5 Reasons Contractors Close More Sales with Home Improvement Financing
If you have ever considered offering financing in your home improvement business, you’ve come to the right place. As many of us know first-hand, the high up-front cost of a home improvement project can be quite intimidating. That is just one reason why offering financing options for your customers is pivotal. In today’s economy, more people are holding tight to their savings in order to meet their daily and monthly needs and prepare for potential financial changes in their future. There are boundless reasons why contractors who offer financing close more deals; keep scrolling for our top 5.
Relieve the financial burden that comes with an unexpected home expense.
One of the greatest things you can do for your customer is to relieve or even remove the financial burden that comes along with their most likely ‘unexpected’ expense. It isn’t every day that we think and prepare for our HVAC unit to break or for a storm to cause damage to our roof. Having the ability to lower your customer’s potential anxiety about their upcoming home project is powerful. An unexpected expense can make your customer feel out of control with their finances. Offering loans help manage a customer’s potentially limited cash flow and decreases the need for a massive pull from a hard-earned savings account.
Close more deals when you switch the high up-front cost of a home improvement project for affordable monthly payments.
Avoiding sticker shock by removing the large intimidating number is definitely one of the most prominent benefits of offering to finance a project. Discussing low monthly payment options instead of the total cost of the project as part of the quote discussion can make your customer feel significantly more comfortable. Offering a payment plan allows your customer to focus more on the monthly payment amount than the overall cost of the project, giving your customer the peace of mind that they don’t have to spend thousands of dollars in one day.
Cater your home improvement financing to your customers with the flexibility they deserve.
You can have the ability to accommodate your customer’s unique budget and financial situation. Not everyone’s financial situation is the same or can be assumed, so offering a multitude of options for your customers shows your business’s awareness and consideration of that. Special finance promotions can help you receive that final nod of approval. Promotions such as 24 equal monthly payments with 0% interest or no payments for the first couple of months are excellent offers to bring to a customer who is on the fence or in a tighter financial situation.
Increase your average ticket and give customers the power of choice.
Your customer wants to feel that their money is going to a finished project they will be highly satisfied with. Offering to finance a project helps ensure that your customer receives the home repair that aligns with their wants, needs, and standards. When your customer is happy with the service they receive, your business will reap the benefits. Customer retention, referrals, and positive reviews or word-of-mouth are often the result of a customer who was able to see their home project come to fruition. Not only will your customer benefit, but your business can make larger sales by offering financing.
Offering home improvement financing could be the reason your customer chooses you.
It can be challenging to break through the pool of businesses that may be offering similar services as your business. Offering your customers home improvement financing can set you apart from your competitors that do not and increase your creditability in the marketplace. When you don’t offer financing options and are limited to solely serving a specific financial class, your customer base notably decreases. Add to what already differentiates your business from the rest and stand out even more by offering financing.
With this in mind, your customer can always choose to opt out of the finance process, but you will never realize the potential opportunity if you don’t initially offer it. Whether you are currently offering financing in your home improvement business, seeking more guidance and assistance, or curious about how to start – reach out to us. We’d love to learn more about your business and share our decades of home improvement lending experience along with the successes we have seen in the industry with you.
Madison Schoppe – Marketing Coordinator
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