SECTOR INSIGHT
50 % of UK locksmiths now offer payment plans to help with the cost of living
• 33 % have been asked about payment plans in recent months .
• Younger tradespeople are more than twice as likely to offer payment plans to customers
» 50 % OF UK LOCKSMITHS NOW allow customers to pay for work in instalments , as a way of helping homeowners afford renovations throughout the cost-of-living crisis .
New research by IronmongeryDirect , the UK ’ s largest supplier of specialist ironmongery , surveyed locksmiths across the nation and found that almost 33 % have been asked about payment plans in recent months .
Across all trades , younger workers are leading the trend and are more than twice as likely to accept staggered payments as the older generations . A third of millennial ( 25-34 ) tradespeople allow instalments ( 33 %), compared to just 14 % of over 55s . Certain trades are also more likely than others to offer such schemes . More than two-thirds ( 67 %) of roofers allow their clients to pay on finance , ahead of bricklayers ( 57 %) and locksmiths ( 50 %).
The UK tradespeople most likely to offer payment plans to customers are :
# Trade % 1 Roofer 67 % 2 Bricklayer 57 % 3 Locksmith 50 % 4 Window Fabricator 40 % 5 Joiner 36 % 6 Builder 35 % 7 Building Surveyor 26 % 8 Electrician 22 % 9 Caretaker / Maintenance 21 % 10 Landscaper 21 % 11 Painter Decorator 18 % 12 Plasterer 15 % 13 Carpenter 15 % 14 Scaffolder 10 % 15 Plumber 9 %
Payment plans offer advantages to both tradespeople and customers – more than a fifth ( 21 %) of workers think they ’ d help attract more business – but precautions need to be taken to ensure financial security .
To help tradespeople who are thinking of allowing staggered payments , IronmongeryDirect has partnered with Rick Smith , managing director at Forbes Burton , to share advice on how to stay protected .
1 ) Financial feasibility : “ Tradespeople should assess the financial viability of offering payment plans and ensure that it won ’ t negatively impact the business ’ cash flow .”
2 ) Legal compliance : “ The payment plan needs to be compliant with all applicable laws and regulations , including consumer protection laws , truth-inlending laws , and debt collection laws , as well as considering if the offering falls under the remit of the Financial Conduct Authority .”
3 ) Terms and conditions : “ Ensure you define the terms and conditions of the payment plan , including the amount to be paid , the payment schedule , the interest rate ( if any ), and any late payment fees .”
4 ) Processing and tracking : “ Establish a system for processing and tracking payments , including a method for
monitoring income , handling delinquent accounts , and reporting to credit bureaus .”
5 ) Collection plans : “ A good debt collection system is crucial . Make sure you can collect what you are owed and understand how to take things to court if necessary .”
Dominick Sandford , Managing Director at IronmongeryDirect , said : “ The cost-ofliving crisis means many Brits are more cautious about big money purchases , and that includes home improvements . As a result , tradespeople are having to adapt to maintain their workflow , and offering payment plans is one way of doing this .
“ However , you should take extreme care if you decide to go down this route , as there is always the danger that you could miss out on the full amount , either due to awkward customers or simply through paperwork errors . That ’ s why we ’ ve partnered with Forbes Burton to create a thorough guide for those considering this option .”
For expert financial advice on customer payment plans , including the benefits and the best ways to protect yourself , visit : https :// www . ironmongerydirect . co . uk / blog / financial-advice-fortradespeople-considering-paymentplans
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