Changes in Consumer Spending
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:
- More than half of Canadians renovated their homes in 2020 with the intention of living there.
- 29% of homeowners who renovated did so to upgrade their homes for non-essential reasons (aesthetic and recreational reasons).
- 16% of renovations were done to increase home value for resale in the next one to three years.
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.
How Will the Holidays be Different in 2021?
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 all 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.
How to Use Financing to Close the Deal
Financing can help you convert more customers and close more deals with the allure 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:
- Improving Affordability: Your customer wants to refinish their basement before the holidays, but the quote comes in higher than planned and they can’t afford it. Pair financing with our 240-month amortization option and they’ll be able to complete their project the way they’d like and can pay it off at their own pace with affordable monthly payments.
- Managing Unexpected Expenses: A homeowner’s furnace needs to be replaced two weeks before Christmas, and they’d rather settle for lower-end equipment than spend more to purchase a high-end product. Pitch the option of financing. They’ll be able to access industry-leading, energy-efficient equipment with affordable monthly payments, $0 upfront, and $0 for installation.
- Making More Manageable Investments: A customer needs their windows replaced, but with other financial obligations around the holidays, they can’t afford to spend any more right now. Use our 3-for-free promotion to offer them three months of no payments and interest—with no dealer fee, it won’t cost you anything either.
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 Business Development Manager for more tips on doing more business around the holidays. We’re always here to help!