45% Net Profit and a $30M Exit Plan: A Las Vegas HVAC Owner’s Strategy

In this episode of the 8-Figure HVAC Brands Podcast, recorded at AHR Expo in Las Vegas, Netrocket founder Daniel Dramshev talks with Roberto Flores, owner of Bionic Mechanical. Roberto aims for at least a 45% profit margin on every job, plans to add plumbing and electrical, and wants to build a company he could one day sell for $30 million. He also shares which marketing channels bring him work in Las Vegas, from Google and TikTok to van wraps and door hangers.

About the guest

Name Roberto Flores
Company Bionic Mechanical
Location Henderson, Nevada (Las Vegas area)
Focus Residential and commercial HVAC, system design and load calculations
Recorded at AHR Expo, Las Vegas

Why net profit matters more than revenue

Daniel Dramshev talks with Roberto Flores of Bionic Mechanical at AHR Expo in Las Vegas

Asked whether revenue or net profit comes first, Roberto picks net profit. HVAC is seasonal: a company might sell $2 million one summer and $1 million another, and winter slows down. That’s why he judges each job by what it earns and saves that money for the slow season.

“I would say the net profit is the most important because cash flow is king.“

He tries to make at least a 45% profit margin on every job. That’s what’s left after paying employees, insurance, the office, back-end costs, and the cost of the lead. With everything so expensive nowadays, that’s the only way to survive.

The $3 million ceiling

Roberto Flores, owner of Bionic Mechanical, on the 8-Figure HVAC Brands Podcast at AHR Expo

From what Roberto has seen with friends who started their own companies, smaller HVAC businesses tend to cap out at about $3 million. At that point, you either stay there or take the bigger step to the next level, and that step costs money and comes with risk.

His advice is to scale only if you can handle it as an owner, do your homework, and put the right people in the right positions. Once a company gets that big, you need about three people who think like you, plus people who know money and can manage cash flow. If your company can’t handle it, it’s better to stay where you are.

A 10-year plan and a $30M exit

Right now, Roberto is working on scaling. He wants to add electrical and plumbing departments, and that’s part of his 10-year goal. His long-term plan is to own the business for 25 years, sell it, and keep some shares for his kids. If he can sell the company for $30 million, he’ll be happy.

How big would a company need to be to sell for $30 million? Roberto’s rough estimate is at least $10 million in revenue, with $2 to $3 million a month during the summer peak. He adds that cash flow is huge. Lenders want to see how much money goes through your bank every month and whether you can cover loan payments and big projects. If you plan to add plumbing, see how Netrocket approaches digital marketing for plumbers.

Residential vs. commercial work

Roberto’s expertise is designing systems, from residential to bigger commercial buildings. That includes Manual J load calculations and fresh air ventilation. Even so, he prefers residential work because it brings instant gratification: when the job is done, he usually gets paid.

Commercial jobs often come with net 30 or net 90 payment terms, and big corporations can take longer to pay. You also have to plan labor hours and who will be on each job. Without a cost breakdown, you can run over your hours and find out you made no money by the time the check arrives.

Google leads and reviews

Most of Bionic Mechanical’s leads come from Google, including people searching on Google Maps. The last time Roberto spoke with his Google rep, he had 27 hits and calls from people searching keywords like HVAC, plumbing, or electrical. The company is going on about two years, and he has about 100 Google reviews. He hasn’t set up Yelp yet but plans to.

Want more calls from Google? See how Netrocket handles Google Maps SEO, LSA management for HVAC contractors, and Yelp ads for HVAC.

TikTok and Instagram: show your craftsmanship

When it comes to residential leads, Roberto says TikTok and Instagram work best. Most homeowners don’t know what happens in their attic. They just want to be warm or cool. That’s why you have to show off your craftsmanship and explain what you actually do.

“I’m not the cheapest guy, but I do my work right and I explain it.“

TikTok has brought him three or four contracts doing installs for other companies, plus smaller jobs like putting a mini split in someone’s garage.

Know when to walk away

Not everybody will be your customer. If you won’t make money on a job, or if something has to be fixed before you can guarantee the system will work properly, don’t take on liability you don’t need. In a place like Las Vegas, some customers will just call someone else because they want to be cool by tonight.

“Sometimes you’re better walking away than you are getting into a pickle.“

Van wraps, door hangers, and offline marketing

If he had to choose between a van wrap and a billboard, Roberto would pick the van wrap. A wrapped van travels all over Vegas instead of sitting on one side of town. When you park in a neighborhood to change out an AC, people see who’s doing the work. His wrap cost about $3,200, including ceramic window tint and material made to handle the Vegas heat. It came with a two-year warranty and is supposed to last 10 years.

Other tactics he recommends:

  • Door hangers on two or three neighbors’ doors after every job
  • Yard signs while you’re working on a project, since Las Vegas only allows them during the job
  • Free channels first, like Facebook, posting often so the algorithm starts showing you
  • Direct mail instead of door knocking, since many people don’t want strangers at their door
  • Neighborhood newspapers and magazine ads for older communities
  • Golf courses, the local chamber of commerce, and local events where you can hand out hats, shirts, and stickers

Not sure which channels are worth your budget? Learn more about digital marketing consulting for HVAC companies.

Advice for owners crossing $2 to $3 million

For owners who are scaling past $2 or $3 million, Roberto’s most important advice is to manage your money well. Get a good accountant who knows taxes, because at that level taxes can hit hard. He also mentions moving from a sole proprietorship to an S corp as the company grows. Most of all, hire the right people and actually listen to them, even when you don’t like the answer.

“Make sure that you hire the right people and then listen to them.“

For more conversations from the same trip, see our full AHR Expo episode with six HVAC contractors.

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