Final advice: stay curious, stay informed, stay human

Follow Shawn LeMons:

• LinkedIn: https://www.linkedin.com/in/shawnlemons/ 

Follow:  

• Website: https://mtnwesthp.com 

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to build the future of heat pump software? We're hiring a software engineer to help contractors measure homes faster and design systems more accurately. Check out our open role. https://info.amply.energy/sr-mobile-engineer-may-2025

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In this episode of The Heat Pump Podcast, Ed Smith and Eric Fitz sit down with Jake Yurek and Evan Anderson, Co-Founders of Pearl Edison — a startup rethinking how heat pumps and residential electrification projects get done. Pearl Edison doesn’t sell hardware or traditional SaaS; instead, they act as a concierge service, bridging the gap between utilities, homeowners, and contractors. Their white-labeled platform (like DTE’s Heat Pump Concierge) simplifies the process for homeowners while handing contractors fully designed, install-ready jobs — cutting acquisition costs and boosting quality outcomes.

Jake and Evan discuss the origins of their mission, their unusual business model, and how they’re applying software-driven workflows and diagnostics to deliver better, faster installs at scale. From reducing the burden on expert designers to learning from the failures of Heat Pump 1.0, they explain how Pearl Edison is helping avoid the coming "heat pump revolt" and building trust between all parties involved. This episode is packed with lessons for anyone building in energy efficiency, HVAC, or climate tech.

Key Learnings:

• Pearl Edison provides fully scoped, install-ready jobs to contractors.
• Homeowners receive upfront estimates, design options, and rebate info.
• The model removes guesswork from sizing and scoping heat pump systems.
• Contractors retain pricing flexibility and avoid low-quality rate card models.
• Guided in-home assessments enable better central system design.
• Utility partnerships support growth while safeguarding customer experience.

Timestamps:

[00:00] - Introduction

[02:30] - Meet Jake & Evan and how Pearl Edison started

[04:07] - Jake & Evan’s career journeys and how they reconnected

[08:35] - Pearl Edison’s white-labeled B2B model explained

[15:52] - On pricing, bidding, and contractor flexibility

[18:22] - Traction: Where Pearl Edison is operating now

[27:25] - How smarter diagnostics empower homeowner decision-making

[37:34] - What’s keeping them up at night — and what excites them

[40:01] - Advice for startups and contractors in the space

Follow Jake Yurek:

• LinkedIn: https://www.linkedin.com/in/jakeyurek/ 

Follow Evan Anderson:

• LinkedIn: https://www.linkedin.com/in/evananderson313/ 

Follow Pearl Edison:  

• Website: https://www.pearledison.com/ 
• LinkedIn: https://www.linkedin.com/company/pearledison/ 

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to help build the future of heat pump software? We're hiring a software engineer to help contractors measure homes faster and design systems more accurately. Check out our open role. https://info.amply.energy/sr-mobile-engineer-may-2025

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If you're a heat pump contractor feeling burnt out, wondering if this whole electrification thing is worth the hassle, or questioning whether you can build something meaningful in HVAC — this episode is your shot of inspiration.

Stephen Hong is just over 30 years old. He's got a materials science degree from Virginia Tech. He's been running Electrify Colorado Mechanical for only a year and a half. And listening to him talk about heat pumps, you'd think he just discovered fire.

"Heat pumps are the pearl of HVAC," Stephen says, and he means it. Not because they're easy money or simple installs, but because they're challenging. Because they matter. Because when you get one right, you're not just fixing someone's comfort — you're making a real dent in climate change while working on what Stephen calls "the most immense responsibility" — people's homes.

This isn't your typical contractor success story. Stephen's path wound through disaster relief work, dead-end construction jobs, and answering a Craigslist ad from a guy who asked: "Do you want to help people stop burning dinosaur bones?" 

Key Learnings

• Quality installs start with airtight refrigerant handling — leaks can reverse years of climate gains.
• Transparency and education are Stephen’s tools for building trust with homeowners.
• A heat pump project done well is a climate solution and a customer service win.
• Scaling a business means balancing growth with quality and training.
• Partnering with great electricians is critical to whole-home electrification success.
• Humility and honesty go further than “sales talk” in winning customers’ trust.

Timestamps:

[00:00] - Introduction

[02:45] - Meet Stephen Hong and Electrify Colorado Mechanical

[04:26] - Stephen’s path from engineering to disaster relief to HVAC

[17:24] - The 5,000 details that make or break an install

[22:48] - Building trust through radical transparency

[30:40] - His vision for growing the business — slowly and sustainably

[37:02] - Stephen’s advice: Be human, ask for help, respect the responsibility

Follow Stephen Hong:

• LinkedIn: https://www.linkedin.com/in/hongs1/ 

Follow Electrify Colorado Mechanical:  

• Company’s Website: https://electrifycolorado.us/ 
• Company’s LinkedIn: https://www.linkedin.com/company/electrify-colorado-mechanical/ 

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to build the future of heat pump software? We're hiring a software engineer to help contractors measure homes faster and design systems more accurately. Check out our open role. https://info.amply.energy/sr-mobile-engineer-may-2025

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In this episode, Ed Smith welcomes Jonathan Pires, Area Sales Manager at Mitsubishi Electric, to explore what separates thriving HVAC contractors from the rest. Jonathan shares hard-earned insights from the field, explains how Mitsubishi’s Diamond Contractor Program works, and offers concrete tools that contractors often overlook — but shouldn’t. From the importance of software and sales training to key installation missteps, this conversation is packed with real-world advice for anyone working in heat pumps.

