Want to win on trust, not price?
Start with our Trust Checklist to see if your business is doing the things that truly set you apart.
👉 https://bit.ly/the-heatpump-business-model-matrix
Then, head to our latest article to learn how the top contractors protect their margins and stay competitive.
👉 http://info.amply.energy/blog/win-on-trust-the-heat-pump-business-model-matrix
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When leads are scarce, most HVAC contractors chase everything. Mitch Bailey does the opposite—and it's working.
The second-generation owner of Bailey's Air Heroes downsized from 50 employees to 12, turns down work that doesn't fit, and built a $3M business around one principle: test, don't guess.
Mitch just won the 2024 Jim Davis Technical Excellence Award from NCI. He trains contractors across California. And he's all-in on heat pumps—even when the economics are tricky.
In this episode, we dig into:
→ Why he refused to budge $5 for a builder (and got fired for it)
→ How he shifted from 3-6% margins to 30% by switching to “retail work”
→ His "$2 high-tech selling tool" that closes engineer customers
→ The balance point COP spreadsheet that shows when heat pumps pencil out
→ Why he trains his competition (and why it's strategic)
→ His advice: start with load calculations and static pressure testing
If you're wondering how to build a sustainable HVAC business without burning out, this one's for you.
Timestamps:
[00:00] - Introduction
[02:44] - Mitch’s Early HVAC Roots
[04:21] - Learning Through Experience & California’s Training Programs
[07:25] - Taking Over the Business & Embracing Technology
[19:49] - Transitioning from New Construction to Retrofit Work
[26:37] - Lessons from New Construction: Don’t Compete on Price
[33:47] - High-Performance Contracting in Practice
[44:13] - Economics of Heat Pumps vs Gas Furnaces
[55:45] - Advice for Contractors: Where to Start with Performance Work
Follow Mitchell Bailey:
- LinkedIn: https://www.linkedin.com/in/mitchell-bailey-b3887948/
- YouTube: https://youtube.com/@baileysair
- Email: baileysair@sbcglobal.net
- Website (Company): https://airheroes.org/company/
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/