Thursday, April 24, 2014
How to Sell to High- and Low-End Homeowners
Labels: marketing, NY Times, selling to high-end homeowners, selling to low-end homeowners, shrinking middle class 0 comments
This may not come as a
surprise to some, but according to a recent front-page story in The New
York Times, the middle class is
steadily eroding. Because of this, upscale, high-end products and services are
thriving, as are the lowest-end of the market, while businesses and products that
support the middle are shrinking.
What does this mean for HVAC
contractors?
Your business should create
a strategy to target the high- and low-end markets separately. As the article
says, you can accomplish this by “chasing richer customers with a wider
offering of high-end goods and services, or focusing on rock-bottom prices to
attract the expanding ranks of penny-pinching consumers…You don’t want to be
stuck in the middle.”
Let’s break down these two,
distinct business strategies.
Selling HVAC to high-end homeowners:
-
Emphasize value: Industry regulations continue to push the HVAC industry to focus on
high-efficiency models. These premium models have higher SEER and EER ratings
and result in lower electricity bills for homeowners. While premium models are
often noted for their increased efficiency, the comfort these models
provide often goes unsaid.
The
concept of “comfort” cannot be ignored or undersold. Make sure your customers
know about the benefits that accompany many premium products. For example,
high-end air conditioners often come with variable speed fans—so homeowners
don’t feel the on/off of the air conditioning or heater.
Two-stage furnaces
also provide homeowners with a similar comfort. They offer mild heat and don’t
broil as hot as other furnaces. They use two levels of natural gas, making
homeowners’ homes more comfortable during the winter season.
A remote
sensor is a great accessory to offer high-end homeowners. With the ability to automatically
control the temperature in each room in the house, remote sensors provide
homeowners with a smooth, flowing temperature throughout the house so they
don’t have to suffer from one room being hot while the other is cold. These
products pair well with our Honeywell thermostats.
-
Provide excellent service: For many high-end customers, exceptional customer
service isn’t an added bonus—it’s expected. Let these customers know the
commitment you have to providing top-notch service—from product selection, to
installation and maintenance.
Selling HVAC to low-end homeowners:
-
Focus on competitive prices: Because penny-pinching customers are looking for
the best deal, they’re most likely not as concerned with the service
accompanying your products or the value of things that come with premium
models. That doesn’t mean you shouldn’t still offer great products and
excellent service, just that it doesn’t need to be the main thing you promote.
To reach
these customers, offer sales and promotions on products and equipment. Penny-pinchers
are often “brand agnostic,” meaning they don’t care what brand they get, or
where they get it—they are looking for the best deal available.
Another
good approach to satisfy penny-pinchers’ bargain hunting is to sell them
original equipment manufacturer (OEM) parts for their existing HVAC equipment. For
example, our partnership with Neuco, an OEM vendor, gives you access to
non-warranty OEM parts. Now, if a customer complains of a non-warranty part you
installed for them breaking, you don’t have to worry. Bring the problem to any
Comfort Supply location and we will get you a replacement through Neuco.
Let us know how these
tactics work for you, and if you have any additional strategies to share.
