6 Reasons Why HVAC Contractors Opt For Extended Service Contracts When They Need To Grow Sales, Boost Profits, And Double Market Share.
When we asked HVAC contractors how they position themselves to stand out amidst tough competition… we found: most of them were following the same old practice.
Lowering the price, and offering better services than competitors
That’s all well and good if you’re a new business, but this strategy doesn’t work in the long run. In fact, it does more harm than good by positioning yourself for the ‘bargain shopper’.
(We’ll explain the why later.)
But some of the HVAC contractors did something different. Something better.
They offer extended service contracts, on their products, to their customers. And…
We Found 6 Good Reasons Why You Should Do That Too
1- You Leave Your Competitors, Two Steps Behind You.
When you offer extended service contracts to your customers (which can be up to 10 years), you immediately set yourself apart from the rest, and become the go-to HVAC contractor. This means: whenever your customer needs your services, they’ll contact you first, always.
Why does this happen? Because having an extended service contract on your products assures your customers that they can enjoy their heating/cooling system longer, without worry.
And guess who’re they going to call when their HVAC stops working.
You, of course! (to take benefit of that extra coverage on your products). This means: you can fill your 10-year roster with clients, and generate massive windfalls in return.
2. You Increase Your Prices, Without Worrying About Competition.
Increasing your prices when you’re in the HVAC business is tough. Because if you do that, chances are, someone is going to undercut you and ‘steal’ your customers from you.
But, when you offer extended service contracts on your products, sticking with you (even though you charge more) makes a lot more sense to your customer. This is why…
You can increase your prices (and grow profits in return) without worrying about rivals.
3. You Attract More Customers Down The Sales Pipeline.
Customers want a sense of relief when they buy expensive products. And having longer service contracts on your products gives them that comfort. So, it makes sense why most leads will gravitate towards you when you start offering 10-year covered HVAC products.
In other words, when you bundle an extended service contract into your installation price, you will convert more leads into long-term customers and multiply your ROI by two folds (at the very least).
4. You Boost Your Reputation And Word-of-Mouth Marketing
When you offer extended service contracts, you immediately build trust, confidence, and approval from your customers. Why? Because when they see that you’re offering ‘extra’ service contract coverage… they feel like your products are going to last longer and give them less trouble down the line.
And even if they do give them trouble, they know that you’re going to be there to help them.
This helps you build credibility and adds to your reputation in the community. All of this goodwill equals a boost to your bottom line through word-of-mouth referrals.
5. You Trade Your ‘Big Bargainers’ With ‘Great Listeners’
After surveying contractors, we found: 65% of their residential customers preferred having extended service contracts on their products. This means: you will have customers, who are willing to pay a little extra for that assurance. And having these customers is a treat. Because these kinds of customers don’t bargain and try to squeeze every bit of labor out of your services.
They also listen to your recommendations (because they see you as a trusted expert), and will likely opt for other ‘extra’ services if you can upsell them the benefits. In other words, people who pay extra, are also going to be some of the best customers you will ever have.
6. Saves You Money On The Labor Costs
Aside from getting happy customers down your sales pipeline, having extended service contracts can also save you 10s of 1000s of dollars from the ‘extra’ labor you’re going to put into repairing HVAC parts (like a compressor). Depending on the service contract program you’re working with, the part-change reimbursements can be anywhere from $200 to $500+.
This means: if you work with a program that not just offers a great extended service contract program, but also has an epic response (and repayment time frame) you will get compensated for your labor, and will also turn your customers into raving fans.
And by raving fans, we mean people who aren’t going to turn heads if your rivals have a more appealing offer than you have. They’re going to stay your customers forever!
Now, if you’ve decided to include extended service contracts in your installation price, we recommend you register with us, as a contractor partner, on our website. Here’s why
See, when you register with us… you get to enjoy 5 big benefits (among others):
because you know how your customers react to warranties, not us. So, we work with you hand-in-hand and curate the best warranty program for you.
so you don’t have to worry less about the approval time or process and more on scaling up your HVAC business (by generating a lot more leads).
and a clear understanding of what you need. Since we work with contractors nationwide, talking to us will be like talking to a friend who gets you.
without the “negotiation” tactics that warranty providers play on you when you try to get your hard-earned compensation as soon as possible. You know up front what your reimbursement rates will be.
so you can add an extra layer of profits and give more options to your customers (like replacing in-warranty and out-of-warranty parts as well).
Enrolling Is As Easy As 1-2-3 and it’s FREE
1- Fill in the enrollment application right on our website.
2- Send the enrollment application along with your general liability insurance documents, Workers’ Compensation certificates, and a completed W-9 form. Once approved...
3. We’ll send you a welcome letter with your customer number so you may start ordering!
We offer coverage for to 25 tons to meet your customer needs (unlike others which offer only standard programs and limited equipment coverage).all major brands & equipment types and offer cover nearly all types and sizes of HVAC equipment up
So, why wait? Register today to grow sales, boost profits, and double market share!