From the Yellow Chair
From the Yellow Chair
Money Talks: Using Financing to Speak Your Customer’s Language
"Why would you not offer financing when it can increase your ticket price by 30% and close over 50% more deals?" This compelling question from Gail, Account Executive at FTL Finance, sets the tone for a conversation that could transform how contractors approach sales in today's market.
Many contractors mistakenly believe financing is only for price-shoppers or worry that discussing payment options makes them sound pushy. The reality? Modern consumers expect financing options for everything from Amazon purchases to groceries – and your HVAC, plumbing, or roofing services should be no different. This expectation is particularly strong among millennials, who focus less on the bottom line price and more on whether purchases fit comfortably into their monthly budgets.
The psychology behind financing is powerful. When homeowners see a $12,000 system price tag, many experience immediate sticker shock. But presenting that same purchase as a manageable $150 monthly payment makes it digestible and accessible. Leading with payment factor – introducing financing options early in sales conversations – creates a better customer experience while driving higher close rates and increasing average tickets.
Ready to leverage financing in your contracting business? Start by partnering with one financing company and offering simple payment options to every customer. Make financing visible in all your marketing materials, and train your team to present it confidently as a valuable service rather than a last-resort option. Bundle additional products and services into financed packages to create complete solutions that benefit both your customers and your bottom line.
Whether you're new to offering financing or looking to optimize your current approach, the message is clear: financing isn't just an option anymore – it's becoming essential for contractors who want to remain competitive and grow their businesses. Connect with FTL Finance to learn how their contractor-friendly programs can help you meet modern consumer expectations while boosting your sales and average ticket size.
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What's up, lemonheads? Welcome to another episode of From the Yellow Chair. I am Crystal and guys, today I am sitting in the little virtual lemonade stand with someone that I love her perspective on financing in the trades. You guys know I come from the industry. I have been a part of sales conversations where I wanted our sales team, our selling technicians, our comfort advisors, to lead with payment factor when it came to selling more equipment. Therefore, we were financing the heck out of some equipment, helping our homeowners, local in our area, really get new systems when they needed them, but also in an affordable way, in an approachable way. So I am a girl with financing on my heart. So today I'm excited to talk about that.
Speaker 1:So I hope you're settled somewhere, driving on a treadmill, doing a walk, whatever you're doing, let's sip some lemonade together, all right. So joining me today in the virtual lemonade stand is my friend, gail. She is an account executive at FTL Finance and she's working directly with contractors every day to help them use financing to close more jobs. You know, boost those average tickets, guys. That's so important. And then, overall, this is what I loved about what she said creating a better buying experience for homeowners. So when we talk about the customer journey in our marketing. This is one of the things that is a big concerning factor for a lot of homeowners that either they have the cash and don't want to get rid of it, or they need financing to support getting a new system or whatever they're needing. So I love this. So welcome to the show, gail.
Speaker 2:Thank you so much. I'm so happy to be here. I'm an avid listener.
Speaker 1:You're a lemon head, you bet I'm a lemon head all the way. Love it, love it. So, gail, I start off with this, with a lot of our guests on from the yellow chair. Why should anyone care about what you have to say? Why should a contractor think that you know about their business?
Speaker 2:Well, first of all, I just I obviously I am not 20 years old and I have a lot of experience, just life in general, and my experience is kind of diverse I worked for State Farm, then I was a nurse and then now I'm at FTL Finance. It's strange, but the commonality in all of that is, I think, listening listening to your customers, you know, for the contractors to listen to their customers and just to build up trust and determine somebody's needs, and I think that my background has really, really helped to support that. But aside from that, FTL is a really different type of company, different than anything anywhere I've ever worked. We are all given very much autonomy over what we do, so we can be the ones saying what works, what doesn't work. I'm out in the field, so I'm hands-on, right, I can take that back and talk to people internally and our executives and all that people internally and our executives and all that and they make decisions, you know, based on what's going on. What do our contractors need? What do the customers need.
Speaker 1:So I love that. So you enjoy like interacting with contractors. You know, you know that's a little burr in my curl, as I say. You know there's a lot of people that want to offer services to contractors, but they don't understand our business. They don't understand how selling air conditioning units or selling generators or selling tankless water heaters and all those things work and how we can help our homeowners, and so I appreciate the fact that you're like in the trenches with contractors and going back and that FTL is responding to what contractors need. I definitely think that's a big deal. So why do you think financing is really a game changer? Like let's kick things off with like that thing, like why is it such a powerful tool for contractors?
