California contractor launches smart thermostat startup

Nuve, a new thermostat startup founded by NexGen HVAC & Plumbing’s Ismael Valdez, recently launched to “help contractors retain more customers,” Nuve’s Chief Product Officer, Travis Ringe, tells Homepros.

Why it matters: Acquiring new customers is becoming more expensive, as competition, partly driven by deep-pocketed consolidators, heats up.

• One group of contractors saw Google PPC costs jump 28% from March 2022 to March 2024.

Details: Nuve sells contractor-branded thermostats that proactively monitor systems and allow homeowners to message contractors directly — its app can also be used for messaging.

• The company provides contractors with a back-office dashboard for managing customers, orders, and alerts, and integrates with ServiceTitan. 

• No special training is required for installation.

• Nuve bills monthly for its software, and per unit for thermostats — Ringe says thermostat pricing is “in line” with similar products.

The big picture: Valdez’s initial insight stemmed from alarm industry executives, who told him that proprietary hardware in the home and continuous monitoring enables them to retain ~90% of existing customers.

• Security company Vivint, for example, says the average customer stays for nine years.

“The first place people go when their air conditioning isn’t working and they need something… guess what, it’s the thermostat,” Valdez notes. 

• “Contractors often lose customers when they don’t remember who they used,” Ringe adds.

• “Nuve builds a moat around the customer by consistently keeping [the contractor’s] brand in front of them.”

Looking ahead: The company plans to roll out flood sensors and an integrated carbon monoxide detector, among other “exciting items,” says Ringe.

• “We’re going to help contractors retain customers and bring down customer acquisition costs,” he adds. “We found a way to be in control of the customer journey.”