Ask any HVAC contractor, plumber, or remodeling company in Central Oregon what their biggest headaches are. Their answer almost always includes finding good help and getting paid. The first problem is a longer conversation, one worthy of its own blog, but the second one has some practical solutions we can get into now.
Inflation has not just impacted the cost of groceries and gas. A roof replacement in Redmond doesn’t cost what it did five years ago. A full bathroom remodel in Bend, once a $12,000 job, can easily hit $25,000 or $30,000 today. This is driven up by higher material costs, permitting fees, and the general expense of doing business in today’s market. Rising project costs here in Oregon are putting pressure on everyone in the supply chain—from the contractor to the customer.
When your customer needs a new furnace in December and your estimate comes back at $8,500, a lot of things can happen. They could put the charge on a credit card and absorb the high interest rate, hoping for a good Christmas bonus from their boss. They could put you in limbo, calling around to get quotes from other contractors all while living without working heat. Or, they could say yes on the spot—the contractor’s dream! It feels like it never happens anymore, so what insider secret is helping seal the deal? Making the service affordable without lowering your price by offering a reasonable monthly payment option.
The Old Way Isn’t Cutting It Anymore
For years, trade businesses that wanted to offer financing plans had very limited options. Some of us referred customers to their local bank or credit union. Some built informal payment arrangements into their contracts, but that often led to awkward conversations and the risk of not getting paid in full. Those who used tools like ServiceTitan had a better chance of getting paid due to the easy invoice workflows and ability to just whip it out on your iPad right there in their home, but it wasn’t a perfect science.
The result was that most small trade businesses in Central Oregon simply didn’t offer financing options. If a customer couldn’t pay cash or credit card, we’d lose them to a larger national competitor who did offer a financing infrastructure, or we’d end up doing the job six months later when the client could afford it. I grew frustrated with the lack of stability with paying jobs and wondering how my income would differ from month to month.
What the Market Looks Like Now
The buy-now, pay-later space has completely taken over online retail for everything from concerts to clothing. This has expanded aggressively into our world of home services and trades. Several platforms now compete specifically for the attention of contractors and service providers.
Wisetack is designed specifically for the home services industry and offers soft-credit checks for customers, allowing them the freedom to peruse options without hurting their credit score. Jobber, the field service software popular with smaller freelance operations—landscapers, cleaners, and general repairmen—has been expanding its integrations to offer more payment flexibility options for customers.
For contractors doing their homework on which platforms to prioritize, it helps to understand how the major financing companies stack up against each other. There’s a lot to consider—approval rates, user experience and ease, and integration with the software you already use. Even two seemingly-similar options like Klarna and Affirm have subtle differences worth investigating in your quest to understand the buy-now, pay-later world.
For smaller trade companies, having easy, lightweight solutions to suggest to customers can make a real difference in the speediness of earning that paycheck.
Central Oregon’s Role
Central Oregon’s construction and trades sector are not operating in a vacuum. Our well-documented growth as a region reflects our success in attracting new residents, second homeowners, and commercial developers. All of these entities need mechanical systems, plumbing, roofing, and renovation work, which is where we come in.
However, with this growth, there’s come a level of competition that feels unfair. National chains with serious marketing budgets and built-in financing options have infiltrated this arena. For a resident in the middle of a busy move, choosing a familiar brand name might feel like the easier choice instead of taking a chance on the small mom-and-pop shop.
Something that can help us stand out against the national franchise is CompanyCam, a job documentation and photo-sharing platform growing in popularity for roofing and exterior contracting jobs. If we can demonstrate professionalism and better display our portfolios, we might stand a better chance of earning back those larger jobs from newer residents.
Making Financing Work Without Making It Weird
One of the persistent hesitations among smaller trade businesses is the discomfort of the financing conversation itself. I’ve heard business owners worry about coming off as pushy or aggressive. It’s worth acknowledging that concern but remembering that getting paid is a necessary component of the job. When you’re the boss, you’re the one who has to have the tough or awkward conversations.
Customers who need a $9,000 electrical panel upgrade and can’t pay cash are going to figure something out. The question is whether they figure it out with your business or someone else’s. Presenting a monthly payment option—clearly and calmly, without pressure, and with full transparency—is not predatory or angling for a cash grab. It’s the same thing that appliance stores and car dealerships have been doing for decades.
The platforms that work best for trade businesses are the ones that feel the easiest for the customer to use. Pick the one that’s right for your business, then train front-line staff and technicians in how to discuss it with customers. Present the option once and clearly, then let the customer decide what works best for them. Giving the customer back the control in a situation where they might be feeling powerless—their AC went out, they weren’t expecting this huge plumbing bill, etc.—tends to work best.
It Is Up To You
Central Oregon’s trade businesses have built their reputations on quality work and community relationships. Adding a structured financing option won’t change the product or final outcome. It just removes one more reason for the customer to say “let me think about it” then never call you back.
It is up to you to still provide stellar results. Never let a software platform or app serve as a replacement for excellent customer service. If doing business feels too impersonal, they will feel the draw to just go with the national company anyways. It is up to us to keep ourselves in business.
