What if you could enter an industry you knew nothing about and build a multimillion-dollar business from scratch? Michael Katz and David Katz did exactly that, transforming Trio Heating and Air into a thriving HVAC powerhouse in San Francisco. On the latest Titans of the Trades episode, they share the exact strategies behind their stunning rise and how you can replicate their success.
Why Lack of Experience Became Their Greatest Strength
Unlike most HVAC contractors, Michael and David didn’t grow up in the trades. In fact, before founding Trio, they had zero direct HVAC experience. Initially, this seemed like a disadvantage. Employees took advantage of their ignorance, and early on, they struggled to set appropriate standards and expectations.
However, their outsider perspective soon became their biggest strength. Without entrenched industry habits holding them back, the Katz brothers innovated freely. They didn’t cling to outdated practices; instead, they actively sought advice from industry leaders, quickly adopting proven strategies.
Their first major turning point came after attending ServiceTitan’s Pantheon conference. Inspired by industry legends like Tommy Mello and Ishmael Valdez, they radically increased their prices; something many contractors fear.
Raise Prices & Boost Profits
Like many contractors, Michael and David initially undercharged, hoping to beat competitors on price alone. But the Pantheon conference was eye-opening. Higher prices, they learned, actually attract better talent and higher-quality customers.
When they dramatically increased their pricing, instead of losing business, their conversion rate skyrocketed from 15% to nearly 40%. Customers began perceiving their service as more valuable, equating higher prices with higher quality.
This counterintuitive move wasn’t just profitable; it transformed their entire business. By charging appropriately, they attracted top-tier technicians and managers. Suddenly, their team was filled with A-players, allowing them to deliver exceptional service, further justifying premium prices. It created a powerful positive cycle that turbocharged their growth.
Attracting A-Players: How Pricing Impacts Your Team
Michael and David emphasize that “A players” never want to work for a “B team.” If you consistently undercharge, you’re forced to cut corners, skimping on essential investments like reliable trucks, top-tier software, and employee benefits. Great talent quickly spots these weaknesses and looks elsewhere.
By charging more, you can offer better pay, benefits, training, and a supportive culture, creating an irresistible environment for elite technicians. Top talent attracts top talent, raising your company’s reputation and capabilities exponentially.
How to Avoid the Pitfalls of Rapid Growth
Rapid scaling has its challenges: long hours, personal sacrifices, and strained relationships. Michael and David openly discuss their intense early days of minimal sleep and nonstop work. But they caution against viewing this as sustainable. Instead, they recommend building robust systems and processes, allowing your business to scale sustainably without burnout.
Why You Should Copy Success, Not Reinvent It
The brothers attribute their success to one simple strategy: “Just copy and paste.” Too many business owners pride themselves on solving everything independently, often creating costly and unnecessary struggles. Michael and David emphasize the importance of learning from industry experts, attending events, and simply adopting proven methods.
The takeaway? Don’t reinvent the wheel. Find out who’s succeeding in your industry, learn their strategies, and replicate their success. This simple, pragmatic approach can save years of costly mistakes and dramatically accelerate your growth.
Ready to learn exactly how these brothers transformed their business and how you can do the same?
Tune into the latest Titans of the Trades episode and unlock the secrets behind rapid growth, profitable pricing, and attracting the best talent to your business.
Connect With Michael & David:
Website: https://trioheatingandair.com/
LinkedIn: https://www.linkedin.com/in/michael-katz-20b751109/
LinkedIn: https://www.linkedin.com/in/david-katz-999319b5/
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