Recovery from the Great Recession has been slow and gradual for many industries. Improvement in retail finance sales and profits has been built on increased technology and even better marketing methods. But the most noticeable improvement has been in retail sales, which has bounced back relatively quickly. Auto sales have hit impressive highs during recent years as consumers snapped up cars and trucks to satisfy pent up demand. The same principles apply to many retail industries. Offering smart consumer finance options can greatly increase sales. Just as important, purchases will be much larger when customer financing is available.

What Makes Retail Finance Sales So Important

Take a closer look at the American worker and you can easily see why retail finance is so important to the upturn in retail sales. The vast majority of consumers are living on tight budgets these days. Their discretionary income is far less than it was in the 1990s or even prior to 2008. High housing costs and soaring costs for just about everything else has made it ever more difficult for consumers to make the retail purchases they want. At the same time jobs are paying about the same as they have for years. Make no mistake, people still WANT to buy retail products. They just need a better way to afford them than paying cash or putting the purchase on a credit card.

Growth in the Retail Space is Driven by Financing

Customer finance has been the engine behind growth for many industries. Offer your customers solid financing options gives them a way to easily afford even larger purchases. One example is the music instrument industry. Major sites like Musicians Friend and Sweetwater offer up to $3,000 purchases to be paid monthly with no interest. This gives consumers a way to afford high quality products that would normally require extensive discretionary income. Bringing the monthly payment down to $30 to $100 pulls the price in line with what many consumers can afford. Businesses in every sector are now using customer financing to encourage more purchases and enable far larger buys. The person who can afford $75 per month can now buy several thousand dollars in products. This has caused a profound impact on retail sales across the board. Financing consumers is great business.

Please contact us at Financing Your Way to discuss exciting customer financing options for your business!