The Early Days EGIA was officially formed by the merger of the - - PowerPoint PPT Presentation

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The Early Days EGIA was officially formed by the merger of the - - PowerPoint PPT Presentation

May 22, 2023 105 likes •486 views

The Early Days EGIA was officially formed by the merger of the Northern California Electrical Bureau and the Gas Appliance Society of California. EGIA s roots date back to the early 1930s Our original job was to get homeowners and

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The Early Days…

EGIA was officially formed by the merger of the Northern California Electrical Bureau and the Gas Appliance Society of California. EGIA’s roots date back to the early 1930’s

Our original job was to get homeowners and businesses to use energy!

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Todays Presentation Will Cover

  • 1. Why is Financing so important to growing my business?
  • 2. The Application Process
  • 3. Options & Rate Sheet Overview
  • 4. How To Enroll In The Program
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4 | www.egia.org

Why is Financing so important to growing my

business?

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The Financing Cycle

Many succes cessful sful contract actor

  • rs

s use payment nt options

  • ns to increas

rease e sales es

Include payment

  • ptions or same as

cash loans in print &

  • nline materials to

drive leads Payment options win more bids & grow your average job size and give you the margin needed to grow your business Offer payment

  • ptions when

presenting the job estimate to every customer, every day

A Proven Strategy to Grow Sales & Profitability

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Financing Statistics

Even the folks with cash out there don’t want to part with it all up front!

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Consumer challenges = Demand for Financing

wall street journal 06.15.11

Big Ticket Hesitations

Over 50% of U.S. consumers find it difficult to spend $2k

  • n a major purchase, pay for repairs

Limited Cash Resources

Over 60% of U.S. HHS live paycheck to paycheck

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American Family Financial Statistics Data

1.

Average American family savings account balance $3,800

2.

Percent of working Americans who are not saving for retirement 40 %

3.

Percent of American families who have no savings at all 25 %

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*Based on an average of EGIA member contractor experiences and industry information. Actual results may vary.

Cash

With Financing Options

Leads 10 12 Sold 3 5 Avg Ticket $16,700 $21,570

(30%larger with financing)

Revenue MTD $50,100 $107,850 Revenue YTD

$601,200 $1,294,200

Impact of Offering Financing On Contractor Businesses

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*Based on an average of EGIA member contractor experiences and industry information. Actual results may vary.

Cash

With Financing Options

Leads 100 120 Sold 30 50 Avg Ticket $16,700 $21,570

(30%larger with financing)

Revenue MTD $501,000 $1,078,500 Revenue YTD

$6,012,000 $12,942,000

Impact of Offering Financing Grows Quickly With Added

Salespeople!

Assumes 10 active salespeople at a similar level of performance

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Top Salesman Statistics Across EGIA Platform

  • 1. Sell between 70-75% of their jobs with

financing.

  • 2. Have a 25-30% higher closing ratio.
  • 3. Have 15-20% larger projects.
  • 4. Sell higher efficiency products.
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Cash Buyers - Those that have the cash and are hesitant

to write that big check. (offer Same as Cash)

Payment Buyers - That need the lowest monthly

payment to pull the trigger. (offer Longer Term payment plans)

Challenged Credit - In this tough economy you cannot

forget the 40% of the applications that can’t be approved by “A” paper lenders.

Different Types of Customers in the Marketplace

Most importantly, financing helps the homeowner

  • vercome cash separation anxiety!
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13 | www.egia.org

Best Practices For Offering Financing

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  • 1. Be Methodical. Every Customer Every Time!

Let The Customer Know it is Available!

  • When You Set The Appointment
  • Before You Do The System Check
  • Before They See The Bid Cost
  • Never prejudge your customer
  • Every customer, every time

me·thod·i·cal məˈThädikəl/adjective

adjective: methodical

  • 1. done according to a systematic or established form
  • f procedure.
"a methodical approach to the

evaluation of computer systems" synonyms:

  • rderly, (well-)ordered, (well-

)organized, (well-)planned, efficient, businesslike, systematic, structured, logical, analytic, disciplined; More

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  • 2. Offer A Low Payment Or No Payments at All For Up to 12 Months
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Promotions drive purchasing behavior Having a varied promotional mix helps you increase the average sale.

*GE Capital Retail Bank 2011 statistics for home improvement industry

$6,804

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  • 3. Get Over Contractor Fees!

Contractor “A” Cash Or Credit Card rd $15,000 quoted price $450 monthly payment

(assumes 3% min payment on credit card)

Contractor “B”

  • $16,200 quoted price

(includes the cost of financing)

  • @ 6.99% APR, 120 months
  • $188 monthly payment

Or 12 Months Same As Cash Or a cash discount today of $15,000 Financing Fees Are In Everything You Buy From Cars to Furniture to Big Screen TV’s.

