For Higher Closing Ratios,
Present Four Options
Want to increase your closing ratios with one simple strategy? Our research shows that HVAC closing ratios jump with four options.
By: Dave Nichols
When you’re on in a sales appointment, how many tiered options do you give your clients? Do you present one, two, three, four, or more choices? Your strategy affects everything about the sale; average ticket price, your closing ratio, profit margins, the number of visits you have to make to close one sale, your customer satisfaction rates and whether or not the customer feels in control of the transaction.
We conducted surveys at four Lennox LIVE events, and found a very similar spread among contractors and the number of options they offer on retail HVAC sales appointments. 40% of HVAC contractors polled said they offer three options. 33% said they offer four options and the remaining 27% said they offer two options. No respondents said they only offer one option. Perhaps some do; they just need to be honest with themselves.
Consumers prefer four options
One of the things we have learned is that consumers prefer to be offered four options. Today’s customers want to make choices and don’t want to be told what to buy. When they are presented with four options, it enables your customers to make better decisions for themselves and their families, versus when they only have one or two choices.
Four Options mean better closing ratios
Our in-house studies indicate that 84% of the time, presenting four options to customers results in selling one of the middle options. If you only offer three choices, the closing rate for the middle option drops to 75%. By offering four options, you are likely to increase your closing rate opportunities.
The profit is worth the cost
Presenting consumers with four options instead of two or three doesn’t cost you anything besides a little more time spent with each customer. In the busy summer months, it’s tempting to get in a hurry and offer fewer product choices. Regardless of whether you are in your busy or slow season, an increased closing ratio actually saves you time, and makes you more money.
Dave Nichols is the Training Manager for HVAC Learning Solutions.
HVAC sales can be a tough job, but it’s a rewarding career path. Use these digital tools to make your next sales appointment quicker and easier.
- Match AHRI-compliant systems fast, with the AHRI Residential Matchup Tool from LennoxPros.com.
- Use the PILOT Proposal Tool to generate customized proposals.
- Check product pricing and availability in the LennoxPros.com catalog, anywhere, anytime.
Did you know that HVAC Learning Solutions, Lennox’ very own training department, offers an Instructor-Led course to equip you with the tools for massive growth in sales revenue? Make this your best year yet. Register for BuildASalesperson™.