There are many seasonal events that business owners anticipate their profits to spike. There’s Christmas and New Year, but Black Friday is another event that makes the top five list.
As Thanksgiving approaches, we’ll start seeing more Black Friday ads and deals to reel in more customers. “Black Friday deals USA” will again be the top searched query a few days into Thanksgiving week. While retail is often the center of attention during this time, HVAC contractors can also benefit from Black Friday deals.
Think about it. People will look for the best deals they can get at the most affordable price. With HVAC promotions in place, you could attract customers looking for heater installations in preparation for winter. Or you could sell discounted services for household ductwork that require some sprucing.
The point is that Black Friday deals are for every business, especially HVAC. This article will explain why and how Black Friday HVAC deals could benefit your business. Keep reading.
Black Friday Deals of 2022
Okay, Black Friday has something to do with sales. But why is it called that way, and what exactly does it entail for people in North America?
Black Friday is a colloquial term coined during the 60s, and there are many theories about how it came to be.
Black Friday originates from businesses operating at a loss before Thanksgiving. In other words, “in the red” or being in debt or negative cash flow. The day after Thanksgiving (Black Friday) enables businesses to cope with their losses and reinstate them “in the black.” While it makes some sense, this origin is untrue.
The actual story is that the Philadelphia and Rochester police described the day after Thanksgiving as Black Friday. In 1961, traffic congestion and crowds accompanied Black Friday because it marked the beginning of the Christmas shopping season. This led the police to coin the term “Black Friday” with a negative connotation.
Eventually, the term caught on.
In the early 21st century, retailers all over the USA used Black Friday deals to invite more sales. As a business owner, Black Friday is an exciting time. Consumers are looking for deals and savings, which creates the perfect opportunity for retailers to offer discounts and promotions. It’s an excellent time for consumers to save money and businesses to boost sales and attract new customers.
While Black Friday deals stores and retailers benefit the most from this season, HVAC businesses can too.
Look at Lennox’s HVAC rebates. They offer around $1,200 rebates when you finance a Lennox HVAC system before 2023. Rebates might not sound ideal, especially for small HVAC contractors. However, the season is ripe for offering strategic discounts and revamping service pricing guides to make your solutions more attractive.
The HVAC Black Friday sale could work. All it takes is a good strategy for implementing the deals. If you’re looking for an expert business strategist to guide your direction, look no further. Wizard of Sales® has been involved in helping residential home services strategize their sales journey and culture.
Let us help you streamline your Black Friday HVAC deals to siphon all those greens. Book a call.
Black Friday Statistics
Black Friday is a momentous sales event. Many people wake up at dawn to find massive Black Friday deals. Some don’t even sleep and carry colossal cash throughout the day. Not only because of the chopped prices and great deals but because of the stupor that comes with it.
Historically, only the retail and brick-and-mortar stores could reap the benefits of Black Friday. They see products fly off the shelves faster than hotcakes. But did you know that e-commerce and online stores have started cashing in on the big event in recent years? That means your HVAC business, too, if you have an online presence.
Like any other industry, HVAC services can offer discounts and specials for Black Friday. This is a great way to attract new customers and boost sales during the holiday season. Offering Black Friday deals can also help drive traffic to your website and increase online bookings.
You may have one question in mind: how can I say so?
Well, I wouldn’t be claiming these things if there were no evidence. So here are some Black Friday statistics.
Consumer Shopping and Spending Habits From Previous Years
The volume of in-store shoppers is rising, considering no restrictions barring them. However, a large majority of buyers pursue online shopping instead. Earth Web predicts that Black Friday 2022 will be an online shopping frenzy.
It’s easy to think that this drastic shift can be traced back to the effects of the pandemic years ago. However, the truth is that this change is an inevitable reality as the population pushed past the early adoption curve of 12-15% in December of 2019 (before Covid was a known thing). The pandemic merely accelerated the transition toward online shopping taht had already occurred months earlier.
Allow me to explain.
Every business is thinking of new ways to present, introduce or sell their products to consumers. With tight competition all over in-person selling and brick-and-mortar business models, seeking sales refuge online was bound to happen. The problem is that the pandemic introduced an economic disaster that threw the current sales model out of whack. This forced people to try a new sales model to keep their business operation — online selling.
The S-curve follows three steps: initiation, transition and execution:
- During the initiation phase, customers were only dipping their toes in the online buying landscape.
