As we round towards the end of 2024, pool builders and customers may be waiting with bated breath on what’s ahead for the industry. Customers wonder whether they should buy now or later, and builders are trying to juggle how to market their products and services in the wake of economic uncertainty. Carla Barrera, director of business development of elite services at Lyon Financial, offers some insight into what pool builders and consumers should expect in the near future and how that can affect their decisions in this last quarter.
1. What insight do you have into the financing side of the pool industry for Q4 2024?
While a drop of 25 basis points was predicted, the Federal Reserve made a larger move in September with a reduction of 50 basis points, or a half of a percentage point. While we’re happy to see rates going in the right direction, it could be a long time before rates for loans not affected by prime move significantly. Even with a rate reduction of 0.5%, the payment difference is less than $20 per month. We’re encouraging customers not to wait, to take advantage of 2024 pricing, and enjoy the pool now.
2. How can builders adjust their sales strategies to meet the current economic climate?
We recommend that builders be confident in offering financing to customers as a tool to make projects more affordable. We always say: never assume the customer is using their own funds. We know that 59% of customers will pay using methods other than cash and 25% will be using financing options provided by the information in their contracts. Financing is at the top of mind for customers and should be for contractors as well.
3. When every dollar matters, in what ways can builders make customers feel they’re getting a great value?
It’s important that the builders realize that when a customer has a financing option, they can actually afford a lot more than they realize. The customer is a lot more open-minded about spending more money on what they really want.
Builders can provide specialty financing options. That’s a big one to the customers, to have reliable financing partners. They can position themselves as a one-stop shop, having a trusted lender with low fees and excellent customer service, which can convert leads into sales.
4. What tips would you give builders who would like to incorporate financing into their sales pitch?
Again, builders should not assume the customer is using their own funds. Include financing in the sales packages that the customers take home and provide a call to action to the customer. Builders should also add financing information on their sales brochures and websites with links to reputable lending partners.
5. What are some ways builders can promote that they offer financing?
Builders can promote financing in a variety of ways, through word of mouth and digital presence. They have tools they can easily share, for example, they can use the loan calculators from their financing partner. They can add the partner to their website and embed the loan calculator to demonstrate the affordability of a pool through financing.
For more information, visit Lyonfinancial.net.
