Explaining tariffs to your customers: 6 tips for HVACR contractors
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Tariffs have been driving up HVACR equipment and parts costs for months, and your customers want to know why their quotes keep increasing ─ or if they can expect them to soon.
Your customers are confused and understandably frustrated by rising prices. Many don’t understand why tariffs affect HVACR costs, or whether prices will come back down. Some have seen headlines about tariff pauses and wonder why their quotes are still increasing.
Here’s how to communicate these impacts professionally and maintain customer trust.
1. Keep your explanation simple
Don’t try to explain trade policy. Your customers don’t need the details of how tariffs work or which specific policies apply.
Keep it direct. Federal tariffs have increased the cost of HVACR equipment and parts. Your suppliers and manufacturers are passing those increases along.
If customers want more information, you can explain that most HVACR equipment uses imported components like compressors, control boards, motors, and refrigerants. Even systems assembled in the United States contain parts subject to tariffs.
2. Acknowledge the frustration without being defensive
Price increases can be difficult to digest, especially with inflation and tariff headlines dominating the news. When customers react negatively, acknowledge the frustration before moving to solutions.
In its 2025 State of the Home Survey, ACCA Strategic Partner HomeServe found that about 25% of homeowners have $500 or less set aside for emergency home repairs, yet HVACR repairs and replacement services can cost thousands. Many customers are genuinely shocked by the numbers — not because they’re unreasonable, but because they didn’t budget for reality. Simply acknowledging that reality helps customers feel heard before you discuss options.
3. Be transparent about timing
Customers often ask whether they should wait for prices to come down. Be honest: prices aren’t expected to decrease.
When manufacturers raise prices, they don’t typically come back down substantially. If a system is older or having issues, upgrading sooner rather than later makes more sense financially.
Setting realistic expectations now prevents customer frustration later.
4. Offer solutions, not just explanations
After explaining why prices are higher, shift immediately to what you can do to help.
- Financing makes larger expenses manageable through monthly payments rather than one large upfront cost.
- If you haven’t implemented financing into your business yet, ACCA Premium Strategic Partner Synchrony recently shared how it can become your competitive advantage in their webinar, “Grow Your HVAC Business with Financing”. ACCA members can access the full recording here.
- Present good-better-best equipment options at different price points so customers can choose what fits their budget.
- Explain long-term value — a high-efficiency system costs more upfront but saves money on energy bills over its 15–20-year lifespan.
- For customers with systems that still work but are nearing the end of their life, discuss preventive maintenance programs that can extend the system’s lifespan while they budget for eventual replacement.
Frame the conversation around solutions rather than limitations. The goal is to find what works for the customer, not to convince them to accept a specific price.
5. Shorten your quote validity periods to manage expectations
The tariff environment has been volatile throughout 2025, with rates changing, pausing, and resuming regularly. Distributors can’t guarantee pricing will hold, which means you can’t either.
Reduce quote validity from the traditional 30-60 days. Include clear language in your quotes about pricing being subject to supplier changes beyond your control.
For longer commercial projects, add tariff adjustment clauses to contracts. This protects you from absorbing unexpected cost increases on jobs with extended timelines.
6. Remind customers about expiring energy tax credits
While tariffs are driving prices up, homeowners can still take advantage of federal energy-efficiency tax credits before they expire at the end of 2025. Sections 25C and 25D offer up to $3,200 in combined savings on qualifying upgrades, including heat pumps, insulation, and electrical improvements.
If a customer is already considering a system replacement, this deadline can work in their favor. Position it as a way to offset higher costs — not as a sales pitch, but as timely information that helps them make a smarter decision.
How to prepare
The tariff situation continues to evolve, so treat it as an ongoing business factor to manage rather than a temporary disruption. Keep detailed records of cost increases from distributors to support pricing discussions with customers, and stay in close contact with your suppliers — they’re facing the same uncertainties.
Be transparent with customers, emphasize the value and reliability your company provides, and uphold the high standards that define your service.
For questions or to share how you’re handling tariff conversations with customers, contact ACCA’s Government Relations team at govt@acca.org.
Posted In: Customer Operations, Customer Service, Strategic Planning, Supply Chain
