In the competitive landscape of home improvement, offering consumer financing options is a game-changer. This is particularly true for significant investments like HVAC systems and home standby generators. Here's why:
1. Closing More Deals
Financing services provide flexibility to customers, enabling them to select payment options that fit their budget. This is especially beneficial for larger projects like HVAC installations or home standby generator setups. By breaking down these costs into affordable monthly payments, businesses can eliminate the biggest buying constraint and increase customers' purchasing power.
2. Increasing Average Deal Size
Financing programs can significantly boost businesses by enhancing their average deal size. By demonstrating how a minor increase in monthly payments can make high-end upgrades more accessible, businesses can effectively upsell their services. For example, a customer might be more inclined to choose a top-tier mini-split HVAC system, particularly when they understand the benefits of the HVAC rebate program. This program makes these premium systems more affordable, allowing customers to spread the cost over time and also receive thousands back in rebates.
3. Reducing Financial Risk
Partnering with a third-party financing company can help businesses reduce financial risk. These companies handle everything post-checkout, including determining interest rates based on credit scores, collecting monthly payments, and securing late and missed payments. This allows businesses to offer low monthly payments without assuming any financial risks.
4. Building Customer Loyalty
Offering flexible financing options can enhance the customer experience and build loyalty. Customers who use consumer financing for purchases are likely to choose it again for future purchases. This can help businesses establish long-term relationships with clients and encourage repeat business.
5. Attracting New Customers
Financing programs can also help businesses attract new customers by making their products and services more affordable. If customers can choose between a business that offers flexible financing options and one that doesn't, they're likely to choose the former.
6. Accessing Money Faster
Working with a third-party financing company can help businesses access their money faster. In most cases, businesses are paid the full purchase amount once the customer signs off on the work, avoiding potential cash flow issues associated with in-house lending programs.
In conclusion, offering consumer financing options for home improvement projects, including HVAC systems and home standby generator installations, can provide numerous benefits. Businesses that fail to offer these options risk being left behind in today's competitive market.
