Seasonality plays a significant role in consumer purchases, especially for contracting and home improvement work. HVAC and electrical contracting businesses, water filtration system distributors, plumbers, and other home improvement companies need solutions to overcome slow seasons and increase affordability –– and sales.
Payment plans for these home services make these services affordable and accessible all year round, even during historically slower seasons. Consumer financing keeps cash flow steady, helping you grow your business as you serve your customers. Read on to learn how.
The Financial Impact of Seasonality
Businesses across various industries feel the impact of seasonal slumps. Service-based contracting businesses are especially prone to the pendulum swings of seasonal consumer behavior. Resultant revenue drops lead to significant cash flow issues, making it challenging to cover operational costs. Companies may struggle to retain skilled employees year-round without consistent work and contracts. In the slower months, more businesses compete for a limited number of jobs, forcing them to drive down prices to secure sales. These factors and more can devastate a company’s financial well-being. But the off-season doesn’t have to equate to fewer consultations, lost sales, and a slow-down in income.
Businesses can mitigate seasonal challenges by implementing flexible payment plans, keeping revenue streams steady and customers engaged throughout the year.
Understanding Seasonal Slumps in Home Improvement Services
Each trade within the home improvement industry experiences slow periods due to weather changes, consumer spending habits, and shifting priorities. Below, we break down each industry’s peak seasons, slow seasons, and the challenges that result.
HVAC
Both summer (AC installations and repairs) and winter (heating system maintenance and furnace replacements) are high-volume seasons for HVAC companies. Things slow down in spring and fall when temperatures are mild, and customers feel less impetus to start major HVAC work.
Learn more about our financing for HVAC companies.
Plumbing
Like HVAC businesses, plumbing contractors see a major uptick in service requests in the winter and summer months. Winter brings with it freezing temperatures, causing burst pipes. Summer is often a time for remodeling projects that require a plumber’s expertise. Plumbing emergencies are less common in spring and fall, but water heater issues can crop up anytime. When they do, it’s an emergency.
Learn more about our financing for plumbing companies.
Electrical Work
Spring and summer are the peak seasons for electrical contractors as homeowners invest in renovations and outdoor projects. And with electric car sales increasing, more and more homeowners need level 2 EV charging stations in their garage, but slowdowns can occur after prior to new model releases.
Learn more about our financing for electrical companies.
Water Filtration Systems
Late spring and summer are the busiest seasons for water filtration system companies. As temperatures warm, homeowners focus on improving water quality due to increased usage and more promotions and specials. Fall and winter projects slow down as consumers direct home improvement budgets toward heating and holiday spending.
Learn more about our financing for whole-home water filtration companies.
In these industries, slower seasons see fewer service calls and new unit installations. Lower revenue and increased competition require businesses to compete for fewer jobs, which can lead to staff cuts, fewer hours for technicians, and overall revenue loss that’s hard to recover from when things pick up as seasons –– and consumer behavior and priorities –– shift.
How Payment Plans Help Maintain Year-Round Business
Consumer habits, needs, and desires will always change with the seasons, especially in these industries. However, companies can enhance year-round revenue and maintain business in all seasons with consumer financing. Low monthly payment plans increase access and affordability, helping you serve more customers, provide expert service, and boost sales.
Break Down Financial Barriers
Whether you’re providing water heater replacement, installing whole-home water filtration systems, or replacing a furnace, your customers need payment flexibility. Each home improvement purchase requires a significant financial commitment, and most, if not all, of your customers need an alternative to cash or credit card payment. Monthly payment plans is the solution.
Affordable payment plans break down financial barriers to purchase, allowing customers to afford big-ticket repairs, installations, and upgrades anytime. When your financing partner boasts high approval rates, a simple, online credit application, and a quick credit decision, you attract more customers and streamline the sale without the burden of a cash payment or high-interest credit card.
Increase Close Rates and Upsells
Customers will feel sticker shock over home improvement costs. Providing consumer financing options helps businesses overcome high upfront costs by breaking down large lump-sum payments into smaller, affordable installments. When shoppers see they can reasonably afford their home improvement project, they’re more likely to follow through with the purchase.
Not only do payment plans help increase close rates, but they’re also the ideal tool for increasing upsells. When consumers can afford the premium equipment and service for just dollars more per payment, the decision to upgrade is simple. For example, if a new furnace is installed, a smart thermostat can be added to the purchase increasing the monthly payment by just a couple dollars.
Facilitate Immediate Purchase
Budget constraints often prevent consumers from beginning home repairs or projects, even though these projects might be time-sensitive. For example, homeowners need same-day service when the hot water heater goes out; if the HVAC unit goes out in the dead of summer, repair can’t wait. Customers need avenues for immediate service and payment flexibility that makes it possible.
Payment plans empower customers to proceed with electrical work, HVAC service, water filtration installation, water heater replacement, and more on their timelines. Instead of putting off repair until the issue becomes an emergency, customers can take a proactive approach and have their systems serviced. Better yet, payment plans provide the flexibility they need to upgrade their systems, equipment, and projects. Consumer financing facilitates immediate purchase, maximizing consumer purchasing power and allowing you to start the project as soon as possible, any time of year.
Implementing Consumer Financing for Year-Round Service and Business Growth
Consumer financing provides payment flexibility that serves customers, bringing them to purchase faster. Working with a consumer financing partner like United Consumer Financial Services positions you to increase affordability, accessibility, and sales year-round.
We offer
- Straightforward application and prompt credit decision so your customers can agree right away to move forward with their project
- High approval rates that help you onboard more customers while making your services more accessible
- Simple, stress-free payment options that serve the customer
- A transparent fee structure that contributes to a positive client experience
- Financing expertise that eliminates the burdens of in-house programs.
Financing facilitates purchases while stabilizing cash flow, helping you overcome seasonal slumps and grow your business. Contact our team to learn more today.