Keeping their cool: Partnership spurs HVAC firm to new growth - Pacific Business News (Honolulu):

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He joined as a partner two years ago, enablingf the company to focus on building its commercial construction and service businessand de-emphasizr its residential interests. “j had confidence when he came over becaus he had a long track record of doing this type of Newberry says of a commercialconstruction veteran. “The potential for me was to become a partner with a compant and being able to starg the commercial side up prettyg much from scratch and building it to what it is That was primarily my Kittinger says. “I’ve been doing this for a long time and done it for a coupleovfother companies, and this was an opportunity of right time, righ t place.
” Air Doctors saw its commerciaol construction revenue grow about 500 percent to $1.2 millionm last year. Its total revenur was $2.2 million, more than six times greater than 2006. Newberruy is expecting $2.5 million in revenue this with commercial construction accounting for 55 commercial services 30 percent and residential maintenance and installatioh15 percent. Air Doctors is in the process of makint the commercial construction business a separates company with anew name. “Mike had a decenrt customer baseto start,” Kittinger “He had done real well with getting in some customers.
He just didn’f know how to do the bigger jobs, how to estimat e them and howto micro-manage Air Doctors installs and services HVAC systems for facilitiex such as schools, officew and medical buildings, churches, restaurants and motels. The companty is bidding on largerprojects — up to $1.5 millionm — now that struggling residential heatingy and air installers are moviny to the commercial side and offerinh discount prices. “It affects our bottom line because we have to push the grosemargin down, but you make up for that in size and Newberry says. “It definitely changes It changes yoursales process. It takes a lot longer on the front end.
It’s more time consumingt with project management.” Newberry’s customer service philosopht is to never say no to a request even if it is outsidewAir Doctors’ core Through the years Newberry has used his maintenance backgrounde to patch leaky fix plumbing and repair a cappuccino machine. “ I tell my guys all the time, ‘Don’t ever tell them no. If somebodgy has to tell them no it’ll come from the top; it’es not going to come from the bottom,’ Newberry says.
“My guys are, ‘Yes, we can, and what can I do for ”