Are you considering getting an extended warranty for HVAC (heating, ventilation, and air conditioning) installations? Is it really a worthy investment?
As an HVAC contractor or dealer, it can be hard deciding whether providing extended warranties instead of short complimentary covers is good value for your money. But if you depend on the manufacturer’s warranty for the HVAC installation alone or offering a short-term complimentary service, you’re missing good business. At worst, you’re taking risks.
That’s because HVAC extended warranty comes with several benefits for home and commercial property HVAC contractors, including:
1. Limiting your liability (costs) as the contractor
Providing a year of coverage for new installations out of pocket can quickly eat into your working cash flow, as you can’t predict how much you’ll spend on repairs. With self-insured options, you can bet that by the end of the financial year, your expenses will likely have ballooned out of control.
That’s because making unreimbursed trips to homes and commercial properties to address heating or AC failure repairs can be rather costly.
To get rid of such uncertainties, you’ll need an extended warranty.
An extended warranty takes care of, among other things, service liability. Not only will it give you peace of mind, but it will also save you a lot of money on unplanned repairs.
2. Advertises and boosts your brand reputation
Offering an extended warranty for new installations will do plenty of wonders for your brand. For one, it will grow your brand by advertising. Residential and commercial homeowners looking to equip their new property will more than likely look for the best deal in the market.
Few, if any, will resist a deal where you can handle their HVAC failures and repairs for a couple of years. In return, you’ll be building credibility and a positive reputation for your brand.
3. HVAC extended warranty can encourage customer return and reinforce loyalty
Gaining customer attention, marketing to them, and finally converting them is a challenging and usually costly process. So, why do all that to get customers and then not keep them?
As an HVAC contractor, you want to offer something more to stand out from your competitors. If you want to keep your customers and even get referrals, the typical one-year warranty might not be enough to cut it.
If, for example, you offer an extended warranty of five years. The client will be all sorted out even after the manufacturer’s warranty runs out. You’ll be the go-to contractor for that customer and will have established a trusting and loyal relationship. Additionally, you’ll be earning extra revenue in the future from return purchases.
Get extended warranty for home or commercial property and retain customers
As an HVAC contractor, there’s nothing that should hold you back from providing HVAC extended warranties. Manufacturer warranties might run for a long time but those only cover parts and not labor.
Your customers will appreciate the peace of mind that comes with an extended warranty and so will your enterprise in that your clients will establish a long-term fruitful relationship with your business.
Story by Brad Bernanke
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