3 Small Changes to Increase Your HVAC Sales

You need to offer financing to homeowners to stay competitive. In fact, HVAC contractors who do not offer financing are probably losing business. Financing allows customers to break high cost products, like HVAC systems, into manageable monthly payments. Financing isn’t just something homeowners want: it’s something they expect.

If discussing financing feels uncomfortable, you're not alone. These three strategies will help you work the topic into conversations with homeowners. The goal is to provide options (people love options - check out the cereal or beer aisle if you want proof) and to increase your HVAC sales. Let’s talk about how to make financing work for your team and your customers.

Ask Questions.

While you may feel like you are only at a homeowner’s house to fix a problem, you are also there to provide guidance. A customer’s first thought may be, “I need a working air conditioner ASAP,” but for many homeowners, their second thought will be, “How am I going to pay for this?” You can help them choose the system that will work best for their home and their budget.

The process starts with learning about the customer: What are their frustrations with their current system? What might be on their wish list for a new system? You will be able to provide options they haven’t considered. Oftentimes, homeowners have not planned for a repair or a replacement and haven’t done much research. This means they can benefit from your expertise.

Need some inspiration for what to ask? We have put together a cheat sheet to help. Learning more about your customer will help you customize your solution and increase your HVAC sales.

Be Strategic in Your Offerings.

You might be tempted to only offer only a couple financial options to customers. However, this puts unnecessary limitations on them. Some homeowners may want a 6-month-same-as-cash, deferred interest loan. Maybe they are expecting a bonus or tax refund and will be able to pay off the loan before the interest kicks in. Another homeowner may prefer an 84-month loan for lower monthly payments.

Offering a variety of loans will help you meet the needs of more customers, and that means more closed deals. Again, people like choices, especially with an unexpected large expense. Plus, if they are financing, they might be able to add additional features, like a low decibel system or filter reminders.

Do Not Limit Yourself to Large Lenders.

Obviously, you do not want your homeowner to apply for a loan only to be rejected. If you are receiving declines with a large lender (lenders connected to HVAC manufacturers), you should consider supplementing with another lender.

FTL Finance offers Waterfall Lending, which means a homeowner submits one application and gets the best rates for their credit profile. FTL covers all credit tiers through our lending or partner programs. If we can’t approve your homeowner, they will continue down the waterfall, and, in most situations, one of our partners will be able to approve them. With Waterfall Lending there is only one credit inquiry on the customer’s record, so this style of lending benefits everyone.

Offer Financing to All Your Customers.

Once you decide to offer financing, be sure to mention it on every job. You never know who might prefer financing. It’s as simple as saying, “Would you prefer cash, credit, or monthly payments?” Consumers expect payment flexibility. Whether it’s a smartphone, car, or even smaller purchases, like clothes, customers are often given the option to make monthly payments. They may even seek out HVAC companies who offer financing.

Just because a homeowner has an in-ground pool or a fleet of sports cars doesn’t mean they won’t want to finance their new system. They might be working toward other financial goals, so it is always worth asking whether they are interested in a monthly payment option.

We recommend a Good, Better, Best approach when you discuss financing. The Project Estimator tool inside our AppTracker platform makes it easy. Add the project costs and descriptions, choose a loan plan, and the Project Estimator will display the monthly payments. No need to pull out your calculator. You can email or text the estimates to the customer for them to review and apply through an included loan application link.

Homeowners can see that upgrading to a superior system or adding accessories won’t cost them much more on a monthly basis. This means you can make more money on the project, and homeowners will get exactly what they want.

Is Financial Expertise Required?

You do not need to be a financial expert to offer financing. This is why FTL Finance is here. Consider us an extension of your team. If your homeowners have questions you can’t answer, send them to us! Once you register, you will have a dedicated support team ready and waiting to work with you and your customers.

If you are interested in learning more about how contractors work with FTL, check out this video where Kwame Chavers, owner of A Step Above AC, shares how he partners with us to increase his HVAC sales.