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According to a recent survey done by the research unit of BNP Media, Clear Seas Research, HVAC contractor reputation is the most important factor to a homeowner in the HVAC equipment purchase decision. More specifically, 56% of the homeowners surveyed rated contractor reputation as an extremely important factor.

The survey, conducted in conjunction with The ACHR NEWS, also found that the warranty offered on HVAC equipment (49%), along with equipment pricing (42%) are both extremely important to homeowners.

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The survey found that contractor reputation, along with warranty offered and equipment pricing are important to customers when deciding to buy. (Courtesy of Clear Seas Research)

Yet customers aren’t one-size-fits-all. There are a number of variables that might affect why each homeowner decides to purchase HVAC equipment. HVAC contractors have to take the time to learn the needs of their customers, so they can then understand why they buy — and train technicians to hone in on it.

Why Buy Today

EDUCATED CUSTOMERS: Now that customers are more knowledgeable, they want contractors with knowledge that exceeds their own. (Courtesy of Bill Joplin’s Air Conditioning and Heating)

HVAC customers didn’t always have the access to information they have today. Customers couldn’t research companies easily, compare equipment or installation prices, or find out what incentives were available to them — the world was not at everyone’s fingertips.

When Michael LaTour, president of Bill Joplin’s Air Conditioning and Heating, in McKinney, Texas, started out in 1990, installations and service work were the most important decision factors for customers. But today, customers are far more educated.

“We’ve been working to continue educating customers while maintaining the quality workmanship that was so important to our customers back when we started,” LaTour said.

At Joplin’s, their core purchasing decision is their reputation with their customers and the surrounding community, as a large portion of their customer base has been with them from 10-20years.

When Dayna Hottle, general manager at C&C Heating and Air Conditioning in Roseville, Michigan, started in the industry over 20 years ago, word of mouth was the company’s highest lead source, and it still is today.

“Word of mouth is still key, but it is verified by your Google reviews and the professionalism of your website,” Hottle said. “Brand equity and reputation are still vital to getting the phone to ring.”

Yet there is no denying there has still been a huge shift in the buying behaviors of customers over the years.

“Equipment has become a larger factor in purchasing decisions,” said LaTour. “All the variables that customers were not educated on back in 1990 have become more important, such as duct design or grill placement.”

This is partially because of the growing knowledge of HVAC customers; since they know more, they want to be more hands-on.

“They want contractors who offer equipment and knowledge that goes beyond what they can obtain themselves,” LaTour said. “Ultimately, you combine all of this to find at the core: Customer expectations are higher across the board for what companies have to offer.”

People Change

Technology has played a major role in the evolution of buying behavior.

MEETING CUSTOMER NEEDS: Joplin’s finds that customers want a business that knows what they’re doing while also adding value and convenience to the customer experience, so they provide it. (Courtesy of Bill Joplin’s Air Conditioning and Heating)

“People in 2023 have vastly different values, easier access to information, and convenience at their fingertips,” LaTour said. “Customers can find instant answers. Before, the only access to information they could get regarding HVAC was dealer-provided. Now, they have more access than ever to research and make informed decisions.”

Additionally, government regulations on the HVAC industry have led to more education from customers — specifically, customers in older generations, since the government wasn’t always regulating refrigerants, heat pumps, or gas furnaces.

“All of these changes require the customers to grow and learn with us,” LaTour said. “Refrigeration extinctions and understanding the cost associated is another reason our customers are educating themselves and shifting their purchasing decisions.”

And where do homeowners turn to access their information? Google.

“Google has made researching companies for the consumers so easy,” Hottle said. “I think Google validates what the consumer may already know about a company, and it gives them more peace of mind choosing a company.”

However, the advancement in technology — and the changes in purchase decision factors — do bring challenges for HVAC contractors, and they have to be ready.

“Customers want solutions and instant answers,” LaTour said. “Internet searches provide an overwhelming amount of information. In a world where same-day shipping exists, a portion of customers don’t understand the value of a highly skilled technician installing quality parts under warranty versus buying the part on Amazon and DIY’ing their HVAC.”

The Customer Decides

Other factors for HVAC contractors to consider that could affect their customer’s decision to purchase are age, demographic, and region.

“We’ve found the older our customers get, the more they seek information,” LaTour said. “Older customers typically want more information about our quotes, other brands, and manufacturers. On the other hand, younger age groups have a stronger sense of urgency and desire for ‘right now’ purchasing decisions.”

While Joplin’s doesn’t experience much variation by region, that’s not to say the customer’s location is totally unrelated to why they buy.

“There are factors like weather, location, socioeconomic status, family income, and more that could impact the regional buying behaviors of industry customers,” LaTour said. Hottle said in her experience, customers have different priorities regardless of age or region.

“That's why it is so vital for your sales staff to determine their needs and wants,” Hottle said. “Asking open-ended lifestyle questions will help uncover those needs and wants and build a system that will fit their budget and lifestyle.”

Once HVAC contractors know what their customers need, they’ll gain more insight into why they buy.

“Utilizing a consistent sales process allows your sales team to create open dialogue with the homeowner to uncover what's most important to them,” Hottle said. “From there, we build multiple options and let the homeowner choose the system that best fits their needs and their budget.”

LaTour said, “If you’re not sure why your customers are buying, then you’re not sure why you’re selling.”

It’s also up to HVAC contractors to find their own ‘why’: Why are they selling?

“If you’re looking to provide quality and trust, find customers who are looking for that in their HVAC company,” LaTour said. “If you aim to provide the cheapest service, then you’ll find customers for that, too. Ultimately, whatever your mission is as a company, do it right for your people.”

In other words, an HVAC customer’s purchasing decisions should reflect their company’s purpose.

“My No. 1 piece of advice is to find what you do and do it right,” LaTour said. “Build your reputation and make lifelong customers. Earn the customer … that’s key right there.”

Getting Techs to Hone In

While technicians likely didn’t go into HVAC to do sales, they are a vital part to the process. Their knowledge and expertise that they share face-to-face with homeowners is ultimately what is going to sell the product and service.

To cultivate a mindset where technicians focus on why customers purchase HVAC equipment, there has to be training directed towards understanding customer needs.

Hottle said this would involve training on asking open-ended lifestyle questions and not stereotyping customers based on their own biases.

LaTour said training is the most important factor in helping technicians provide the best experience to customers.

“Show your technicians why purchasing decisions matter and how they can help customers choose the best option for them,” LaTour said. “Technicians should understand your customers, including your customers’ purchasing decisions. Train your technicians, communicate with them, evaluate them, and ensure they represent and understand your company’s values and expectations. Set an example and give your technicians the highest standard to strive for.”