Manufacturers, dealers and distributors find themselves in a highly competitive market. With margins are under pressure and differentiation a necessity, finding real opportunities for growth are challenging. Most opportunities for growth require injections of capital or significant training to evolve the way you do business. But there is one way grow way without having to learn anything new or tap precious capital reserves: offering a finance program to your customers.
In a recent survey, commercial equipment sales organizations with new finance programs showed:
- An average increase in new quoting activity of 29%
- An average increase in sales of 18% year over year
- An average increase in closing percentage of 64%
62% of all commercial equipment sales come from an existing equipment failure. The small business owner has typically not budgeted for a large cash outlay for new capital equipment, but the need is business and time critical. Rather than a break/fix quote of $10,000 or the replacement cost of $50,000 and the inevitable sticker shock that follows, what if you offered your quote for new equipment, installation and service for as little as $1,200 per month?
$50,000 is scary (especially if you hadn’t planned on it) while $1,200 per month far more manageable. If two competitors are offering similar $50,000ish quotes…who do you think wins…the one with a finance offering quoted as a payment first or the one that doesn’t? And think about the difference in the negotiation process. There is real pressure on a $50,000 cash price for the business owner that may force them to aggressively negotiate the price downward. The $1,200 per month payment finds easier acceptance, protecting margins along the way.
Sounds obvious of course, but increasing affordability and leading with a payment is a concept many equipment sales organizations have yet to fully embrace. Find a provider with strong specialty in your equipment, an easy-fast-transparent finance process and someone that hustles for every opportunity when it comes to financing your sales. No one is uninterested in 15-20% growth, especially when the right partner does all the work for you.
At SLS, we help manufacturers, dealers and vendors with finance programs that grow sales and make things downright uncomplicated. If you would like to discuss how to get your 15-20% contact us today.