The HVAC Contractor Who Hit $1M in Year One
Jimmy Hiller started in plumbing, not HVAC. He learned the trade from his father, built a decent plumbing business doing service calls and residential repairs, and had a comfortable living. But like many contractors, he kept seeing the same problem: customers would call with a plumbing issue, he'd arrive at the house, and there'd be another call from someone three blocks away asking about heating. He was sitting in traffic while money walked past his door.
In 1990, Jimmy made a decision that would change his life. Instead of staying comfortable in plumbing, he decided to expand into HVAC. He got the license, bought some tools, and started telling his existing customer base that he now did heating and cooling work. Within his first 12 months, his combined plumbing and HVAC business hit $1 million in revenue. Today, Hiller Plumbing and HVAC operates across Tennessee, Kentucky, and Arkansas with revenues in the tens of millions.
The question every contractor asks is: how did he do it? The answer reveals one of the most powerful strategies in contracting—and it's available to anyone willing to think systematically about where their next customer is coming from.
The New Construction Insight
Jimmy's breakthrough came from recognizing a pattern. Every single new subdivision being built needed plumbing and HVAC. Every single new commercial building needed both. But homebuyers and builders weren't calling him because they didn't know who he was yet. The big mechanical contractors—the ones with established relationships with builders—already had those jobs locked up.
So Jimmy flipped his thinking. Instead of waiting for customers to call him, he started going to where the customers were: new construction sites. He built relationships with builders, developers, and general contractors who were breaking ground on residential subdivisions. When a new development was starting, Jimmy would pitch himself as the HVAC subcontractor of choice. He offered fast turnaround times, consistent quality, and pricing that worked for high-volume builds.
The advantage of new construction is almost too obvious once you see it: the customer (the builder) doesn't have a choice—they need HVAC installed, and they need it before the home can be sold. This is different from a homeowner calling a plumber because their pipes froze. The new construction customer is going to hire an HVAC contractor. The only question is which one.
Jimmy's strategy was to be the fastest, most reliable option. He hired crews specifically dedicated to new construction (a different workflow than service work), bought equipment designed for speed and repeatability, and positioned himself as the contractor who wouldn't delay a builder's timeline. Builders are terrified of any delay that pushes back their opening date. By solving that problem, Jimmy became invaluable.
Systems Over Hustle
What separates contractors who scale from those who plateau is understanding that you can't hustle your way to $1 million. You need systems. Jimmy knew this from his plumbing experience, but he took it further with HVAC.
He mapped his territory. He identified every new residential development within a 50-mile radius of his office. He researched who the developers were, which builders they were working with, and when those projects were scheduled to break ground. He wasn't waiting for leads to come to him—he was systematically identifying where growth was happening and positioning himself to capture it.
For every project, Jimmy created a standard process. Units would be installed in the same sequence for every home. His crews would follow the same specifications and timeline for every build. This systematization meant that even as his business scaled, quality remained consistent and costs were predictable. A builder knows exactly when Jimmy's crew will show up and how long it will take to install HVAC in 50 homes. There's no guessing, no surprises.
This is the difference between a $500,000 business and a $5 million business. Small contractors are flexible because they're doing custom work for individual customers. Scaling contractors are systematic because they're doing high-volume, repeatable work for builders and contractors who want predictability.
The Permit Data Advantage
Here's where Jimmy's strategy intersects with modern opportunity: new construction permits are public record. Every residential development, every commercial project, every new building going up is filed as a permit. When Jimmy manually was tracking new construction, he had access to information that his competitors didn't. But today, permit data is accessible in real-time through services that aggregate and filter this information.
Imagine you're an HVAC contractor and you want to replicate Jimmy's strategy. You could log into a permit database, filter for new commercial building permits and residential subdivisions in your area, and get a list of every single project that will need HVAC installation. You could see the project value, the contractor's contact information, and the address. You could then contact that builder or general contractor before they've even sent out requests for proposals.
The response rate from permit-based outreach to HVAC contractors is staggering. When you reach out within 48 hours of a commercial building permit being filed and say "I see you're building a 40,000-square-foot office complex on Oak Street—I do HVAC for commercial projects and want to discuss our timeline and pricing," the conversion rate is 8-12%. Compare that to 2-3% from cold calling or traditional lead sources.
Specialization Creates Market Dominance
Jimmy's insight was that he didn't need to do both plumbing and HVAC for every customer. He built separate teams for each trade. He specialized the plumbing operation in service work and maintenance. He specialized the HVAC operation in new construction. By specializing, he could hire crews who were really good at their specific function, develop processes tailored to that function, and dominate their market segment.
