When you offer financing to customers, it’s no surprise that you sell more — and do so in a one-call close. It’s much easier for customers to take on a low monthly payment than a lump sum for a new HVAC system. Offering financing means customers don’t have to do their own work trying to find a line of credit or take out a second mortgage. If you take care of it all for them, they’re more likely to sign up on the spot — and add on those higher-margin extra features. Faster closes, higher average ticket prices, and higher margins — financing delivers a true win-win-win scenario for HVAC contractors and salespeople.
But financing can present challenges for you as an HVAC contractor or Comfort Consultant — namely the exorbitant dealer fees most lenders charge. In fact, lenders typically charge 8%-18% for various financing plans, which can really eat into your profit margin.
As the creators of Sales Builder Pro, the leader in HVAC proposal software, we’ve solved this problem — and created a way for you to pay for Sales Builder Pro for free!
Our new Rewards Pro program, together with our partnership with Upgrade, Inc., offers the flexible financing that your customers will love, with an innovative rebate program that credits your annual renewal fee to Sales Builder Pro. Here’s how it works:
- No dealer fee programs. For starters, we suggest a range of NO DEALER FEE programs.
- Built-in rewards. For example, for every $10,000 HVAC win, you earn a $50.00 credit toward your Sales Builder Pro subscription renewal. That’s 0.5% of your deal!
With every financed deal you close, you're not just getting your commission but also a reward. If you finance just one deal every week, by the end of the year, you could have your Sales Builder Pro annual renewal covered by Rewards Pro credits. Sales Builder Pro is designed to help you close more deals in less time and increase your profits. The more deals you close, the more you save on renewal fees.
“We’re giving contractors and consultants the incentive to offer financing. But they’re also keeping a lot more money in their pocket, since they’re not absorbing the dealer fees they’re used to paying,” says Tripp Jordan, sales manager with Intelligent Mobile Support, Inc. (IMS), the makers of Sales Builder Pro. “Rewards Pro is the magic bullet for growing your business. It’s a no-brainer.”
Rewards Pro offers a range of programs with no dealer fees. If you have customers interested in other types of financing plans — such as interest-free or no/no (no interest, no payment) plans — we’ve also got you covered.
Talk About Financing — OFTEN
If you only sell to customers who pay with cash or credit cards, it’s time to rethink your strategy. It only takes about 10 minutes to discuss financing on the sales call. And the rewards are well worth it.
“When you talk about financing early in the sales call — and talk about it often — your close rate goes through the roof,” says Sharyn Taylor, sales manager with IMS. “And your average ticket price is going to increase because you're selling a manageable monthly payment instead of a big number that's going to intimidate the customer.”
Offering financing often leads to HVAC system upgrades. If it’s only a matter of adding $20 to their monthly payment, the customer may be more interested in hearing about air quality equipment or other add-ons. “I often saw customers go from the most basic system to the best one to suit their long-term comfort and energy efficiency needs,” notes Sharyn.
For Sharyn, offering financing took her annual sales from $1.5 million to $3 million. And her average ticket price ballooned to nearly $16,000.
Higher Approval Rating
Upgrade has higher approval ratings than other financing companies. If your financing partner is able to approve even one more submission out of 10 — that’s a significant increase in your revenue. More approvals mean more satisfied customers and more money in your pocket.
Segment Your Customers
Payment buyers are looking for the cheapest possible monthly payment. They may be young families with lots of expenses (e.g., college tuition and car payments) and little to no savings. These buyers can’t take on large monthly payments.
Then there are more savvy buyers who are interested in no/no payment plans. (Upgrade offers no/no payment plans as well.) Savvy buyers have the money in the bank to cover their new HVAC system, but they may not want to take it out for a variety of reasons. So they leverage financing plans with no interest. If they’re looking to sell their home within the next year, they may opt for a bridge plan, where they can choose six to 12 months of financing with no interest.
Care About Your Customers
As a contractor, we know you want to be profitable. But you also want to find the best way to serve your customers. If you don't have a tool that offers financing, you can't serve them to the maximum capacity. And you’ll end up losing deals that offering financing could have saved.
Rewards Pro is designed to help you compete in the marketplace effectively and keep your customers happy.