Speaker 2:It's an imperative tool for contractors. Personally, I believe that if you're not offering financing, probably shortly it's just your business is either going to stay stagnant or it's going to decline. It's just the way of our world. Consumers expect financing. Today, we finance everything your Amazon purchases, absolutely. You can finance groceries if you want to, which is kind of scary.
Speaker 1:Somewhere Dave Ram rolling over like about to wreck his car.
Speaker 1:But you know, there there's trends in homeowners buying and borrowing and how that impacts their buying decisions. And so you know, I um, I got invited to be a part of a study that was talking about marketing. But part of that study that, as I was preparing for that interview, if you will to be on that a part of that panel one of the things was finance training. It was like something like 41 percent of contractors don't even offer financing and I'm watching some of our clients finance 70, 80 percent of all new install jobs and those companies that offer financing have higher average tickets because they're not just waiting, like because when, when we have to let go of cash out of our pocket as a homeowner, we're then all of a sudden we're not as caring about as many perks because it's it's actual, literal dollars out of our hand. And so I do think that financing can definitely be a tool for driving higher tickets. And listen, you need to just provide the option, right, right, stay out of their pocketbook. Provide the option.
Speaker 2:Absolutely and really. It should not be. This is my view about it. With the pricing changes, with what consumers expect today, it shouldn't just be something you use once in a while. It should be an essential tool in your toolbox that is a daily part of your business. Yeah, every day. Yeah, you should lead with the fact that you finance.
Speaker 1:Oh girl, don't get me started. You know me, I am super passionate. So, listen, payment factor. So when I came back to work for my family's company me and Shay he's my little bestie over there Because he you know why? Because he was over sales and I was over marketing the more he and I got along, the better we could move that ship forward.
Speaker 1:One of the things is I was like, hey, so how do we do this? And I was always aggressively looking for unique ways to position financing offers. So summer cash savings, three months, no payments, right? So could we afford the buy down rate of it? Did it make sense? Were we priced correctly to be able to offer that financing to people? And so it was more about we led with payment factor first, meaning hey, I didn't walk in, or our comfort advisors did not walk in and say do you want this $20,000 system or you want this $15,000 system? It was do you want to pay $199 a month? Do you want to pay $89 a month? $89 a month, you're missing these few perks. $119, whatever those numbers were. And it literally changed the trajectory of how we were presenting and selling.
Speaker 1:And then if someone said you know what I want, I'm happy to. I'd rather pay cash. Fine, but if you always go in as cash, it's hard to get their brain off of that versus showing them how they can easily digest it. One of my favorite quotes is you eat a cookie and an elephant the same way, one bite at a time.
Speaker 1:So when contractors are overwhelmed with this high amount, so let's say you're able to wrap a bunch of stuff in right, a new. You know they needed some insulation, they needed some ductwork repair done, they needed some indoor air quality pieces, and you're able to wrap all of that into a package and then allow them to finance that at an affordable rate. I'm not saying please don't be jacking up stuff like, if you can help it, but you know an affordable interest rate, like they're able to get a lot more and it's their decision, it's their budget, it's their finances, but that's a cool option to put in front of there. So I just wish contractors switched their brain into thinking more about options and less about man. I'm super salesy with this.
Speaker 2:Absolutely, we are the same person because everything you just said 100% the truth and that's what we believe at FTL. And, like I said, customers expect that. But it also it can increase your ticket price by 30%. On average, It'll close over 50% more deals for you. I mean, that's a win-win right there. Why would you not do that? But also, sometimes consumers aren't the best at servicing their units. We all know that.
Speaker 2:So when they're looking for someone. Maybe they know they can't afford it right out of the gate, so they're looking for somebody, you know. Maybe they know they can't afford it right out of the gate, so they're looking for somebody that offers financing right, so that should be advertised anywhere. Your name is your business name, anywhere that is. You should have on there that you offer financing.
Speaker 1:All right. So with that payment factor conversation, you know there's a lot of thoughts around. I want it to feel natural and not pushy, Right, Right. So sometimes contractors shy away really from talking about financing because they don't want to feel like man. Every time I walk into a house I'm trying to sell something that they don't need, when you don't know what they need, you don't know their financial situation at that time, and so it's more about simple language, simple tools and simple presentation. Right, and bring up financing early in the conversation. Do you agree with that? Should we save financing for the end?
