Selling Using Rebates
Selling Using Rebates
Develop Tactics!
How to Sell Using Rebates
When a client knows a rebate is on the table, your sales team needs to be equipped with effective strategies to react in a way that increases the chance to close the lead. In addition, if the client doesn’t know about the rebate, bringing it up and following through on it set you well above the other quotes. Adversely, if the salesperson has no clue about the ongoing rebate or lacks the skills, the sale could be easily lost.
Selling products with rebates definitely adds more complexity to the sale, but if you understand how the rebate works, you turn this complexity into another opportunity to close the sale. By leveraging the rebate, you separate yourself from other companies that may not be using the rebate, or who lazily shift the onus onto the prospect. If the client is aware of a rebate and you are not able to speak to that rebate in a meaningful and tactful manner even the most seasoned sales reps. are going to stumble and chance to lose the sale.
Rebates add an extra layer of difficulty to the sale and requires the salesperson to use the correct tactics with a client dead set on getting that rebate . If you walk into a sales call and do not show a strong understanding of how the rebates work, it will decrease the chance you close the sales. Worse over, if you pretend to understand how the rebate works and thereby mislead the client, and they do not receive the rebate, all you have done is tarnished your company’s reputation impacting future sales. However, if you know the following three things, then you stand a better chance of making a sale when a rebate is involved:
- Product Knowledge of what qualifies for the rebate.
- How & when the rebate money lands in the client’s pocket.
- Who is giving the rebate? Is it the manufacturer, government agency, or another party?
Now that we have a baseline established of what we should know before we go into a sales appointment, let’s start to discuss how rebate processes typically work.
In general, rebates incentives people to make a purchase by lowering the product’s cost and encouraging consumers to adopt a certain behavior. In this article, we will discuss rebates in the context of Canadian Greener Homes and what it looks like in 2023 where the objective of the rebate is to encourage the adaptation of greener technologies. While this rebate is paid for by the current Canadian Government and serves as our example, the sales tactics that will be discussed are universal in nature. So even if Greener Homes rebates disappear due to a political regime change, we as business owners or sales personnel are ready for the next rebate program.
Greener Homes Rebate Process 2023—How are client’s getting the money?
If a homeowner is looking to replace qualifying equipment, later we will go into detail about the equipment that HVAC companies can sell, then they must follow these steps:
1. Contact a certified energy auditing company and set up a pre and post-energy home assessment
2. The energy company recommends what upgrades can be done to the home.
3. Get quotes from trades companies based on the recommendations made.
4. Have the equipment installed by the trades company
5. Have the post-energy audit conducted and the information transmitted to Enbridge.
6. Once confirmed, the rebate is issued to the homeowner within 2 weeks.
keep in mind that Enbridge is a semi-private firm carrying out the Greener Homes Program in Ontario and each province may have a slightly different system in place. For more specific information about the rebate process, visit Enbridge’s rebate landing page.
Now that we know how the rebate works, let’s think of the mindset of the person who wants to “go green” because this comes with a higher price tag. Thus, these rebates try to make up the difference between cheaper gas heating and greener electric heating to entice buyers on the fence.
Shifting Minds & Matching Technologies
With greener technologies on the rise, HVAC manufacturers have seen the writing on the wall and have reacted by developing heating options that qualify as more environmentally friendly. The most prominent are heat pumps, which transfer heat energy between spaces to either cool or warm them. But where do rebates factor into heat pumps?
Well quite simply, here in Canada, the government has been pushing for mass adaptation of green technologies across all industries and sectors as the attitudes towards fossil fuels have shifted over the last decade. Concerns for climate change have raised questions about the impact natural gas has had on the environment and if there is a way to phase out or reduce the use of gas heating. Whether you believe natural gas to be a source of harmful emissions or not, is inconsequential from a sales perspective. Instead, think of these rebates as a boon for selling greener HVAC equipment to willing clients with shifting mindsets.
We highly recommend you read our full write-up on selling heat pumps to equip yourself with more sales tools.
What equipment qualifies for rebates?
There are several manufacturers in the HVAC industry and most if not all, are producing heat pumps, currently there are two types of heat pumps that get a rebate if they meet the COP criteria set by the government.
1. Open & Closed Geothermal Pumps
2. Hybrid or Standalone Forced Air Pumps
We will not cover Geothermal pumps, but for air pumps, you are looking at the following rebate values: Single Replacement or New System rebates range from $5000 to $6500. Consult the rebate list on Enbridge for exact figures.
The value of the rebate you receive will depend on if you are replacing an existing pump, installing a new system, and if the pump is energy star certified. In Ontario, this list was created by NarCan and is now overseen by Enbridge Gas in Ontario. Equipment that qualifies is based on the COP specs from NarCan, and manufacturers have equipment that might fit NarCan’s specs. Reach out to your equipment supplier to see what qualifies.
Selling With Rebates
Let’s keep pulling on a thread we previously brought up, the price. Since rebates lower the final price of a product, most sales tactics will revolve around the price.
Tactic 1: Pointing Out Value
Instead of just showing how much they save, show how the rebate brings the product in-line with a similar product. For example, a heat pump hybrid system is more expensive than a furnace & AC, but the rebate brings it down so the price is similar. This has a strong psychological effect; the client now feels like they are getting a better system at a lower price. As a salesperson, you get a higher ticket sale and the government covers the difference for the client.
Tactic 2: Financing and Rebates
When the cost is a major concern for the client, explaining how they can use the low monthly payments via financing, can really alleviate the client’s immediate liquid concerns. The cherry on top is the rebate they will also receive from the provider for choosing a qualifying system. The client can then choose to use that rebate to make future monthly payments.
Tactic 3: Leverage the rebate process
If the rebate process has steps, and the Greener Home Rebates fits the bill, go the extra mile and help the client with those steps. With Greener Homes, the client needs to get an energy assessment, you can set up this appointment for the client making the process as hassle-free for them as possible. Also, explaining what they need to do for each step goes a long way in building rapport. This way you are not leaving the onus of claiming the rebate with the client.
Tactic 4: Presenting the Rebate
When clients are not aware of the rebate, the question is when and if you should bring them up. First, if they are interested in product that qualifies for rebates bring it up as you start to price out options. If you can make the sale without the rebate, then bringing it up toward the end of the appointment, will seal the deal. In the situation where the client wants a product that does not have a rebate, bringing up rebates about products they are not interested in may muddy the waters or even confuse them.
Decide if you should bring up it at all, if you think it will get you in the weeds perhaps avoid it, but if they are open to options outside of their initial product wishes, then mention that a different set of products have rebates. This way you are planting the seed for later, so if they choose to go in a different direction you still might have a shot.
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