Why roofing contractors should consider offering financing

By Corey Mann, Leap. 

Set yourself apart from the crowd and improve your customer relations by incorporating financing into your business processes. 

Homeowners are facing increasingly high costs for day-to-day items such as groceries, which lets larger maintenance things such as roof repairs and replacements get pushed further  onto the back burner. These are necessary investments to keep the home and people within it safe, but the financial reality means that many people will delay it or never begin it. One option that has emerged is the idea of offering financing for families that cannot afford to pay all up front, especially as the number of families in that category increases. 

But there are a lot of considerations on the contractor’s side when it comes to shifting their business practices to include financing. While there are very real concerns, overall financing emerges as a powerful business tool that can enable contractors to close more deals. Here at Leap, we know the ins and outs of financing in the roofing industry and want to help you decide whether it’s something you want to bring into your business.  

Why should roofing companies offer financing? 

When homeowners consider investing in a new roof, they often confront a common dilemma: how to balance the essential need for a well-maintained roof with the financial implications of the project. Many roofing companies have recognized that by offering financing options, they can remove this obstacle and give homeowners the freedom to make decisions based on need and quality, rather than solely on immediate financial constraints.  

For example, roofing companies that offer financing are a step ahead, gaining benefits such as:  

• Establishing trust by addressing cost concerns  
• Expanding customer base and tapping into new markets  
• Gaining a competitive edge in the market  
• Boosting sales and revenue through sheer volume of work  
• Providing flexibility in times of need and economic uncertainty  

One of the most compelling reasons to offer financing is the power of choice it provides homeowners. By presenting financing plans tailored to different budgets, roofing companies demonstrate empathy and flexibility. This builds a stronger rapport with potential customers. Moreover, it transforms the sales process from a mere transaction into a partnership that prioritizes the homeowner’s best interests.  

Addressing cost concerns: The elephant in the room 

It’s no secret that the cost of roofing projects can be a substantial financial commitment for homeowners. In fact, this financial apprehension often becomes a barrier to sealing the deal. Most homeowners are hesitant to take on a significant upfront cost.  

Roofing companies that offer financing can effectively alleviate this concern by breaking down the total cost into manageable payments. By doing so, they position themselves as problem solvers, not roadblocks. Understanding and addressing the primary obstacle that homeowners face will make a world of difference in the sales experience.  

Moreover, the fear of unexpected costs or hidden fees can create skepticism among homeowners. When roofing companies present financing options, they establish trust and transparency. Homeowners can make informed decisions with a clear understanding of the financial terms. This leads to a smoother sales process and a more satisfied customer base.  

Expanding the customer base: Tapping into new markets  

One of the indirect benefits of offering financing is the potential to tap into new markets and demographics. In general, these are customers that may have previously been out of reach.  

Not all homeowners have the same financial capabilities. And by offering financing, roofing companies open their doors to a broader spectrum of customers.  

New homeowners may be eager to invest in home improvement but are constrained by limited upfront funds. By accommodating their financial circumstances, roofing companies can capture a segment of the market that is likely to grow in the coming years.  

Competitive edge: Rising above the competition 

In a competitive roofing industry, differentiation is key. When two roofing companies offer similar services at similar price points, the decision often boils down to the finer details. Offering financing can be a differentiating factor that tilts the scales in favor of one company over another.  

By prominently featuring financing options as part of their sales pitch, roofing companies stand out as forward-thinking and customer centric. This not only attracts new customers, but also fosters customer loyalty.  

When homeowners realize that a roofing company is invested in their satisfaction, both in terms of service quality and financial convenience, they are more likely to return for future exterior needs and recommend the company to friends and family. Furthermore, it can lead to upsells on the current project.  

Boosting sales and revenue: A win-win scenario 

From a business standpoint, the decision to offer financing can yield substantial benefits for roofing companies. While some may worry about the potential cost, the truth is that these costs are often outweighed by the increase in sales and revenue.  

When homeowners are presented with financing options, they become more inclined to proceed with the roofing project. Overall, this increases the volume of jobs secured by the roofing company. And the surge in business not only enhances revenue but also creates a positive cycle. As more jobs are completed, the company’s reputation grows and attracts more customers.  

Navigating economic uncertainties: Flexibility in challenging times  

Economic uncertainties, such as recessions or unexpected financial crises, can significantly impact the roofing industry. A homeowners’ ability to undertake large-scale projects like roof replacements is less likely. During these challenging times, offering financing becomes more than a strategy; it becomes a lifeline for both homeowners and roofing companies.  

Financing provides homeowners with the means to address urgent roofing issues without straining their finances. For roofing companies, it ensures a steady stream of business even when external economic factors might otherwise slow down the industry. This adaptability to changing circumstances highlights the long-term viability of offering financing as an essential tool for roofers.  

Offer financing options with leap 

The question of whether roofing companies should offer financing has evolved from a mere consideration to a fundamental strategic decision. By doing so, you empower homeowners with choice, address their most significant concern – cost – and stand out in a competitive market. The ability to provide financing options expands the customer base, cultivates trust and ultimately boosts sales and revenue.  

That’s why Leap is proud to provide roofing contractors with the industry’s leading point-of-sale software, SalesPro. With SalesPro, roofing companies can offer financing directly through the application. In fact, financing and credit checks are just one click away thanks to our partner integrations.  

In addition, the SalesPro software gives your sales team the tools they need to close more jobs and widen your margins. From quick estimates to pricing control and digital contracts, SalesPro will help you provide a more professional sales experience that resonates with homeowners. You no longer have to dig through old product sheets and samples that can cost you time and kill a potential deal.  

In an industry where differentiation and customer satisfaction are paramount, offering financing emerges as a powerful tool for roofing contractors. It not only benefits homeowners, but also enables roofing companies to secure more jobs, build a robust reputation and navigate economic uncertainties.  

Original article source: Leap