Do Plumbers Take Payment Plans?

It’s no secret that plumbing work can get expensive. The average cost of hiring a plumber can be as high as $500, with even basic jobs costing well over $1,000 depending on the extent of work needed.

This is why so many customers wonder, do plumbers take payment plans? If you’re a plumber yourself wondering whether or not it makes sense to offer this type of arrangement for your customers, we’re here to help you weigh the pros and cons.

While there is a bit of work that goes into setting these up, and it can delay your cash flow a bit, we believe the benefits outweigh the drawbacks. After all, plumbers with payment plans earn more business than those who don’t offer them! 

So many of your customers are searching for “plumbers with payment plans near me.” Why not be the company they end up choosing? We’ll show you the best way to set up recurring payments below with InvoiceSherpa, the #1 AR automation software.

In just a few clicks you can have a payment plan scheduled out for any customer. But setting up a plumber payment plan is just the tip of the iceberg - learn more about the accounts receivable automation benefits today!

Do Plumbers Take Payment Plans?

So, why do plumbers take payment plans in some cases - and is this a good idea for your unique operation? Let’s get into the pros and cons below to help you figure out your next steps.

When Does it Make Sense to Offer Customers a Payment Plan?

We probably don’t have to remind you that the price of plumbing jobs can be tough to stomach for some customers. Maybe the high earning potential is what got you into this field of work!

Large-scale projects such as bathroom remodels, extensive pipe installations, or emergency repairs can be expensive, and many clients will be met with an estimate that overwhelms them. This often leads to one of two issues: 

1. They start shopping around to find a cheaper option, foregoing your service.
2. They end up avoiding payment, and you’re stuck in a vicious cycle of sending them reminders hoping they’ll settle their debt.

Either way, letting your customers know from the start that you offer payment plans can alleviate both of these issues, leading to a far better experience for the customer and more consistent cash flow for your business.

Are There Any Drawbacks to Consider?

Just like with lawyer payment plans, there are drawbacks to consider with plumber payment plans. There is still going to be the risk of late or missed payments, which can impact cash flow and create additional administrative burdens.

It’s also worth noting that managing multiple payment plans can complicate bookkeeping, especially if the process is manual. This can be alleviated by automating accounts receivable though, something we’ll discuss later on.

Speaking of which, it’s important to note that just about any risk or complication associated with offering plumbing payment plans can be mitigated through a quality plumbing invoicing software, like InvoiceSherpa. More on that in a moment. 

Plumbers With Payment Plans Earn More Business Than Those Who Don’t Offer Them!

At the end of the day, it’s important for you to remember this: plumbers with payment plans earn more business than those who do not! 

If you choose to forego payment plans as part of your service suite, that’s totally fine. Just know there are plumbers in your area who will offer this, and they will win over customers who would otherwise choose your services.

Customers are more likely to proceed with high-cost projects when they know they can spread the payments over time, which can increase the average job size and overall revenue for the plumber.

Plus, this can lead to great word of mouth. Customers will tell their friends and acquaintances about how they managed to find plumbers with payment plans and what a weight it took off their shoulders. This leads to even more business.

Tips on Setting Up Your Plumber Payment Plan

If you choose to implement a plumber payment plan into your business, you won’t regret it. The question now is, how do plumbers offer payment plans? This requires the use of a billing automation system, like InvoiceSherpa. Here’s an overview of how it works:

• Set Clear Payment Terms: Clearly outline the total cost, payment schedule, due dates, and any interest or invoice late fees. State the consequences of missed payments as well. All of this helps avoid misunderstandings and gets both parties on the same page from the start.
• Assess Client Eligibility: Not every client may be suited for a payment plan. Consider conducting credit checks or assessing the client's payment history with your business to mitigate the risk of non-payment.
• Determine the Down Payment: It’s best practice to require an initial down payment to secure the commitment and reduce financial risk. It should be substantial enough to cover initial costs, such as materials and labor, but manageable for the client.
• Customize Payment Plans: Tailor the payment plan to fit the scope of the project and the client's financial situation. For larger projects, consider offering installment plans that align with project milestones. A shorter payment schedule may be more appropriate for smaller jobs.
• Automate Payment Collection: So, how do plumbers offer payment plants? You’ll need to get set up with an automated invoicing system. These send reminders, process payments on schedule, and update your accounting software, reducing administrative workload and ensuring timely payments.

Setting up payment plans for plumbers is one of the best accounts receivable automation use cases. The only thing left to do now is get started with the best accounts receivable automation software for plumbers, InvoiceSherpa!

Offering Payment Plans is a Breeze for Plumbers Who Use InvoiceSherpa!

Our solution is like having your own full-time accounts receivable employee for just $49 per month. It’s trusted by plumbers across the country because it helps them get paid faster while reducing the administrative burden of accounting processes.

After integrating with your accounting software and payment processors you can facilitate seamless payment plan creation. We support Quickbooks, Xero, Clio, PayPal, Stripe, and many more. Anytime a payment goes through, accounts receivable reconciliation occurs automatically.

But setting up payment plans is just one of the reasons to use InvoiceSherpa. It also automates follow-up overdue invoice reminder emails and texts for other bills you have open. 

You can customize every aspect of the billing process, from the late fee policy to the actual plumber invoice template itself. This creates a cohesive brand experience for your customers.

Our accounts receivable automation solution costs a fraction of what you’d pay for AR management services, and you get to keep control of your financial management without dealing with the hassle of manual AR processes. 

Any plumber wondering how to get invoices paid faster or spend less time managing billing needs InvoiceSherpa. So, streamline your billing processes and effortlessly configure payment plans for your customers today!

Parting Thoughts on Plumber Payment Plans

So, do plumbers take payment plans? Many do, and it’s clear to see why. It can eliminate the issue of customers not paying their bills because it’s too much at once. It can be the difference between securing a contract and losing it to a competitor that does offer a payment plan, too.

With how easy InvoiceSherpa makes setting up plumber payment plans, there’s really no reason not to offer them to your customers. 

They may not always make sense, and it’s still important to vet customers before offering these - but we hope you see now why this is a no-brainer for any plumbing business.

You can find more accounting tips in our blog, like how to find accounts receivable, forecasting accounts receivable, strong demand letter for payment, accounts receivable automation best practices, how to send a bill to collections, unbilled accounts receivable, accounts receivable challenges and how automation can help, what is AR automation software, and more.

It’s time to see for yourself how easy managing payment plans can be with InvoiceSherpa. Start your free trial today and transform your billing for the better!