Posted by Rich Harshaw on October 31, 2016.
You know, financing and the sun have a lot in common.
Sunlight repels vampires, forcing them to flee to the shadows.
Financing does the exact same thing to many contractors.
Financing tends to have a “vampire exposed to sunlight” effect on contractors.
The problem is, the thought that financing costs too much money—or that your customers don’t want it—is a malicious myth that’s spread for way too long.
So allow me to drive a wooden stake through the heart of this tall tale and kill it once and for all.
Sharpen those sticks. Here we go…
First thing’s first: Get it out of your head that your customers don’t want or need financing!
Nobody—and I mean nobody—wants to shell out $8,000 to $40,000+ at one time for a home improvement project. Even if they have the cash in their bank account right that second.
It’s like the time it cost me $8,214.70 at the dentist to fix all the things wrong with my six kids’ teeth (long story short, we switched insurance plans and didn’t take them to the dentist for nearly two years).
Yeah, I had the money right then and there. But I wasn’t keen on spending it all at once.
Fortunately for me, the dentist offered financing plans, including a 12-month, no-interest option.
That worked out to $684.56 per month—still a good chunk of change, but a far cry from $8,214.70. Plus, I could avoid interest if I paid in full in those first 12 months.
Taking the financing was a no-brainer.
So just because your customers can afford to pay in full when the job is done does not mean they want to. In actuality, they’ll jump at the chance to finance their projects and make their payments more manageable.
Okay, so financing is good for your customers… but what about you?
Most contractors are dead-set that financing costs them money.
But here’s the truth: The better the financing, the more your customers spend.
Take a look at these numbers a major home improvement company recently posted:
- $5,519 – Average sale with “no interest if paid in full in 12 months” offer
- $6,804 – Average sale with “no interest if paid in up to 36 months” offer
- $7,466 – Average sale with longer term, low APR finance offer
The stats don’t show the average sale when no financing is offered, but let’s be real—it’s going to be lower, probably around $4,500.
Let me give you an example from my own experience…
A few years ago, closet-organization company I work with told me their average sale was $2,800.
I signed them up with one of MYM’s preferred finance partners, and their first attempt at using it resulted in a $7,700 sale—nearly three times their average.
According to the company, their customer said, “Since the monthly payment is so low, let’s do all three of our closets right now instead of one.”
A lot of homeowners will balk at a $12,500 price tag for new windows. But most of them won’t bat an eye at, say, $249 per month.
Bottom Line: You break down payments into small, manageable monthly chunks, you give your customer some wiggle room to spend MORE on your services.
It’s literal money in the bank.
And there you go. I’ve not only slayed the outdated notion that financing costs you money (R.I.P.), but I’ve also proven it will boost your sales big time.
Check other posts for info on what I firmly believe is the absolute best financing program for remodeling contractors.
I say that with 100% confidence because this company has removed literally every single problem contractors have with financing: Delayed payments, long approval process, mounds of paperwork, high fees… they’re ALL gone.
This financing program’s services can and will completely revolutionize your business and cause your sales to soar.
P.S. Ever notice how car dealerships sell their vehicles in monthly payments? Yeah, that’s on purpose. I mean, compare these two options:
“Get a new, fully-loaded 2017 Chevy Silverado for $45,000.”
“Get a new, fully-loaded 2017 Chevy Silverado for $499 per month.”
Which sounds more appealing to you (and your bank account)?
Posted by Rich Harshaw on October 27, 2016.
A few months ago, my 11-year-old son Luke wanted to buy a Desert Eagle Full Auto Airsoft Pistol on eBay.
My response: “Um… no.”
But Luke really, really wanted it.
So when I put my size-12 loafer down, he didn’t back off.
Instead, he came at me with a binder’s-worth of review information about the gun and the seller.
He showed me the gun had a four-and-a-half-star rating out of five. He showed me the seller had 3,119 reviews and 99.7% positive feedback. He showed me the seller also had 1,541 positive reviews in the past 12 months.
So even good ol’ wide-eyed Luke knows that online reviews are a hugely persuasive form of social proof.
