If you are like the typical American, you are probably very familiar with financing. Think about your last major purchase, maybe a work truck or a new set of furniture. Did you pay cash for it? Probably not. In our current economy, 85% of car purchases are financed. The average savings for a median income household is $3,800. More than ever, Americans want to hold on to the money they have, and financing options allow them to do just that! So why aren’t you offering financing for your geothermal jobs? Times are changing, and your HVAC business needs to change with them.
Financing is like the old tool you’ve had in your shed for years, but have never used. It may seem scary to try something new, but if we are going to succeed as an industry, we are going to have to embrace financing. Steve Smith always says that you never lose a job because you offered financing; you only increase your chances of making the sale. So why not give it a try? After all, offering financing is NOT a leading cause of death. To learn more about financing options for geothermal heating and cooling products, check out the attached slide deck from Paul Bony of EGIA.
When you offer financing to your customers, the cycle goes something like this: offer financing, up your close rate, increase margin per job, use increased margin to advertise, advertising = leads, leads are more jobs to offer financing, and the cycle starts again. Are you opposed to better close rates and bigger tickets? Then what are you waiting for!?
Some dealers believe that high-end homeowners would never be interested in financing options, so there’s no reason to set up a program. But even a homeowner who has access to enough money to pay cash for a geo system may not want to actually do it. No one wants to give you everything they have and go back down to zero–people like to have a safety net in case something else comes up. And because money has never been this cheap, many people are asking about financing options, even if they traditionally wouldn’t have considered it.
To help you get started offering financing to your customers, Enertech has teamed up with the Electric & Gas Industries Association (EGIA). Through this special partnership, Enertech will co-op 50% of membership costs for dealer-direct customers, and 25% for distributor customers. Click here for more information about pricing: https://www.egia.org/downloads/enertech/Enertech_Quick_Application.pdf. With your EGIA membership, you’ll gain access to EGIA’s suite of member benefit programs that are designed to help contractors grow their business and become more profitable.
If you would like to learn more about the GEOSmart Financing Clearinghouse through EGIA, visit www.egia.org/enertech or call 866-797-7343 to speak with a contractor services representative. Your Enertech sales manager may also be able to answer your questions.