Here’s an oddity: more than 50% of remodeling projects over $5,000 require financing, but only around 10% of contractors actually offer it. With price being a common barrier to sales, one thing is clear: home pros need to take on a more active role in the loan process to win homeowners.
The average financed sale is 15% higher than a cash sale
Below are five reasons contractor financing is a win-win for you and your customers.
1. Speed and convenience
Being able to offer homeowners a seamless, one-stop experience from consultation to completion is a big deal. For the customer, this means less time and legwork needed to search for a lender. For you, this means no work delays due to conflicts between your payment and construction schedules.
2. Improved customer perception
Contractor financing can differentiate you from the competition. You’re showing homeowners that you have the capacity to arrange and successfully implement their project’s financing. It leaves a favorable impression that counts as an extra selling point for customers, whether or not they ultimately use you to finance the job.
3. Less sticker shock
Sometimes, homeowners go radio silent right after consultation. The reason? Sticker shock. They had a vision for their home, sat down with you to talk numbers, then found the cost to be beyond what they could afford. If the choice was between a home pro who would compromise on their vision to fit their budget versus one who would cover the difference through financing, odds are they’d go with the latter.
4. An edge on urgent contracts
Urgent, big-ticket repairs happen. In these cases, homeowners do not have the luxury of waiting until they have access to cash. If you can accompany your bid with the offer to arrange financing and start repairs as soon as possible, you’re not just winning a contract—you’re doing a customer a much-needed service.
5. Bigger jobs
Besides making it possible for you to close more jobs, in-house financing makes it easier to upsell.
Contractor financing is great, but closing more jobs and attracting more local homeowners will require a few extra steps. Talk to the marketing experts at Surefire Local to learn how to make your marketing work for you—so you can get in front of the people who need you, when they need you. Get expert analysis of your digital marketing by sending an email to email@example.com or call 888-804-8685.