The Fifth Sales Step You Can't Skip
Using all financing program alternatives to close and handle objections is a vital selling skill.
It’s no surprise to me that the most successful contractors in the home improvement industry (we can be considered as part of that group) also have the highest usage of financing programs. Not only that, they are experts at the various programs and have learned how to offer financing program choices as a closing and objection-handling tool.
Currently the two most effective programs include the Low Monthly Payment (1.25% is the lowest I know of) and 12-months or longer With Payment Deferred Interest.
Like the professional you are, you will learn when to use each one appropriately and effectively. For example, in many markets, current sales seem to hover around the $5,000 mark. I suspect this is because that’s the cash-on-hand that people are willing to spend. The savvy sales professional will show the customers their high-end system choice and ask if they might want to consider making a down payment and financing the balance. A $15,000 system less $5,000 means $10,000 financed with a 1.25% payment factor, or only $125 a month. Deduct from that the monthly energy savings and it’s very common to see a top-of-the-line $15,000 plus system for less than $100 per month.
With Payment Deferred Interest simply means they can “use your money” for that period and as long as they pay it off prior to the end of the period there is no interest accrued. This really helps with people who have the money but don’t want to spend it right now. A friend of my calls this reluctance “separation anxiety”.
Put financing to work for you, and your customers. Contact me if you would like to find out how to get the 1.25% payment factor program for your company.
How to Guarantee Your Salesman Offers Financing Choices
Last week I talked about how TRUST PRO® online allows you to quickly and professionally create Best-Better-Good Proposals that include a built-in Financing Calculator. This insures your proposal will always provide the client with a small Monthly Payment amount along with the Total Investment
. The Calculator allows you to quickly and easily play “what-ifs” with financing choices so you can provide a choice that meets the client’s needs and stays within their budget.
Management features of TRUST PRO® online allow you to pick a Default Financing Offer that’s included with the pre-created Proposal Templates. You can also store all of your other payment programs for easy and consistent client choices during the proposal process.
TRUST PRO® online’s Installation Pricing Cookbook also allows you to factor in average financing costs as a separate line item providing a completely integrated approach to incorporating Financing Program Choices as a closing and objection handling tool.
2012…the Year of Financing! (Thanks to Mary Ellen House)
Mark Sims is President of Chameleon Management Solutions, Inc. and is the creator of TRUST PRO® online, the only fully functioning online HVAC contracting business management software.
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When the Competition Says It Can't Be Done
I love written testimonials, particularly on Google, Angie’s List or any similar website. I always carry a half dozen copies in my binder ready to hand out. Nothing seems to get the customers's attention better than reading about someone else's happy experience with your company.
Here a recent testimony from a client of mine that was written on Angie’s List. In this case, other contractors were apparently afraid to tell the customer how expensive it would be to do the job the way they wanted it done. Don't prejudge what the customer will say. It’s your responsibility to present choices, it’s the clients job to say ‘yes’ or ‘no’. Don’t get caught on the wrong side of the fence!
“This was a difficult project, removing an old hot water heating system from the attic and fitting a new system into a very tight attic space. Three other contractors said it could not be done that way and offered cumbersome alternatives. But Your Company was able to get it done the way I wanted with the furnace in the attic. Your guys did a fantastic installation despite very hot attic temperatures. They worked so hard. It looks great. The ductless system for the apartment also worked out very well. Everyone was friendly, kept me informed and answered my questions. I would recommend Your Company to anyone.”
What began as a simple attic system conversion ended as a high efficiency heat pump system with a ductless mini-split for the apartment over the garage, worth over $17,000 to this happy homeowner. And it turned out okay for me too!
“Why say no when it feels so good to say yes?” –Tommy Boy, the movie.
Mark is a Retail Sales Professional with an established Portland, Oregon heating & cooling company.
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