Grow Your Roofing and Siding Business by Offering Financing Options
As a roofing and siding contractor, you know that Exterior home improvement projects are significant investments for homeowners. With the cost of these projects often exceeding $15,000, many homeowners find it challenging to pay the total amount upfront. Offering financing options can help scale your business, helping you close more deals and grow your customer base. Here’s a step-by-step guide on effectively introducing Financing to your customers.
The Importance of Offering Financing
This highlights the need for contractors to provide flexible payment options to meet their client’s financial capabilities. Offering Financing removes a significant barrier to sales and makes your contracting services available to a broader audience.
- No Dealer Fees
- Get Paid Commissions
- Soft Pull Credit Checks
- Funding in 2-3 Days
- Easy to incorporate into your sales system
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Common Misconceptions About Financing
Many contractors make assumptions that can hinder their sales process:
- “They have a nice house and car.”
- “They live in an area where people have bad credit.”
- “It’s offensive to ask about financing their remodeling project.”
These assumptions can cost you sales. It’s crucial to understand that Financing is a common and accepted method for paying for significant investments. Homeowners appreciate having options, and introducing Financing can position you as a customer-centric business.
Four Effective Strategies to Introduce Financing
- Introduce Financing Before the Estimate Begins.
Start the conversation about financing early. Before you even begin the estimate, say, “Just as a side note, 50% of my customers pay with check, cash, or credit card. The other 50% choose to make an affordable monthly payment. Help me out; which bucket do you fall into?” This approach not only disarms the customer but also gives them a sense of relief, knowing they have payment options, making them more comfortable moving forward. - Bring Up Financing When There Is an Objection
If a customer expresses interest but hesitates due to the cost, offer Financing as a solution. For instance:Salesperson:
“I know this is a significant investment, and you called us today because you don’t want to sacrifice integrity or quality. When do you think you could save enough to pay for it?”
Homeowner: “Probably six months or so.”
Salesperson: “Perfect. Let’s do this. We have affordable monthly payments as an option. Let’s apply, and then we can get the work done now. You can make reasonable monthly payments for a few until you’ve saved enough to pay the entire thing off. Make sense?”This method provides a practical solution and can help you close the sale immediately.
- The Presumptive Close:
Use this technique if you’ve already established a strong rapport with the customer. Ask, “…and that should cover everything. How would you like to pay today? Cash or Financing?” This puts the customer in a position of power, allowing them to choose the payment method that best suits their needs, leading to a sale. While it’s an older method, it can still be very effective in making customers feel in control and confident. - Offer Financing When It’s Out of Their Budget
When price is the primary concern, directly address it with financing options. Ask, “If we could get you financed with an affordable monthly payment, is there any other reason that prevents you from starting your project?” This question helps determine if price is the real issue and provides a straightforward path to overcome this objection.
Conclusion
Offering financing options is not just about making sales; it’s about providing a valuable service to your customers. It shows that you understand their financial concerns and are willing to work with them to achieve their home improvement goals. Implementing these strategies will grow your sales, increase customer satisfaction, and positively impact your roofing and siding business. Don’t let Financing be an afterthought—make it a central part of your sales process and watch your business thrive while making your customers feel valued and respected.
