Offering Efficiency Financing at. the Point of Sale

Transcription

1 Offering Efficiency Financing at MARCH 10, 2015 the Point of Sale

2 Why are you there? High Utility Bills? Homeowner is uncomfortable? You have the solution, but they can t afford the improvements? Look at the house, help them afford it! Sell it with monthly payments!!

3 How does financing help? Low monthly payments eliminates large out of pocket expense for homeowner. Low monthly payments helps Mrs. Smith get project installed. Lower utility costs helps offset monthly payment. Low monthly payment plan helps increase sales closing rate. FINANCING INCREASES SALES AMOUNT. UPSALE OPPORTUNITY!!!

4 How to make it easy Incorporate financing into quoting system. Utilize utility rebates in quote. Use Energy Software Reports Use monthly payment to close sale

5 How to make it easy?

6 Estimated Monthly Payments by Financing Types 36 Month Same as Cash = $ Year Single Measure KHP Power Plus Unsecured 9.9% = $ Year Whole-house or Geo Thermal KHP PowerPlus Unsecured 3.99% = $ Program Financing Benefits Loan Amount = $7,500 Estimated Monthly Payments by Financing Types 36 Month Same as Cash = $ Year Single Measure KHP Power Plus Unsecured 9.9% = $ Year Whole-house or Geo Thermal KHP PowerPlus Unsecured 3.99% = $ Year Whole-house or Geo Thermal KHP PowerPlus Unsecured 6.99% = $ Year KHP Secured PowerSaver or Geo Thermal KHP PowerSaver 6.99% = TBD Loan Amount = $10,000

7 KHP Financing Benefits Value Proposition for contractors No Cost to contractors to offer KHP Financing Contractor can Save 5% Offering KHP Financing vs Other Financing Provider s Products Example $5 Million Annual Financed = $250,000 Savings Long Term Fixed Rates No 36 Month Balance to be Paid Issues for Customers Low Monthly Payments through KHP 50% or more lower monthly payments then 36 month same as cash financing options. Can help consumers afford more EE higher quality equipment Can help quote lower monthly payments than competitors who do not offer KHP Financing helping closing rates

8 KHP Financing Benefits Value Proposition to contractors No Prepayment Penalties Immediate Approvals for KHP Unsecured Power Plus Software to Help Improve Closing Rates with Free Loan Calculator No Blower Door on Single Measure Jobs if Envelop not Affected Easy Access to Utility Rebates KHP Technical Assistance Support No Charge Possible Media Event Opportunity Spring 2014

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10 KHP Program Contact Information Matt Fiscus KHP Consultant Kentucky Housing Corporation Cell:

11 Driving Your Sales of Energy Efficiency Improvements with Monthly Payment Financing UPDATE 04/01/13

12 Your Host and Instructor Ken Yeager Vice President of National Accounts- AFC First Over 20 years of hands-on experience in the HVAC and Home Services industry Managed family s HVAC and Energy company for 10 years Industry operations consultant for 6 years Trains Energy Contractors in effective use of financing to increase sales

13 AFC First A National Leader in Energy Efficiency Lending and Programs Founded in 1947, AFC First s sole business is the management of contractor and sponsor driven energy improvement financing programs nationwide our primary focus since 1999 We pride ourselves in working in an effective and collaborative way to design and administer customer and contractor-friendly loan programs that achieve and surpass the sponsor s objectives both in term of loan volume as well as customer and contractor satisfaction We manage a national network of over 5,000 approved energy efficiency contractors and work with states, municipalities, utilities and equipment manufacturers to promote and develop financing programs

14 AFC First A National Leader in Home Energy Efficiency Lending and Programs We provide loans in all 50 states with flagship programs including: AFC First s National EnergyLoan FHA Power Saver Loan Pennsylvania s Keystone Home Energy Loan Program Connecticut s Solar Leasing Program Kentucky Home Performance Financing Greater Cincinnati Energy Alliance Efficiency Maine s PACE and Power Saver programs Energize Delaware Financing Illinois On-Bill Energy Loan Energize Connecticut On-Bill Heating Loan Hawaii On-Bill Energy Loan

15 AFC First A National Leader in Home Energy Efficiency Lending and Programs Named 2013 Alliance to Save Energy Andromeda Star of Energy Efficiency award winner Named 2013 State and Local Energy Report s Single Family program award winner Selected as one of the national pilot lenders for the U.S. DOE/ HUD Power Saver loan program Designated by the US Department of Energy as the nation s first private, non-utility Home Performance with ENERGY STAR sponsor Appointed exclusive originator/servicer for WHEEL (Warehouse for Energy Efficiency Loans), the national secondary market program endorsed by the U.S. DOE and NASEO Designated as a BPI Testing Center, we operate the Green Energy Training Center & Academy for both class room and on-line Home Performance, BPI and contractor sales training

16 The Numbers Do Not Add Up $3,000 - $7,000 The amount of disposable cash available to the average American Homeowner $8,200 The amount of current debt owed by the same average American Homeowner $?,??? What is the average price for your installations? The result.

17 Which is the Better Deal? Cash $5,000 Monthly out of pocket costs for Homeowner Credit Card (3.99%) $200/mon 0% for 6-12 months $150/mon 4.99% KY Home Perf $53/mon Lower out of Pocket Costs.. ü...allows Homeowner to get a bigger bang for their Dollar ü Allows Homeowner to purchase what they really want..not just what they can afford ü Allows Contractor to sell Better and Best systems rather than good entry level equipment ü Allows Contractor to sell more Options

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21 The Facts About Financing In the current Perfect Storm of Energy Crisis and Credit Contraction, consumers more than ever need simple financing options to make energy improvements 70% of all Home Improvements up to $15,000 are financed in one way or another, 90% of improvements greater than $15,000 are financed Most consumers are motivated by necessity when it comes to energy efficiency (the Reactive consumer who needs to replace a broken furnace) this is 90% of the energy efficiency market and can t be ignored Proactive improvements are growing, but contractor and auditor base most grow faster to support this market Successful programs address both Reactive and Proactive Consumer Energy-efficiency improvements are most often sold, not bought Keep it simple for contractor and consumer the goal is work performed and energy savings, not the number of audits

22 The $Million Dollar Question than $100 Per Month Question Which Do You Think Sounds Better to a Prospective Buyer? That new system is going to run you about $5,000 or. Your Money and Energy Saving investment is just $53 a month with an Special KY Home PerformanceFinancing from AFC First!*