Let’s face it, buyers will think about the impact on their budget before making a big purchase.
As a merchant, one of the best ways to overcome the budget objection is to offer financing or affordable monthly payments. Here are five tips to successfully close the deal with retail financing:
Focus on the monthly payment.
Price is the number one factor in most buying decisions, and financing programs turn large purchases into affordable monthly payments. Every customer has a monthly budget to work with and pricing, regarding a monthly payment, is a much easier way for consumers to understand how the cost will affect their day-to-day budget. If you have a showroom or sales floor, make sure all price tags display the lowest monthly payment front and center, so customers can see just how affordable financing can be.
Create attractive marketing campaigns.
Attractive financing incentives, like “no payments for six months” or “zero percent interest financing” are proven strategies to increase sales. Customers may be more likely to splurge on an upgrade or larger ticket item when the promotion requires a minimum purchase price. In addition, running a limited time program, such as a holiday special, creates a sense of urgency.
Advertise within your store.
Once you roll out a new financing program, make sure your customers are aware of the opportunity. For example, a poster in your window advertising financing options can catch someone’s eye before they even walk inside. Prominent signage throughout the sales floor, as well as near the point of sale, is also important to boost awareness. In addition to the in-store experience, banners on your website and social media help. With Financing Your Way, you can even allow your customers to get pre-approved through a web portal.
Keep it simple.
Customers and sales associates alike can get overwhelmed with a complicated application process. While any financial agreement like a credit card or loan application has to include key customer information, there are ways to help streamline the process. When you choose Financing Your Way we offer digital tools to limit paperwork.
Train your sales staff.
Sales staff can have a significant impact on the success of your financing program. All sales members should be thoroughly trained on how to position financing to a customer, how your program works, and how to answer your customers’ top questions and concerns. Keep in mind that customers will rarely initiate the topic of financing themselves, so sales staff should be ready to lead the discussion.