Builder confidence is up in May, signaling a strengthening home construction market, according to the National Association of Home Builders. The National Association of Home Builders/Wells Fargo Housing Market Index, a score released every month for the past 30 years, reached 70 points in May, the second-highest mark since the Great Recession.
"This report shows that builders' optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor," Granger MacDonald, chairman of NAHB and a Texas-based home builder and developer, said in a statement.
As demand for newly built single-family homes increases, contractors will find their summer schedules filled quickly. However, it's essential that business owners prepare for the influx of customers. One way to do this is to partner with a finance company.
A finance company like Aqua Finance can bring several benefits to a business. For example, they can…
Many small-business owners begin their companies with the notion that they'll need to master all business-related tasks. This is far from the truth. In reality, there will likely be a small skill set that you'll excel at, and the rest should be handled by someone else, Entrepreneur pointed out.
"Most entrepreneurs have great talents but many times they think they can do it all," Laura Lee Sparks, the owner of Legal Marketing Maven, told Entrepreneur. "That can really stall the growth of the business. By outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income."
Something like managing accounts is something that many business owners find difficult to learn. Additionally, when compliance laws change, taking on the responsibility of learning how to process billing and collections by the books can become challenging. By partnering with a financing company, you can hand these complicated tasks over to professionals who are well-versed in the world of finance. This way, the company you outsource to will keep track of which customers owe you what, and which collections laws are applicable to your business.
When people come to you with a project they want to accomplish, they usually also have a budget in mind. Many times, their guess is much lower than what their project will actually cost. As such, these sticker-shocked consumers may choose to downgrade their project or put it off altogether. This is where financing comes in.
When you can offer your customers a financing plan that allows them to make affordable monthly payments over time, they're more likely to feel comfortable with the price of their project. In fact, it might encourage them to spring for a higher-quality upgrade or an additional project component.
Any shopper loves a discount or a deal - especially on something they were already going to purchase. Since the coupon was invented by Coca-Cola in 1887, consumers have been on the hunt for the best price for a project or item they need or want. And, research has shown that promotions encourage customers to make an initial transaction, then come back for their next purchase.
According to a survey by BIA/Kelsey, a company that provides small businesses media advice, small business respondents that spent $25,000 or more per year on advertising and promotion expect 31.7 percent of their sales over the following year would be driven by discounts and promotions.
By partnering with a finance company like Aqua Finance, you can offer your customers creative and beneficial discounts and promotions. For example, our same-as-cash promotion, a favorite among our partners' customers, withholds any interest until after the first year. That means that if the customer pays down the project fully in one year, he or she won't need to pay any interest.
To learn about more promotions your customers will love, or other benefits of working with a financing partner, reach out to Aqua Finance.