How HVAC Financing Can Enhance Your Competitive Edge
How HVAC Financing Can Enhance Your Competitive Edge
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Customer loyalty can be hard to come by in a crowded region. The marketplace is fickle. Operational costs are only increasing and maintaining profitability through superior service quality can be a challenge in an economy where the most effective way to attract customers is by charging lower rates for your HVAC services.
But HVAC business owners like yourself who are already offering competitive rates might be feeling the squeeze when it comes to keeping a healthy bottom line and stimulating robust business growth. Sales volume suffers when customers walk out the door without closing a sale or hiring your HVAC services because they can’t afford the cost of the work.
That is, they can’t afford to pay for those costs in one lump sum as an upfront transaction. A majority of customers who require the services of an HVAC company find themselves with an unexpected expense in the form of a repair or the replacement of a faulty component of their HVAC system. Customers who need new HVAC systems installed may have anticipated the costs associated with such a project. But in nearly every instance, the chances of a typical homeowner having the available resources to cover the expenses of parts and labor in their entirety are usually slim.
So what happens? The customer chooses to wait to have the work performed. He or she may need to wait until the costs fit into their budget, leaving that customer without a functioning HVAC system and leaving your business without any revenue being generated from that job. Customer inquiries should always result in a conversion of some kind, letting them leave your HVAC business without purchasing or hiring your services only slows expansion and growth of your business operations.
But what if there were a way to turn potential customers into paying customers without the need for gimmicky marketing strategies or desperate pricing strategies, all while improving your company’s reputation in the marketplace.
Fund My Contract is the industry leader in helping HVAC businesses like yours thrive and succeed by working with you to offer financing options to your customers. Our network of third party lenders can help you enhance your competitive edge by increasing your customer’s spending power and giving them choices of how and when to pay for the HVAC services they require from your business.
When you provide financing to your customer base, you’re not only making it easier for them to convert sales with your HVAC company, but the increased customer satisfaction can attract more business, improve cash flow, and put your business in a position to dominate your region.
Why Financing Can Grow Your HVAC Business
You may offer competitive rates and the quality of your work is second to none. That still doesn’t make it any easier for customers to take on the costs of most HVAC system repair and replacement costs. So the customer has to “think about it” and promises to get back to you. Days go by, a week or two. A month has passed and that customer hasn’t returned. Either the customer is still thinking about it – which means they’re waiting to call you back when they have the financial ability to hire you – or they’ve hired one of your competitors who performs the work at a much lower rate, with the quality of workmanship to match.
Whatever the reason may be, your HVAC business has failed to generate revenue from this opportunity and how many more missed opportunities will go by before your business shuts down?
Expansion and growth are the goal of every business owner, big or small, but when customers simply don’t have the ability to patronize your business, you need to find ways to address and eliminate that barrier to conversion. Many business owners will instinctively reduce their prices (that’s probably how your competitor enticed that customer who promised to return after “thinking about” hiring your services for their HVAC system) as a way to get more customers in the door. But a desperate business owner will soon find that cutting into their profit margins is no way to rescue a failing business.
In reality, just the opposite occurs and the inevitable is merely prolonged.
But providing your customers with financing options allows you to maintain your profit margins while bringing in more business and stimulating healthy cash flow. That’s because you can give your customers a range of choices instead of forcing them to put off the work they need because they can’t afford to pay it off all at once.
Customers Want Options
Think of all the other ways you provide options to your customers. You may offer HVAC preventive maintenance care plans with various features and perks that can ensure the operational efficiency of your customers’ HVAC systems all year long. When a part needs to be replaced on your customers’ HVAC units, you provide them with choices of brand and cost, recommending one or the other and allowing the customer to decide which one they wish to purchase.
Perhaps you offer reward points programs and discounts on service and repairs when a customer has engaged with your business after a certain threshold is reached.
These are all options that customers can select to participate in when they interact with your business. These options incentivize customers to return to your business when its time to get their HVAC systems maintained or repaired.
HVAC financing is another way to provide your customer with options. For example, let’s say your customer needs a new compressor at a cost of $2,100, including parts and labor. If the customer doesn’t have some type of home warranty to defray those costs, that amount is coming out of pocket which can be a bitter pill to swallow. The customer will likely wait on having that work done and may delay the repair for as long as it takes to save up.
As a result, you earn your service fee of $60 or $80 and hope your phone rings again in the next few days or weeks, when you could have put that $2,100 into your business by giving the customer financing options that allow for the cost to be paid across low monthly payments. That way, the customer gets his or her compressor replaced and your business generates much-needed revenue.
When you work with our network of third party lenders, you can develop a range of financing programs that best suit your customers’ needs. Some customers would much rather prefer covering the costs of your HVAC services in monthly installments. Others may want to take advantage of promotional competitive interest rates, if they qualify, so they’re paying less for the financing they need to cover that new compressor. Flexible terms can also be accessed through financing options that appeal to customers who like to have some additional time for reimbursement.
Customer Satisfaction as a Competitive Advantage
Happy customers are eager customers. Eager to tell others about your services and the benefits of choosing your HVAC business over all the others in your area. Offering financing options to your customers increases customer satisfaction and brand loyalty in ways that few other strategies can accomplish.
For starters, when your customer is facing a $2,100 bill for a new compressor and he or she learns that your financing programs enable them to have the work done without paying the bill in full at the time services are rendered, the reaction is usually one of great relief and a large financial weight removed from their shoulders. This is particularly true when the seasons bring extreme weather conditions and your customers’ heating ventilation and air conditioning systems are running pretty steadily to keep their homes warm in the winter and cool in the dead of summer.
Competitive pricing for these services is a sure way to stay competitive in your region but when you can offer a service that other HVAC companies in the area don’t offer – such as HVAC financing – you are gaining a competitive edge that results in more jobs, more revenue, and satisfied customers telling others about your HVAC company.
We live in an online world where any purchase, big or small, is determined by reading reviews from previous customers who have bought a product or hired a service provider to perform a job. Enhance customer satisfaction by offering HVAC financing and bring more customers to your HVAC business through positive customer reviews.
Fund My Contract Helps HVAC Companies Grow
We are the leader in helping businesses in the HVAC industry grow and thrive through increased revenue with financing programs and pricing models that are some of the most innovative solutions for business growth in the market today. If your HVAC business is having difficulty turning a profit and your sales projections continue to fall short, give Fund My Contract a call and one of our consumer financing experts will explain all of the ways in which HVAC financing can benefit your business and increase growth and expansion on your terms.
HVAC businesses that need a boost in sales and increased revenue can find the solution with consumer financing. Why wait for your customers to be able to afford your HVAC services? Make the costs more affordable and the work more accessible with financing options through Fund My Contract.
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