Misconception #4 – Common Contractor Misconceptions

We’re back again with another installment of our contractor financing misconceptions series. If you’re just tuning in, you can check out our first three misconceptions:

• Misconception #1 — Contractor Financing is Only Used by Those Without Cash
• Misconception #2 — Contractor Financing Hurts my Bottom Line
• Misconception #3 — Offering Contractor Financing is Awkward & Complicated

Now that we’re all caught up, let’s move on to our next common misconception:

Misconception #4 — Contractor Financing is Best Used to Save a Sale

Some contractors see payment options as a way to save a sale, which often doesn’t work. This leads many to not see the value in offering contractor financing at all. However, when used correctly, financing can help your business grow through more closed sales.

As part of our best practices, we recommend mentioning the availability of payment options at these three touchpoints:

Marketing & Advertising

Leads who know that you offer payment options are more likely to convert. We recommend including a reference to at least two payment options in all your marketing materials. This includes showroom signs, flyers, billboards, your trucks, social posts, web banners, and, of course, your website. Savvy consumers will visit your website before even making that first call, so if your site indicates that payment won’t be a problem, you’ll see more people making that phone call to you before the competition.

When Setting the Appointment

When your office admin first sets the appointment with a customer to assess the job or go over the estimates in advance of closing the sale, it’s a solid opportunity to talk about your payment options and keep planting and nurturing that seed. Mention your payment options, including a Same-As-Cash loan and a low monthly payment loan. You might say something like, “When our sales rep is in your home, please don’t forget to ask them about our financing promotion.” Mentioning it on the appointment-set call will make the idea more familiar when it’s brought up again in the home.

At the Sales Appointment

Once you’re in the client’s home, bring up the availability of payment options once again. As you already know, objection to cost is often the biggest hurdle you need to pass to close the job. By offering payment options, you not only provide an easy way to get their project, but you can also help them see the value as opposed to just the price. Now they can think about the job they really want to get, instead of worrying about how they’re going to pay for the work. Once you get to discussing the actual pricing for the job, any objections about price have already been overcome because you’ve addressed the idea of easy payment.

Hopefully we’ve changed your mind when it comes to misconception #4 and you can now see the value of offering payment options to your customers. If you’re ready to join a loan program, visit our website to get started!