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Contractor Pro Homeowner Series

HVAC Customers and Contractors at Odds With Online Pricing

December 10, 2024
HVAC Contractor and Homeowner

Contractor Pro Homeowner Series

HVAC Customers and Contractors at Odds With Online Pricing

December 10, 2024
Getty Images

MOVING IN THE RIGHT DIRECTION: While relatively few contractors offer pricing on their websites, that number is starting to trend upward. (Courtesy of Getty Images / StockSeller_ukr)

Dylan kurt
Dylan Kurt
HVAC ContractingNewsBusiness ManagementHVAC Residential Market
More Homeowners Want Price Transparency, But Most Contractors Aren’t Offering Those Numbers

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The customer is always king, but as it turns out, the king has some detractors.

A new study conducted by the research unit of BNP Media, myCLEARopinion Insights Hub, done in conjunction with The ACHR NEWS, shows that a strong majority of homeowners want to see pricing on a contractor's website, and whether or not they do impacts the likelihood that they’ll be getting a call from someone looking for HVAC work.

However, the study also shows that a strong majority of HVAC contractors don’t feature pricing on their website, putting the two camps at odds.

 

Diving into the Data

For homeowners that participated in the survey, 70% said they were more likely to call an HVAC company/contractor who is transparent on pricing, which is nearly identical to how they answered the same question last year (71%).

For 29% of homeowners, online pricing transparency made no difference, and 2% actually said they were less likely to call a company that had pricing transparency.

Homeowners Likelihood to Call a Contractor with Pricing Graphic.

NO SURPRISES: 70% of homeowners surveyed said they were more likely to call an HVAC company/contractor who is transparent on pricing, which is nearly identical to how they answered the same question last year (71%). (Courtesy of myCLEARopinion Insights Hub)

According to industry experts, those numbers aren’t likely to see a downward slide, and in fact, the number of homeowners demanding transparency will only continue to grow.

“This shift has already occurred in almost every other industry, and now it is happening in the trades,” said Will Housh, founder and CEO of Contractor Commerce. “Consumers are increasingly accustomed to the convenience of online information, and as more contractors adopt this transparency, homeowners will expect it to be standard. The value in showing upfront pricing goes beyond just winning the job — it establishes trust and aligns the contractor with customer expectations right from the start. We believe platforms like Contractor Commerce will continue to drive this shift, helping contractors meet rising demand while standing out in a competitive market.”

Billy Stevens, an HVAC contractor in the Dallas-Fort Worth market and CEO of HVAC software company Sera Systems, also sees demand continuing to rise as more of the industry embraces fostering a stronger online footprint.

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“Online anything in our industry is going to continue to grow,” Stevens said. “We’ve had a significant presence online, and the numbers are amazing for us in terms of cost savings and getting new customers.”

As for what the data says, contractors are starting to integrate themselves online, if only at small increments at a time.

 

Slow, but Steady Adoption

When it comes to HVAC contractors, only 31% of those surveyed said they feature pricing on their websites, but that is up 11% over last year.

Contractors Feature Pricing on their Website Graphic.

TRENDING UPWARD: While still not reflecting the strong sentiment from homeowners, more contractors are now offering online pricing, compared to last year’s data. (Courtesy of myCLEARopinion Insights Hub)

As for what caused this jump, Stevens speculated a tougher economy motivated contractors to follow what the market was telling them.

Housh said the increase also aligns with a growing trend of consumers just expecting transparency to be the norm.

“Today’s homeowners are used to instant access to information in other industries, so they’re starting to expect the same from contractors,” Housh said. “Many leading HVAC and other home service businesses are responding to this by making pricing visible online, a shift that empowers customers and helps contractors gain trust. Companies like Contractor Commerce make this transition straightforward, providing a plug-and-play solution that enables contractors to offer online pricing without technical hassles, making the trend more accessible than ever. As more leaders in the trades take this step and offer online pricing, other contractors will follow.”

Housh said this significant gap between what the consumer wants and what contractors are offering is a pretty stark statistic.

“There’s a clear demand for online pricing that many contractors haven’t yet met. Bridging this gap is a big opportunity for growth in the industry,” Housh said. “As more contractors leverage these tools, we expect an even bigger shift toward transparency online shopping in the trades. This is only the beginning and the early adopters have a big opportunity to differentiate and get ahead of their competitors. Plus, if you just think of how you like to shop and how to treat customers the way you would want to be treated, offering convenient, transparent pricing and shopping/buying options is a no-brainer. Five years from now, it will be table stakes across all home service verticals.”

 

Other Interesting Insights

Probably not terribly surprising to contractors, especially ones running smaller shops, but businesses with between one and 10 employees were found to be the least likely to feature website pricing.

Stevens said this could be a case where there is a lack of foresight to see the benefits, or perhaps simply not having the money to implement online pricing.

Housh said the lack of resources, or time, to explore digital upgrades also aligns with what they are seeing.

“However, with solutions like Contractor Commerce, even small businesses can implement online pricing without the need for significant investment or IT resources,” Housh said. “By adding this capability, smaller contractors can differentiate themselves, attract more clients, and compete with larger players. We encourage contractors of all sizes to consider the strategic advantage of pricing transparency. We would caution smaller contractors that they need to be ready to invest in the process, train their team, put resources into marketing to drive traffic to their website, and set up systems to reach out to their existing and potential customers to invite them to engage with the online shopping experience. Without these investments, our experience shows that an ecommerce initiative may fall short of its full potential.”

Contractors from the Midwest were also found to be among the least likely to have online pricing. Housh said this may be a combination of regional business culture, or the fact that maybe contractors in the Heartland aren’t feeling the immediate pressure to change if their competitors also aren’t doing it yet.

“In general, in and outside the trades, the Midwest is slower to adopt new technologies, while the West Coast, East Coast, and certain tech-savvy metropolitan areas around the country (think Austin, TX for example) tend to be on the cutting edge,” Housh said. “However, adopting online pricing now can help Midwestern contractors get ahead of the curve. By embracing this trend early, they can cater to customers who are increasingly expecting upfront information and gain a competitive edge. We have plenty of Midwestern contractors who are having lots of success with e-commerce, so don’t wait.”

Stevens wholeheartedly agreed with Housh’s observation on Texas contractors.

“In Texas, we have a ‘get-er-dun’ mentality, so I’m not sure how Midwesterners think about their businesses,” Stevens said.

 

Joining the Transparency Trend

Like any best practice, it doesn’t do much good unless actually implemented.

Stevens suggests simply contracting a reputable web company that will build out landing pages and messaging, taking care of all the gritty work.

Housh suggests finding an e-commerce platform tailored to the home services industry, that has a full-featured platform with lots of flexibility and capability, and something that is easy to implement, not a spot solution that only handles one aspect of the business.

“There’s a huge difference between just putting pricing on your website and selecting a partner to help you capitalize on the massive e-commerce trend in a strategic way,” Housh said. “Contractor Commerce offers a plug-and-play solution specifically designed for residential HVAC, plumbing, and electrical, allowing these companies to set up online pricing and enable full e-commerce cart and checkout functionality for certain products and services, and much more.”

KEYWORDS: Contractor Pro Homeowners Series homeowners Pricing for HVACR Products and Services

Share This Story

Dylan kurtDylan Kurt
Dylan Kurt is an editor with The ACHR News. He is an award-winning political journalist with a bachelor’s degree in Journalism from the University of Iowa. Growing up, Dylan spent a lot of time fetching tools and assisting his dad, who held professional licenses in HVAC, plumbing, electrical, and refrigeration, at his small plumbing and heating business.

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