How to Integrate Home Improvement Financing into Your Sales Pitch
Published September 09, 2024
How to Integrate Home Improvement Financing into Your Sales Pitch
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Homeowners may have big ideas when it comes to implementing home improvement projects around the house, but they may not have the cash available to pay for it all. That doesn’t mean they can’t afford the work, they just can’t afford to cover the costs upfront in one lump sum.
As a result, potential clients might decide to wait to have the work performed until they have the upfront funds at their disposal. Unfortunately, there’s no guarantee that day will come nor is there any promise that when it does, your contracting company will be the one they hire. It’s not because you’ve done anything wrong or your rates are too high, it’s just very possible the customer will find someone to do the work at a cheaper cost…and likely get what they pay for.
A successful contracting company is the one that does quality work at a fair price with long-lasting results. That’s how you build trust and improve customer satisfaction, they know you’re dependable and will always do right by them.
However, if they walk away without hiring you for a job because they can’t afford to pay for the work in one full payment, nobody benefits. Not the customer, nor your business.
When you work with Fund My Contract you have access to the largest network of third-party lenders in the consumer financing space, offering some of the most innovative financing programs to give every customer access to the funding they need to hire your business and complete their home improvement projects.
But financing options only work when your customers are aware of the programs you offer and how they function in giving homeowners the ability to pay for your services over monthly payments instead of all at once. Doing that requires some smart and savvy strategies for integrating financing options into your sales pitch to prospective customers.
Present Your Financing Options Upfront
If you’re going to incorporate financing options into your sales process, you may as well start as soon as possible. It could be a strong selling point in your marketing and advertising campaigns, announce it on your social media pages, get the word out as soon as you can as it may help attract customers to your home improvement business from the outset.
This can put your customers at ease before they even ask for a bid on the work they need performed. In fact, a majority of customers who want to spend their money on high-ticket expenditures like home improvement projects don’t have an accurate estimate as to the true cost of the work. More often than not, once they’re given the real number, their first inclination is to wait, shop around, even put off the work to next year when their finances are more stable.
These are natural reactions to facing a large four or five figure invoice. That’s why you want to present financing options from the very start, keep reminding the customer of your many financing programs that can make these costs easier to shoulder through affordable monthly payments.
Making Home Improvement Projects More Affordable
A four or five figure bill can be daunting to anyone, particularly if they’re expected to pay the bill in full at once. That’s when price objections and second thoughts start flooding into the customer’s mind. Even if the customer was anticipating a significant dollar figure to hire your services, staring back at all of those numbers on a piece of paper can still give anyone pause as to what they’re about to spend it on.
Financing offers your customers a way to hire your contracting company to perform the quality work that has earned you so many glowing reviews from previous customers. When the customer knows he or she doesn’t have to put the full cost of the payment on a credit card or come up with a cashiers check for the full amount at the time you’ve completed the job, that customer feels empowered to proceed with the work. This can also increase the job sizes for which you are hired as customers realize they have more spending power in their hands, giving them the ability to purchase more goods and services from you in one transaction with the comfort of knowing they have time enough to pay it all off over repeating installments along the term of the financing program.
Additional Choices and Benefits of Financing
Let’s say your customer is still undecided. He or she really wants to get the work done and you’ve presented them with a fair and honest bid to start the job. Yet, they’re not quite convinced if the job is affordable. Here is where you need to explain how each program you offer benefits the customer in reaching that affordability objective.
Low monthly payments is always a strong selling point, but promotional interest rates can also get their attention. Customers who qualify to participate in low, promotional rates that are available for a limited time may urge the customer towards that greenlight.
This sense of urgency may renew your customer’s enthusiasm for hiring you to perform the work they need and when the cost of the financing is reduced for customers with approved credit, the choice is often easier to make.
Know How Your Financing Programs Work
But you must always be extremely knowledgeable when it comes to the financing programs you’ve chosen to offer to your potential customers. If you or your employees don’t fully understand them, you’ll never succeed in presenting them to your customers in that crucial moment when a decision is going to be made as to whether or not your business will generate revenue from a job or if the customer walks out the door.
If You Have Questions, Fund My Contract Has Answers
Competing in a crowded region is always tough. There are risks involved with any type of industry, but contractors face all kinds of uphill battles and challenges that threaten to damage the health of their business. Fund My Contract is here to help business owners who are struggling to gain a competitive edge in the marketplace. Give us a call and let’s discuss how home improvement financing can reduce barriers to conversion, increase revenue and cash flow, protect your bottom line, and foster customer loyalty by turning potential customers into paying customers and above all, repeat customers.
Contact one of our financing experts today to find out how we can help your business grow through customer financing options with our network of third party financing entities.
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