If you're an HVAC contractor thinking about scaling from $300,000 to $1 million, you don't need to expand into seven different trade services. You need to own your segment. Pick one: new construction HVAC. Then systematically target every builder and developer in your region. Dominate that segment. Once you've captured the builders, they'll bring you service work, replacement work, and higher-margin opportunities.
The contractors who scale fastest are often the ones who get narrower before they get wider. They specialize, own that market, and then expand into adjacent services once they have the operational systems and team in place to handle the complexity.
Execution Speed Wins
When Jimmy entered HVAC, there were dozens of other HVAC contractors operating in Nashville. Many of them had been in business longer. Some had established relationships. But none of them were thinking about new construction the way Jimmy was. And when Jimmy contacted a builder with the pitch "I'll have your HVAC systems installed faster and more reliably than anyone else," he made an offer builders couldn't refuse.
Speed became his competitive advantage. While competitors were still scheduling the HVAC installation for three weeks out, Jimmy's crews could often complete the job within days. This meant builders could move forward with the next phase of construction, could bring homes to market faster, and could generate revenue on schedule.
Jimmy was also ruthless about following up. If a builder asked for a quote, he'd have it back within 24 hours. If there was a problem on a job site, he'd fix it immediately. He created a reputation of being not just competent but fast and responsive—qualities that matter enormously in construction where every day of delay costs money.
The Scalability Question
Can you replicate Jimmy's strategy today? Absolutely. The fundamentals are the same: identify where growth is happening (new construction permits), position yourself to serve those customers, build systems for that specific work, and execute better than competitors.
The advantage you have over Jimmy in 1990 is that you have data tools. You don't have to manually research developments. You can subscribe to a permit service, get alerts when new commercial or residential projects are filed in your area, and reach out within hours of the permit being published. The response rates are real. The conversion rates are high. And the customers you're reaching out to actually need your services.
If Jimmy's strategy of targeting new construction and building systems around that could generate $1 million in year one in 1990 with no data tools and no systematic lead generation, imagine what's possible with permit data, CRM systems, and professional marketing in 2026.
Track HVAC permits in your area → permitgrab.com
FAQ
Q: Is it better to specialize in one trade or offer multiple services like Jimmy does?
It depends on your goals. If you want to scale quickly and capture market share, specialization is usually better. Pick one market (new construction, replacements, commercial, residential) and own it. Once you're the dominant player in that segment with established systems, you can add adjacent services. Many contractors try to do everything at once and end up being mediocre at all of them. Jimmy's success came from having specialized teams for plumbing versus HVAC, not from one person doing both.
Q: How do I find new construction HVAC jobs in my area?
Check your city or county's permit database for new commercial building permits and residential subdivision permits. You can also subscribe to permit monitoring services that alert you when new projects are filed. Contact the general contractor or builder directly within 48 hours of the permit being filed. Mention the specific project address and ask about their HVAC timeline and contractor selection process. You can also build relationships with local general contractors and builders by offering them competitive pricing and fast turnaround times on smaller projects first.
Q: What's the typical profit margin on new construction HVAC versus service work?
New construction margins are typically lower (15-25%) because you're competing on price and volume. Service and replacement work has higher margins (40-60%) because customers aren't price shopping as aggressively. Jimmy's strategy was to use volume and new construction to build the business quickly, then layer in service work for the same customers, which has higher margins. The idea is that builders and their customers become repeat customers for service and maintenance work over time.
Q: How do I convince a builder to hire me instead of their established HVAC contractor?
Builders care about three things: timeline, reliability, and price. If you can offer faster installation time than their current contractor (without sacrificing quality), that's a huge selling point. You could also offer a service agreement or warranty that their current contractor doesn't. Finally, you might offer pricing that's competitive enough to justify switching. Building relationships takes time, so start by doing small projects well and building a reputation for reliability and speed. Once you prove yourself, you'll get larger projects.
Q: What's a realistic timeline for an HVAC contractor to hit $1 million in revenue?
Jimmy did it in one year, but he also had an existing customer base from his plumbing business, which helped. For a contractor starting from scratch in HVAC, 2-3 years is more realistic if you focus on new construction and systematic lead generation. The key variables are how many leads you can generate, how well you convert them, and whether you can scale your crew capacity fast enough to handle the volume. Using permit data significantly accelerates the timeline because you have a consistent lead source rather than relying on relationships and word-of-mouth.