Message from the President, Ryan Rastetter

As we move into the second half of 2025 and enjoy the heart of summer, I wanted to take a moment to update you on our progress toward the goals shared during our Q1 State of the Company meetings. Here’s a quick recap of those key initiatives with additional updates further below:

1. Consolidation into one Sumner location and enhancement of the Everett office
2. 6,000 Comfort Club Memberships
3. 1,200 Total Google Reviews
4. $2M Growth in Retro and Service
5. 150 Hot Water Tanks Sold for Plumbing Growth
6. Electrical team consolidation
7. Implementation of Standard Operating Procedures (SOPs)

Sumner & Everett Update
After moving into the new warehouse/office earlier in Q1, in July, we expanded into the additional warehouse. The adjacent office remodel is underway and will soon provide space for training, meetings, and parts storage—freeing up some room in our main office. In Everett, we upgraded office furniture, paint, and carpet, amongst other items, to give the office a much-needed freshening up.  While change is never easy, the transition has been incredibly smooth thanks to your flexibility and teamwork. A big thank-you to everyone who helped consolidate our operations from three warehouses into one and assisted with the enhancements in Everett. 

Comfort Club Growth
Through June, we’ve added 235 new Comfort Club memberships—a 5% increase, bringing our total close to 5,500. While short of our mid-year target (7–8%), we’ve made significant strides:

• Cancellation rates have nearly been cut in half
• New membership sales have ticked up 1% to 16%
• To hit our year-end goal, we’ll need to push new sales to 20% and improve first-year renewal rates (currently 12% vs. 18.6% last year)

Special shoutout to our top technicians in new sales: Andrew Kroeze (32.8%), and Carter Owen (31.4%), and Tyler Golden (28.2%)

Google Reviews
We’ve generated 571 five-star reviews so far this year—even with a brief hiccup in Google and Service Titan. Over the past three months, we’ve averaged 120+ reviews monthly, putting us on track to meet and exceed our 1,200-review goal and surpass 4,000 total reviews company-wide.

Join me in congratulating our top performers:

• Ian Baisch: Sales
• Drew Crabtree & Mikel Hirsch: Retro Install
• Justin Campbell: Retro Electricians
• Allen Walker: Service
• Kyle Lasicka: Plumbing

Retro and Service Growth
Retro and Service revenue is up 5%. While we’re not halfway to our $2M goal, demand is picking up after a mild spring. Congratulations to:

• Nathan Roberts: Top sales & close rate (East Side)
• Nathan Collver: Highest sales  (West side)
• Steve Vick: Highest close rate (West side)
• Bobby Baker: Best gross margin per appointment (West side)

We’re also in the middle of launching several new initiatives to drive demand:

1. Transparent pricing for HVAC (and soon Generators/Water Heaters) on our website
2. Online booking for all residential services
3. Exclusive partnership with Quilt, a cutting-edge ductless heat pump manufacturer

These Initiatives aim to improve the customer experience, increase online conversions, and give us an edge in a competitive market. If you have feedback, please share—it’s always welcome.

Hot Water Tank Sales
Plumbing growth is a key focus area, with a goal of 150 hot water tank installs outside the plumbing department in 2025. As of mid-year, we’ve completed 45 installs and generated $130K in revenue. To hit our target, we’ll need to average 18 installs per month in the second half of the year.

Thanks to Vince Barry (Sales), Andrew Kroeze (Service), and Lili Martinez (Coordinators) for leading the way so far. The plumbing team is actively working on strategies to accelerate progress—more updates coming soon.

Commercial & New Construction
Despite economic headwinds anticipated for 2025, both our Commercial Installation and New Construction teams have stepped up. You’ve continued to win work in a more competitive market and deliver high-quality installations and revenue. Your resilience and effort are truly appreciated—thank you for all you do.  We’ve also started to evaluate strategies for marketing to businesses to attract new customers from a commercial perspective that can supplement our strong relationships with our existing customer base.

Electrical Team Consolidation

We are continuing the effort to consolidate our electrical service and installation departments into a more unified team. This effort is focused on improving scheduling efficiency, communication, and overall responsiveness to customer needs. By streamlining operations, we’ve been able to deliver a more consistent and reliable experience for electrical projects. This consolidation also opens the door to new growth opportunities and development for our team members.   More work is needed here, but the foundation and structure are in place, along with a highly capable team. 

Implementation of Standard Operating Procedures (SOPs)

We have completed documentation for many of our core administrative tasks as part of our broader effort to standardize operations. This foundational work supports the ongoing development of additional SOPs that will guide field and customer-facing processes. We’re working to create clear documentation that articulates the steps to consistently deliver excellent customer experiences. These resources will strengthen onboarding, training, and success across departments. I’ve been proud of the work completed so far and am excited to see new processes documented and provided for the team to use in our effort to provide a comfortable, repeatable, excellent experience for our customers, both internal and external.

See You at the Picnic!
We’re looking forward to seeing everyone this weekend at Vasa Park for the company picnic! Expect a fun afternoon with:

• Hawaiian BBQ & Hot Dogs
• Ice cream truck
• Likely some Blue Angels flyovers
• Games, music, prizes, and good company

Let’s enjoy some well-earned time together outside of work.  Thank you, everyone, for all you do to delight our customers and make Home Comfort Alliance a great place to work.

– Ryan Rastetter