The holidays can be a challenging time of year for dealers. Home improvements are often the last thing on customers' minds, and many tend to put off decision-making until after the holidays. But you can still close off the year strong!
Consumer spending habits around the holidays have certainly shifted over the past couple of years. Lockdowns and public health measures for most of 2020 meant a significant slump in holiday spending—one-third less than in 2019, to be exact. However, while less was spent on gifts and holiday travel, more money was put toward home improvements:
This home improvement trend continued into 2021. We saw a 30% increase in home renovation applications in the second quarter of 2021 and a 15% increase in applications in August compared to July, as more people continued to invest in home upgrades.
This year, things are expected to be different. Experts are projecting a rise in Canadian spending for the holidays in 2021. Stores, restaurants, and entertainment venues are open again, and capacity restrictions have also eased for gatherings, not to mention the lifting of travel restrictions. Canadian consumers are expected to spend 29% more this year than they did in 2020, with a greater focus on gifts, travel, and entertainment.
If people are going to be doing more holiday spending this year, that may mean less to spend on home improvements and renovations. However, that's where being able to offer financing solutions work to your advantage.
Financing can help you convert more customers and close more deals with the benefit of affordable monthly payments—they can get the home improvements they want now without having to sacrifice their budget (or their holiday spending). Here are a few examples of how financing can help you save a deal this holiday season:
So, what does all this mean? We know the holiday season can be stressful, but our financing options can make home upgrades more accessible and less of a financial burden during a time of year that can already be pricy. With your help, customers will feel safe deciding to go through with a furnace upgrade during the coldest time of the year or complete the renovations they want to make for the perfect holiday reunion with family. Either way, financing will not only add value for your customers, but it'll also help you make this year one for the books.
As always, feel free to reach out to your Dealer Relationship Manager for more tips on doing more business around the holidays. We're always here to help!
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