Eliminate Discounting – Payment Option Benefits Series

We’re back again with another post in our payment options benefits series. If you haven’t been following along up until this point, go back and check out our previous posts covering:

• Improving Cash Flow
• Increasing Leads
• Boosting Close Rate
• Growing Average Project Size

This post is going to center around our next benefit: eliminating discounting.

How Can Contractor Financing Help Eliminate Discounting?

How many times have you been in a customer’s home, and everything seems to be going well, until they hear the final bid? They begin showing doubt, and talk about postponing the job, reducing the size, or even seeking out bids from your competitors. Finally, in a last-ditch effort to “save the sale,” you offer a discount to help close the job. It’s probably more times than you could possibly count. The truth of the matter is that many homeowners underestimate how much their project is going to cost. This is especially true when they don’t take additional factors, such as the rising cost of materials, into account.

By offering payment options, you have a tool at your disposal to help you overcome price objections early in the process. Contractor financing provides a flexible and convenient way to pay for their project now, even if the final bid was higher than they anticipated.

This also applies to customers who may have been planning to pay for their project in cash. Often, simply because they’re paying in cash, they want a discount. We’ve created a loan specifically for customers like this, our Same-As-Cash loan. This product can be a benefit to your business because customers can still utilize their cash, but do so in a more flexible way, and it protects your margins, helping you to make more money.

How Does This Benefit My Business?

If your business is already dealing with thin profit margins, offering discounts just to get jobs can make things worse. We’ve all been feeling the crunch of inflation and rising costs, and the last thing you need is to make less money on a job just to keep up.

Being able to increase your margins on each job is going to help the bottom line of your business and every member of your team.

We hope you’ve been enjoying this series, but we’re not quite done. Next time, we’ll cover our final benefit and how payment options can help you reduce your cancellations.

If you’re ready to learn more about customer financing for contractors, fill out the form on this page, and someone will be in touch soon!