Consumer financing has reshaped how retailers and shoppers alike approach lending. Financing programs expand access to customers, facilitate immediate purchase for shoppers, and streamline the sales process to boost revenue across myriad industries. According to McKinsey, consumer financing provides more than a third of lending in some emerging markets and up to 80 percent in other retail segments. This is true of the shed and outdoor structure industry. Consumer financing – or monthly payments – increases accessibility and makes shed purchase and installation more affordable to a broader range of consumers.
This article explores the top five reasons your shed installation company should offer consumer financing and how partnering with the right firm will maximize your program and your sales.
Sell and Install More Sheds by Removing Upfront Cost Barriers
Quality sheds are an investment. Consumers want durable materials and solid construction, whether they’re looking for an outdoor shed for additional storage, a detached office or workspace, or a backyard getaway. Long-lasting, aesthetically pleasing sheds typically come with a high price tag. In addition to purchasing the structure itself, shoppers must weigh the value of including assemble in the purchase, assembling the shed themselves or hiring a installer to do it for them.
Many homeowners hesitate to spend the thousands of dollars upfront required to purchase and install a new shed. This kind of big-ticket purchase requires
- Cash payment, which is impossible for many consumers
- A traditional loan, which requires a lengthy, stringent application and approval process
- Charging to a credit card, which often results in astronomical interest that increases the price tag by hundreds or even thousands of dollars
Consumer financing is the ideal payment alternative, removing upfront cost barriers to make sheds and custom builds more accessible immediately. When shoppers see a hefty price tag broken down into low monthly payments, they see just how affordable your products –– and installation –– can be.
Facilitate Shed Upgrades and Installation
Cost is a huge consideration when customers shop for sheds. Limited budgets and a lack of accessible financing options prevent shoppers from buying the models they actually want. Every other factor can meet the shopper’s wants and needs, but if the price tag is out of reach, purchase isn’t possible –– unless the retailer provides an alternative payment option.
Consumer financing empowers your customers to upgrade their shed purchases and choose larger or more customized options. When funding is limited, customers feel forced into settling, which can hamper their experience with your company. However, when you provide financing that spreads a big-ticket cost over several years, shed upgrades become more affordable and accessible.
Payment plans incline shed customers to add upgrades like windows, shelving, or reinforced flooring when they can make affordable payments over time. And the question of how to or whether to pay for installation isn’t a question at all; when customers can have their shed professionally installed for just a handful of dollars more per payment, the choice is easy.
Stay Competitive in a Crowded Market
The shed sales and installation market is growing, and for good reason. Sheds are a simple, financially responsible means of adding functional storage and square footage to a property without the time and money required for a home addition or standalone new construction. With shed demand increasing, retail and installation companies must implement marketing and sales strategies that help them stand out in a saturated market.
Today’s consumers across virtually all of retail expect businesses to offer some type of financing to increase affordability. Partnering with the right consumer financing firm helps shed installation companies stay competitive, especially against most retailers who only accept full payment upfront. An affordable, streamlined payment plan appeals to both price-conscious and premium buyers who want their sheds today without the burden or hassle of an upfront payment or a credit card charge that results in revolving interest rates and increasing debt.
Improve Cash Flow While Managing Risk on Your Terms
Cash flow is the lifeblood of a successful shed installation company. A stream of cash from previous sales and installations funds current projects, covers overhead costs, and gives you the freedom and power to grow your shed retail business.
Offering consumer financing through a company like UCFS is the key to improving cash flow for your shed company. UCFS handles applications, approvals, collections, and repayments, with merchants typically receiving funds in one to two days after the project is complete. This model frees you from juggling in-house payment plans or chasing down missed payments, if your business handles the accounts receivables.
When you partner with UCFS, you also gain the benefit of customized pricing strategies. You can tailor your financing package to align with your goals and risk tolerance, enabling you to onboard more customers, boost sales, and enhance cash flow safely and sustainably.
Build Customer Trust and Loyalty with Shed Sales and Installs
The message from consumers is loud and clear: shoppers need payment flexibility, especially for big-ticket purchases like sheds and shed installation. When it comes to facilitating purchase, payment matters. Offering consumer financing shows you understand and prioritize your customers’ financial needs.
Providing realistic, accessible, affordable payment options communicates the value you place on the consumer. And when your financing program is backed by a firm like United Consumer Financial Services, a Marmon Holdings company, a division of Berkshire Hathaway, your business benefits from reputational spillover: shoppers view your shed business with increased professionalism, trustworthiness, and credibility.
And when consumers have a positive experience thanks to fast, simple financing, they’re more likely to refer friends, leave positive reviews, and, ultimately, help you build long-term success.
Offer Consumer Financing for Your Shed Installation Company with UCFS
More sales, larger projects, an enhanced competitive edge, better cash flow, and improved customer relationships: these are all results of a robust consumer financing program. When your shed retail and installation company partners with United Consumer Financial Services, you reap the benefits of more than 45 years of experience and the resources and backing of a Marmon-Berkshire Hathaway organization. Our industry-specific financing expertise allows us to anticipate your needs, then exceed them, to give you a competitive advantage when it matters most.
In today’s economy, payment flexibility isn’t a nice-to-have; it’s a need-to-have, and your business will benefit from meeting consumer financing needs. Contact our team to learn how becoming a merchant with UCFS will help you sell and install more sheds starting today.
