When decking company clients think in affordable monthly installments instead of intimidating and impossible lump sum payments, they say yes more often, upsize their projects, and move faster at signing. That shift directly impacts deck builder and deck remodeler margins. Read on to learn how financing options from a partner like United Consumer Financial Services can boost average project sizes, close rates, and the profitability of your decking business.
The Profitability Problem for Deck Contractors
Homeowners feel the strain of present-day economic tensions. Related financial restrictions trickle down to the home improvement industry, including deck contractors. Rising material and labor costs, combined with consumers’ declining disposable income, have led to lost deals and project downgrades for decking companies across the country, leading to significant profit losses. Decking projects often stall before the homeowner ever has the first conversation with their contractor. Here’s why:
- Homeowners Self-Limit Their Budgets: When lump-sum cash payments are the only option, most homeowners either settle for a smaller decking project or abandon the idea altogether.
- Lump-Sum Sticker Shock: Project price tags that climb into the thousands trigger purchase hesitation, even when the homeowner loves the design.
- Postponed Timelines: Without payment flexibility, homeowners often postpone their decking projects until they can save enough to pay upfront. This approach frustrates clients, and they often lose interest. All the while, decking contractors miss out on securing new customers and contracts.
Decking company business owners must understand that many of their profitability issues are actually revenue problems in disguise. Contractors aren’t necessarily charging too much; they’re simply not closing enough project deals. Business owners need viable solutions that increase affordability and their profitability. Consumer financing is the answer.
How Financing Boosts Deck Contractor Profits
Offering consumer financing options directly correlates with increasing deck builder margins and, ultimately, deck construction contractor financial success. By breaking down a high lump-sum cost into affordable monthly payments, you not only make decking projects more accessible to more homeowners but also boost your margins and profits –– even as you increase affordability. Here’s how:
- Financing Increases the Average Value of Decking Projects: Decking companies can consistently see higher average order values when financing is a natural part of their marketing and sales strategies. Homeowners are much more likely to approve upgrades when they’re paying in low monthly installments rather than a single large lump sum.
- Deck Project Financing Improves Close Rates: Introducing financing early and frequently during conversations and posted on your website to highlight payment options, removes the largest friction point in the sales process: perceived lack of affordability. Fast application and approval keep the deal moving forward, reducing the rate that homeowners back out of their project or abandon your proposals or quotes. Deck contractors who offer financing differentiate themselves from their competition and close more deals than businesses that only offer cash or card payment options. Helping homeowners to understand they can make their purchase decision right away, and pay off their purchase over time is essential to closing more sales.
- Payment Plans Impact Deck Company Cash Flow: Financing options help deck contractors maintain a more consistent sales flow, reducing the feast-or-famine cycle common in service-based businesses. Faster decisions from homeowners can mean a more predictable project pipeline. And when you partner with a proven financing firm like United Consumer Financial Services, you benefit from prompt compensation, which means stronger cash flow and enables you to reinvest in your decking company.
Deck builders can boost their margins by making financing options standard practice. Higher average order values, improved close rates, fewer lost bids, and more confident sales conversations all come when decking companies adopt robust financing options built for both their success and their clients’.
How to Build Financing into Your Decking Sales Process
Presenting decking payment plans early and often is key to consumer adoption, which can significantly affect project sizes and closing rates. Below are a few ways to effectively build financing into your sales strategy so you can serve more customers and close more project deals.
- Introduce financing early and often, positioning payment plans as the first resort, not the last. Help homeowners see that deck project financing is for every consumer and helps them plan the backyard space they’ve been dreaming of –– no cutting corners, no settling for a smaller footprint to fit a restricted budget.
- Present a monthly payment option alongside the total price in every proposal. Your clients need to see that low monthly payments make even the biggest projects affordable.
- Promote same-as-cash payments so homeowners can pay off their purchase in a shorter timeframe, and interest is waived when paid in full in the promotion period. United Consumer Financial Services offers 90-days, 180-days and 12-months same-as-cash promotions.
- Revisit stalled proposals by leading with the financing option in your follow-up. Addressing the elephant in the room with a realistic, affordable solution can help move consumers from “maybe later” to signing on the dotted line.
When decking companies present financing as the first, best choice for paying for a project, homeowners better understand their options and can see just how affordable their deck can be.
What to Look for in a Decking Contractor Financing Partner and Why UCFS is Your Best Choice
Deck contractor profitability hinges on your ability to secure contracts and maximize project values. Integrating consumer financing into your marketing and sales strategy shows your clients they can more easily afford their decking project and empowers your teams to close deals. It’s crucial that your financing partner understands your needs and goals, and those of your customer base, too.
United Consumer Financial Services provides consumer financing programs that help boost conversions and deck builder margins. Here’s how:
- Fast application and approval processes that help your team maintain sales momentum. With UCFS’s mobile-first approach, your customers can apply for deck financing from a phone, tablet or computer from the comfort of their home. We return a credit decision in just minutes, allowing your teams to secure a signed contract and set a date for the project immediately.
- Flexible loan amounts that match real-world financing needs. Contractors can determine payback timelines to boost affordability and accessibility for homeowners with varying levels of credit health.
- Competitive, consistent rates that make financing the easy choice. UCFS prides itself on transparency and consistency, which leads to more realistic expectations for homeowners and better customer experiences with your business.
- Dedicated contractor support, so when you have questions, a seasoned, knowledgeable rep can help.
- Minimal administrative burden because UCFS provides end-to-end loan management. The UCFS portal hosts applications and contracts. Your business is paid within a few days, and then UCFS accepts repayment from the homeowner for the life of the loan, so you can focus on running your business and leading your teams.
At UCFS, we work for your financial success, drawing on nearly 50 years of financing experience. A Marmon company and a division of Berkshire Hathaway, UCFS delivers industry-specific financing programs to help deck contractors achieve real, measurable financial success.
Increase Deck Project Revenue with Consumer Financing from UCFS
Partnering with United Consumer Financial Services to offer deck financing is central to your business’s profitability strategy. Our robust financing program directly impacts three crucial levers: average project size, close rates, and cash flow. Don’t submit another project proposal without conversion-driving financing from UCFS. Get started with us today and maximize your revenue on every project.
