In the competitive world of HVAC contractors and home improvement contractors, HVAC sales professionals constantly face price objections and bidding wars. When a customer has multiple quotes, it’s not a sign to slash your price; it’s a signal that the customer is missing key information.
This article outlines six core strategies for HVAC business growth, derived from the advice of a veteran sales expert, on how to dismantle price objections, build value, and secure the sale without compromising your margins.
Strategy 1: The “Why Five Bids?” Approach
When you walk into a house and the potential customer says, “I got five bids,” don’t panic—ask a question. This needs to be your first question.
The goal is to figure out why the customer still isn’t ready to make a decision after speaking with multiple people. There’s something missing, and you need to find it.
Uncovering the Missing Piece
Instead of asking to see the other bids, focus on the customer’s experience and pain points:
-
What is it that you have heard that you like?
-
What is it that you’ve heard that you don’t like?
-
What is it that you haven’t heard at all for you to make an educated decision?
This line of questioning reveals whether their core need—like making two bedrooms on the west wing more comfortable—was entirely skipped over in the other, cheaper quotes.
Strategy 2: Go Back to Square One on “Too Expensive”
If you reach the end of your presentation and the customer says, “you’re just too expensive,” you’ve “messed up”. When this happens, you almost need to go back out the door and start over.
The Failure to Build Value
A price objection at the end of a presentation means you either failed to build enough value or missed a crucial customer point.
The most effective way to address the objection is to be direct and buy yourself a fresh start:
-
“What is it that seems expensive about it?”
-
“Where is it that you thought you would like to be budget-wise?”
This moves the conversation from a dead-end price objection back into a dialogue where you can re-establish value and address the core issue.
Strategy 3: Don’t Compete on Price, Compete on Value
Many contractor management services emphasize this rule: your job is not to win the bidding war. Other low bids don’t “mean nothing” to you. You can guarantee two things about lower bids: they will be cheaper, and they will “make promises they can’t keep”.
Remember the fundamental law of business: there is “give and take”. If a competitor bids $8,000, the customer will only get $8,000 worth of work.
The Truck Analogy
Everyone understands value in other areas of life. A customer buying a new truck knows that one with leather seats will cost more than one without.
Your HVAC business should be no different: “I can get you a cloth AC power window car or I can get you the brand new GMC 3500 with a Duramax in it.” Your job is to make them realize the value of your “Duramax” solution.
Strategy 4: Brag Up Your Team and Service
A critical part of building value is shifting the focus from the equipment to the quality of the people doing the work.
You should constantly brag about your team. This is the difference between a high-performing hvac business and one that constantly fights over price.
Selling the Installer, Not Just the Installation
Highlight the quality and assurance of your people:
-
Specialty Services: “We still have a sheet metal shop. We still build all of our own sheet metal”. This allows you to “get away with a few things that a lot of companies aren’t going to get away with”.
-
Quality & Trust: Emphasize that your hvac technician team is certified, drug-free, and criminal background checked.
-
Performance Assurance: Reassure the client that your top guys deserve top pay, and that with your team, they’ll know their furnace is turning on when it’s 0 degrees outside. This is a core tenet preached by top hvac coaches.
Strategy 5: Never Give a Discount—Take Something Away Instead
If a customer tries to get you to lower the price, such as asking, “You can get me a thousand bucks off,” the simple answer is: “I’ll give you as much off as you want. It’s just going to cost you”.
The Cost of Saving Money
This technique puts the control back in your hands. To lower the price, you must take away a component of value:
-
A warranty package
-
A system size/feature, like changing from a Wi-Fi thermostat to a standard digital thermostat
-
A premium service, like removing the UV light completely from the equation
The customer must decide which part of the complete solution they’re willing to sacrifice to save the money.
Strategy 6: The “You Leave, You Lose” Closing Rule
When presenting a high-value bid, especially to a couple, the temptation is to give them space to talk alone. The veteran sales pro advises against this, stating a simple rule for closing: “you leave you lose”.
Maintaining Calm and Control
Instead of leaving the room, shift the conversation to an active, helpful dialogue:
-
Address the need for discussion directly: “What is it that I could help you guys discuss?”
-
Your presence maintains control of the narrative and allows you to immediately answer any reservations they may have.
-
Throughout the process, maintain a calm and collected demeanor. The less nervous you appear, the fewer objections and reservations you’ll face at the end. The goal is to make the close go so smoothly that “they don’t even want them to know they’ve been closed”.
These strategies are vital for any hvac business looking to move past price-shopping clients and start closing profitable, value-based sales.
Listen to the Full Webinar
For more insights on hvac sales and hvac business coaching, listen to the full discussion: