In a recent survey:
- 77% of small business owners will choose the equipment sales organization that prominently features a finance option over an organization that does not—regardless of the brand.
- 64% would prefer NOT to use their bank for equipment financing
- 68% of small business owners look for payment over price.
- 83% of small business owners will not negotiate purchase price if the payment fits their budget
- 89% of commercial equipment sales organizations DO NOT lead with a payment.
Intrigued? Concerned? Downright Nervous? Let’s unpack the importance of these facts.
- If you do not offer or prominently feature your existing finance program…you’re losing sales. Customers will choose the alternative without even giving you a chance most of the time. And if you are assuming they’ll just run to the bank and knock out a quick loan…you’re wrong. Most of the time they just run to the competition.
- If you lead with purchase price, you’re missing the need of your customer. They are far more focused on finding an easy, affordable monthly payment than swallowing total purchase price. If you lead with $50,000, you are at a significant sales disadvantage to a competitor that offers $1,200/month.
- Most owners will not aggressively negotiate purchase price if you have offered a payment that fits their budget expectations. By offering a payment, you simplify the sales process and protect precious margins.
- If you are not offering finance or prominently featuring a finance program…you’re not alone. Most of your competition doesn’t either, but this represents an enormous opportunity to differentiate yourself and grow your sales.
If you are staying away from financing or not prominently featuring an existing finance program, opportunity for growth is lost. If a car dealer didn’t offer financing, how many cars would they sell versus the ones that do? 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 capitalize on every sales opportunity contact us today.