Reduce Cancellations – Payment Option Benefits Series

We’ve made it to the end of our payment option benefits series. So far, we’ve covered our first five benefits:

• Improve Cash Flow
• Increase Leads
• Boost Close Rate
• Grow Average Project Size
• Eliminate Discounting

We’re going to end this series with our final benefit: reduce cancellations.

How Can Contractor Financing Help Reduce Cancellations?

It can be frustrating when you’re so close to getting a job, only to have the homeowner suddenly cancel. This can be caused by several factors, such as the customer wanting additional bids, funding falling through, deciding to postpone the project altogether, and more. So, how can you keep clients from canceling?

When a customer is approved for a home improvement loan through your business, it ties the project to you, making it less likely they’ll decide not to move forward. In fact, our research has shown that a customer who is approved for an EnerBank loan will complete the job with you 94% of the time, making it an invaluable resource for growing your business.

How Does This Benefit My Business?

Canceled jobs can lead to less profit and gaps in your schedule. If you have the labor and materials at the ready and the customer suddenly cancels, that can leave you in a pinch. In fact, when dealing with a large number of cancellations, many contractors lower their prices to drum up more business.

A study was recently conducted by Workiz lnc. that looked at several industries within the home improvement field. They found that there was a correlation between a contractor’s cancellation rate and what they’re charging. However, this connection showed that the lower the price, the higher the cancellation rate was. This means that lowering prices in response to cancellations may be hurting your business more than it helps.

Having reliable financing available for your customers gives them an affordable way to pay for their projects. If they know going in how they’re going to pay for their project, it makes it less likely that they’ll end up canceling. So don’t forget to mention the availability of payment options in all your home improvement advertising materials.

We hope you enjoyed this series and have a better idea of how payment options from Regions | EnerBank USA can help improve your contractor sales. If you want to learn more or are ready to join a program, fill out the form on this page, and a member of our team will reach out soon.