He might not have thought of it in that exact way (he’s a middle schooler, not a marketer), but he has figured out that people can be swayed into doing or buying something if enough other people do.
And this is why 11-year-old Luke understands marketing better than most contractors.
Sure, contractors think reviews are important… but many underestimate just how important.
Like I said a few posts ago, Social Proof is essential and new research shows 90% of people read online reviews before deciding to call a contractor.
Yes… 90 percent!
Oh, don’t look so surprised.
The good news: If you already have a bunch of great online reviews, you have nothing to worry about.
The bad news: If you don’t have a bunch of great online reviews, you’re leaving a depressingly large sum of money on the table.
Fortunately for you, we can fix that.
We’ve been providing Online Reputation Management (ORM) for just a few months, but it’s already proving to be a godsend for our clients who need to beef up their online reputations.
Case in point…
In just one month, our ORM has generated our client Jacob’s Ladder, 10 new five-star online reviews across Google, Facebook, BBB, and Yelp.
At this pace, the company could have 120+ stellar online reviews within the year.
Like I said yesterday, it goes to show that building up a lot of great reviews is not hard, but it does take a lot of time and effort. To do it yourself, you’d have to dedicate a full-time employee to it, and it would cost you thousands of dollars a month.
Consider the eBay seller I mentioned earlier. It’s taken her 15 years to accumulate those 3,119 reviews. That works out to about 208 reviews per year.
If you’re an eBay user, you know that people on there give out reviews like candy. So if it’s taken this woman this long to collect that many reviews on eBay, you can expect it will take you years to attain even one-third that amount on sites like Yelp, Google, and Facebook.
That’s why you need to get started RIGHT NOW if you want to build an ironclad online reputation. The longer you wait, the more rave reviews you lose out on.
Because here’s the thing…
Your customers want to let the world know how great you are. But they have 789 things going on in their lives, so they forget to.
MYM ORM sends your customers through a sophisticated review funnel that gets them to take action and provide online feedback on the review websites of your choosing.
So stop shooting yourself in the foot with an airsoft pistol. Every remodeling project that goes by that you’re not utilizing ORM is another wasted opportunity for a great online review.
Mosey on over to MYM’s official ORM webpage for more details.
Until next time,
P.S. So, did Luke’s tactic of showing me mounds of social proof persuade me to let him bid on the airsoft gun? Actually yeah, it did—under the condition that I would heavily supervise his use. He was outbid in the last few seconds, though, so he didn’t end up getting it. Oh, darn….
Posted by Rich Harshaw on October 27, 2016.
Essentially, social proof boils down to this:
The more popular something is, the more that people want a piece of it.
So, answer this question…
Do you think 750 glowing customer reviews would make a difference in your sales?
Let me jump in and answer for you…
Heck yeah, 750 glowing customer reviews will make a difference in your sales!
It’s a proven fact that good online customer reviews boost sales for businesses. Give it a Google if you need confirmation.
The question is, how do you get 750 awesome reviews? How do you even get 75 awesome reviews?
It’s simple—MYM’s Online Reputation Management (ORM).
ORM is the process and systemization of getting, managing, and reporting on reviews across the entire internet.
Our ORM contains a highly effective funnel that leads more of your customers to write reviews about you. You generate a constant stream of positive online reviews on the websites of your choosing.
Assume our ORM generates you to two to three new positive online reviews per week. That’s…
- 10 to 12 a month
- 120 to 150 a year
- 240 to 400 in two years
- 600 to 750 in five years
As you can see, good reviews take time to build up. But these numbers are easily attainable as long as you start RIGHT NOW!
And even if you get even half as many, it will still have a profound impact on your sales. Three hundred excellent reviews will turn A LOT of on-the-fence prospects into enthusiastic cash-in-hand customers.
Now, let me throw some more math at you to demonstrate how ridiculously lucrative our ORM is…
- Our six-month and one-year ORM agreements are $599 per month. That works out to $7,188 per year.
