Explanation of the importance of financing options for contractors
Contractors often face challenges when it comes to closing deals with customers. Customers are often reluctant to commit to a large upfront payment for the services they need, which can lead to lost business opportunities for contractors. This is where financing options can be a game-changer.
Matter of fact, consumers do not have the cash laying around or most certainly dont want to pull it out of the home or market right now!
By offering financing options, contractors can provide their customers with an affordable way to pay for their services over time. This can make it easier for customers to say yes to a contractor’s services, which can ultimately result in increased sales and revenue for the contractor.
Financing options can also help contractors stand out from their competitors. In a competitive market, offering financing can be a way to differentiate oneself from other contractors who may not offer such options. This can be particularly effective in markets where financing options are not widely available.
In addition, financing can help contractors build trust with their customers. By offering these solutions and options, contractors can demonstrate that they are invested in their customers’ success and are willing to work with them to find a solution that meets their needs. This can help to build long-term relationships with customers and can lead to repeat business and referrals.
How can financing options increase sales in any business?
A. Explanation of the role of financing in consumer purchasing behavior
Financing plays an important role in consumer purchasing behavior because it provides customers with more flexible payment options. Customers often have a limited budget and may not be able to afford to pay for large purchases upfront. In such cases, financing allows customers to make purchases and spread the cost out over time, making the purchase more affordable and accessible.
By offering financing options, businesses can tap into a wider customer base that may not have been able to afford their products or services otherwise. This can result in increased sales and revenue for the business. Financing options can also help to increase customer loyalty and satisfaction, as customers are more likely to continue doing business with a company that offers flexible payment options.
Financing can also be an effective marketing tool. Many consumers are attracted to promotional financing offers, such as 0% interest for a certain period of time. These types of offers can incentivize customers to make a purchase they may have otherwise put off, which can increase sales for the business. Hybrids are also becoming popular, they are a blend of PROMO and LONG TERM FIXED options rolled up into one loan. Service Finance Company has 8 of them to chose from and help both cash buyers and payment buyers.
Overall, these solutions play an important role in consumer purchasing behavior by making purchases more accessible and affordable for customers. Businesses that offer financing options can tap into a wider customer base and increase sales, while also building customer loyalty and satisfaction.
Statistical evidence of the effectiveness of financing options in increasing sales
- According to a study by Synchrony Financial, 61% of customers said that financing options influenced their decision to make a purchase. The study also found that retailers who offered financing options saw a 36% increase in sales compared to those who did not offer financing.
- A survey by TD Bank found that 56% of consumers said they would be more likely to make a purchase if financing was available. The survey also found that businesses that offered financing saw an average sales increase of 30%.
- A study by PayPal Credit found that businesses that offered financing options saw a 39% increase in sales compared to those who did not offer financing.
- A report by Fundera found that small businesses that offered financing options saw an average increase in revenue of 20%.
How does contractor financing work?
Contractors can offer financing options to their customers in several ways:
- Partnering with financing companies: Contractors can partner with financing companies that specialize in providing financing solutions for their industry. These financing companies can provide the contractor with a range of financing options that they can offer to their customers, such as loans or credit lines. Contractors can then promote these financing options to their customers as a way to make their services more affordable. We call the POS or POINT OF SALE. It is super easy to apply right through a mobile app with BluePagesPro and or Service Finance.
- Offering in-house financing: Contractors can also offer in-house financing to their customers. This involves the contractor providing financing directly to the customer, usually in the form of a loan or credit line. By offering in-house financing, contractors can provide their customers with a more personalized financing solution that is tailored to their specific needs. This is REALLY risky in a defaulting credit market. I advise to use reputable lenders that offer unsecured home improvement loans.
- Using financing software: Another option for contractors is to use financing software, such as BluePagesPro, which allows them to offer financing options directly to their customers through a digital platform. This software can be integrated into the contractor’s website or mobile app, and customers can apply for financing directly online.
Explanation of how financing options can help contractors close more deals
Financing options can help contractors close more deals by making their services more affordable and accessible to their customers. Here are a few ways that financing options can help contractors close more deals:
- Making services more affordable: Offering financing options can make it easier for customers to afford the cost of the contractor’s services. This can be particularly important for large projects or renovations that can require a significant upfront investment. By offering financing options, contractors can break down the cost of their services into more manageable payments, making it easier for customers to afford the project.
- Increasing customer satisfaction: By offering financing options, contractors can provide their customers with more flexibility and options when it comes to paying for their services. This can increase customer satisfaction and loyalty, as customers are more likely to return to a contractor who offers flexible and convenient payment options.
- Building trust: Offering financing options can help build trust with customers by demonstrating that the contractor is invested in their success and is willing to work with them to find a financing solution that meets their needs. This can be particularly important for customers who may be hesitant to commit to a large project without some form of financial assistance.
- Increasing sales: By making their services more affordable and accessible, contractors can increase their sales and revenue. This can be particularly important in competitive markets, where customers may be comparing prices and financing options across multiple contractors.
Why contractors should offer financing?
I wrote the book on this topic and present it from stages all over the USA. There are so many ways, but let me highlight a few here…
- Attracting new customers: By offering financing options, contractors can attract customers who may not have considered their services otherwise. This can be particularly important for customers who are on a tight budget or who are looking for more affordable payment options.
- Increasing customer loyalty: Offering financing options can also help increase customer loyalty by providing customers with more flexibility and options when it comes to paying for the contractor’s services. Customers are more likely to return to a contractor who offers flexible and convenient payment options, rather than one who only accepts cash or check.
- Differentiating from competitors: In competitive markets, offering financing options can help contractors differentiate themselves from their competitors. By providing customers with more payment options and a more personalized financing solution, contractors can stand out from other contractors who may not offer financing options.
- Increasing sales and revenue: Offering financing options can also lead to increased sales and revenue. By making their services more affordable and accessible, contractors can increase the number of customers who are able to afford their services. This can be particularly important for large projects or renovations that can require a significant upfront investment.
BluePagesPro as the software tool for contractor financing
Our goal at BluePagesPro is to help you better connect, convert and close more jobs. Part of this process is including an EASY TO APPLY feature for homeowners that have landed on you BluePage (custom landing page.)
Once a consumer see and understands that you can provide affordable payment options with just a few clicks of the mouse, they are relieved.
We have integrated a financing calculator with Service Finance and the approvals will go right into your portal. This allows the consumer to get approved and you then can call to congratulate on that approval in minutes, not days. The process is paperless and seamless for both the homeowner and you.
If you are not enrolled with Service Finance and use another lender, we have created an online calculator tool which will allow the consumer see how much a loan would cost month, fill out a form and send it right into your inbox. No lead fees and no friction. We have made the process so easy for you to help more homeowners with affordability, right from the BluePage.
In conclusion, financing options can play a crucial role in the growth of contractor businesses. By offering financing options to their customers, contractors can increase sales, attract new customers, differentiate from competitors, and increase customer loyalty. Financing options can make services more accessible and affordable to customers, which can lead to increased customer satisfaction and trust.