How offering payment options can increase sales
Posted July 8, 2019 by EnerBank USA
Contractors who provide their customer with a choice of payment options, such as a Same-As-Cash Loan, are utilizing an important Increased Competitive Advantage: a tool that’s proven to increase sales. And, payment options can also make contractors more attractive to homeowners who can start a project because they don’t have to worry about obtaining financing on their own.
According to Dave MacLean, senior vice president of Brothers Services in Maryland, they’ve been increasing their sales and the amount they finance every single year. “Six years ago, we were financing only 5 percent of our business. Within the first year, we’d gone up to 20 percent, a night and day difference. And in that same year, we realized a 26 percent annual growth rate. And in the last five years, we’ve seen a 17 percent compound growth rate, all of which has been fueled in large part to flexible payment options.”
MacLean went on to say, “While some still believe ‘cash is king,’ or feel embarrassed that they don’t have cash on hand for an unexpected or large project, smart money people will always use someone else’s money for as long as they can if it doesn’t cost them more to do it. If 12-Month Same-As-Cash is an option, I’ll take Same-As-Cash, and I’ll pay it off at 11 months, 28 days.”
How do payment options increase sales?
Contractors who offer a choice of payment options—such as a Same-As-Cash and a low monthly payment loan—allow their customers to choose the best possible solution for their home. In addition to helping the customer, payment options can benefit your business by improving cash flow, increasing leads, boosting close rates, and reducing cancellations. A few other ways payment options can help your business include:
Grow Average Project Size: A homeowner may need a new roof, for example, and when your customer has access to payment options to pay for a new roof, they might decide they also need new siding, higher-end exterior windows, or even exterior paint to improve the overall look of the home. And, by offering a choice of a Same-As-Cash Loan and low monthly payment loan, you help make these types of higher-cost projects more achievable for your customer.
Increased Competitive Advantage: In today’s competitive market, winning the next piece of business takes more than a great reputation and excellent customer service. If you can offer a choice of payment options that are easy to apply for and obtainable, you’ll have an advantage over competitors who might accept only cash or credit.
More Satisfied, Repeat Customers: Being able to quickly finance a home improvement project can help make any customer happy—especially if they:
- Have the money, but don’t want to use their savings or investments for this purpose.
- Don’t have the full amount on hand, but have additional future income coming soon
- Don’t want to pay with high-interest credit cards.
- Don’t want the hassles that come with a Home Equity Line of Credit, including the paperwork, long approval time, or collateral requirement.
And, if you offer your customer a positive overall experience and use quality materials, they’ll likely come back to you when they have another project—and they’re more likely to refer friends and family to you, too.
If you’re not offering a choice of payment options from EnerBank USA®, visit us at enerbank.com to learn more about how we can help you increase your sales and grow your business.
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