Ron Smith, who has been described as the father of the modern air conditioning service business, died in December. He touched those in the HVAC industry, either as a teacher, investor, coach or mentor by sharing his systems for improving business to anyone who wanted and needed his help.

He perfected everything from maintenance agreements to improving the efficiency of the team in all areas, service and installation as well as dispatching and running the office.

He started Modern Air Conditioning in Florida in 1965 with $500 of working capital, growing it to over $15 million in revenue by 1984, which would be over $40 million today. From 1979 to 1984, the service side of the company grew from $1.5 million to over $5 million a year in volume. He went on the buy, grow and eventually sell three additional companies in Florida and Louisiana.

He had the formula for success in our industry.

Smith founded Service America in 1985, the first HVAC franchise company, which grew to over 100 locations. He sold it to a Swiss company, bought it back two years later and sold it again to Roto-Rooter. In 1997, he joined Service Experts as chief operating officer, the first consolidator of the HVAC industry and a publicly traded company. There were 116 locations and annual revenue of over $600 million when it sold in 2000.

By 1991 Smith had founded a consulting business, Ron Smith and Associates, helping company owners with processes, systems and ways to improve the bottom line. His concepts are still valid today, he wrote the book “HVAC Spells Wealth” in 2007, and he put together the sequel, “’More and New’ HVAC Spells Wealth” in 2016. People still quote him, look to those books for ideas and answers to their questions on how to run a successful contracting business.

You can see his history a lot of places today, but I want to share how he interacted with people. He had time to listen, and he listened intently. When asked a question, he would tell you exactly what needed to happen, and how he went about solving the problem himself. His books are incredibly detailed with templates on how the process worked and what the results would be. He held nothing back. You found out his secret sauce. He actually wanted you to be successful.

He never raised his voice and always respected of others. He did not try to be the biggest voice in the room. Rather, he reflected on the topic at hand and made condensed but impactful summations that gave value to the conversation. He offered solutions to the problems facing the group, using principles he had set in motion in his own company.

What Ron left us is a legacy of business knowledge combined with a personal commitment to help us get better in all areas of our lives. He was a pioneer in building businesses with maintenance programs, recognizing employees as very valuable assets, and rewarding performance at all levels. He promoted SPIFFs for employees, giving out $40 to anyone in the company that turned in a lead.

It is not an exaggeration to say he created millionaires from business owners who followed his advice and applied his principles to their companies. It has been said by a member of a group he spoke to, he shared things I had already heard but I had not implemented yet. 

Ron left us feeling better after each interaction, with an awareness of what could be accomplished – with   emphasis on “could be” – if we just stopped doing what we had been doing for years and accepting what we would get in return. He encouraged us to change the game completely, move from 3% net to more than 20% net in the residential service and replacement markets by offering value that the consumer will pay for. 

My question for you is this: what will your legacy be? What will you be remembered for? I have made it my goal to be an encourager to everyone I meet. I want them to feel good about our time together.

I want the interactions with a company to be the same positive experience. How about your employees, do they feel empowered to do what is needed for the customer, are they secure that you will back them and their decisions if an opportunity arises? Do they feel good about their future in the company? Heck, do they feel good about their present position in the company? 

My guess is that the people who reported to Ron Smith felt good after each interface with him, they enjoyed their jobs and felt good about what they were doing. Here is my wish for you. That you will be remembered for the value you bring to the relationship for your customers and co-workers. How you make them feel. Do you empower employees to make good decisions, to help improve business relationships, as well as make the cash register ring?