As a contractor in the HVAC industry today, you are either offering financing to your customers or you’re not. Regardless of where you fall, can you identify a financing myth from a fact? Watch this video and test your knowledge.
Video transcript below
The truth about offering financing in the HVAC industry
Every HVAC business owner has an opinion on whether to offer financing to customers. Some believe financing is an essential part of their business. Others not so much.
In this “Myths versus Facts” video, our Credit for Comfort team will be looking at some of the most popular beliefs regarding financing and showing you which ones are facts and which ones are myths. Let’s get started!
Myth: Most American homeowners have enough money in the bank to pay for an HVAC job.
Fact: 57% of Americans have less than a thousand dollars in their savings.
Myth: Most homeowners want to pay upfront for their home improvement jobs.
Fact: 75% of jobs over $2,500 are financed.
Myth: Homeowners are only interested in getting the lowest price for the job they need.
Fact: Offering financing doubles project size.
Myth: Offering financing is not going to convince my customers to choose my business.
Fact: Retailers experience a 5% higher close rate when offering payment options.
What customers expect from the HVAC industry
This is the takeaway from all these facts.
- Depend on financing to pay for their home improvement projects.
- Prefer finance rather than dip into their savings.
- Will use financing to increase the size and scope of their home improvement project.
- Will favor an HVAC company that offers financing over one that does not.
So, is offering financing necessary for your HVAC business’ success? If you go by the facts and not the myths, the answer is yes.
End of transcript
So, do you think the majority of the HVAC industry agrees with this conclusion? Share your thoughts in the comments below.