Speaker 2:Absolutely not. I think if you're afraid of being and sounding pushy, waiting until the end to bring it up will make you sound salesy and pushy, absolutely. And contractors I try to talk to them and educate them that it's really truly. Financing is a service that you're offering to your customers. It's an extra, it's elevated. Consumers expect it. There's research that shows millennials don't really even look at the bottom line dollar amount of things. They want to know that it fits into their monthly budget. So, like at FTL, one of our fantastic tools is a project estimator. It does a good, better best you know pricing options and highlights the monthly amount. And the thing of it is, I know myself sticker shock can be a nightmare. You know it's one thing to look at $12,000 and another thing to look at $150 a month. That's not overwhelming to me. I can do that. If I'm looking at $12,000, I'm going to like start spiraling. Oh my gosh, I'm do that. If I'm looking at 12,000, I'm going to start spiraling.
Speaker 1:Oh my gosh, I'm out of control. I'm out of control.
Speaker 2:Sometimes Crystal people don't service their units properly and then what they're doing is trying to get a Band-Aid really just do something to get me through the end of the summer. But the contractor knows they really need a new unit or a more efficient unit and financing can help them afford that. It can help them afford. Maybe they really desire IEQ products. You know financing can help them purchase more, purchase a warranty. You know so and you're right. You don't know what the customer needs. You don't know what their cashflow is.
Speaker 1:Right, you just have to stay out of out of their way a little bit and like I think it actually can build trust for them, because they start seeing that you are like, hey, you need this, here's how we can help you. It is like you said, it's more of a resource for them. I will say there are some things that I don't think work. So again, maybe I'm just old, but you know, if you come out of the gate and you're like you know what you need the top line system it's only like you sound like you sell used cars or mattresses no offense to the used cars and the mattress salesmen of the world but you can sound overly pushy when you're like it's for only $89.99. You got to be able to go about this very authentically and very, very empathetically for the homeowner. So, listen, not one soul do I know that is like. You know what I cannot wait to do today Buy a new heating and air conditioning system. I have waited my whole life for this. So they don't. As a matter of fact, they're irritated that they're having to spend any of their money on this. So, whether they're rich or poor, they don't want to spend money on this. They'd rather be in Turks and Caicos or Bora Bora not buying a high efficient. So you're trying to sugarcoat like oh, I'm not saying don't pick out the perks, but what I'm saying is this provides them a solution, and so you really have to make sure that you are working your sales tactics around that. So I definitely think that's a good call out.
Speaker 1:So the other one that I like to talk about is I really think that financing boost close rates and strategic financing. With strategic financing, I'm sorry, so like boosting the ability to close the sale. So you said it while ago, if I see twelve thousand dollars for a new system, I spiral. Okay, almost everyone does, especially like, regardless of what side of the aisle you're on, whether you bleed red or blue, at the end of the day, we're always nervous, okay, we're always nervous about the economy. And do I have? I might have money now, but what if that would be all my money Like? So what do you say to a contractor who thinks that financing is really only for, like, the price shoppers in the market?
Speaker 2:I say basically what you just said we don't know what's going on in a consumer's private financial affairs, I mean, and all you're doing, like you said also, is just providing them an extra option. Also is just providing them an extra option, kind of similar to your elephant and cookie analogy. We say you're just putting a plate of food in front of them. It's up to them how much they're going to eat, and we don't know what they need. But offer every option that you can, because otherwise that sale is going to go to a competitor of yours that is offering everything. Um, and I, I, I do just think that the how the mortgage climate is right now, um, people are locked into good rates. They're reodeling and upgrading rather than moving. It's imperative and, like I said, everything that we spend money on almost offers financing.
Speaker 1:Yes, yes. I'm telling you Amazon purchases.
Speaker 2:Yeah, for sure, for sure.
Speaker 1:Yeah, I'm telling you it's. It's crazy when you think about all of the options that people have right now. And so why should HVAC be any different? Why should plumbing be any different? You know, and what it does is it makes it, it's it's like you said it's easier to digest for contractors or for homeowners. So this is what my advice is to the average, to the average contractor.
Speaker 1:Okay, if you have not started offering financing, what I encourage you to do is partner with one financing company, see what you can work with with them on a simple offer 9.99. I don't know what the average percentages are, and one thing I've learned about finance companies is they don't quote it, because when you actually hear this, it may be differently. So, whatever that financing rate is, get the one that's most affordable to your people, that you can afford the buy down or that has maybe even no dealer fee attached to it, depending on what's promoting. Right then, and just start. Just start offering it and like hey, ms Williams, we're so thankful to be here. It does look like you need a new system. I would like to show you what this looks like on payments every month, and just try. You never know about launching financing until you try.
