It takes only one number to derail an entire sale.
That number? The upfront cost of a project.
If you’re like most contractors, you’ve often made the mistake of meeting with promising clients, giving them demos, and then quoting a price in the form of one lump sum.
Seeing one lump sum can be scary. It can be shocking. And it can totally derail your bid.
Sticker Shock Can Cost You Sales
Many homeowners, especially first-time homeowners, don’t know how much their project will cost. These clients are vulnerable to sticker shock — the dismay buyers experience if the quoted price is more than the expected price. Sticker shock can cause a client to back out of a deal immediately. This is often a knee-jerk reaction that can cost your business numerous deals and thousands of dollars each year.
Win Back Those Sales With Hearth’s Monthly Payments Calculator
Imagine how reassured your clients will feel when you explain that their new roof will cost only $191 per month instead of $10,000 all at once!*
Eliminate sticker shock and close more deals by breaking down your project cost into affordable monthly payment installments. By spreading the cost out over time, you can make the project more digestible, manageable, and appealing to your clients than if you just presented one sum upfront!
Hearth’s Monthly Payment Calculator quickly and easily calculates payments for you. You just need to enter the estimated total project cost and an estimation of your client’s credit score.
Using that information, we’ll immediately generate a monthly payment estimate. The estimate will include the term (ranging from two to 12 years) and the monthly payment amount.
Work payment plans into your selling cycle
You can enter the relevant information into Hearth’s Monthly Payment Calculator before you even meet with the client. That way, you have that number handy when the two of you do meet.
Bring up this number at the beginning of the selling conversation. Renowned sales trainer Steve Weyl recommends that you say something like, “50% of my customers finance, and the other 50% write a check. What bucket do you fall into?” If they want to finance, you can say, “Let’s talk about your payment comfort zone. Some of my clients are in the $200-$300 per month range, and others are towards the $400-$500 per month range. Help me understand what range we’re looking at.” Your client’s answer can help you present the best payment option.
What if my clients don’t like the number they see and want to change the size or scope of their project? No problem! You can enter the new project cost into the Calculator and generate a new estimated monthly payment amount within minutes.
What if my clients don’t like the number they see and want to postpone or cancel the project? Not a big deal! You’ve brought up the price early enough in the conversation that you didn’t waste time preparing pitches and demos for a client who wasn’t interested after all.
What if my clients like the number they see and want to move forward? Congratulations! You’re one step closer to sealing the deal.
Using Hearth’s Monthly Payment Calculator to reassure your clients can help you close more deals. Rather than losing a client to sticker shock, you can reassure them that they don’t have to pay the total project cost all at once. Instead of worrying about price, they can focus on what’s important: their brand-new project!
*$191 monthly payment is based on a loan principle of $10,000 over 60 months at an APR of 5.34%.
Hearth helps contractors close more sales giving them tools to provide customers with easy, affordable financing options. Check out our financing options and sign up for a demo today!