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Anybody buy a car, furniture, spa, or a big screen TV lately?

18 | www.egia.org

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  • 4. Ask Preliminary Questions
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  • 5. Before They See The Bid Price They Should See A Payment Option

A great way to show net monthly payment after energy savings.

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No Interest / No Payment Options Plan Code# Payment Factor Term 6 Months #AXW234 0% 120 mos. (after promo period) 12 Months #AXW546 0% 120 mos. (after promo period) 4.99% #4995YRW67 1.89% 60 mos. 6.99% #6997YRW29 1.51% 84 mos. 6.99% #69912YRW59 1.02% 144 mos.

  • 6. Have A Clear Plan For Your Sales Staff About Financing
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There Is No Silver Bullet In Financing

Use Multiple Options:

 Same as Cash / No Payment  Long Term, Fixed Payment  Reduced APR  Equal Payment / No Interest  Credit Challenged

That’s Why The WaterFurnace Program Has Multiple Options For You!

  • 7. Become An Expert To Close More Deals
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  • 8. Advertise Financing To Attract Customers and Manage The

Overall Perception Of Affordability

Financing Is Used by Your Competition! Find Local Competition Using It And Get Off The Ball And Offer Financing!

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  • 9. Up Sell Using Payment

Option 1 Good Option 2 Better Option 3 Best

Total: $7,000

Basic change out

Total: $10,500

Base Energy Star Model

Total: $20,000

Geothermal Installation

Monthly: $210

  • Avg. 3% credit card

payment

Monthly: $208

Example after energy bill savings: $168

@ 6.99% For 60 Months

Monthly: $204

Example after energy bill savings: $104

@ 6.99% for 144 Months

Added Bonus 30% tax credit: $6,000

Hypothetical Example

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# 10 Use Financing To Close…Say something like this…

We can install your chosen system it this week for as little as $204.00 /

  • month. And we have 2 great ways you can pay for it…
  • 1. Is a fixed rate installment loan at 6.99% for 144 months with no pre-

payment penalties.

  • 2. Or if you just want some time to pull your money together, we can install

it now and you can have 12 months with no payments and no interest and we can get you approved in just a few minutes and you won’t have to share your financial information with me, just the lender. Which choice do you like?

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26 | www.egia.org

Reading The Rate Sheet

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EnerBank Rate Sheet

  • Unsecured Installment loans to $45,000
  • Down To 640 FICO Score
  • Terms From 5-12 years
  • Fixed APR options starting at 0%-12.90%
  • No interest No payment loans for 6 / 12 / 18 months
  • No interest equal payments options for 12-84 months
  • No pre-payment penalties
  • Paperless application process
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Using The Payment Multiplier

Your Job Cost: $18,500 including labor, materials, etc. Plan 69912YRW46 First add in the dealer fee so you do not hurt margin

  • 1. $18,500 x 9.15% = $1692 + $18,500 = $20,192 (Price you quote to customer)

Second calculate the monthly payment using the payment factor

  • ff the rate sheet
  • 1. $20,192 x 1.02% Payment Factor = $205.95 monthly payment
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29 | www.egia.org

Application Process- The Simplest In The Marketplace

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Totally Paperless…

30 | www.egia.org

APPROVAL

  • 1. Hello I’m contractor # 123
  • 2. My customer is applying for plan #AXW542
  • 3. The contract amount is $20,000.00
  • 4. Hand the phone to the customer
  • 5. Once approved the customer and the dealer are

notified

  • 6. Email or fax your signed contract/work order to the
  • bank. Bank will email or mail Payment Authorization

Form to homeowner.

  • 7. You are done with the approval, NO paperwork!

FUNDING For funding simply have the homeowner follow the link

  • nline to the Payment Authorization Form.

Once signed you will receive payment in 24-72 hours. 50/50 Staged Funding is

  • available. 50% up front, and

50% at job completion.

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31 | www.egia.org

Developing Your Companies Financing Offering

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Plan For Success

  • Get Trained On The Process
  • Pick The Plans That Best Suit You & Your Team
  • Build in Any Contractor Fees
  • Role Play With Your Team Until They Are Comfortable
  • Close More Sales at a Greater Margin!
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33 | www.egia.org

How Do I Get Enrolled?

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Enrollment Is Easy

Just Visit:

WWW.EGIA.ORG/WATERFURNACE

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Marketing Financing Options

For Consumer Facing Tools:

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Contact Information

For Detailed Questions or Enrollment: JEREMY CHANDLER

Director, Contractor Services (916) 480-7339 jchandler@egia.org

www.egia.org/waterfurnace

For General Information or to enroll in the financing program please call :

866-797-7343

Let my team know you are a WaterFurnace dealer