Contractors know that growing their businesses can be challenging. And, they agree that it takes considerable effort to achieve their sales goals. But, with proper planning and a winning strategy, contractors can grow their businesses faster than ever!
Here’s how! An independent study conducted within the home improvement industry found that contractors who offer a choice of payment options to their customers see increased growth as a direct result.
One study participant, John’s Waterproofing, a contractor who operates in Oregon and Washington, reported over a 50% increase in sales within 12-months by offering payment options.
Here are three key findings reported by contractors in the study with the highest growth rates, like John’s Waterproofing:
Key Finding #1: Homeowners want a choice of appealing loan options
John’s Waterproofing knows that offering their customers a choice of payment options sets them apart from their competitors and allows them to provide value for their customers.
And, market research supports that homeowners value the flexibility and convenience of working with a contractor who offers a choice of a Same-As-Cash Loan and a low monthly payment loan as a way to pay for their project.
Key Finding #2: Offer loan choices to 100% of your customers
John’s Waterproofing has learned the power of offering a choice of payment options to its customers. So, it’s committed as a company to always offer a choice of payment options to all customers. And, because of their commitment to offering appealing loan options to every customer, they have increased their close rate significantly and have seen project sizes grow.
These results align with market research that shows contractors who offer a choice of payment options to 100% of their customers typically see an increase in close rates of over 50%. Also, homeowners who choose contractor-provided financing increase their project sizes on average by 43%!
Key Finding #3: Don’t offer payment options just to “Save the Sale”
In addition to offering a choice of payment options to 100% of their customers, John’s Waterproofing has learned that the “Save the Sale” strategy of using payment options doesn’t work. They know that when payment options are offered as a last resort, their margins suffer, which is bad for business.
So, instead of offering payment options at the end of the sales process or to “save the sale,” they offer a choice of payment options early and often. And, research supports that successful companies are offering a choice of payment options at three stages of the buying and selling process:
Stage 1: Setting the appointment
Stage 2: Building rapport at the customer’s home
Stage 3: Presenting the estimate
And, the companies that do this, like John’s Waterproofing, protect their margins, avoid the need to discount to win the business, and see a reduction in job cancellations.
So, if you’d like to find out how your business can grow by over 50% in less than 12 months, like John’s Waterproofing, contact us today at enerbank.com/contractors.