Key Takeaways:

• Contractors who leverage software to develop repeatable, faster, more accurate processes outperform those who don’t.
• Mitsubishi’s Diamond Contractor Program offers major (and free) perks.
• Many install issues trace back to lack of load calculations and poor homeowner education.
• When it comes to heat pumps, homeowner expectations must be set around system behavior like noise, defrost, and setbacks since they differ from traditional systems.
• Simple tools like price books and financing integration can dramatically impact close rates.
• Selling from your own wallet often limits customer opportunity — focus on value, not assumptions.

Timestamps:

[00:00] - Introduction

[04:11] - Background of Jonathan Pires

[08:26] - What an Area Sales Manager actually does day-to-day

[11:36] - Marketing support and overlooked Mitsubishi dealer resources

[17:16] - Overview of the Diamond Contractor Program and scorecard

[25:07] - Case study: reclaiming weekends through automation

[34:02] - Avoiding callbacks: setting proper expectations with homeowners

[39:00] - Ducted vs. ductless: when and how to use both

[41:39] - Best resources for contractors looking to upskill

Follow Jonathan Pires:

• LinkedIn: https://www.linkedin.com/in/jpires781/ 

Follow Mitsubishi Electric:  

• Website: https://www.mitsubishielectric.com/en/ 
• LinkedIn: https://www.linkedin.com/company/metushvac/ 
• Facebook: https://www.facebook.com/MitsubishiElectric/ 
• Instagram: https://www.instagram.com/mitsubishielectric/ 
• YouTube: https://www.youtube.com/channel/UCkDaGvT5PvALPg9sjhVEusA 

Follow the Hosts:

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/

Want to help build the future of heat pump software? We're hiring a software engineer to help contractors measure homes faster and design systems more accurately. Check out our open role. https://info.amply.energy/sr-mobile-engineer-may-2025

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In this episode of the Heat Pump Podcast, Ed Smith welcomes back Mike Cappuccio, who built his HVAC company to over $15 million in revenue with 72 employees before selling to private equity in 2021. Now coaching contractors nationwide through Dominate Ductless, Mike shares the specific metrics, systems, and strategies that separate successful heat pump businesses from those that struggle.

Why Private Equity Was the Right Exit

While getting into the HVAC business is easy, getting out profitably is much harder. Many acquisition companies offer only 30% upfront with aggressive three-year earnouts contractors rarely achieve. Private equity offered Mike 95% upfront with minimal risk, though with the trade-off of giving up control: "The house was white, they painted it orange. But it's their house, not mine anymore."

The 6 Key Metrics Private Equity Firms Evaluate

• Revenue per employee: $250,000-350,000 annually (includes everyone from installers to office staff)
• Overhead costs and gross profit per work hour
• Revenue per salesperson: Target $300,000+ monthly, not the "horrible" $1M annually
• Revenue per service truck: At least $200,000 annually per vehicle
• Installation revenue metrics
• Number of maintenance agreements: Creates recurring revenue buyers love

The Four Essential Business Systems

Mike identifies four core systems separating thriving businesses from struggling ones:

System 1: Marketing, specifically problem-solution video marketing that documents real problems and solutions. Mike's YouTube videos continue helping customers years later.

System 2: Two-minute speed-to-lead response time makes customers 50 times more likely to choose you. Requires live weekend coverage and immediate online responses.

System 3: Defined sales process with 30-45 minute Home Comfort Surveys focusing on consultative selling rather than simple “box swaps”.

System 4: Price books and margin management that adjust for true overhead as companies grow.

Competing Against Low-Price Contractors

Mike's philosophy: "Knowledge is power." Educated contractors maintain advantages through financing capabilities, comprehensive discovery, and advanced technology demonstrations using tools like LiDAR and augmented reality.

Key Takeaways

For building better businesses:

• Track the six key metrics regardless of exit plans
• Implement the four essential systems early
• Specialize in heat pumps for operational advantages

For potential exits:

• Build systems that work without owner involvement
• Focus on recurring revenue through maintenance agreements

Timestamps:

[04:15] - Mike’s journey: scaling and selling his HVAC business

[11:49] - Key KPIs Private Equity investors care about.

[20:24] - Importance of maintenance agreements

[28:00] - Four core systems every contractor must build

[32:47] - Why fast response time (speed-to-lead) matters

[38:54] - How to compete against low-price contractors

[42:53] - Educated selling: show, don’t tell

[49:22] - Final thoughts: don’t give away value

Follow Mike Cappuccio

• LinkedIn: https://www.linkedin.com/in/mike-cappuccio-97a18a176/ 

Follow Dominate Ductless

• Website: https://dominateductless.com/ 
• Facebook: https://www.facebook.com/Dominateductless/ 
• Twitter: https://x.com/d_ductless 
• LinkedIn: https://www.linkedin.com/company/dominate-ductless/ 
• Youtube: https://www.youtube.com/@dominateductless 

Follow the Hosts

• Ed Smith: https://www.linkedin.com/in/ed-smith-5aa8716
• Eric Fitz: https://www.linkedin.com/in/ehfitz/
• Amply Energy Website: https://www.amply.energy/
• Amply Energy YouTube: https://www.youtube.com/@amplyenergy
• Amply Energy Facebook: https://www.facebook.com/amplyenergy
• Amply Energy Instagram: https://www.instagram.com/amply_energy/