How do you compete with people who are eating deductibles?
What if homeowners have really high deductibles?
Let’s say it’s Texas, Louisiana, or Florida with hurricanes, or maybe they just have higher deductibles in general, and you’re up against contractors who are playing slimy, sleazy, and frankly illegal games.
Now, what if I told you that there are three simple ways for you to help them with their deductible:
- Without having to break the law
- Without doing anything that you shouldn’t do
- Without having to even consider having the conversation about using actual cash value (ACV) payments from things like siding, window wraps, or garage doors
Yeah, it’s WILD — and it WILL help you outcompete your competitors by offering something that most people are not offering.
I’m going to share some things that can truly change the game if you’re selling an estate or in a storm environment with:
- Really high deductibles
- ACV policies where homeowners are needing to come out of pocket
Before we get into it, first, I want to say welcome or welcome back. My name is Adam Bensman, The Roof Strategist. Everything I do here is designed to help you and your team smash your income goals and give every customer an amazing experience.
And if you like these videos and want more, join me inside my FREE roofing sales training center. There’s ZERO catch. Just click that link to get access right now.
Now, let’s get started.
Background on Deductibles in Roofing Sales
In today’s times, we’re seeing more and more:
- Deductibles going to percentages of home values
- Higher deductible amounts
- Special deductibles for hail, wind, and/or hurricane
- Competitors eating deductibles even though it’s illegal and fraudulent
So, I want to teach you a way that does NOT require using the actual cash value.
After all, let’s say a homeowner gets a wall of siding or even a mailbox. If that homeowner takes those actual cash value payments and just pockets them these items are no longer insured. As silly as it might sound, that window, mailbox, or door warp won’t be insured anymore.
That means if there’s another loss and the insurance company comes out and sees a damaged mailbox (or whatever), those items are no longer insured.
Now, that can be an effective tactic, as long as the homeowner’s educated. Still, it’s not for everyone.
So, the earth-shattering way to do this is using financing, and there are three ways we can use financing to help a homeowner with their deductible — and maybe even put money in their pocket.
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Roofing Sales Deductible Strategy #1: Finance the deductible.
Let’s start with the obvious approach here, which involves financing the deductible. This one’s obvious.
If the homeowner has a $5,000 deductible, we offer financing. That’s common sense.
Now, let’s talk about two less common-sense paths we can take here too (by the way, number three is pretty MIND BLOWING).
Roofing Sales Deductible Strategy #2: Finance the roof.
Now, let’s say this homeowner has a $20,000 loss and a $5,000 deductible.
Instead of having to compete with eating the deductible or contributing to it somehow (which again is fraudulent and illegal), we can offer financing for the roof, explaining it like this:
Hey, Mr. Homeowner, you that $15,000 that you’ll be collecting from the insurance company?
That’s tax-free money that you could keep, and we can get your roof done entirely.
We finance it, and you’ll have a small monthly investment of just about $232.
By the way, I’m pulling these numbers out of a hat, so reference the financing vessels, the financing partner, and the financing packages that you have at your disposal.
The point is that homeowner can:
- Take all of the insurance money.
- Pocket it and use it for WHATEVER they want — They could buy a new car, remodel the kitchen, pay off credit card debt, save for a vacation, or whatever.
So, imagine two roofing sales reps, and one rep offers to:
- Eat that $5,000 deductible.
- Put $15,000 back in your pocket.
Who’s going to win?
You can see the obvious answer here. And, of course, it comes in exchange for that monthly financing investment.
Roofing Sales Deductible Strategy #3: Finance a roof-with-solar combo.
This strategy is a bit more advanced, and it’s not for everybody. This includes adding a solar system to the roof — and believe it or not, that can make the roof even more affordable.
Now, hang with me because I’m going to explain all of this. The reason I’m bringing this up is my partner, Cody, and I co-developed a roof with solar sales system for storm and retail. We’ve been testing this quietly behind the scenes, and we’ve rolled it out with a couple of contractors.
In fact, Cody’s company is using it even as we speak with mind-blowing results.
When we add a solar system to the roof, there’s tremendous value for the homeowner (if you’re interested in the system, click THIS LINK to learn more and book a demo).
Let’s say a homeowner has:
- A $20,000 roof
- A $5,000 deductible
With path #2 (above), which is financing the roof, they will have to pay:
- About $232 bucks a month for their roof payment
- A monthly electric bill — we’ll estimate that at $400 (just for example’s sake)
- A total of about $632 a month for their roof and their electric bill
Now, if they go to a roof with solar combo:
- The homeowner has the option to pocket 100% of that insurance money.
- About $15,000 from the insurance company can go RIGHT into their pocket.
- That homeowner can use that money for whatever they want while getting the roof and solar done with zero money down.
And since they’re adding a solar system to the roof, solar financing vessels become available, and those have much longer terms than roofing financing.
So, instead of a 5- or 10 year-loan for the roof, you’re looking at a 20-, 25-, or 30-year loan on a solar system. Plus, solar still has much lower interest rates than traditional financing vessels for home improvement loans. That can mean:
- A longer-term loan, with terms that are usually twice as long
- Interest rates that can be half as much (or even less in some cases)
- A much lower monthly investment for the homeowner
So, even though they’re financing a larger amount (i.e., a typical $20,000 roof with a $40,000 solar system, turning that $20,000 roof into a $60,000 sale):
- The homeowner is saving money.
- Instead of that $632 monthly bill for the roof and their electricity, they have one bill that’s about $100 lower because they have a longer-term loan and they aren’t paying that $400 electric bill.
- Ultimately, that monthly expense can often go down.
I know it may sound crazy, but with the right solar partner and the right financing vessels:
- You can offer a roof with solar combo that becomes more affordable than just a roof alone.
- You can triple the amount of the sale, turning a $20,000 roof into a $60,000 sale all while putting $15,000 into the homeowner’s pocket.
- The homeowner gets a solar system, increasing their home value, and they’re getting solar at the absolute best time ever, which is to do it with a new roof.
If you’re interested in learning the model for path #3, I’d invite you to check out our roof with solar sales system. It includes my roofing sales system, and it’s not just designed to help you go sell solar.
It’s specifically designed to sell with solar, together at this time of purchase for the homeowner who’s going through the insurance process or who’s on the retail side.
Recap: How to Help with Deductibles without Giving Money
So, there are the three really, really powerful you help homeowners who have high deductibles, ACV policies, or percentage-of-home-value policies.
These strategies, which are a little out of the box, can be extremely effective, and they are to:
- Finance the deductible: This is the Plain Jane way.
- Finance the roof and let them keep the cash: This lets you outcompete the rep who’s doing some slimy stuff.
- Flip them into a roof-with-solar combo: In many scenarios, this can end up being even more cost-effective than financing the roof alone.
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Thanks for joining me, and I look forward to sharing more with you in the next blog.