Both tactics, along with offering extended warranties and adjusting how pricing is presented, suggest that contractors should shift their mindset away from traditional sales tactics to stay ahead of the curve.  

Expanding Offerings  

The survey reveals that on average, contractors are making about $422 per service ticket. When broken down by sector, residential contractors pull an average ticket of $390 while commercial contractors average $516. 

Contractors are closing 43% of their install jobs. Residential contractors close an average 45% of the time versus 38% for commercial contractors.

One way to improve upon those averages is to present customers with multiple options for both installation and service jobs.  

The ACCA recommends having four options as the standard for proposals. This can include choices regarding SEER levels, thermostats, financing, add-ons, and warranties.  

THE BRIDGE TO BENEFITS: Mark Gaylor of the ACT Group teaching HVAC contractors sales strategies, such as the finer points of explaining the benefits of a system to improve sales. (Courtesy of Steve Howard/The ACT Group)

Contractors offering four or more options see their closing rate jump by 10 percentage points to 52%, versus a 42% close rate when offering one, two, or three options. It’s an area ripe with opportunity, as only 10% of contractors provide four or more options.  

“Not only is that going to increase our contractors’ close rates by offering more options to their end customers, but it’s also going to increase their premium equipment mix and not have them so reliant and bogged down with that standard, base entry-level equipment that many of our contractors sell so much of,” Farmington President TJ O’Conner said during a December webinar.  

Steve Howard, HVAC industry veteran and founder of training firm ACT Group Inc., said contractors can adjust their strategy from the traditional “good, better, best” approach by instead seeking tailored solutions for customers.  

“What we want to do is to sell what the customer wants, not to sell price,” he said. “Because if you give four options, basically, you're giving four different prices and letting the customer choose. The key is asking the right questions that allow customers to sell themselves.”  

Offering more options can also set contractors apart from competitors looking to score jobs with low bids. Marco Radocaj, owner of Balance HVAC in Florida, said he offers at least two options to customers in an “a la carte” style and explains the benefits of each system.   

“We really like to sell our bill of goods that our technicians are top-flight technicians, and that we commission and test everything out, so we really keep a pretty neutral margin across the board in terms of whatever equipment we’re selling,” he said.  

Extended Labor Warranties  

About 58% of HVAC contractors offer extended labor warranties. Of them, it’s primarily on residential unitary systems (98%) and ductless systems (84%). Only 38% offer warranties for commercial unitary systems.  

The most common warranty length is 10 years. When they offer a warranty, 55% of contractors include it in the total cost of the job. ACCA recommends this as the best practice, with the data showing it improves the margin on warranties to 30%.   

Conversely, about 45% of contractors currently offer warranties as a separate add-on item. When put into practice, this creates an average 24% margin.  

“I don't know that [warranties have] gotten us any more business. I would say it probably has,” said Butch Welsch, owner of Welsch Heating & Cooling Co. in Missouri. “Let's put this way — it has kept us in the living room or on the kitchen table because some of the other contractors have been offering them.”  

Radocaj said after acquiring a company that didn’t offer warranties, he put a program in place immediately. Florida homes deal with saltwater corrosion, so a repair is often needed within the first 10 years of the warranty, making it even easier to win over customers.  

“It’s definitely worthwhile, it’s an easy sell down here,” he said.  

In giving away some of the “secret sauce” of ACT Group’s teachings, Howard said they suggest not only having the manufacturer's warranty on the equipment but also covering all the things done during the installation. For example, a 10-year warranty can include ductwork, insulation, duct hangers, straps, and diffusers.  

“We tell the customer, we give you this 10-year warranty on everything that's not made by the manufacturer for 10 years. The only thing that we ask is if you keep your service agreement in force for the 10 years,” he said.  

Always Offer Financing  

With rising energy costs and increased material prices, providing financing to customers might be more critical than ever.  

Sixty-eight percent of contractors have financing available, with 79% of residential and 49% of commercial contractors offering it. However, only 37% are offering it on every job.  

The average close rate is 38% when contractors don’t offer financing. When they do, that average rises to 49%. Meanwhile, those who always mention it on every job have an 18-percentage-point higher amount of new and replacement sales that are financed than those who “sometimes” offer it.  

For the past two years, Welsch Heating & Cooling Co. has supplied financing to customers. While they’re selective with which customers they offer it to, Welsch says their close rate has gone from 77% in 2024 to 83% in 2025. He attributes part of that to financing.  

“I think our salesmen were almost embarrassed to ask the people if they were interested in financing, and I think I finally convinced them by pointing out every automobile manufacturer ad you see, you never see a price,” he said. “It’s either so many thousands of discounts or what the interest rate is for financing.”  

ACCA data shows that contractors who never offer financing see 50% of their sales as base models, while those who always offer it see that reduced to 35%.  

Howard agrees with offering financing and to do so early and often.  

“Financing is a process that goes from the first contact till the sale is closed. And so you mention financing when they first contact you, you mention it during the sale,” Howard said. “The more you mention it, it takes the pressure away from ‘How am I going to afford this?’ so they can start thinking about the benefits instead of the cost.”  

Monthly Payments or Overall Price?  

When presenting customers with a proposal, most contractors (72%) tend to lead with the overall price of the job. However, the survey shows that leading with a monthly payment can pay dividends.  

Contractors leading with a monthly payment option see 42% of their new or replacement system sales financed, compared to 21% when using the overall price.   

This strategy also creates a lower entry-level equipment mix, dropping it to 34% versus 42% when leading with the overall price.