Contractor Marketing That Works

How would you like $3,400 for going green?  That’s one question Greg Gill of Action Air in San Diego County, California, is asking his potential customers.  The attention-grabbing figure comes from three sources:  the federal government tax credit packaged together with incentives offered by his local utility and the manufacturer.

As you know – unless you’re Rip Van Contractor and just woke up after 20 years – the economic stimulus legislation enacted in February allows a tax credit of 30 percent on the purchase of new, highly efficient air conditioners, heat pumps, furnaces and hot water heaters this year and next. 

For qualifying HVAC equipment, the tax credits translate into a $1,500 discount on a new top-of-the-line system.  This is big news at an important time.  Yet contractors like Greg Gill have found a way to make the news even bigger. 

In some of the ads for Action Air, he said, they promote the tax credit incentive on its own.  The $1,500 figure is pretty impressive.  In other ads, however, the impression becomes a whole lot stronger.  They package the tax credit with incentives from the local utility company and the manufacturer – and that totals about $3,400. 

“If nothing else, in this market you need something to give people incentives,” Greg said.  “It really is a headliner for our marketing right now.”

Once the marketing gets the lead, there’s one other important part of the package that can really seal the deal:  the return on investment. 

Greg said his company does a cost-of-ownership analysis over a ten-year period.  As they present it to customers, the numbers will show that operational cost comes out to a 10% to 11% return on investment.  “Then we usually throw in ‘I don’t know what your 401(k) is doing right now…,’” Greg said.  

Works great.  Your customer gets a great system, thanks to the tax credit and other incentives. And he can reduce what he’s paying in utility bills, which will help defray the cost of the system. 

Check out how smart, profit-seeking HVAC contractors are increasing leads and sales using the available Government Tax Credits.