For the vast majority of homeowners, HVAC equipment and installations are pricey. Even a simple project can be out of many customers’ budgets. As a lump sum, this can be a tough pill for any homeowner to swallow, leading to lost sales for HVAC pros. 

Offering financing solutions to potential customers is a simple way for HVAC dealers and contractors to turn a common customer objection (affordability) into an opportunity. Not only does financing make costs more manageable for homeowners, but it also makes it easier to have conversations about higher-value equipment and packages. 

If you’re not already offering financing to your HVAC customers, this post will walk through the ins and outs of why you should be and how you can get started. 

Why you should be offering HVAC financing to your customers

Financing solutions make the costs of a new HVAC system, repair, or upgrade less prohibitive for homeowners, but there are also clear benefits for HVAC pros. 

Financing makes it easier to pitch higher-value options  

Because HVAC systems are such big-ticket items, it’s natural for cash-strapped homeowners to gravitate to lower-priced packages when presented with a range of options to consider.  

By liberating customers from the immediate financial burden of large upfront payments, financing makes it easier for HVAC dealers and contractors to educate customers on the tangible benefits of higher-quality equipment and services. Not only can this lead to more installations and upgrades, but it can also significantly boost your profitability.

Financing makes full system replacements less cost-prohibitive

On a similar note, financing options can help convince the owner to consider a full system replacement instead of cheaper piecemeal repairs when an HVAC system is malfunctioning. 

Scenarios like this are a win-win for the homeowner and the HVAC contractor or dealer installing the new system. Not only is a complete system replacement more profitable than a repair, but it also provides the homeowner with a system that will perform better for longer. 

With better services and equipment comes better customer satisfaction 

Higher-quality systems and services deliver direct improvements in household comfort and energy efficiency. Higher-quality equipment also typically lasts longer and experiences fewer issues. All of this translates to greater overall customer satisfaction. 

Satisfied customers—thanks to a smooth financing process and high-quality equipment—can become powerful word-of-mouth sales tools for your business.

How to offer financing as an HVAC dealer or contractor 

Adding financing options to your HVAC offers can transform your business, sales, and customer relationships. Here are a few tips for getting started. 

Find the right partners for financing 

If you’re starting from scratch, offering financing options to your customers might seem daunting. Luckily, it doesn’t have to be. You can start small and straightforward, such as by working with partners with financing options that can be passed down to your customers. For example, ECCO Supply offers financing options on Allied HVAC equipment.

Making financing part of every sales conversation 

For most of your prospective customers, the cost of a potential HVAC project is the single most significant factor in their decision. It might even be a point of considerable stress if the project is one of necessity rather than choice. 

For this reason, every conversation with a prospective customer should include an overview of the financing options available through your business. Financing changes the overall cost burden of a big-ticket project for homeowners. It can decide between your company and competitors, so don’t leave it as an afterthought.

Be clear and transparent about financing options 

When presenting financing options to customers, focus on transparency and clarity. This means explaining the terms and conditions in simple language, highlighting the flexibility of payment plans, and emphasizing the benefits of completing the HVAC project without a significant upfront financial burden. 

Should you build the cost of financing into your quote or offer it as a separate line item?

You have a few options for showing how financing options impact a customer’s prices. On the one hand, you can build the cost of financing right into your quotes. Or you can show the cost of the funding as a separate line item. Each has its pros and cons. 

Including the cost of financing in the quote simplifies the overall price for the customer, while itemizing it separately enhances transparency, showing the customer exactly what they’re paying for.

While the itemized approach isn’t as simplified, if your team is well-trained to present and explain financing options to customers, it offers the most transparent picture of the costs. 

Financing equals super customer service 

Offering financing isn’t just a sales strategy—it’s also a way to deliver superior customer service. 

By providing financing options, you’re making it clear you understand the financial constraints many homeowners face and are willing to offer solutions that work for them. You’re also giving more customers the ability to afford higher-quality HVAC systems, ensuring better home comfort and efficiency. 

Providing prospective customers with financing options is a simple way to differentiate your business and enhance customer satisfaction. This can help drive word-of-mouth sales and repeat business through recommendations, referrals, and loyal customers.