Payment PlansQUESTION: What do successful blue collar service providers such as HVAC, environmental services, and roofing companies have in common?

QUESTION: How are these providers able to market bundled packages of their services that tally double and triple their “normal” average job size?

QUESTION: How do they eliminate the competition, justify a sizeable price difference and close sales that are otherwise often lost to El Cheapo competitors?

ANSWER: If you said FINANCING, you get the cigar!

I can see many of you already rolling your eyes due to your negative personal feelings about putting customers into “financial bondage” by charging them double-digit interest rate monthly payments to finance companies in order to put a new roof over their heads or for some cool air during the triple-digit summer heat. Hey, I get that, as I’m now one of those fortunate folks that can pay cash for about anything I need; but I can also still remember times when I was so broke I couldn’t pay attention and used VISA express checks to pay my MasterCard bill.

As recently as July, 2015 the US Census Bureau reported that the average American’s savings account balance is $3,950, with 25% of American families having no savings at all. To determine individuals’ preparedness for a smaller scale financial disruption, respondents were also asked how they would pay for a hypothetical emergency expense that would cost $400. 47% indicated they could not cover the expense and would have to sell something in order to pay that expense. So regardless of your personal feelings, don’t forget how many times you’ve heard me yammer that you shouldn’t attempt to sell like you buy. When you do, your closure heads south and your take home pay won’t take you home!

If you consistently lose business to cheaper competitors, but know you offer a superior product with better service, installation quality and unsurpassed warranties and guarantees, you must realize the answer is to begin to finance 40%-60% of your business (depending on your industry). When you do you will sell more, to more people, sooner, and with higher average transaction amounts at a greater profit.

Most homeowners look for financing when making major purchases, and usually not only buy more, but add collateral items and options when they are offered. The bad news is that too many salespeople tend to not offer financing as their first and only close, and provide it typically as an afterthought or in response to a homeowner’s request for it. Often salespeople feel that most homeowners will only take advantage of it when they don’t have the money, and tend to only bring it up in response to a price related objection or concern. This is a big mistake.

So, how can a salesperson offer this vital sales tool without encountering the usual run of the mill objections that are associated with financing programs?

ANSWER: Quit dropping the ‘F’ Bomb.

Avoid using the word financing as it carries a negative connotation because of over-emphasizing interest rates. Instead, use a thought-provoking, customer-friendly term or phrase that intrigues and entices a customer to want to know more. For example, you may want to ask your customer, “Do you know how our company bills for jobs like this?” They will obviously say no, so continue by describing it one of two ways: If you offer a deferred first payment then perhaps you call it your “delayed billing process.” If it’s not deferred, then maybe refer to it as a “monthly budget plan for up to xx months.”

Payment Plans AvailableWhy would homeowners be interested in your payment plan for their new roof, or HVAC system or termite/insulation protection? Well, here are a few homeowner benefits.

– A monthly plan may be in their best interest even if they have the funds available to pay cash, as a way to preserve the cash for another emergency.

– A payment plan would free up personal credit cards for other purchases that life may send their way.

– Payment plans are convenient, flexible, quick, easy, and simple. In a “red tape” world this is huge.

– This credit line removes budget constraints and allows homeowners to purchase what they really want and not just what they think they can afford.

– Plans like this are easier and way more private than bank or credit union loans.

– An arrangement like this helps preserve homeowner’s existing savings accounts.

– No collateral is required so homeowner doesn’t need to provide home equity.

– Simple, fast, and user-friendly credit approval process

– No prepayment penalties ensures homeowners of no “gotcha’s.”

Next time In Part II we will look at some of the benefits to you and your company in offering budget plans to your customers.

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“Thanks Doug for your coaching. I am now selling for the death care industry and still find your coaching very beneficial. I am introducing your techniques and materials to my new colleagues.” Matt Pate, Huntsville, AL. You owe it to yourself to spend a few minutes looking HERE.

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©2016 Robinson Training Solutions, LLC