- Many businesses began joining the transition as more customers bought online.
- Since the online sales model has been proven profitable over the years, many companies are executing this strategy, making way for a transition to full adoption of online purchasing.
Businesses, including residential home services, are now faced with the execution stage. Embracing the earning potential of selling online and understand the repercussions of sticking to traditional sales models. That’s the reason why Black Friday sales will likely be predominent online. The sales model transition has been a long time coming — even before the pandemic.
Online shopping has exponentially been on the rise despite restrictions being lifted. A recent Wells Fargo survey revealed that 70 percent of shoppers are reluctant to return to physical stores.
Because online stores offer one thing that’s unrivaled by any other business model: convenience. To maximize this, having a conversational strategy that streamlines communication between businesses and consumers allows for smoother transactions.
During 2020-2021, the e-commerce industry grew by five times in the U.K. and three times in the U.S.A. Statista also forecasts online stores to grow into a nearly nine-billion-dollar sector in 2026. Moreover, e-commerce sales are expected to jump from 21 percent in 2022 to 24.5 percent by 2025.
Offering Black Friday HVAC deals like bundled packages and value stacks may appeal to potential customers. This shows that consumer spending habits have shifted towards online shopping. For HVAC businesses that also have online stores, this could lead to higher sales. Plus, you boost your online visibility on search engines because you will coincide with consumers looking for Black Friday deals.
People’s shopping and spending habits radically favor online HVAC providers, speaking of spending.
$158B U.S.A. Consumers Black Friday Spend Forecast
In Future’s forecast, U.S.A. consumers are expected to spend about $158 billion this Black Friday season. That means they’re prepared to make cuts on their budget to meet the demand. Moreover, 2 out of 5 people expect to increase their Black Friday and holiday gifting budget.
Future adds that the anticipated average budget across Black Friday shoppers is around $818. While most shoppers will dedicate the budget to fund family and friends, 25 percent allot it to appliances and consumer electronics. The problem is that your HVAC won’t get a piece of that action if you fail to advertise for Black Friday deals. Maximizing the online channel for industries like HVAC is essential where the competition remains tight.
This year, however, the importance of having a cross-channel experience is more necessary than ever. According to Dot Digital, online shoppers make up the bulk of Black Friday and Cyber Monday sales at 56 percent. Still, 38 percent of those consumers shop both online and in-store. That means you could add some more HVAC promotions for customers who could visit your store personally.
Another reason to make this Black Friday sale big is the high demand for consumer electronics. Last year, Bluecore reported that more than 40 percent of consumer electronics went out of stock during Black Friday. The orders for high-ticket consumer electronics spiked to 204 percent, which shows that shoppers are holding out for bigger deals. That means your HVAC could capitalize on that too.
The report added that most consumer electronics buyers were first-time shoppers (89 percent). Bluecore suspects that shoppers are more drawn to compelling deals for premium items.
With Christmas and the winter chill right around the corner, Black Friday deals will help you sell your heating solutions. You can even upsell your club memberships.
Americans anticipate spending more this year, be sure to take part in the spending extravaganza.
76 Percent Plan to shop during Black Friday
Despite the impact of inflation, Future says 76 percent of shoppers still plan to spend for Black Friday shopping. As an HVAC business, it’s crucial to catch shoppers’ attention and offer them deals they can’t resist.
One way to do that is by offering black Friday specials for HVAC services and products. This could include a strategic installation discount or tools and equipment promotions. You can also provide rebates, such as those from Lennox, to incentivize customers to purchase during the Black Friday sale. Another option is to bundle services, such as furnace maintenance with air conditioner tune-ups, at a discount.
Publishing Black Friday ads on your website or social media is an excellent way to reach a wider audience. Don’t forget to emphasize the scarcity aspect of Black Friday deals to create a sense of urgency among shoppers.
You can also reach out if you have people on your mailing list who have abandoned their cart. Why? Because the open rate and click-through rate of emails during Black Friday are significantly higher than on regular days.
Campaign Monitor says that we see an average open rate of 18 percent and a click-through rate of 2.6 percent across industries. However, the available rate jumps to 34 percent while click-through shoots up to nine percent. This allows you to follow up on leads and rekindle their interest in your solutions. The Black Friday deals will help you leverage your HVAC pricing strategy to fit their needs.
