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Why Do Contractors Offer HVAC & Plumbing Extended Warranties Part 1 Branding

ESA's & Branding

Video Transcription

Have been wondering why a growing number of contractors are incorporating extended warranties into their business? Hello contractors its Gus with Trinity and this video is part of a series where we are looking at 3 reasons HVAC, refrigeration, and Plumbing contractors offer or include extended labor warranties with their installs. The first is centered around anchoring or enhancing their brand which is what this video will cover, the second is improve customer experience and satisfaction, and the third is generating additional revenue and profit. The second and third reasons will be covered in the upcoming videos.

When you first start an HVAC business, branding might not be a top priority, but as you grow, it becomes very important. Branding is defined as the process of creating a distinct identity for a business in the mind of your target audience and consumers. A company’s brand is made up of a lot of things like, cleanliness, customer service, being on time, available when the customer needs you, being knowledgeable, courteous, and that list goes on. Contractors that want to establish themselves as a more reliable and ones that stand behind their work use extended labor warranties to do just that. If a customer is not confident that you stand behind your work, and you don’t provide any real assurance they don’t have to worry about their new system needing costly repairs shortly after it is installed, chances are they probably won’t give you their business.

Branding With & Without Warranty

The assurance that comes from knowing a system comes with both parts and labor coverage weighs on the customer’s decision to choose a particular contractor. The main reason someone purchases a new HVAC system is because the one they currently have either isn’t working or needs frequent repairs. This is no surprise to contractors. Which is why Contractors are quick to point out that the system they install comes with 10 years parts warranty. You would be hard pressed to find a contractor that is installing a systems that come with less than a 10 year parts warranty.

To set the homeowners at ease, contractors do well to point out what makes them a more reliable choice like the years of experience, certifications, organizations they belong to, continuing education they undergo, and so on, and these help the homeowner identify they are qualified to perform the install, but at the end of the day if one contractor says your labor is covered for 10 years and the other says that your labor is covered for 1 year or less, the reliability battle in the eyes of the homeowner will probably be won by the contractor that is offering longer labor coverage.

For more details on Trinity Warranty for equipment owners visit ESAs designed for Equipment Owners

It is hard to really quantify what impact included extended labor with installs would have on contractors sales but I would like to share this statistics with you - Did you know that In 1999, a car company changed their powertrain warranty from 5 years / 60,000 miles to 10 years / 100,000 miles. Their U.S. market share grew from 1.1% to 4% as a result of extending their warranty. THAT EQUATES TO A 263% INCREASE IN MARKET SHARE AS A RESULT OF EXTENDING THE WARRANTY OFFERING. Leave a comment below of you know the car company.

This video is part of a 3 part series so make sure to check out the other two on customer satisfaction and revenue growth. If you enjoyed the content in this video, please make sure to like and leave your comments and questions below. See you again soon.

For more details on Trinity Warranty for contractors visit ESAs designed for Contractors