- Studies show just a one-star increase on sites like Yelp boost your sales 5% to 9%.
- So if you’re a $2MM per year company, ORM can put at least an extra $100,000 to $180,000 a year in your pocket simply by increasing your ratings on review websites.
- That’s a yearly ROI of 1,291.21% to 2,404.17%!
And these are conservative estimates.
Imagine the boost in sales you’ll receive once your positive online reviews start climbing into the 400s… the 500s… the 600s… the 700s… and beyond.
Once you reach those numbers, homeowners will automatically see you as THE remodeling authority in your area. They’ll see all of their fellow homeowners having great experiences with your company, and they’ll line up around the block for the chance to do business with you.
After all, 750 people can’t be wrong.
Visit our ORM page to find out more about what it can do for you.
P.S. Even my 11-year-old understands the pulling power of positive reviews. Next email, I’ll tell you how he tried to sucker me into buying him an airsoft gun off eBay because the seller and the gun had great reviews.
Kids, I tell ya….
Posted by Rich Harshaw on October 26, 2016.
Yesterday, I read a story about some teenagers in Washington state jumping off a tall bridge that runs across the Columbia River.
Judging by the pictures, I’d say it’s a good 50 feet from the bridge to the water.
The news article says, “Officials soon learned the kids were just trying to cool off by jumping into the water.”
Yeah… I don’t buy it.
As a father of six kids between the ages of 11 and 23, let me tell you the real reason these teens were risking serious injury and cold-water shock…
They were trying to look cool, not cool off.
I guarantee this is what happened: One of the teens thought it would be awesome to cannonball off the bridge.
The rest of them, wanting to fit in and keep their “cool kid” cards, followed suit.
I mean, let’s be real.
If they wanted to cool off in the water, they could have—you know—walked into it directly from the shore.
Instead, they dove into it from five basketball hoops high.
Now, if you’re thinking, “Man, teenagers are dumb,” know two things:
- You’re right.
- While YOU aren’t dumb, you’re guilty of the teenagers’ same “follow the leader” behavior.
Simply put, not much holds more power and influence over a person’s decisions than social proof.
You might not jump off a bridge because your friends are doing it, but you—like all seven billion humans on this planet—base many of your decisions on what others are doing.
Social proof is why we wear certain clothes, drive certain cars, and eat at certain restaurants. If we see enough people partaking in something, we want a piece of that pie, too.
That’s just the way that gray lump of matter between our eyes is hardwired.
This is why good online reviews—and lots of them—are required for you to attain true success as a contractor.
Don’t believe me? Consider this…
New research shows 90% of people now read online reviews before contacting a contractor.
Out of those folks, 86% (!!!) of them are influenced by a single negative review.
I’m no math whiz, but that means virtually every person who considers contacting you looks at your online reviews first.
And of those people, virtually every person is going to think twice about contacting you if you have a bad online review.
Simply put, people don’t want to waste their money and feel like chumps. That’s why a bad review of your company will make a larger impression on them than a good one. It’s Psychology 101.
Do you know the best way to stop the effects of bad reviews?
A) Having an avalanche of great reviews to offset the few negative ones.
B) Not have any negative reviews, period.
MYM Online Reputation Management (ORM) can help you achieve both.
Our Online Reputation Management solution contains a sophisticated customer-review funnel that generates a wealth of positive reviews for your company.
On top of that, it can also intercept negative reviews before they get posted for the world to see.
This gives you the opportunity to resolve the unsatisfied customer’s issue, potentially preventing them from leaving bad online feedback about you.
MYM ORM also monitors 170+ review websites. This includes the “big boys” like Yelp, Google, and Facebook, as well as local review websites of your choosing.
You’ll be alerted anytime your customers leave online reviews about you—good or bad. You’ll no longer have to fear if there’s a hidden bad review somewhere out there that’s hurting your reputation.
Go ahead, take the plunge into ORM with your fellow contractors.
The water’s fine.
P.S. How much do you think 750 glowing online reviews would increase your sales? And how the heck do you even get 750 online reviews? I’ll let you know tomorrow.