We recently released our 2021 Q3 and Q4 data, revealing some insightful trends on home improvement and financing, plus what we can expect in 2022. Keep reading to find out what the numbers show and how you can use them to your advantage as we kick off the new year.
1. The Impact of Supply Chain Issues on Home Improvement
In Q3/Q4 last year, we saw:
- An increased cost of both goods and services.
- An increased cost of home improvement projects across many verticals.
- The volume of sales remained steady.
- A 10% increase in the overall value of approved loan applications when compared to Q2 of 2021.
For the last several months, the media has been reporting on the supply chain delays that are impacting Canadian residents and businesses. Some of the most significant effects have been felt in the retail and home improvement sectors, as global shipping delays have struggled to catch up to a huge surge in demand.
So, what does this mean for you and your business?
- Although we’ve seen an increase in the cost of goods and services, the demand for home improvement projects is still very much in play.
- Make sure you’ve got your financing solutions in your back pocket to reinforce affordability and help you close more deals at the kitchen table.
Click here to learn more about how to effectively promote financing with your customers.
2. Increasing Investment in Essential Home Upgrades
The Q3/Q4 numbers also shed some light on the continued interest in home improvement investments:
- You may have noticed a slight dip in applications for essential renovations from Q2 to Q3.
- However, rest assured that overall, applications were still up almost 30% from Q1.
This shows that while application volume is still a bit unpredictable, applications are generally trending upward, which indicates a steady investment in essential home renovations and projects, such as HVAC systems, roofing, and windows and doors.
So, Canadians are still motivated to complete necessary upgrades to their homes, even during a pandemic, which means that there is a lot of business to be had in the home improvement industry. But prices of goods are increasing. So, if there was ever a time to have the benefits of financing in your back pocket, it’s now.
3. Prepare for Success in 2022 with EcoHome Financial
Looking at this data from last year, here are a few tips to keep in mind to set your business up for success this year:
- Be Transparent: Set expectations with customers by informing them of delays in supply chains.
- Create Trust: Create a business relationship built on trust and mutual understanding by offering realistic timelines and cost estimates. No one likes surprises, and they’ll be more likely to refer your business to a family or friend once they’ve had a positive experience.
- Be in the Loop: Remain agile and efficient by keeping up with trends in home improvement—the more you know, the better equipped you’ll be to offer the best possible services and financing solutions.
Regardless of where you’re located or the hurdles you tackled last year, 2022 offers a new opportunity to engage with customers by providing the payment options they need to take on a variety of home renovation projects. EcoHome Financial is here to help by continuously working on innovative products you can use to grow your business.
Connect with your Dealer Relationship Manager today to learn more about how we can help you achieve even greater success in 2022.