Find out below if you’re wondering what is the best HVAC pricing guide for contractors this Black Friday.
5 Tips in Pricing (Best Deals) Your HVAC Products and Services
The only way Black Friday deals work is when you have an effective pricing strategy to back you up. Even with the surge of shoppers this season, inefficient pricing could still mean you operate at a loss. If you plan to have HVAC specials during Black Friday, here are five pricing tips you could use:
Many fast-food chains use product bundling or bundle pricing in their offerings. Think about it. It’s way cheaper to buy a quarter-pounder meal than to buy a burger, fries and drinks, separately. Consumers spend more when they see various solutions bundled and sold at a lower price than if sold each. It’s human nature — people think they’re getting a deal, but corporations are making money.
That said, here are two ways to go about bundle pricing:
1. Pure bundling
This is when businesses bundle similar products or services together. The customer saves money, and the company makes more profit by selling multiple solutions at once.
Pure bundling allows business owners like you to have tight control over the pricing. However, they have no choice but to buy the entire package, like the air conditioner installation and ductwork package.
2. Mixed bundling
In this pricing strategy, consumers can buy the package entirely or buy each component individually. Unlike pure bundling, this offer is more flexible on customer dissatisfaction because you don’t force them to accept the package.
However, this is more complex from a pricing standpoint which could cause losses if you’re not careful.
Implement Dynamic Pricing
Another HVAC pricing guide for contractors this Black Friday is dynamic pricing. Dynamic pricing is meant to be flexible on your market’s needs, capabilities and demand. Like airlines that change their ticket prices daily, you could perform the same but in a structured manner.
Since demand usually surges with Black Friday deals, entrepreneurs may think it’s okay to sell high. However, to remain competitive against other HVAC contractors joining Black Friday, you nmustprice competitively. Dynamic pricing suggests adjusting the price of your products and services for the season.
This is where effective advertising and marketing comes in. When you establish scarcity in your advertising, you help leverage your discounted price to attract more buyers.
Build Truly Custom Options or Packages
If you are financially flexible and have more runway, you could offer truly custom options or packages for customers. Instead of giving them a set of combos, let them create their ideal mix. This way, you’re not forcing them into several options but give them the freedom to choose. Custom options allow them to save more and increase their satisfaction in working with your business.
There’s just one problem: Many HVAC businesses fall into the same pattern.
Give them that option without guilt-tripping if they are genuinely okay with less efficient (less expensive) units. Only upsell something they are interested in. Otherwise, you risk their dissatisfaction. Don’t be afraid to introduce a solution, but let them choose.
Price HVAC Products Based on Value
Everything revolves around value. Customers who are stingy about spending can be nudged into paying when they realize the importance of your solutions.
Black Friday deals are starting to pop up everywhere as the holiday season approaches. As a seller of HVAC units, it’s vital to consider value-based pricing when setting prices for your products.
Evaluate the quality and unique attributes of your HVAC units. Find the value proposition that will attract customers seeking a high-quality but fair deal. Also, consider your market research on customer demands and competitor pricing. By considering these, you can set a competitive price that properly reflects the value of your HVAC units.
Just remember not to sacrifice the value of your product by discounting too heavily for Black Friday. Instead, showcase the perfectly fair competitive advantage (or unique value proposition) that makes your solutions worth buying.
Consider Financing Options
Many consumers seek deals on big-ticket items like electronics and home appliances as Black Friday approaches. While many can buy and spend as much as $800 this Black Friday, not everyone has that privilege.
CBS News reports that 40 percent of Americans can’t cover a $400 expense. Consider this: What option do they have when their heater breaks down before winter?
The importance of financing for HVAC units is often overlooked in the holiday shopping frenzy. Replacing an outdated or malfunctioning heating or cooling system can be pricey. However, failing to invest in a reliable HVAC unit can cost even more in the long run.
Offering financing options helps ensure your customer’s home stays comfortable all year round without breaking the bank. You may keep a child warm during the harshest winter cold. Regard this reality as your come up with your Black Friday deals.
Black Friday deals are big for retailers, but they are also for HVAC and other residential home services. The key here is to leverage your offers through effective advertising and marketing. Moreover, an HVAC pricing guide for contractors can go a long way to ensure profitability amidst the rush.
Here’s the rub. If you need help crafting the perfect HVAC specials this Black Friday, book a call, and we’ll figure it out.