Speaker 1:Those of you that are offering financing. What I want you to do is get in your head how to make that financing sound cool, because what happens to us is nobody wants to sit there and go crap. Another bill every month, right, but what the homeowner could relate to is man, this is putting three months of no, I don't have a payment for three months and I'm about to take my kids on vacation. This helps me out a lot, or, hey, you know, we are able to stretch this payment out, like don't drain your savings. Like. There are ways that we can creatively articulate our messaging. That makes financing sound a lot better and it is a help to the homeowner.
Speaker 1:But more than anything, guys like start bundling things together so that when they finance it, they're actually getting higher end packages, complete and total packages. So if you're guys only selling a heating and air conditioning system when they are financing like, you're missing out on higher tickets and other options. Water filtration systems, electronic air filters, air cleaners, insulation, duct work you know all types of unique things that you can add in there and you could wrap it all up into one financing option, including even your even your maintenance agreements, and so there's lots of cool opportunities that rely on financing. You can always say, or you can pay cash, add in that, or you can pay cash, add it in there, right? But I just think in today's market, financing is a really cool thing and for some of you like if you look around, that might be a cool differentiator for you is that you are offering financing and so it needs to be presented at the beginning of the relationship, at the beginning of the presentation.
Speaker 1:I think your presentation has to stay on brand and it has to answer the problem that the homeowner is struggling with. So remember, we're all struggling with different things. Do I have hot and cold spots? Do I think my electric bill is too high? Do I know my system makes loud noises when it cycles on and off? Do I know my system's 30 years old? What do you know about that homeowner and how can you curate the message to be around, their conversations, their needs, and so when you are all over the place with your presentation and you're just worried about it's $16,000. Let me get in and out and you're not exploring all of the options for the homeowner, you're missing the boat of providing options. Please switch your way of thinking into being. My job as a comfort advisor or selling technician or a plumber that sells, a project coordinator whatever y'all call yourselves is to provide the homeowner with options so they can be as cool as they want to be.
Speaker 2:Absolutely, and it is as simple as changing. Just saying I accept cash credit and I also offer financing, and you're right about the cost of it. That is a pushback sometimes or a fear of why people don't want to start offering it. But I can't speak to other platforms, but I know FTL has several programs that are absolutely free to the contractor is free. There's no sign up fee or anything. Our wheelhouse, I feel, are the newer people that are just getting started and we will educate you and walk you through how to do this and incorporate it into what you're doing every day. At the end of the day, we want to see you succeed and see your business grow to the potential that it can.
Speaker 2:So do y'all service all industries.
Speaker 1:HVAC, plumbers, roofers, pest control you know that's a great question. I'm going to have to find out. I have a lot of pest control companies that are like I need to offer financing for like their termite processes and bed bug treatments and things like that. So just a cool thing there. So well, gail, thanks for, like you know, chatting it up with me about financing. You did a great job. Gail was like I'm nervous. I'm like girls, everybody's nervous. It's always fun time talking. So I know that Gail and the team at FTL are very passionate about helping contractors. I love to see what they do for them and she hung with me pretty tight here through all the gabbing that I like to do. So any final advice for contractors looking to better leverage financing in their business?
Speaker 2:Just do it. I promise it will help your business thrive. It will grow. We're here to help you, I'm sure. And even if you don't choose FTL, I hope you do. But no matter what company, just choose a company and just offer financing because truly the the consumers expect it, they need it and you're you're like Crystal said before you're, it's a service that you're providing and it's just another option.
Speaker 1:Yes, absolutely Absolutely. Well, Gail, if people want to get in contact with you, how do they do that? What's the best way?
Speaker 2:The best way is you could either look me up on LinkedIn or FTL up on LinkedIn, or you can just go to FTLcom.
Speaker 1:Perfect.
Speaker 2:And in the show notes.
Speaker 1:We'll put some links to how you can reach out to them. So well, if you guys want to learn more about what FTL can do or how Gail can help you specifically, she would love to talk to you and if anything, I call it friends and family talk free, so it's a free conversation to figure out if that's the right fit for you. So ftlfinancecom is a great place to get started and, of course, from the Yellow Chair is brought to you by Lemon Seed Marketing. We are experts in building a strategy and a creative way to build your brand in the market and help you grow your business, and so if you're listening and you're not a client of Lemon Seed, we would love to talk to you. Email us at hello at livingseedmarketingcom, or visit us online.
Speaker 1:We ask a few quick questions just so when I get on a call with you, it is me that you normally talk to. I have a little bit of done, a little bit of research, so I know who I'm talking to. So we would love to talk to anyone who's really interested. You know, I only want people to call me that are ready to grow their business, so that's the only caveat that I have. So thanks for sipping lemonade with Gail and I.