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Insights and Expertise

StreetSmarts SM

Growing your HVAC merchant portfolio – Part 1

By Jaki Kackert Know your target audience
Kackert Marketing As with any industry you serve, it is important to under-
stand the pain points HVAC professionals are facing and
his is the first installment of a two-part series how your organization is uniquely qualified to meet their
examining how ISOs and merchant level sales- needs.
people (MLSs) can build a successful HVAC
T merchant portfolio. Part 1 explores why the HVAC contractors' challenges are unique. Demand of-
HVAC industry continues to be one of the strongest verti- ten increases dramatically during the hottest and coldest
cal markets for payment providers and how understand- months of the year, making scheduling service calls more
ing contractors' business challenges can help position difficult. At the same time, equipment costs continue to
your organization as a trusted technology partner. Part 2 rise, qualified technicians remain in short supply and
will focus on marketing strategies that can help you reach customers expect quick responses, convenient payment
HVAC businesses and grow your portfolio. options and excellent service. Understanding these chal-
lenges allows you to market integrated payment solutions
The HVAC industry is one of the strongest verticals for that solve real business problems.
ISOs and MLSs. Demand is being fueled by aging infra-
structure, increasingly extreme weather, stricter ener- For example, recurring payments can help contractors
gy-efficiency regulations, electrification initiatives, and manage monthly maintenance plans while allowing
homeowners' growing expectations for smart, connected homeowners to spread costs over time. Financing and
systems. Industry analysts estimate the U.S. HVAC ser- installment payment options can make expensive equip-
vices market now exceeds $150 billion annually, while the ment replacements more affordable for customers while
global smart HVAC market continues to grow as contrac- helping contractors close more sales. Mobile payment ac-
tors invest in new technologies and services. ceptance and electronic invoicing allow technicians to col-
lect payments before leaving the job site, improving cash
For HVAC contractors, growth creates opportunity, but it flow while reducing administrative work.
also creates new challenges. Labor shortages are limiting
technician availability, while rising equipment costs, re- For contractors serving commercial or government cus-
frigerant changes and increasing customer expectations tomers, Level III processing capabilities may also be at-
make efficiency imperative. Contractors are investing in tractive. And for contractors who do not want to absorb
technologies that help them schedule appointments faster, credit card processing costs, cash discount programs pro-
invoice customers sooner, communicate more effectively vide another option that may benefit both the contractor
and get paid more quickly.
and the customer.
That presents an excellent opportunity for payment pro- Equally important is the integration of back-office solu-
viders. Today's HVAC businesses are not simply shopping tions that help reduce the amount of time contractors
for lower processing rates. They are looking for business spend on administrative tasks. Marketing how your ac-
technology partners who can help streamline operations, counting, CRM, inventory management and payment
improve cash flow and simplify business processes. Or- solutions work together can help instill confidence that
ganizations that serve as consultants rather than simply you understand their industry and are the best choice for
payment processors will be best positioned to win this meeting their unique needs.
growing vertical.

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