Grow Average Project Size – Payment Option Benefits Series
Welcome back to our payment option benefit series. Previously, we covered our first three benefits: improve cash flow, increase leads, and boost close rate. Now, we’re going to go over our fourth benefit: grow average project size.
Until now, your home improvement business may have had a steady flow of customers seeking small home improvements. But after a while, you’ll probably be ready to take things to the next level. So, how can you get bigger home improvement contracts? You guessed it: offer customers financing!
How Can Contractor Financing Grow My Average Project Size?
As we mentioned before, many customers often don’t know how to pay for large home improvements. This means, once presented with the bid, they may want to split up the job or downgrade materials to save money. When you’re already dealing with thin profit margins, this puts you in a no-win situation.
The Brickyard Study showed that one-third of homeowners regret not spending more to achieve the end results they truly wanted. The customer then has the option to either simply live with the project as-is or go through the entire renovation process again. Payment options empower your customers to get what they really want in a convenient and affordable way — the first time.
When offered a choice of payment options, customers have been shown to spend, on average, 44% more on their project*. This alone is a great metric to see how much more money your business can make, thanks to increasing project sizes.
How Does This Benefit My Business?
There are several benefits to taking on larger project sizes. First, you can better protect your profit margins by taking on bigger projects as opposed to multiple smaller ones. Second, you can save time and resources by not having to switch between jobs as often, helping you to better manage your team’s schedule. Finally, taking on these bigger jobs can help you target a new customer base. If, up until this point, you’ve mainly dealt with small, affordable home upgrades, you can start turning your efforts to those customers with bigger budgets and grander renovation plans moving forward.
Additionally, when you offer customers financing for their project, they may be able to upgrade the materials they’re using or complete multiple projects at one time. For example, let’s say you’re a painter. A customer reaches out requesting a bid for their kitchen and dining room project. Once you’re in the home, they mention their plans to paint the rest of the main living area in the future. With payment options, you can make it easier for them to complete the entire project now and only put their home through the inconvenience of the project once. This makes you a valuable resource, and makes it more likely they’ll use you for future projects and refer you to people they know.
Want to learn even more? Download our free guide on growing your average project size.
Tune in for the next edition of our payment options benefits series, where we’ll go over how we can help you eliminate discounting.
Ready to start offering payment options as a part of your sales process? Just fill out the form on this page, and a member of our team will get in touch with you soon.
*Brickyard Study, commissioned by EnerBank USA 2018
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Brian Trantham is a Senior Relationship Manager at Regions | EnerBank USA. He has over 30 years in the home improvement industry both as a general contractor and within the financial sector. Throughout his career, he has helped contractors see significant growth in their business through increased sales and marketing revenue. Brian has a Masters Degree in Business Administration/Management from Pfeiffer University.