Customers assume everybody offers financing – how do you compete without bleeding margin?

The average homeowner expects financing on big-ticket HVAC purchases. If you don’t offer it, they’ll move on. The key to protecting margins is structuring financing terms that don’t bankrupt you. Offer mid-range promos (e.g., 6–12 months same-as-cash) with dealer fees you can stomach. Educate customers about the total cost of the system, not just the monthly payment.

Use tiered pricing: bronze (cash), silver (short-term promo) and gold (long-term, higher payment). Remind customers that your cash price is the lowest because you aren’t paying the dealer fee. If you still can’t compete, negotiate with your financing provider; some will lower dealer fees if you hit volume targets.

And don’t chase every deal—walk away from price shoppers who treat you like a bank. You’re in HVAC, not consumer lending.