The purpose of this post is to explain one of our most powerful Sales techniques that we have encountered in the Fiberglass Pool business since our beginning. Before I get started let me explain that this model will not work for everyone and for some it will prove to be a very effective way of selling your products. For many years the pool industry standard was to take approx 30 percent down at signing. 3,000 down til completion locks in the project with us unlike many others. The next dish out is when the pool arrives on the truck (usually another 30 percent becomes due, and most contractors wont even take the pool off the trailer without the money in hand). The next handout becomes due when the pool is back filled (usually another 30 percent). The final 10 percent usually becomes due during the deck pour and final clean up. This sort of pecking for money was always hard to do for us and for some reason never made sense to us. For one it made the customer have to be home during every step of the project which is hard for most customers to swallow considering their busy work schedules. Our philosophy is simple. When you take a large percentage of money up front the profits have already been used up before you step foot on the customers property. When you operate in a Zero down atmosphere many things are at your advantage. I know many of you are thinking what if they don’t pay I’m screwed right. Well the answer is wrong. If you do what your supposed to do the way it was supposed to be done they have to pay you. It’s the law. Our last three hundred pool projects were completely installed and up and running without a single penny from the customer. Let me first point out that 99 percent of all our pool projects are full of water and up and running within two days of excavation. We have a very well oiled system in place which is carefully planned out to make each experience successful in its own way. This system might not work for a company that takes two weeks to install a pool. This would mean floating the labor money and pool shell for quite some time before receiving any payment. There are ways around it though to make this system work in your advantage if you do not have the upfront money to make this Zero down approach work for you. For one pay the pool on a credit card if you have to prior to the install. You do have a 30 day grace period on most credit cards before interest starts. Most suppliers usually give you 30 days on purchases and sometimes longer if you need it. So what you are left with is paying for your labor upfront until the job is up and running and maybe a few other odds and ends. I can honestly say the Zero down approach has made us a stronger company as a whole. Here is my top ten reasons zero down can help your struggling company succeed in 2010 and beyond.
- Promotes Sales
- Your probably the only one offering this ridiculous offer (sweet)
- Keeps you motivated knowing 90 percent becomes due after pool is running (2-3 days) 10 percent after concrete
- Rain Delays no problem you don’t have the customers money (They are more understanding because they are still holding their money)
- Talk about remaining focused on task at hand. The pool will be perfect because I need to get paid.
- Zero Down is simply powerful. ( you don’t need the customers money to do the project wow, that’s strong)
- The word of Zero down gets around believe me, I hear it all the time on referrals that we receive
- Pecking for money is simply uncomfortable. Keep it simple
- Zero down will make for some really nice referrals
- Be careful zero down is addictive, stressful, and causes you to worry, but we are pool people, we like these kinds of things right.
