Confronted With Online HVAC Retailers?
The evolution of the internet and web-based HVAC retailers has recently raised the following question in my travels: “Have you ever encountered a retail customer talking about buying a piece of equipment via an on-line company (as opposed to purchasing the product that you & your company are selling); and if so, how do recommend handling the situation?”
How times have changed! Just a little more than twelve years ago in the mid-90s we would have thought this is something only possible in a bad episode of the Jetsons.
However, as the cliché goes: “The more things change, the more they stay the same.”
This is simply a derivation of an age old objection related to price, value, affordability, commoditization, and/or ignorance. In other words, the customer does not perceive the value of the overall solution and simply sees the equipment and price as the major distinguishing factors that they can comparison shop much like electronics, appliances, cars, groceries, etc.
The reason the original version of this objection has manifested itself on sales calls for decades is the same reason the new e-version of this objection is beginning to create problems for salespeople: Call-takers and Salespeople DO NOT explain to customers that there is a proper process for buying a new comfort system as mandated by several industry governing organizations.
As such, customers try to buy a new comfort system by trying to distill options down to a series of facts they can compare based on features, benefits, and price. This rears its ugly head and you hear a customer say they want to compare “apples to apples”.
This is the kiss of death in sales. The customer perceives no value in your points of differentiation and therefore none exist. You will be hard pressed to earn their business, especially at a premium.
How should you respond? What is the answer to this quandry?
The following ideas are not an all-inclusive set of ideas for every situation and are not intended to be a complete fix or work in ever scenario, but they should go a long way to getting you back on track.
The answer starts with booking the appointment. The call-taker must explain that while some companies sell equipment over the internet, many others have tried to do so over the phone for decades. That does not make it right, in compliance with industry regulations, or in the customer’s best interest.
Explain you are looking out for the customer’s best interest and offer to provide documentation during the visit that ACCA, ARI, GAMA, EPA, DOE and even Consumer Reports state that homeowners SHOULD NOT do business with a company not performing an ACCA Manual J 8th edition load calculation and that many municipalities require it to pull a permit and have a system inspected.
Further, state that ARI and GAMA equipment performance ratings and certifications can only be validated by properly sizing and matching all equipment components. Additionally, state that most systems you replace exhibit some sort of energy-wasting and comfort-compromising conditions associated with the existing duct system that most be assessed before installing the new equipment. Even a doctor would not hook up a heart replacement without checking the circulatory system and the ducts are the home’s circulatory system.
One last thing you can say over the phone is “We can’t give you a total investment figure until we come out and appraise your old system’s trade-in value and most people want to know if we can save them some money on their energy bill, and the only way how much is possible, is to evaluate your existing system and installation. It’s a no cost/no obligation quote and will only require 60-90 minutes to complete. Is tomorrow at 6pm good or Wed. at 4pm?”
During your home visit, state similar information early in the call. Explain the process you go through to properly assess their current situation, discussing what they like/dislike about their existing system; what they want in a new system; what they want from their installing and service-providing contractor; etc.
Next, tell the customer you will check the existing installation and design application to ensure proper airflow as well as detect other deficient operating conditions that may detract from the new system’s performance while you simultaneously measure the house for your load calculation.
State that your visit GUARANTEES the proper and complete scope of work is quoted so that there are no surprises or price increases later. Advise the customer the worst thing you could do is provide a quote over the phone, fax, website or email that is too low to honor or unnecessarily too high to protect the company. Acknowledge that you realize it’s a big investment for the customer. However, ask when the last time they felt comfortable investing thousands of dollars over the phone or internet.
If the customer shows no concern after you discuss all the above, then they are probably a price shopper not worthy of your time. Cut bait and move on. You cannot win them all and you are better off to avoid the eventual “No sale” as quickly as possible.
Do not delude yourself into thinking you can get blood from a stone. Not everyone is worthy of time, your expertise, your quote, or your company’s services. Wasting time with such prospects stops you from spending the proper amount of time with those who will buy from you. However, if you don’t give this group your time, you’ll wind up losing some of them too, and that’s a shame because they probably would have done business with you had you given them the time they needed and deserved.
Remember, when you try to be all things to all people, don’t be surprised when you are nothing to nobody.
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