Most home service contractors understand the critical role that indoor air quality (IAQ) plays in maintaining a comfortable and healthy home environment. Today, we're going to explore strategies to significantly boost your IAQ revenue by increasing the number of HVAC systems you install that include either advanced filtration or a whole home IAQ product.
Based on industry contractor data, most HVAC contractors achieve an attach rate of around 20% for upgraded filters or whole home systems on replacement installations. This means that 80% of the systems do not include first quality filtration products. That’s right, 4 out of 5 homeowners go without!
Upgraded IAQ products offer a significant revenue gain opportunity. A typical advanced filtration product sells for $500 to $900 dollars with minimal expense in the filter frame and installation cost. A whole home filtration system that includes UV bulbs or other advanced technology can vary from $1,000 to $2,500 installed. That’s a significant investment for the homeowner purchasing a $12,000 system, which is why only 1 in 5 are installed.
When you offer these IAQ upgrade products through the Premier Program, the impact on the homeowner is much less. That advanced filter addition is $5-8 a month. The whole home products are just $10-24 a month depending on their retail price. Most homeowners can justify that slight increase in their low monthly payment. That is why Premier Program sales average a ~65% attach rate for advanced filtration products and double the industry average for whole home IAQ products. Wouldn’t you prefer to sell advanced filtration on 2 of 3 installs instead of just 1 of 5?
Let’s break down the numbers to illustrate how an improved attach rate impacts your sales:
- Current sales per month: 20 systems
- Current attach rate: 20% (1 out of 5)
- Current upgraded filter sales: 4 systems (average retail est. $700 each)
- Current incremental filter revenue per 20 systems is $2,800
Assume an increase to the Premier Program average of 65%
- Sell same 20 systems per month
- New upgraded filter sales: 13 systems at $700 each
- New incremental filter revenue per 20 systems is $9,100
- Monthly revenue increase: $6,300 which is an increase of 225%
Profit margins for IAQ products and accessories for most contractors are substantial. Much higher than standard margins earned on equipment sales. That makes this type of attach rate improvement an attractive upsell. Happy customers breathing cleaner air are an additional benefit of IAQ sales growth.
More advanced filters installed in more homes results in significantly better indoor air quality, reduced allergens, dust, and other airborne particles. Fewer indoor pollutants leads to a healthier living environment and greater customer satisfaction, especially during allergy seasons in spring and fall. Customers who experience the benefits of these filters are more likely to remain loyal and recommend your services to others.
By increasing your IAQ filter attach rate from 20% to 65%, you can significantly boost your revenue while providing enhanced value to your customers. The Premier Program makes this upgrade more accessible and affordable for homeowners, creating a win-win situation for everyone involved. Start leveraging this opportunity today and watch your business grow.
Contact us today to learn more about how the Premier Program can help you achieve these goals. Let’s take your HVAC business to the next level!
Submit a comment