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Why HVAC Contractors Should Discuss Financing Options With Customers

Updated November 25, 2020

Are you currently doing everything you can to attract customers? In the age of digital marketing, it can seem like there’s constantly just one more thing to do and one more site to join. We believe the ideal marketing plan requires a multi-pronged approach. This should include great web design, SEO, social media and local ads. In addition, it’s always critical to discover new ways to generate business and retain loyal customers. IAQ and HVAC customer financing is top of mind.

The data shows that financing boosts sales by 10%, increase average order value by 15%, and improves installation sales by 25%.

Forward-thinking HVAC companies and IAQ businesses have looked to financing options for more sales, customer retention and overall success. Financing is a game changer. Find out why it’s great for your business.

The Ultimate Incentive

What do employees and customers have in common? Both love incentives. Customers have a lot to say about incentive preferences. Consumer surveys show that incentives improve brand perception, trust and the likelihood of purchases.

Perhaps most striking–customers reported feeling more respected by companies that offer incentives. This is one of the many reasons why financing has become so popular among HVAC customers.

Owning a home or business is part of the American Dream, but it also costs money. Budgeting and saving for residential or commercial spaces is made more difficult when faced with necessary HVAC repairs or desired IAQ upgrades. Money is an emotional topic, especially when budgets are tight. Providing financing expands your business’ offerings to homeowners and small business owners who desperately need HVAC upgrades or services but don’t have the capital to pay in full upfront.

It’s important to make customers aware of financing you can and should offer for major purchases. This includes: 

  • IAQ upgrades
  • Air conditioning installations
  • Furnace replacements

Financing’s Versatile Marketing Strategy

There are plenty of ways to incorporate and promote HVAC customer financing into your company’s marketing efforts.

Financing will reel in brand new customers. Most new clients are looking for options. Providing financing means more opportunity. It’s perfect for first-time homeowners who are learning how expensive home maintenance can be, or for new small business owners. You can help both your customers and sales simultaneously by offering monthly financing plans– particularly to new clients. An easy example? A special six-month finance deal on a client’s first HVAC upgrade or install. These helpful deals will help your company sell product.

Financing is also perfect for personalized marketing campaigns. You can leverage customer data to craft personalized email campaigns based on prior purchases. Keeping customers in the loop with special financing offers improves customer lifetime value and retention.

Scarcity marketing is another route. Scarcity marketing reminds customers they have to buy or “act now” before it’s too late. To use this method, create limited-time-only financing offers to entice customers to consider larger HVAC purchases.

Discussing Financing Options

It’s important to showcase your company’s chosen financing programs. Whether or not to share pricing can be a debated topic among businesses, but financing options are not something to hide. Rather, incorporate it into your web design so it’s easily visible and accessible to site visitors. You want awareness to boost interest and sales. An easy option is to create financing sections and tabs for your website, similar to the service pages. You can also include a pop-up on your website to promote special financing offers to new website visitors. 

Discussing financing options during quotes is perhaps the easiest way to inform customers. It also can help your business close more sales over the phone and on the web. When customers inquire about free quotes, simply remind them about the financing options you offer. It’s always best to ensure potential clients are aware about all financial opportunities available. This is also an excellent way to convert undecided buyers who are looking for the best deal.

Lastly, you can offer financing options in-person and on the spot. You never know what alternative option might cause a potential customer to reconsider your product and service pricing. Hearing about finance options may just be the solution they’re looking for. For a truly in the moment option,  immediate financing is available through PayPal. A client can apply for a PayPal virtual credit line and have a decision, and the capital, in seconds.

Increase Sales with Multiple Financing Options

Potential customers will have varying credit scores and budgets. Limiting your company to one financing partner may limit your sales opportunities. Instead, work with multiple partners, including the distributors and manufacturers to create a tiered financing program that appeals to all customers. 

Potential customers want to feel supported–to do so, make sure they have a few options available to choose from. In addition to different financing partners, make sure your company offers different plans–with different rates and payment timeframes.

Discover the Benefits of HVAC Financing

HVAC and IAQ companies are increasingly discovering the benefits of financing. It is a service and a kindness to your clients to offer alternative methods for paying for HVAC maintenance and IAQ upgrades. Now is the ideal time to optimize your HVAC sales and marketing strategy. Provide consumers with the support they need to become lifelong customers by offering financing. 

Ken Grubbs

Ken Grubbs

Founder and managing director of KGG with over four decades of experience in the HVAC industry and two decades as KGG’s director. Ken is well-versed in the HVAC and IAQ world. He is passionate about the future of the HVAC industry and the role indoor air quality can play in health and wellness. Leading HVAC manufacturer sales ⤑

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