Most homeowners know the importance of fixing up their home and replacing certain items when they begin to wear out. But that doesn't mean they are clear on the cost of these changes.
Mike Cheatham, a finance product manager for Texas-based heating and air conditioning company Service Experts, explained to The Air Conditioning, Heating and Refrigeration NEWS that many consumers are taken aback by the price of major home appliances and systems.
"Homeowners may not be budgeting or saving for a new HVAC system."
"Unfortunately, a lot of times when you're only replacing something out of your house every 10-15 years, you kind of lose track of what those things cost," Cheatham said. "Sometimes people are shocked by the prices. That's just what it is."
Additionally, many homeowners don't think about when they'll need to replace their home's essential systems, such as the heating, ventilation and air conditioning. Therefore, they don't start budgeting or saving for the new HVAC system until it's time to get one.
The shock is often enough to turn a consumer away from making a purchase. This is a detriment both to the company that lost the sale and to the homeowner and his or her house. Without updating certain systems, the house can become run-down and uncomfortable for the people living in it.
However, there are methods to ease people into the purchase. Offering financing is an effective tool to help people come to terms with the price of these important home features.
According to Fit Small Business, offering financing can encourage more or bigger sales, and the vast majority of consumers who take advantage of a program like that plan to do it again.
There are many options businesses can take to offer financing to their consumers, but perhaps the most beneficial is to work with a financing company, such as Aqua Finance. Fit Small Business explained there are three important reasons working with a third party can aid a company.
First, the finance company will be able to take the burden of complicated bookkeeping tasks and worries off your mind. It's crucial to know:
The finance company will keep this information in order for you, plus work to create additional programs your customers will love.
Second, when you offer consumers financing, that money needs to come from somewhere. Perhaps you have the funds to pay for the home upgrades your consumers need. But if you tie up your own business's money in your consumers' projects, your cash on hand can get dangerously low. Working with a finance company can help keep your own finances liquid while still providing support to your customers. The company will pay you upfront and handle any issues that come up, while you concentrate on creating jobs for you and your team.
Finally, it's crucial that any business that offers consumer credit or financing is compliant with several laws to protect the consumer. By partnering with a finance company that knows these laws inside and out, you will be reassured that everything is done legally.
To learn more about how financing can help your business improve, reach out to Aqua Finance.