“This all seems great, but I’m not sure if we can come up with the cash for this on such short notice.”
As a trade business owner, it’s likely that you’ve heard this response many times over. A potential customer may give you this answer and you’ll probably think “well, that’s it then” and move on to the next deal. What if there was a way to win the business, get paid in full with your margins intact, avoid liability, and keep the customer happy? Enter, payment plans.
What are Payment Plans?
A payment plan option allows consumers to make smaller payments over a longer period of time, which means they may be more likely to purchase items they don’t have enough cash for upfront. Payment plans are often used for large purchases, such as renting a home or buying a car, or even for expensive items like furniture, appliances, or other large purchases where it would take consumers several months to save up an amount that would be sufficient to pay for the item in full.
As businesses grow, financing options become increasingly necessary and attractive to customers. 75% of homeowners check to see if service businesses offer financing options, and for many customers, it’s the deciding factor.
What Are The Benefits Of Offering Payment Plans?
Offering payment plan options allows your business to reach a larger market and expand your customer base as well as your revenue. It can also be a powerful tool when marketing your business and generating word-of-mouth advertising.
There are many different types of financing options to explore, each with its own advantages, which means that choosing the right one for your business is essential to its success.
There are many benefits of offering payment plans to customers, but here are two of the big ones:
Increase Revenue & Gain Customers
As we mentioned before, the goal of using payment plans is to win business that you otherwise wouldn’t have. In general, consumers who would not otherwise be able to make a large purchase due to a lack of funds are much more likely to buy an item if they have the option to make smaller payments over a longer period of time.
By allowing more customers to make expensive purchases through your financing plans, your revenue will skyrocket.
If you choose to work with a financing firm, they’ll pay you the full amount upfront, and then collect incremental payments directly from the customer. Not only does this limit the liability on your end, but it also increases your cash flow immediately.
By offering payment plans you’re giving your customer a service while also being helpful with their financial situation. Once you’ve completed the service, you’ll be leaving your customer and their wallet happy, increasing their positive feelings towards your business and their likelihood to work with you again – thereby increasing your customer retention.
Things To Keep In Mind
In order for these payment plans to be effective, be sure to communicate clearly with your customer about the terms and conditions of your plans, which products and services are eligible, and exactly what their monthly payment will be. You’ll also need to make sure that the customer knows how long they have to pay off their plan, as well as the total cost.
Ease The Sales Process With FieldPulse
With the FieldPulse Wisetack integration, you can embed your payment plans directly into your invoices. By doing this, you’re providing your customers with a quick and easy way to activate their payment plan without having to go through multiple sites to apply. This is also beneficial to your customer because instead of having to go research and find a payment plan with terms that work for them, they can quickly click the sign-up button embedded in your invoice, and get set up right away.
The Bottom Line
Offering payment plans to your customers not only gives them a way to make a purchase they may not have been able to otherwise, but it also creates brand loyalty and increases foot traffic. Customers who feel appreciated by a business that offers payment plan options are more likely to come back and buy from that business again in the future.
With our new partnership with Wisetack, you can offer financing options that can attract customers and increase the scope of work, resulting in more revenue for you. A great option for when funds are tight, your customers can make easy monthly payments while you get paid in full as soon as the job is complete.
Wisetack is integrated directly with FieldPulse so that customers can apply for financing in seconds from the privacy of their own phones. Simply enable Wisetack in your FieldPulse account, and all estimates and invoices between $500-$25,000 will include financing as a payment option.
To learn more about the FieldPulse & Wisetack Integration, book a demo with our team for a one-on-one product walkthrough.