Finance Home Improvement

Avoid These Mistakes When Selling With Financing

by Brenda | April 6, 2021

Avoid These Mistakes When Selling With Financing

As a small business home improvement contractor, you can make big mistakes when selling with financing and incur significant lost revenue opportunities in the process. If that happens, the value of your hard work and your long-term investment may be reduced. However, you can avoid this frustration if you recognize the most common mistakes home improvement contractors make when selling their projects.

Here are the five common mistakes to avoid when selling to clients:

1.     Not holding an in-depth discussion about money before quoting

Failing to have a conversation about finances before giving a quote is one of the biggest mistakes you can make. Some clients use payment plans while others pay cash; cash buyers significantly differ from payment buyers. When you understand the bracket in which your client falls, you can price your project in a better way.

2.     Failing to understand the amount of money your customers can comfortably pay for the project

Generally, your customers will have an ideal price in mind for the project. However, they will also know the max amount of money they are willing to pay and an idea of what they can afford. All of these factors can influence the final agreed-upon price. Thus, if your client is willing to fund their project, understanding their comfort zone will enable you to give a quotation that will not change. A good starting point is to provide your clients with an average price range in which your other clients fall in for a similar project.

3.     Failing to pre-qualify your client before quoting

If you want to convert your quotes into deals, do not waste your time on individuals who cannot afford your services or products. Pre-qualifying your customers before providing the quote allows you to spend your time on a project that can materialize.

4.     Not knowing the available amount of money meant for the project

You cannot give a realistic quote to a client if you do not know how much they have set aside for the project. Lack of this knowledge might lead you to provide ineffective quotes. Ensure you understand your client’s limit to better tailor the quotation to them.

5.     Engaging with individuals who will not or cannot decide

Many home improvement contractors selling with financing engage with clients who aren’t the decision-maker. To convert your quote into a deal, you need to engage with someone who will contribute to the decision-making process. Understanding who you need to win over to close a deal makes your work easier. During the early phases of the project, you should ask your clients whether someone else should be involved in the decision-making process.

With the tips mentioned above, home improvement contractors can grow their businesses and boost sales. Medallion Bank offers home improvement contractors the financing options their customers need, helping to get more done at a competitive price. To learn more about selling with financing, reach out to Medallion Bank today.

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Holiday Closures

  • New Year’s Day
  • Labor Day
  • Martin Luther King Jr. Day
  • Columbus/Indigenous Peoples’ Day
  • Presidents' Day
  • Veterans Day
  • Memorial Day
  • Thanksgiving
  • Juneteenth
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  • Martin Luther King Jr. Day
  • Presidents' Day
  • Memorial Day
  • Juneteenth
  • Independence Day
  • Labor Day
  • Columbus/Indigenous Peoples’ Day
  • Veterans Day
  • Thanksgiving
  • Christmas Day
  • Day before Thanksgiving,
    Wednesday,
    November 26, 2025
    – Closing at 3:00 MT

    Day after Thanksgiving,
    Friday,
    November 28, 2025
    – Closing at 4:00 MT

    Day before Christmas,
    Wednesday,
    December 24, 2025
    – Closing at 3:00 MT
  • Day After Christmas,
    Friday,
    December 26, 2025
    – Closing at 4:00 MT

    New Year’s Eve
    Wednesday,
    December 31, 2025
    – Closing at 4:00 MT

    Day After New Years,
    Friday,
    January 2, 2026
    – Closing at 4:00 MT

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Holiday Closures

:
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  • Thanksgiving
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  • Christmas
  • Independence Day
  • New Year's Day
  • Memorial Day
  • Independence Day
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