Next Level Pros Podcast Episode #155: How to Get Rich in HVAC – Victor Rancour's $65M Story

Release Date: July 11, 2025

In this highly insightful episode of Next Level Pros, host Chris Lee delves deep into the remarkable journey of Victor Rancour, a powerhouse in the HVAC industry who scaled his business from the ground up to a $65 million enterprise within just a few years. Victor shares his transformative experiences, strategic approaches to business acquisitions, and the robust systems he implemented to achieve top-tier profitability. Whether you're an aspiring entrepreneur or a seasoned professional in the trades, Victor's story offers invaluable lessons on dominating your market and building a sustainable business machine.

1. From Humble Beginnings to HVAC Success

Victor Rancour opens up about his early life, highlighting his challenging start in Cleveland, Ohio. Twelve years ago, Victor was earning a meager $6.75 an hour performing oil changes at a place called Loop Stop. His determination to provide a better life for his family led him to California, where an opportunity arose that would change his trajectory.

“I really kind of started back in, you know, living in Ohio 12 years ago doing oil changes...” [01:05]

Victor took a chance by responding to a Craigslist ad for an HVAC technician position with Service Champions in Southern California. Despite having no prior knowledge of HVAC, his preparedness—wearing a suit and bringing a pen—secured him the job amidst fierce competition.

“Nothing in a freaking my entire world. But I think I'd be where I'm at now.” [01:05]

2. Mentorship and Expanding Horizons

Under the mentorship of Leland Smith, Victor quickly discovered a passion not only for the technical side of HVAC but also for sales. His dedication and aptitude led him to become the top salesman in the country.

“They're looking to have them, you have to learn the trade before you can really sell the trade.” [04:40]

In 2017, Victor was approached by a competitor who impressed upon him the potential of scaling an HVAC business. This pivotal moment led Victor to Hawaii, where he gained invaluable insights into running multiple facets of the business—from service management to general operations.

3. Transitioning to Entrepreneurship

After nine months of intense work and learning, Victor decided to venture out on his own. The transition was daunting, requiring him to navigate the complexities of starting an LLC, securing licenses, and managing financials. However, his relentless focus on sales propelled his new business from $5 million to $12 million, continuing to grow annually until successfully exiting in 2023.

“You have a whole chance to turn it around.” [05:45]

Victor emphasizes the grit and perseverance required to build a successful business from scratch, underscoring the importance of hard work and strategic planning in the trades industry.

4. Mastering Sales and Marketing Strategies

A significant portion of the conversation centers around Victor’s advanced sales and marketing techniques. He critiques the rising costs and diminishing returns of digital marketing in 2025, advocating for a return to more direct, community-focused strategies.

“Private equity ain't going to go out and be in your community.” [09:28]

Victor highlights the effectiveness of direct mail campaigns, particularly personalized, handwritten-style letters that yield high-quality leads at approximately $180 per lead. By focusing on proactive service calls rather than reactive sales, Victor's approach ensures a higher conversion rate and reduced competition.

“We go in the front door, leave out the back door.” [10:28]

5. Strategic Pricing and Margins

Pricing strategy is another critical area Victor explores. He advocates for maintaining a 65% gross margin, believing that starting high allows for sustainable discounts without eroding profitability. This approach ensures that even with occasional discounts, the business remains financially healthy.

“I prefer, like for me I'm going to price everything at 65% gross margin.” [15:19]

Victor also implements a sliding scale commission system to incentivize sales performance while maintaining healthy profit margins. This system rewards sales representatives for maintaining higher margins, reinforcing the company's pricing strategy.

6. Financing as a Profit Center

Understanding the pivotal role of financing in the HVAC industry, Victor emphasizes integrating financing options into the sales process from the outset. This strategy not only increases accessibility for customers but also transforms financing into a profit center rather than a cost.

“Financing ain't a loss for us. It's actually a profit center.” [36:29]

By offering attractive financing options, such as no-payments for the first year and low-interest rates thereafter, Victor makes high-ticket sales more attainable for customers, thereby boosting conversion rates and reducing cancellation rates associated with cash purchases.

7. Building and Training a High-Performing Sales Team

Victor underscores the importance of having a dedicated and expertly trained sales force. He believes that sales professionals should focus solely on selling, allowing installers to concentrate on their technical roles. This specialization enhances efficiency and ensures that sales targets are consistently met.

“You don't want the same guys that are selling as installing it.” [17:26]

Regular, intensive training sessions are a cornerstone of Victor’s strategy. By conducting daily or weekly training sessions focused on specific sales techniques and processes, his team remains sharp and adaptable to market changes.

“We meet four to five days a week... we still train.” [22:21]

8. Leveraging Technology and AI for Efficiency

Embracing modern technology, Victor integrates AI tools like Rilla to monitor and analyze sales calls, ensuring adherence to best practices and continuous improvement. This technological integration allows for real-time feedback and enhances the overall sales process.

“We use things like Rilla and other AI stuff where we can analyze and listen to it and see what they're saying.” [42:37]

Victor also emphasizes the importance of lean operations, minimizing overhead costs by reducing reliance on traditional managerial roles and automating processes where possible. This approach not only cuts costs but also streamlines operations for greater efficiency.

9. Key Takeaways and Insights

Throughout the episode, Victor Rancour imparts several key insights for entrepreneurs in the HVAC and broader home service industries:

• Proactive Marketing: Utilize direct mail and community-focused strategies to generate high-quality leads before competitors enter the scene.

• Strategic Pricing: Maintain high gross margins to allow flexibility for discounts without compromising profitability.

• Integrated Financing: Offer robust financing options from the onset to increase sales accessibility and transform financing into a revenue stream.

• Specialized Teams: Develop dedicated sales and technical teams to maximize efficiency and performance.

• Continuous Training: Implement regular, focused training sessions to keep the sales team adept and motivated.

• Embrace Technology: Leverage AI and other technologies to monitor performance, analyze data, and enhance operational efficiency.

“If you decide to do something and you go put all your all into it, you can have an opportunity.” [05:45]

10. Conclusion

Victor Rancour's journey from a low-wage oil changer to a multimillion-dollar HVAC entrepreneur is a testament to the power of dedication, strategic planning, and continuous improvement. His insights into sales, marketing, pricing, and team management offer a blueprint for success in the competitive home service industry. By sharing his experiences and strategies, Victor provides listeners with actionable steps to elevate their own businesses to the next level.

“You got to put the steps in and you don't, you don't deserve the outcome.” [06:13]

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