Why Higher HVAC Prices Are Better

When you are looking for a contractor to put a new roof on your house or install a new furnace, do you usually go with the cheapest option? Probably not. Why is that? Sometimes a bigger investment can save you from future frustrations. This is why setting higher HVAC prices may be important to your brand.

The cheapest guy in town almost always means the lowest quality, the most rushed, and an overall disappointing experience. Unfortunately you usually get what you pay for – and the same is true for HVAC customers.

Raising your HVAC prices or being one of the top priced services in your area can be a good thing. Let’s find out why.

In this article we’ll learn why:

It’s better to be the highest price in town rather than the lowest
Perceived value is the key to higher pricing
You’ll have quality clients where you’re looked at as the expert
You’ll have more invested clients with better results
Your support will improve because you’re making more money with less customers

Higher Pricing Out Performs Lower Pricing

Why should you have a higher price point than your competitors? To answer this, we first have to look at what the lowest price may bring to your business. It’s not pretty!

If you have a terrible customer encounter, your prices may be too low.

Here’s what happens:

You promise great service at a very low price
Your low end, cheapskate clients may expect you to drop everything for them. They will want to run the show and dictate to you what they need.
Because of your cheaper service, problems will likely be blamed on you. Customers will demand you fix it.
When a cheaper offer comes along, they’ll drop your business for your competition like a sack of bricks.

When you price your HVAC service on the higher price side of the spectrum, the type of clients you attract will be a different story. Instead of always looking for a cheaper option, they will value you as the expert and let you lead them.

It’s much more profitable to have less customers/clients at a high price than a ton of customers at rock bottom prices.

There’s a lot of research on higher prices equating to perceived higher quality.

For example, a study in Switzerland tested volunteers with three different priced Italian red wines. They intentionally switched the cheapest wine with the highest price and told volunteers that the cheap wine was the most expensive. Guess what? The cheap wine was preferred by 20%.

Premium HVAC Prices Increases Perceived Value

What exactly is perceived value? Cambridge dictionary defines it as the following:

“The value of a product based on how much customers want or need it, rather than its real price. Selling your product at a higher price increases the perceived value because people associate high prices with quality.”

In short, buying is more emotional than rational.

A great example of this is clothing made by the popular brand Supreme. How else do you explain a customer buying a T-shirt for $100 because it’s ”limited edition” and has the SUPREME brand emblazoned across the shirt.

Is the shirt quality higher? They probably use higher quality cotton. But is it worth $100? To many teenagers, the answer is a resounding “yes!”

The same applies to a service business such as HVAC. When you’re buying a new furnace/air conditioner you want someone who knows what they are doing and are willing to pay more for it.

But How Do I Get Customers To See My Company as High Value?

That’s where marketing comes in. You’ll need to have a clean, professional brand to impress customers and show that your services are worth a higher price. Here are a few ways to do this:

Create a website that is polished and easy-to-use. It can be simple – just be sure to include your contact information, the services you offer and location you serve.
Make sure your team looks professional with shirts or uniforms that feature your logo. Invest in truck wraps or similar signage so your vehicle’s look professional (this can also help bring in new leads!)
Utilize social media and email marketing to stay engaged with your customers.
Improve all-around customer experience by using robust HVAC software.

Of course there’s a limit to what you can charge. No matter how amazing your branding is, at some point a customer is going to reach their threshold.

That’s why it’s important to do your research. You don’t want to charge much more than your competition, but you also want to make sure your business is profitable.

Why Pricing Your Service Higher Brings Better Clients

Once you position your HVAC business as a higher end business, you will attract clients that will be much easier to work with. They will respect you and vice versa, working toward a common goal.

These types of customers are invested in your business and interested in quality work over trying to get the lowest price.

Clients are Invested

If clients are paying more for a high-end HVAC service, they are likely invested. This means if you provide good service, they will be more likely to be repeat customers. They’re not going to leave you for a competitor that charges $50 less.

When challenges present themselves, these customers are willing to work through them with you, not against you. Theys are also more likely to purchase service agreements, which will bring in long-term revenue for you!

Long story short: It’s much easier to work with and satisfy clients who aren’t just looking at the lowest price.

You Can Provide Better Service

There are benefits to being a high priced HVAC business. You may have less customers than Cheap Charlie down the street, but your customers are paying a premium. So that extra money allows you to re-invest in your business, so you can better cater to customer’s needs and provide the best service.

You will have more budget to spend on marketing to get your name out to more prospective customers. You can also invest in better equipment and use additional resources to hire better employees!

Position your HVAC Business as Premium to Grow Your Business and Provide Better Customer Service!

By now, you have discovered why it’s a bad idea to be on the lowest end of HVAC prices. Price your service high and make more money with more satisfied customers!

In this blog post we covered why:

It’s better to charge more than charge less
Perceived value is the key to higher pricing
Quality clients look at a higher priced HVAC service as experts in the field
You’ll have more invested clients with better results
Your support will improve because you’re making more money with less low end customers

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