As the year draws to a close, it’s time for you to start thinking about how your business can grow in 2022. If you’re like most contractors, the pandemic has brought your business a lot of unprecedented challenges in the form of changed consumer behaviour as well as supply chain and logistics issues. These challenges can be difficult to overcome without some serious planning and effort on your part.
However, there are some things you can do before 2022 to get ahead of your competition and make sure your company is prepared for any challenges that may arise. As such, we’ve put together five tips that will help you enjoy growth post-pandemic in 2022.
Tip #1: Closing a sale through financing
When you need to close a sale, flexibility is key. This is why offering customers an easy to use point of sale financing solution can be just the tool you need. Financing allows your customer to move forward with their home renovation project without having to pay the entire sum upfront, potentially leaving them strapped for cash. Meanwhile, other customers may find point of sale financing is a more cost effective way of funding their renovation instead of using a traditional credit card with higher interest rates or the inconvenience of re-mortgaging their home. For many people during these uncertain times, having a low monthly payment may seem far more palatable than one large lump sum payment up front.
Tip #2: Boosting purchasing power
In addition to helping close a sale, point of sale financing can help a contractor upsell their higher-end, higher margin products and services. A recent study found the average sales transaction size increases 15% for companies that offer consumer financing. Thanks to the “good – better – best” strategy. Contractors should think about good (the option the customer comes in the shop to purchase) better (the option the contractor knows the customer needs) and best (the option the contractor knows is best to sell for their business and the customer). Showing a customer how a small increase to their monthly loan payments can help them afford the additional upgrades they desire may be the ideal tactic for contractors to upsell their services. Whether its high-end kitchen cabinets, a luxury whirlpool bathtub or upgraded fixtures, those upgrades all add up to a healthier bottom line.
Tip #3: Throw in a time-sensitive promotion
Offering time-sensitive promotions, such as deferrals, can entice a customer by offering them a payment holiday on their loan term. Many retail stores offer options like, “buy now, pay later” to give consumers increased confidence in their ability to budget for a product or service. This also attracts financially savvy customers who realize the advantage of such a promotion for their household cash flow. There’s no reason contractors can’t use this same sales tactic to increase their revenue and upsell their products and services using a promotion.
Tip #4: Challenges and rewards for your sales team
Few things motivate sales teams like challenges and incentives. Whether it’s through monthly bonuses, year-round contests with a grand prize or a rewards program, keep your salespeople motivated and hungry for the honour and distinction of being a top earner. Through incentives and challenges you can foster a high performance, high reward culture that ensures your sales team is motivated to sell your high-end, higher margin products and services.
Tip #5: Invest in branding your business
Your brand is an important asset to your business, as it can set you apart from the competition. A strong brand is a lasting impression based on your visual identity and customer experience and it is a reflection of your perceived value in the market. Companies with strong brands can charge premium rates and gain market share through word-of-mouth and customer recommendations. You don’t need to be digitally savvy or technical to create professional looking branding items to help your business. There are many websites that help you hire freelancers and digital designers who can create these for you.
Some ways to go about improving your branding are:
- Modernize your logo
- Make a simple, professional looking website
- Have physical documents such as business cards, price sheets, brochures, etc.
- Advertise time-sensitive promotions
Bonus: Find the right partner
To ensure success with applying the previous financing-related tips, it is vital that you work with a financing company that offers simple and easy solutions. Financeit is one of the best reviewed Canadian fin-tech companies, helping over 3,000 home improvement contractors offer a “buy now, pay later” financing program. Financeit allows you to give your customers flexible payment options with open loans, no hidden fees, and transparent payment terms. A fast and simple solution.