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Warranties

Warranties

Offering

Warranties

Before we just tell you what warranties you should offer your clients, The Service Strategist wants you to understand the thinking behind warranties. This way you will be better equipped to custom-fit them to your company. For now, let’s focus on the HVAC industry which means warranties for furnaces and ACs.

What does a warranty do for your company? Remember, this is a selling point, a way to add more value to your offering. A good warranty allows you to charge more per installation but you need to convince clients it is worth it, and be able to follow up on the warranties if things go sideways. But once you get the client’s paying you more, it will stimulate growth & revenue.    

 

What does a warranty do for your clients? Since a client is paying you more, they expect more and see this as a long-term investment in their safety and equipment. Offering a good warranty gives your client the peace of mind that even if their home service installation suddenly fails, they can have it replaced without having to face high financial pressure. Some people are risk-averse, meaning they do not like to take risks. An easy comparison is that to a car warranty, since a car is a valuable asset and prone to a large amount of risk, many car owners will get an extended warranty and not even blink at the added cost. A furnace warranty can harness the same emotional resonance the car warranty has. 

Things to consider when shaping a warranty:

From the outset, the best kind of warranty to offer to a client is one that is directly tied to what the manufacturer is already offering. If the manufacturer is offering a 10-year warranty, it is likely a conservative estimate on their end, and you can offer something a little better than 10. 

  • What does the manufacturer offer?
  • Is it a high-end unit? 
  • What components often fail in the unit? 
  • The average life span of the unit 

Typically, the higher-quality HVAC unit last much longer than the listed manufacturer’s warranty and parts also fail less often, especially with annual maintenance. As part of the warranty you offer, an annual maintenance check needs to be baked into the offer, so do not offer any extended warranty without a maintenance plan and require that the client allows access to do the annual maintenance to keep it valid. If a client refuses access, you have grounds to discontinue the warranty.

A way around this pain point is to reach out to clients from the beginning and create an expectation that the annually maintenances need to be done before they sign up for it. Take it a step further and book the annual maintenance for the client by contacting them first.

The reason for this hardline stance? You need to protect yourself against liability and prevent paying for a costly replacement as often as possible.  

Industry Leading Warranties

We offer the best warranties at A Trades Company. We do this to make us the best choice in the home service industry—it is a way we distinguish ourselves. 

An added benefit of a long warranty is it allows us a natural way to develop a long-term relationship with the client.  It gives us a reason to go into the home every year, not to hunt for a sale, but to always ensure they live in comfort.  If this mission ends in a new sales opportunity, then the client is happy about it. We never use a maintenance call as a sales call, but if the service tech notices their water heater is failing, it benefits the homeowner and avoids an unwelcome surprise.
Common HVAC Warranties on Furnaces

A Trades Company looks at warranties in two ways: Parts & Labor. What combination you go with should be custom fitted to your home service. 

  • 5 Years Parts – 1 Year Labor | 10 Years Parts – 1 Year Labor 
  • 5 Years Parts – 5 Year Labor | 10 Years Parts – 10 Year Labor 
  • 12 Year Parts – 12 Year Labor 

Again, only promise more than the manufacturer’s warranty if you are fairly sure you can get the equipment there most of the time.  

Another form of a Warranty is to offer a regular maintenance plan for a low monthly fee that allows us to monitor the existing equipment in the home when we have not installed and insured our own equipment. These maintenance plans come in three varieties: 

  • Low Cost: One free maintenance on AC or Furnace once a year 
  • Mid Cost: One free maintenance on any HVAC system
  • High Cost: One free Maintenance on both AC & Furnace

You can also add a few extra benefits to these maintenance plans like priority booking, discounts on repairs, and special offers exclusive to members. 

Again, this is getting your company into the home on a regular basis, and when a piece of HVAC equipment fails you are there to replace it. 

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