Industry Insights • Industry Trends • 49 minutes

How to Keep Profits High When Customer Spending is Low

June 11, 2024

Episode Overview

Financing is an excellent tool to have in your belt when you’re negotiating a deal with clients in any kind of market condition. 

It takes on greater significance and impact when national consumer confidence is wavering, according to ServiceTitan experts Deanna Kawasaki (Sr. Director of Product, Titan Intelligence) and Chris Hunter (Principal Industry Advisor, ServiceTitan ).

A majority of Americans (especially with moderate to low incomes) are maxed out on their credit cards, Kawasaki notes. That, and higher market prices, have caused customers to become cautious spenders.

“Leading with financing is a great option for these consumers and homeowners,” she says. “They may not want to charge that last $2,000 on a credit card because they might need it for food or for gas.”

If you lead with financing and note that it’s a route many businesses are taking advantage of, then it’s not an embarrassing topic, Kawasaki says. 

“Financing is a huge advantage for both the homeowner and for the business,” she says. “You can preserve your service price and not discount it if you offer financing.”

Hunter says that, when consumer confidence is wavering or a market is stagnant, it’s not necessarily the time for a company’s leadership to take a timeout or retreat to the sidelines.

“Decide this is the time to win,” he says. “Even in a down economy, you don’t have to be stuck looking at those who are winning. This is the time for the leader of a company to decide if you’re going to get beat or if you’re going to win.”

“Focus on the basics,” Hunter says. “Take one day at a time. And go out and execute.” 

Chris Hunter and Deanna Kawasaki recently joined ServiceTitan’s Jackie Aubel on the “Toolbox for the Trades” podcast, which included their thoughts on:

  • [18:33] The Consumer Confidence Index and what it means for you

  • [25:15] Why financing is an advantage for homeowners and businesses

  • [31:23] How to offer multiple options

  • [35:08] How dynamic pricing helps maintain margins

  • [37:53] Being ready to profit during the first heat wave of the summer 

To hear more stories from the trades, subscribe to Toolbox for the Trades on Apple Podcasts, Spotify, Google, or anywhere you get podcasts.

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Toolbox for the Trades is a podcast where top service professionals share the tips, tricks, and tactics they use to succeed in their industry. Hosted by Jackie Aubel, this podcast is brought to you by ServiceTitan—the leading home and commercial field service software.

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