Service-based businesses understand the weight of the on-site, in-person sale. Overcoming pricing hesitation can feel impossible. The familiar cycle often repeats itself: reps provide the estimate, the homeowner’s face falls, and the inevitable “let me think about it” is on the way. In just a few seconds, a high lump-sum cost intimidates the buyer and derails the sale.
Providing alternative payment options is essential to onboarding more customers, securing and completing more contracts, and increasing revenue for in-home service jobs. When you partner with a trusted consumer financing firm like United Consumer Financial Services, you arm your business with the tools and resources to close the deal on the spot. Read on to learn more.
The Real Reason Homeowners Stall at Purchase
Capturing in-home sales at the point of sale is crucial. Unlike other purchase environments, there’s no browsing, no comparison tabs open, and sales teams have one shot to close the deal, often with a spouse who isn’t in the room.
The primary objection homeowners raise with in-home service providers isn’t the value of the work but the price tag that comes with it. The sticker shock of a written service quote is often the number one reason homeowners hesitate to commit to their purchase, not because they don’t want or even need the service. Reckoning with the total price upfront forces consumers to evaluate their decision against their liquid savings, not their monthly cash flow.
Breaking down a large lump sum expense into smaller, affordable monthly payments is the solution. Spreading the cost of the project over time empowers homeowners to say yes when they receive the estimate, allowing in-home service businesses to get started on the project right away.
Sticker shock and intimidating prices don’t have to affect your bottom line. Offering financing options helps in-home service businesses close more jobs –– at higher ticket prices –– than traditional payment methods.
How Financing Increases In-Home Service Close Rates and Ticket Sizes: the Data
Overcoming the psychological (and financial) barrier of high pricing is the most challenging aspect of closing in-home sales. Affordable, flexible payment plans address the most significant sources of purchase hesitation. For example, when homeowners see that they can install a whole-home water filtration system today and pay it off over time with low monthly installments that fit within their budgets, saying yes to the system –– and upgrades or add-ons –– is easier to faster to approve.
But financing doesn’t just work in theory. The data shows that in-home service companies increase sales and revenue when financing is a core element of their marketing and sales strategies.
The Air Conditioning Contractors of America (ACCA) recently conducted a survey exploring the business practices, profitability, and operations of 1,000 HVAC companies across the U.S. The findings cemented the impact flexible payment options have on sales, close rates, and the bottom line:
- Consistency adds up: Contractors who offer financing on every single job finance 35 percent of their sales versus just 17 percent who proactively offer financing only for projects of a certain value.
- Financing boosts sales: Close rates increase by 11 percent when financing is offered.
Despite this data, the report found that only 28 percent of contractors surveyed lead the sales conversation with financing options. That means roughly 72 percent of HVAC companies are neglecting an incredible, accessible sales tool and leaving money on the table.
Making financing a standard part of the pitch, introducing options early and often, will help boost quote acceptance, increase ticket sizes, and close more sales.
A numbers recap:
- Seventy-two percent of HVAC contractors don’t offer financing
- Consistently offering financing increases financed sales from 17 percent to 35 percent
- Providing financing options increases project close rates by 11 percent
How Consumer Financing Options Compound Revenue
Homeowners often underestimate the total cost of ownership, which puts pressure on affordability for every in-home contractor and service provider. Consumers can be intimidated by large lump sum payments for home projects, even if they know the project is necessary or will add value to their home. This buyer’s psychology makes financing options an essential component of in-home sales.
Homeowners who are given the option of an affordable monthly payment can see that their new HVAC, roof repair or installation, water treatment system upgrade, EV charging station, etc., can fit nicely into their planned monthly spending. Consumers want payment flexibility, and proactively offering options from the first touchpoint makes every service feel more affordable, even for homeowners on tighter budgets.
This is true for consumers across an array of credit profiles, including those with less-than-ideal credit. Offering consumer financing from a firm with generous approval rates helps expand the market to reach homeowners who might not have considered these products or services.
By leading the sales conversation with the monthly payment, not the price, in-home service businesses can see a greater willingness for homeowners to accept the quote and follow through with their purchase –– and even upgrade to a higher-value, better-quality product or service.
Close More Jobs and Protect Your Margins with UCFS
Many home service contractors underestimate the impact of a solid consumer financing program. Not only can monthly payment plans move the needle on sales and ticket sizes, but they can do so without eating into profits. UCFS offers a wide variety of financing programs, and even programs without a merchant fee. By changing how customers pay, in-home service providers can hit sales targets while providing customers with the quality products and services they need when they need them.
United Consumer Financial Services, a Marmon company, a division of Berkshire Hathaway, has been providing consumer financing services across the U.S. for nearly 50 years. With a mobile-first approach to financing, we offer fast application and approval that allows in-home providers to maintain the momentum of the sale. UCFS returns a credit decision in just minutes, helping contractors get the signatures needed to book and begin more projects.
Stop losing sales because total pricing scares your clients away. Lead with low monthly payments from UCFS to close more jobs and help increase average ticket values. Contact our team today to learn more about how to implement conversion-driving financing for your in-home service business.
