By Jim Hinshaw
Lately, I’ve been spending a lot of time thinking about how consumers are buying HVAC and plumbing systems today. What follows isn’t a scientific study—it’s a combination of online research, industry data, conversations with contractors, and my own experience. Consider this a practical snapshot of where the market is and how we can respond.
Who’s Doing the Buying?
When we break the market down by buyer group, some clear patterns emerge.
Baby Boomers account for roughly 50% of all HVAC and plumbing system revenue. That’s not surprising. They typically have the highest net worth, significant home equity, and many live in older homes where systems are reaching end-of-life. Comfort, health, and reliability matter more than ever. After decades of hard work, many believe they’ve earned the right to be comfortable—and today’s technology delivers benefits they value.
Millennials represent about 35% of total revenue. Their homes are usually newer, so they experience fewer system failures. Most replacements in this group are still driven by breakdowns. While government tax credits helped stimulate demand in recent years, many federal incentives have expired, leaving fewer programs in place.
Gen X makes up the remaining 15%. Their homes are often smaller and newer, which means fewer breakdowns and a lower percentage of household spending going toward mechanical replacements.
What Boomers Value Most
If Boomers are the largest buying group, understanding what drives their decisions is critical.
At the top of the list is comfort. They want to relax without grabbing a sweater or turning on a fan just to enjoy their home. Close behind are reliability, strong warranties, and premium options.
Trust matters—a lot. Your online reputation plays a big role here. Reviews are important, but perfection isn’t. A page full of nothing but five-star reviews can actually raise skepticism. What builds credibility is transparency: the occasional two- or three-star review, along with a professional response that shows how the issue was handled.
Warranties are another major driver. Many successful companies are bundling extended labor warranties that match parts warranties—10 or even 12 years. When customers see that they won’t be out of pocket for repairs for a decade, anxiety drops. Some companies go further by bundling maintenance agreements into the package and rolling everything into financing, requiring little to no additional cash.
And don’t overlook testimonials. A letter from a satisfied customer explaining how your team went above and beyond often carries more weight than any advertisement.
Premium Options Matter
Boomers respond well to premium solutions when they understand the benefits. IAQ products, UV lights, surge protectors, and reverse osmosis systems should all be part of a deliberate strategy. Your technicians need training, tools, and simple collateral to confidently present these options in the home.
They understand no one lives forever—but they absolutely want to be healthy and comfortable while they’re there.
How Millennials Buy Differently
Millennials prioritize efficiency, smart technology, sustainability, and flexible financing. They may not want to invest more in a system than they paid for their car, but they will choose solutions that make sense, reduce operating costs, and integrate with smart home technology.
Financing is essential for this group. Easy-to-understand options often make the difference between a “yes” and a “not right now.” They also value transparent digital pricing, virtually.
Ticket Sizes & Financing
Based on available data and industry research:
- Boomer average tickets: $13,000–$18,000
- Millennial average tickets: $10,000–$13,000
One of the biggest success factors across all groups is having financing options that reach into the mid-600 credit range. Leasing has gained traction in some markets, though it’s not a universal solution.
A Final Thought
I recently spoke with 16 companies that participated in our Success Planning sessions last year. The process wasn’t easy—each company built a forward-looking budget and presented it to peers who asked tough, thoughtful questions.
Here’s the result: every one of those companies grew last year. Some by 20% or more. One company grew from $750,000 to $940,000. Others experienced growth north of 50%.
The lesson was clear: what we spend time on pays dividends.
Thanks for reading.
We’ll talk again soon.