By Michael A. Monahan, Founder, President and Lead Consultant, BUILT Marketing Strategies
President Joe Biden signed into law this week the Inflation Reduction Act, which will direct hundreds of billions of dollars toward fighting climate change, reducing the cost of prescription drugs, and cutting the deficit.
“This is a significant piece of legislation that will have both immediate impact and longer-term economic impact, as well,” said Biden’s economic adviser Brian Deese, in a recent article on Yahoo Finance.
“It’s basically just a big green light for everyone—for the consumer, for the companies making these products, for building owners, for utilities, everybody—to start doing this stuff,” Ben Evans, federal legislative director of the nonprofit US Green Building Council, told Wired. “And we think that’s really going to change these markets. I don’t think it’s an overstatement to call this historic.”
Gernot Wagner climate economist at Columbia Business School told Wired in the same article, “What this bill does, in many ways, is at least as much psychology as economics. “You have your average conversation with your contractor about: Wait, should I really be installing a gas boiler here, with gas prices pretty darn high?” He then suggested spending a little extra today on energy-efficient upgrades that will pay for themselves in just a few months.
Here are some home services elements of the new Inflation Reduction Act, which went into law August 16, 2022:
- A 30 percent tax credit for energy-efficient windows, doors, insulation, water heaters, heat pumps, or newer models of appliances.
- A second tax credit encourages people to install solar panels on their roofs.
According to a White House press release, the act will create $14,000 in direct consumer rebates for families to buy heat pumps or other energy efficient home appliances, saving families at least $350 per year and enabling 7.5 million more families to install solar on their roofs with a 30 percent tax credit, saving families $9,000 over the life of the system, or at least $300 per year.
For companies engaged in these kinds of businesses, this is actionable market news they can use to market to new and existing customers.
Across the four main components of the marketing “PESO” model (Paid, Earned, Owned, Shared), here are some ideas marketers and home services business owners should consider:
Paid
- Invest in highly targeted digital ads on Google, Facebook, Instagram (or even Tik Tok), targeting homeowners whose demographics match your customer profile.
- Consider updating your radio advertising scripts if you have an ongoing traditional media presence.
Owned
- Focus on the psychological benefits of having an energy-efficient home by developing relevant “green” content featuring either the benefits of making such upgrades around the home or the economic benefits of how much money homeowners can save.
- Develop relevant copy for your website or even an entire landing page.
- Produce a custom brochure your salespeople can leave behind after they’ve visited with a customer.
- Run a sales promotion featuring the environmental benefits or tax savings your customers will enjoy.
- Develop a fact sheet with key details about the Inflation Reduction Act that may be relevant to homeowners.
Earned
- Reach out to local reporters and editors and offer to talk about how you plan to shift your approach to help support the fight against global warming in your business or how you’re looking at this as an opportunity to save your customers money.
- Ask a trusted customer if they will speak to a reporter about their experience with you and how you helped them. Getting this kind of endorsement can really help you sell your story.
Shared
- Develop shareable social media graphics or video showing how your installers interact with customers, features and benefits of the windows, doors, heat pumps or solar panels your company sells to make it easier for the customer to understand, which will help you overcome any final objections once you’re ready to close the sale.
By understanding the implications and benefits of this new legislation, you’ll be equipped with the right information at the right time in front of the right audience.
If you’d like to brainstorm additional ideas with us, or would like help, please email info@builtstrategies.combuiltstrategies.com
or visit www.builtstrategies.com