Increase sales with customer financing options for contractors
Providing cost-effective services as a contractor isn’t always easy. You want to offer a professional service with the best tools and approaches at a competitive rate. You can’t be too pricey, but you can’t undersell your skills and experience either. That’s where customer financing for contractors can help.
Third-party lenders or buy now pay later?
The first thing to ask yourself when considering financing options is whether to go for a third-party lender or a Buy Now Pay Later scheme. Both have their advantages. The third-party option can require a lot more organization and commitment to managing your finances, but you still get to work with professionals who have your best interests in mind. They can offer borrowing solutions without any complex processes or fees. Buy Now Pay Later works well for anyone looking for smaller purchases over a series of payments. This sort of plan is common, with PayPal offering its own Pay In 3 scheme. As long as the customer passes the right checks, you should be fine. There’s always the risk of some defaulting on payments, but the benefits of this system outweigh the negatives.
The benefits of customer financing for contractors
Before we look at how to market these payment plans to potential customers, we need to look at why it’s so beneficial to do so. The key benefit here is the chance to increase sales and enhance your revenue stream. It can be daunting to carry out work before any large upfront payments and to deal with lenders. However, any short-term headaches are usually resolved once the final payment comes through. These financing options could be the dealbreaker for clients who are on the fence about getting work done. The high cost was what was holding them back. Now, they have a way to break that cost down or delay it to make it more manageable. That’s why contractors with these options see more people agreeing to quotes and high-end work after their phone consultation.
These increased sales are enough to improve revenue streams for contractors. However, the opportunities go further with the potential for add-ons and future recommendations. Customers who aren’t paying much upfront feel as though they are getting a better deal at a more affordable rate. Many companies find it easier to upsell additional services and perks customers would otherwise avoid. These little bonuses can add up, and they could actually end up paying more, just over a longer period.
Those who are happy with your work will then take the time to leave 5-star reviews and testimonials, either on your company website or on platforms like Google reviews. These can showcase your brand as a high-end, affordable option for others in a similar situation. They’ll see that it is possible to get what they want without the high upfront costs and reconsider their option. These extra sales will continue to snowball with the addition of in-person recommendations to friends and family.
Marketing your customer financing options
Once you’ve decided that customer financing for contractors is the way forward for increased sales, you need to consider how you’ll market this to potential clients. This sort of customer-friendly tool will grab the interest of many potential clients, so you need to highlight it as best you can. At the same time, you need to be careful not to overdo things and come across as a scam.
The first step here is to update your physical marketing. Physical marketing tools like flyers and posters are still highly advantageous for service industries. Companies looking for work in the local area can target local residents and businesses with ease. The best example will stand out from the competition. Even if a flyer sits on a fridge for a month while customers weigh up their options, you’re still in their minds. A bold banner highlighting your Buy Now Pay Later scheme for small renovations could be the encouragement they need. As long as you also have clear contact information, they can call to find out more.
Beyond the physical marketing tools in the local area, you can also work on advertising these financing options through digital marketing. The approach here will depend on the platforms you use. If you’re not on many social media platforms, it’s time to start making profiles and posting content. Many local contracting firms will find success with Facebook. This site has retained its community focus and is a great way for local firms to expand their reach. You can connect with people over local issues while promoting your work on Facebook Ads. These ads also appear on Instagram, which is a great platform for short-form content of before and after videos and other aspirational posts. You can mention your financing options in the voiceover and caption and direct people to your service page. The same goes for any YouTube content. These longer videos are perfect for explaining how your services work and encouraging more calls. If you can mention the financing plans and explain them in the description box, viewers will be more likely to click through and sign up.
Finally, you can’t forget about your on-site marketing. Clear information about financing on your website can help inform and reassure people that you’re legitimate. You can add banners and links to your homepage so people know right away that you are an affordable option. Just try not to do this through aggressive pop-ups because this can be a turn-off. You can expand on the financing options on a separate page and on your service pages, followed by user-friendly contact forms and contact information. Remember that the more confident people are in your ability to provide this service, the better the chance of them signing up.
Set up contractor financing today
As you can see, the potential benefits of customer financing for contractors are substantial. It may take some work to find the right approach and best lenders. However, the increase in sales and revenue will speak for themselves. You could help a lot of people in your area and improve your business at the same time.
