Understanding Consumer Purchasing Power in HVAC

The HVAC industry is one where products are expensive and is a tough monetary commitment for the average homeowner. When selling HVAC units to these individuals it is vitally important for contractors to collect information to understand where the homeowner’s purchasing power is coming from and how the economic environment is shaping that power. Understanding their purchasing power will go a long way in closing sale after sale, and also, how to effectively market to them.

               First off HVAC contractors need to understand the consumer’s psychology. There could be multiple factors or even hardships that homeowners are going through. Perhaps they were laid off because of Covid-19 or maybe they are saving up money for other big purchases, trip expenses, etc. They could be weary in whether a big purchase like this is the right thing to do at this time. You need to be able to market to them with cost-saving statistics and different pricing options for different model tiers to try and persuade them into thinking, “Well, maybe I can afford this”.

               Next, it is important to understand the homeowner’s income distribution.  Knowing where your potential customer lies on the income scale is important to know right out of the gate where to focus your marketing strategy on the tier of equipment they can afford. Of course if there is an opportunity to up-sale then definitely take it.

               Finally, you need to understand the homeowner’s debt-to-income ratio and how that plays in effect to the marketing strategy and purchase. If they have a high debt-to-income ratio then it may be hard to sell them the more expensive tiered systems, or maybe even approved for financing the equipment and installation. It’s always important to communicate with your homeowner to see where they lie financially first, and then proceed to market to them with the corresponding priced equipment that you know for a fact they will be able to afford.  

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