Offering Financing, questions for homeowners and heating guys

GW

I have been a bit old school over the years, I have not been offering any financing for the most part. It seems like the world has shifted into a world of financing. This shift took place a long time ago.

Have any of you heating guys been offering financing, if so can you share your pluses and minuses.

Homeowners, is is gaudy for the contractor to offer this, and if it is not, what is the best way for the subject to be introduced?

I realize people with money (lots of it) still get things financed, they don't want to disturb their little bundle. I can attest to that fact, I bought a motorcycle once, had all cash, then the salesman (well, the owner of the shop) offered me a low rate and I took the deal for about 2/3 of the total sale. I put the non-spent cash back in the bank.

I really don't want to be a used car salesman, my profession has enough lower level dudes making things difficult. I just want the best product in the hands of the end user, and if that means financing I need to know the ins and outs. I am well aware that there are rules and laws regarding security and privacy. My question is more on the best way to discus the topic (or not discuss the topic).

Thanks, Gary

Paul48

On the first visit, leave them with a sales brochure, that outlines the forms of accepted payment. Don't bring it up, until they do.

GW

what if my office lady pops a simple question on the initial incoming phone call 'would you like Gary to bring some financing options when he meets with you?'

Tinman

I have financing options available for both residential and commercial customers but I almost never offer it. If they want it and/or need it, they will invariably ask. It's also featured on our website and social media pages so we're not trying to hide it, of course.

Paul48

Why chance putting someone off. Meet with them, talk with them, hand them a brochure, and say......Here's a little something about the company, and what we have to offer. Never, directly bring money up. Talk about value, and what they are going to get.

GW

Paul48 said:

. Never, directly bring money up.

never bring up money? I'm a bit opposite, if I can't talk about money before it's owed, I certainly will struggle to talk about when it is owed. I like making money a natural conversation item.

I used to be afraid of talking about, i was a bottom tier contractor back then. Things have changed.

Thanks for your comments though

Tinman

I talk about money from the get-go, just not financing.

Paul48

I wasn't saying to "never" discuss money, just the finer nuances of when and how. You can be the best in the world, and if you turn someone off, you won't get the job. Wealthy customers will be the first to slam the door.

GW

ahh good to know, I think I fall in between 'best in the world' and 'turning people off', I am reading the homeowner as much or more than they are reading me.

Mark Eatherton

Gary, we offer financing to our contractor members of the RPA. It is a reasonable price, offers up to $30K for residential applications, and the application can be completed in the home, on line. It comes in handy for people on fixed incomes with little to no resources when they find themselves in a real bind (boiler replacement for example). Call me if you'd like and we can discuss.

I think EVERY contractor should offer some sort of financing, and it's the upper tier of contractors that recognize the potential, and roll the expenses into their pricing so they don't have to eat points, or interest. Your competition is probably offering it, which gives them a huge leg up on you if you are not offering it. Why give business to your competition?

The lower tier are just trying to keep their head above water, and don't have the time or inclination to get involved, and prefer cash over credit.Unfortunately, they occupy about 90% of the business rolls...

ME

SteamedInWharton

I don't remember how it was brought up, but my plumber was able to offer financing on my boiler install through their lender, which was a no-interest if paid off in 6 months deal. There was an extra fee for this. I think the bank advertised this as no fee, but they must have charged a fee to the contractor, who passed the cost on to me.

Definitely took some of the sting out of needing a boiler replacement.

GW

Mark very good, I agree, the top business owners are all over this. I need to get off the pot. The Lennox rep has been bending my ear on this for a while.

Mark Eatherton

The top business owners in the hydronic world are members of the RPA... Just saying :-) We appreciate ALL the support we receive from all of our members.

ME

Tinman

ME - get my email?

GW

Yes Mark, I agree and would agree even more so if you can wiggle your way into the national scene with methods to identify the pros from the goons. I bet you're trying your dangdest. As a question of pure curiosity, how did BPI get some well-established?

Mark Eatherton

ME - get my email?

Got it and responded Steve. Sorry, it was in my junk email box for some odd reason. Thank you for your membership and support.

Mark Eatherton

Yes Mark, I agree and would agree even more so if you can wiggle your way into the national scene with methods to identify the pros from the goons. I bet you're trying your dangdest. As a question of pure curiosity, how did BPI get some well-established?

I can't really answer that question Gary, but having had taken the BPI certification course, (but never took the final exam) I can tell you that they may be experts on air sealing and insulation etc, but their combustion testing standards leave a LOT to be desired. I almost became an instructor for them, hence the reason for my exposure. I suppose it has to do w with supply and demand.

We look forward to your support.

ME

Tinman

Hatterasguy said:

Mark Eatherton said:

I can't really answer that question Gary, but having had taken the BPI certification course, (but never took the final exam) I can tell you that they may be experts on air sealing and insulation etc, but their combustion testing standards leave a LOT to be desired. I almost became an instructor for them, hence the reason for my exposure. I suppose it has to do w with supply and demand.

We look forward to your support.

ME

You and others might appreciate the "quote" feature on the bottom of the post that you're trying to reference.

Instead of copying and pasting the previous post, you simply press the "quote" button below the post and it appears above the box where you type your new post.

Clean and neat.

Mark Eatherton

Mark Eatherton said:

Yes Mark, I agree and would agree even more so if you can wiggle your way into the national scene with methods to identify the pros from the goons. I bet you're trying your dangdest. As a question of pure curiosity, how did BPI get some well-established?

I can't really answer that question Gary, but having had taken the BPI certification course, (but never took the final exam) I can tell you that they may be experts on air sealing and insulation etc, but their combustion testing standards leave a LOT to be desired. I almost became an instructor for them, hence the reason for my exposure. I suppose it has to do w with supply and demand.

We look forward to your support.

ME

I am aware of that feature Hat, and have used it in the past, but here's what happened when I tried to use it just now,and previously... Darned old Macintosh...