Clarification of Trane $1250 rebate

[Dave2425]

The local Trane dealer recently provided a quote for a new system (XV95 and XL16i) and not long after, I received a mailing regarding the "up to a $1250 instant rebate" promotion. I figured with the rebate it might be worth upgrading to the XC95m and XLi20 so I stopped by their office this morning to learn more about the details. The owner stated that they don't honor the full value of the rebate and would only give half of it due to the way Trane has it set up. As he explained it, Trane covers half of the rebate and the dealer is responsible for the other half. He said in order to honor the full amount, he'd have to add the other half onto the price of the installed package.

To me, that doesn't seem like an "instant rebate". Is that really how it works?

[toocoolforschool]

Yep. He would have to raise his price of which he should have did in the first place. I run into these type of problems sometimes to by giving the customer the lowest price at the beginning and forgetting to tell him that it is already discounted then the customer feels "entitled" to an unrealistic price, then I have to do some upselling which I don't like to do, but my fault for forgetting that some people just want something for free. In most cases I produce win win situations unless customer is really just too cheap to deal with then I pull the plug and move on. It is not only about price it's about quality and how reliable you feel the company is. If you have issues in the future will this company be there that is the ultimate value for your money.

[beenthere]

The manufacturers don't want a contractor to raise his price to cover their 1/2 of the rebate. But many contractors do charge enough to cover 1/2 of the rebate. So they don't participate in the rebates. All of the manufacturers do it the same way.

[Dave2425]

Thanks for the quick replies. I can understand why the contractors don't participate but, as a consumer, it kind of rubs me the wrong way. The advertisements and mailings make it appear to be something that it isn't.

[Freezeking2000]

Thanks for the quick replies. I can understand why the contractors don't participate but, as a consumer, it kind of rubs me the wrong way. The advertisements and mailings make it appear to be something that it isn't.

Not all dealers have to pay half.

[catmanacman]

call a different dealer or a price quote

[Dave2425]

call a different dealer or a price quote

Unfortunately, my options are fairly limited. I live in a rural area but have calls into most of the local HVAC dealers (Coleman, Ruud, Tempstar). There's a York and Lennox dealer around 45 miles from us that I plan to contact also. The next nearest Trane dealer is around 100 miles away.

I know the most important part of a system is the quality of installation so I'm talking with friends and coworkers in our area to get a better feel for each dealer.

[Dave2425]

Not all dealers have to pay half.

The local dealer isn't listed on the Trane website. I assume there are different levels of dealers so maybe that has something do with it.

[Freezeking2000]

The local dealer may not have enough volume to get a higher rebate % from Trane.

I think it's good you saved another $500

[duckman06]

While the Trane dealer you are dealing with was upfront with you on how the instant rebate works for some Trane Dealers.

As stated by others some Trane dealers don't have to pay have but they so have to pay some % of the instant rebate. There is a easy way that I write up a Proposal to factor this in and also Finance options.

Anytime there is a Trane Promotion at the end of the Proposal I state this. This system qualifys for (3) special offers in which one can be choose to apply towards your new system.

Example: 60 months no Interest financing with a investment of $$$ per month, 5.9 % financing with a investment of $$$ per month (WAC) or instant rebate of $$$$ off the above listed $$$$.

Of course the system or systems must qualify for this fin. Options and or instant rebates that Trane has determined before the start of the the program... The last 2 pargraphs listed are not listed on a proposal just typed it for referance as some customers may think that every Trane system has this avaiable but only XR15-XL20i's system.

The fin. Options don't change as long as the above listed systems are selected but the instant rebates due change per system and per acc. Added to the install...

[toocoolforschool]

Thanks for the quick replies. I can understand why the contractors don't participate but, as a consumer, it kind of rubs me the wrong way. The advertisements and mailings make it appear to be something that it isn't.

Anytime I ever get any "Advertisement" wether on tv, mail ect. I take it with a grain of salt. Nothing is free to the middle class in this country.

[garyed]

Other manufacturers have come up with this type of rebate & while the intent may be good I think it's deceiving. The manufacturer expects the contractor to foot half the bill for the rebate so the contractor has to either up his price to cover his half or he just doesn't mention the rebate at all. In actuality the customer is going to get only part of the rebate or none at all. In the end the contractors who promote those rebates are just better salesmen that make you think you're getting a better deal.

[beshvac]

Other manufacturers have come up with this type of rebate & while the intent may be good I think it's deceiving. The manufacturer expects the contractor to foot half the bill for the rebate so the contractor has to either up his price to cover his half or he just doesn't mention the rebate at all. In actuality the customer is going to get only part of the rebate or none at all. In the end the contractors who promote those rebates are just better salesmen that make you think you're getting a better deal.

Besides the fact that most manufacuterer's also want an "advertising" premium to even participate in the rebate program that the contractor is also providing.

[toocoolforschool]

Besides the fact that most manufacuterer's also want an "advertising" premium to even participate in the rebate program that the contractor is also providing.

It makes you wonder what's really going on. Manufactures are using some excuse that theyare lsing money on their lower line equipment. Who's fault is that? Why do I have to pay for a rebate program. I think it's their way to get in bed with a certain company.

[wahoo]

Simple way to solve that "situation". Call a reputable company who does not like to do business with a any manufacturer that does business in this manner. In the past we "attempted" to do business with a company who pushed these "rebates" and we've quit them. Numerous other problems also factored in, but got tired of misleading a customer into "thinking" they were getting something for nothing. Poor way to do business IMO anyway. That's kinda like telling customers that you're offering "free" financing!! Aw come on, there's no such thing folks! I know the financing companies require a "participation fee", uh....could that be a fee that pre-pays for the financing??? Think so?

[duckman06]

Simple way to solve that "situation". Call a reputable company who does not like to do business with a any manufacturer that does business in this manner. In the past we "attempted" to do business with a company who pushed these "rebates" and we've quit them. Numerous other problems also factored in, but got tired of misleading a customer into "thinking" they were getting something for nothing. Poor way to do business IMO anyway. That's kinda like telling customers that you're offering "free" financing!! Aw come on, there's no such thing folks! I know the financing companies require a "participation fee", uh....could that be a fee that pre-pays for the financing??? Think so?

I most ask how to due you help customers that need financing? No matter if your customer is middle class or rich most people need fin. Options as they were not expecting to pay $$$ for equipment!!!!

This days buying a new hvac system is like purchasing a new car and most customers don't have $$$ set aside to replace a system.

I understand what you are saying but if customers need fin. Options or have the $$$ to pay for a system outright we don't no going into there home how much $$$ they have or there credit score.

The simple truth is 80% of my customers need fin. Options regardless if they are buying a basic system, mid range or high eff. That is what the instant rebate verus fin. Options offers the customer.

You are correct that someone needs had to pay for fin. Or instant rebate but you don't know going in...

I always explain all options and how we are able to offer fin. Or instant rebates. It is part of business.

[catmanacman]

go buy a new car with a rebate and see if you will realy get a check .the will work the numbers so it looks like your getting the money off on the price but are you?