A Bright Horizon for the HVAC Industry
The U.S. HVAC market has been increasing steadily over the years. According to estimates, our industry may surge to $37 billion by 2025. Unfortunately, many HVAC companies today are not taking advantage of an easy-to-implement offering that dramatically increases sales: financing. As a result, companies that don’t provide financing are losing prospective customers to those that do. If you own an HVAC company, here are 7 reasons why you shouldn’t hesitate to offer financing options to your customers:
1. You get more customers by increasing their spending power
Flexible financing options can motivate customers to buy from you. By contrast, if you only accept cash, odds are you’ll have high bounce rates (as most buyers these days don’t carry a lot of cash in their pockets).
Consider the following question: would your customers be more likely to spend $6,800 upfront, or over the course of 12 to 36 months?
More often than not, HVAC customers would prefer the latter. Despite this, many retailers and service-based companies choose not to offer financing in an effort to increase up-front revenue. In the process, they miss out on countless sales opportunities.
In the end, financing options are a much easier sales pitch than an all-or-nothing payment. That’s because–whether they are buying a new SEER unit or doing a smaller repair–financing gives your customers the flexibility to pay for the HVAC job (even when they don’t have the upfront payment). It is no mystery then why HVAC companies that offer financing capture more jobs.
2. You increase your company’s revenue and predictable cash flow
As you know, the HVAC industry fluctuates with the seasons. Consequently, many HVAC companies struggle to stay consistent. By implementing financing, cash flow and revenue forecasts become significantly easier to predict. And with this new information, so does the possibility for you to make more informed financial decisions.
Furthermore, not only are customers more likely to hire HVAC companies that provide financing options. But, financing also gives customers the ability to purchase better (i.e., higher-quality) products and more services and accessories. By securing more sales toward the upper-tier options–say a 17-ton SEER unit + a whole-house humidifier install–HVAC companies can use financing to successfully increase their annual revenue.
3. You boost customer satisfication and word-of-mouth referrals
It’s a fact that no HVAC company can survive without customers. Therefore, as an HVAC business owner, your goal should be to satisfy your customers’ needs. That’s something you can achieve by offering customers multiple financing options–including Prime, 2nd look, and commercial financing–depending on their needs.
By offering your customers multiple financing options, you give them the impression you care about their needs. For example, if you give your customer a competitive offer–say a 0% down/12-months promotional loan– you’re giving them an affordable way to pay for the HVAC product or service they need. Additionally, in many cases, that loan amount your customers receive from lenders can exceed the asked amount. And, they can invest that extra money in a higher-efficiency unit plus any add-ons you recommend.
Significantly, customer satisfaction can not only boost your sales but also improve your reputation. When you make it possible for your customers to afford a high-efficiency SEER unit–for instance–it’s likely you’ll end up with customers that are very satisfied with both their purchase and your flexible financing offer.
And satisfied customers, in turn, are very likely to provide great word-of-mouth recommendations. As your referrals increase, so, it follows, does your sales. All without you having to spend a penny on marketing!
If the idea of free word-of-mouth referrals sounds good, then put a reliable financing system for your customers in place. This way, your financing options will bring in more profitable referrals that will help your company grow.
4. You have a competitive advantage over other HVAC companies in your area
HVAC financing is a growing trend in the U.S. market and beyond. Your competitors are doing it and you can gain a competitive advantage by doing it too. After all, customers will more favorably consider HVAC companies offering financing options over those that don’t.
If you run a smaller HVAC company and would like to compete with the giants in the industry, HVAC financing is also an ideal option to give you a competitive edge. Yet, it’s important that you choose the best financing method to keep your customers coming back to your company.
5. You improve your marketing outreach
When sending flyers, running social media ads, or sending emails campaigns, having an attractive offer is key. By providing financing, leading HVAC companies can increase the likelihood that potential customers will reach out. Particularly since smaller initial costs and flexible payment plans appeal to a broader number of potential customers.
6. You get paid fast
A common misconception is that financing can affect cash flow because customers don’t pay immediately. The truth is that you can offer to finance a job and still receive quick payments. What you need is a third-party loan provider to pay you, so that you don’t wait for your customers to pay. By doing so, you can keep your customers satisfied and close more deals without affecting your cash flows.
7. You get up and running quickly
In some instances, HVAC contractors decide not to offer financing simply to avoid complicated setup procedures. However, you can find financing platforms that are hasslefree and give you all these benefits:
- Centralized – you can access multiple financial institutions from one place anytime & anywhere
- Free – lets you offer financing at no additional cost
- Easy to apply – paperless applications take just a couple of minutes for your customers to fill out
- Convenient – you can send or text customers their application so they can fill it out from their own device
- Risk-free – you can sign-up for a demo before signing on to make sure the platform is the right fit for your business
Where will your HVAC company be in 2025?
By providing financing, HVAC companies like yours are in a better position to secure new customers, forecast future earnings, increase revenue, and more. If you are an HVAC contractor, we invite you to learn more about financing by visiting Credit for Comfort. As a multi-lender financing platform, we have many different financing solutions you can offer to meet all your different customer needs. And provide every single one of the benefits we’ve listed.
Thank you for reading, and we look forward to partnering with you!