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How Financing Melts Away Price Resistance

How Financing Melts Away Price Resistance
Here’s what I know based on concrete statistics:

Financing makes the average sale price go up.

It’s incontrovertible.

And the better the terms, the higher the sale.

Because here is the truth—most homeowners get sticker shock when you tell them their project will cost $10,000 or $20,000 or $40,000 or whatever the number is.

But when you come in with financing, you soften the blow.

The thing is, there is a right way and a wrong way to offer financing.

Most contractors use financing as a last-ditch attempt to salvage a sale. This is the WRONG way.

Instead, sell the monthly payment just like car companies do.

What you do is sit down with the homeowners and say, “Mr. and Mrs. Prospect, we offer several financing options to make this project affordable. How much money do you feel would fit comfortably into your monthly budget to make this project happen?”

(Remember, this is at the beginning—not the end—of the sale.)

If the prospect is not 100% dead set on paying cash upfront (many aren’t, and are open to different options), they will either give you a number or say, “Well, I don’t really know.”

If they don’t know, you say, “What about $200? $300?”

When the prospect gives you a number, say, “OK, you know what, Mr. Prospect? I’ll make you a promise. We can absolutely perform the project you want within your budget of [number] a month.”

If necessary, you can always negotiate the length of the contractor later to make the price fit.

Offering financing this way allows you to close deals faster, easier, and at higher prices.

So when contractors tell me their customers don’t need financing because they all have money, I respond, “That may be true, but how many deals are you losing because the customer did not have the money right then?”

Or…

“That may be true, but how much money in upsells are you losing when your customer has to fork over $10,000 at once, instead of $850 per month?”

One of the best ways I’ve found to offer financing as a first resort is through the GreenSky® Program.

The GreenSky Program is the real deal. Upfront payments. Higher credit limits. Instant credit decisions. No paperwork. No enrollment fee.

Your customers apply for credit during your sales presentation through the GreenSky website, by phone, or through the mobile app. They then get a credit decision almost immediately—sometimes in as little as five seconds.

And when they’re approved, the amount can actually be for more than the cost of the project. This allows you to easily make upsells while staying within your customers’ budgets. Who could possibly pass up replacing their entry door for another $10 per month or upgrading their countertops for $25 per month?

Bottom Line: When you lead with financing through companies like GreenSky, you immediately get your prospects thinking about their projects in small, manageable monthly payments—not a five-figure sum that’s going to leave a gaping hole in their bank accounts.

You’re much more likely to get a “yes”… and for a higher price.

Find out more about the advantages of offering financing through GreenSky on our official MYM GreenSky® page.

Basically, it’s a contractor’s financing dream—and a tool that will melt away price resistance in practically all of your prospects.

* All financing is subject to credit approval and credit qualification.  Financing for GreenSky® consumer credit programs is provided by federally insured, federal and state-chartered financial institutions without regard to race, color, religion, national origin, sex or familial status.

 

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Stop Customers From Choking On Project Costs

cut your project into bite size pieces
Feast your eyes on this beauty above.

She’s a Prime Black Angus Ribeye. Cooked medium rare (just how I like it), so you get that perfectly rich and juicy flavor.

But here’s the thing…

While I love me some steak, I’m not going to shove the whole 12-ounce cut down my gullet at once.

Instead, I’m going to cut it into small hunks to savor every tender bite. And I’m sure you’re the same way.

It’s a lot like offering your customers financing.

Just like how I’m craving that beautiful cut of beef in the photo, your customers are craving a home improvement project.

They want it. Desperately.

What they don’t want, though, is to swallow the entire cost of the project at once.

I don’t care if you’re remodeling for Richie Rich’s uncle. And it doesn’t matter if your customers have cash to spare in their bank accounts.

The fact is, paying for the full cost of a project at once is hard for EVERYONE to stomach. (Have you read my story about how taking my six kids to the dentist cost me $8,214.70?  I had the money, but I sure as heck didn’t want to part with all of it at once.)

So, why not offer your customers the option to pay in small, bite-sized monthly chunks?

Because when you do, here is what’s going to happen:

  • You’re going to close more jobs.
  • You’re going to close jobs more quickly.
  • Your customers will spend MORE on your services.
  • Your business will boom.

But here’s the rub… you can’t do this with just any financing company.

A lot of them take way too long to approve your customers, require unrealistically high credit scores, and rob you blind with fees.

That’s why financing through the GreenSky® Program* is the only way to go.

Just like MYM, the GreenSky Program is dedicated to the home improvement industry.

As a result, the GreenSky Program has over 11,000 merchants and 500,000 consumer loans across a wide range of categories, including interior remodeling, exterior remodeling, roofing, and HVAC.

Seriously, the GreenSky Program has eliminated literally every problem that contractors have with financing.

Long approval processes? Gone.

Delayed payments? Gone.

Messy paperwork? Gone.

Here is what’s left:

  • 5-second decisions: Your customer applies via website, phone, or the mobile app and receives a credit decision in as little as five seconds.
  • Get paid in one day: You receive up to 20% to 50% upfront funding in your bank account within one business day of customer approval.
  • No paperwork: No need to fill out stacks of annoying, cumbersome paperwork—everything is done digitally (and securely backed up).
  • Upsell like a champ: The GreenSky Program offers high credit limits and may approve for higher than the requested credit limit. This makes it incredibly easy to upsell on projects your customers finance.
  • No enrollment fee: Unlike other programs, the GreenSky Program does NOT nickel and dime you. There’s no enrollment fee and just a small, painless fee per transaction. You’ve earned the money—you deserve to keep it.

If you aren’t using the GreenSky Program for financing, you’re losing out on hundreds of thousands of dollars in sales. Period.

To prove it, in the next post I’ll show you just how easy it is to upsell and close more jobs when you incorporate the GreenSky Program into your business.

If you’re interested in finding out more about how the GreenSky Program can help you wildly increase profits, visit the MYM GreenSky Trusted Partner page.

Bon appétit.

P.S. The most expensive steak in the world is the A5 Kobe Strip Steak. It costs $350 (tax not included) for 12 ounces, and you can only get it at Old Homestead Steakhouse in New York City. The reviews say the steak is the best thing you’ll ever taste in your life. When you offer the GreenSky Program’s financing to your customers and dramatically increase your revenue, affording this streak will be like buying off the Dollar Menu at McDonald’s.

* All financing is subject to credit approval and credit qualification.  Financing for GreenSky® consumer credit programs is provided by federally insured, federal and state-chartered financial institutions without regard to race, color, religion, national origin, sex or familial status.
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