Offering consumer financing drives higher closing ratios and larger average tickets for HVACR contractors. During ACCA Premium Strategic Partner Synchrony’s recent webinar, “Grow Your HVAC Business with Financing,” Forrest R. Tilger, who brings 23 years of finance experience, explained how financing turns affordability barriers into growth opportunities as homeowner demographics and finances shift.
ACCA members can watch the full webinar any time here.
Key highlights
- Millennials are buying homes at higher rates and invest more in home improvement than previous generations, seeking energy-efficient systems and clear pricing options — 41% of consumers actively seek financing.
- When homeowners use financing, contractors see a 12% increase in closing ratios and 13% increase in average tickets compared to cash or credit card transactions.
- Successful contractors offer 5-6 promotions across three customer types: cash management customers (deferred/no-interest), rate-sensitive customers (reduced APR like 9.9% or 7.9%), and low monthly payment customers (extended terms).
The changing homeowner
Tilger emphasized that homeowner demographics are shifting. Millennials are buying more homes and are more likely than previous generations to invest in home improvements. Women are primary decision-makers in 65% of remodeling projects, valuing trust, clear branding, and pricing options. Additionally, 80% of homeowners begin their search online, looking for trustworthy reviews and financing options.
The financial reality is stark: 57% of Americans have less than $1,000 in savings, with 65% having less than $1,000 set aside specifically for home repairs. The average Synchrony-financed HVACR job in 2023 was $8,536. Personal savings rates have dropped to 2.4%, making financing essential rather than optional.
Lead with payments, not price
Tilger shared that across every contractor organization he works with — from one-truck operations to hundred-truck companies—the number one salesperson always leads with monthly payments rather than total price. He illustrated this with his personal experience buying tires, where only one retailer led with six-month deferred interest instead of price, earning his repeat business for multiple purchases.
The MEMO approach (Mentioned Early, Mentioned Often) means introducing “affordable monthly payments” from the first appointment call through the final presentation. Tilger recommended avoiding the word “financing,” which carries negative connotations, and instead consistently using “affordable payment solutions” or “affordable monthly payments.”
Building the right promotional mix
Contractors should structure promotions to appeal to three distinct customer segments.
- Cash management customers have money but prefer using the bank’s funds — they respond to deferred interest (6-month, 18-month) or no-interest promotions (36-month, 60-month) and typically buy higher-SEER equipment and IAQ upgrades.
- Rate-sensitive customers plan to use credit cards anyway, so reduced APR promotions at 9.9%, 7.9%, or 5.9% beat typical credit card rates of 23-25%.
- Low monthly payment customers have stretched budgets and need the lowest possible monthly payment regardless of term length.
Tilger stressed that contractors must have their financing options prominently featured on their website — homeowners won’t search more than two clicks deep to find payment information. As contractors face changing homeowner demographics and tighter consumer budgets, integrating financing into every customer conversation has become essential for growth.
ACCA members: access the full webinar recording here.
Synchrony is an ACCA Premium Strategic Partner. To learn more about our Strategic Partner Program, contact partners@acca.org or visit acca.org/partners.
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