Johnson Controls/YORK 'Ultimate Home Comfort' Leasing Program Gains Advocates

technologies. For homeowners, the all-in-one program delivers ultimate peace of mind and predictable costs for 10 years. For contractors, this turnkey solution offers the opportunity for them to obtain double-digit profits, a 10-year changeout cycle and up to 55 percent average gross margin on installs. 

'It’s an easy decision for both homeowners and contractors alike, that provides peace of mind for everyone involved.' -- Tim Brusseau

“Ultimate Home Comfort by YORK is a one-of-a-kind leasing program that was designed with the simplicity and convenience that homeowners crave and the guaranteed business that contractors work years to achieve,” said Tim Brusseau, director of business development, Ducted Systems, Johnson Controls. “It’s an easy decision for both homeowners and contractors alike that provides peace of mind for everyone involved.”

Unlike a traditional selling structure, greater sales compensation and recurring revenue is made possible through the "Ultimate Home Comfort"’ easy, built-in sales process. The all-in-one solution is offered directly from YORK to contractors, not through a third party, and it ensures that customers are retained for at least 10 years. In addition, contractor employee turnover is reduced.Early HVAC contractor participation has been strong. In an exclusive interview with Contracting Business, Brusseau reported that 500 contractors have entered into the program. "They are paid for service work, and the consumer doesn’t receive a bill for 10 years. We call it the ‘ultimate piece of mind,’ Brusseau said. "It also incorporates 10 years of maintenance. It’s a 10-year maintenance plan for the contractor. They are going out every year to make sure it is working well,  and outperforming the consumer’s expectations from an efficiency and reliability standpoint. Those two

areas differentiate it from just about anything else that’s provided in the marketplace, and are piquing contractor interest. There are some challenges but those two have made the product and this solution an interesting idea for the test market and the 500 contractors who have signed up."

Brusseau said Johnson Controls and YORK have worked to make this as turn-key and seamless as possible for the contractor and customer. The basic steps are these:

1. The contractor signs up and becomes part of the Fundient strategy, which is the financial arm JCI has partnered with for this process.

2. The contractor provides an app that allows the consumer to complete the application. They may also use an online portal to apply.

3. Following approval, the contractor purchases the system from a distributor, and installs it.  At conclusion of installation he or she enters the system serial numbers into the app, and submits it. 

4. The Contractor is paid in 24-48 hours.

5. The Consumer begins monthly payments as with any traditional financing arrangement.  Fundient Capital, buys the extended warranty so the contractor does not have to do it, and registers the product for the contractor.

Throughout the life of the lease, the contractor and customer are notified when its time for annual maintenance. Payment to the contractor is also fast, when registered through the app.

"We engineered this to keep the homeowner as a regular customer for those 10 years," Brusseau explained. "The contractor develops a relationship with the homeowner. Fundient just happens to be the financial partner. They want the customer experience to be positive, and offer total peace of mind, with no bills, no maintenance, and no expense, other than the low monthly payment [which covers maintenance]."

Another plus is that the warranty stays with the next homeowner.

"Unlike a traditional financing, if a homeowner moves and pays off the lease, the extended warranty and maintenance is transferred to the homeowner at no cost. That means the new homeowner moving in gets seven years of maintenance and seven years of parts and labor, and the contractor gets a new customer," Brusseau explained.

The product offerings exist on different levels, from a 13 SEER/80-90 AFUE system, up to 15 SEER and higher. "Whatever the contractor is comfortable offering in his particular market," Brusseau said.

Johnson Controls will also honor utility rebates for which installations quality. 

There’s no cost to join the program for YORK Certified Comfort Experts or Liberties Plus contractors.

To learn more about "Ultimate Home Comfort", visit www.york.com/comfort.

Tim Brusseau interview by Terry McIver