When you look at chain retail stores, those with more than a few locations spread out over different geographies, that sell “big-ticket” goods – jewelry, furniture, etc. – they have something in common you don’t typically think of. Yes, they can have similarities in advertising and marketing, purchasing, sales floor operation, and even online presence. They also can have disparate product offerings, advertising strategies, and business operations.
But, the one thing virtually all successful chain retail stores that sell big-ticket goods do have in common is a focus and strategy on consumer financing. They know consumers desire to pay over time for larger purchases so as not to drain their cash reserves or max out their credit card. Paying over time helps consumers fit large purchases in to their monthly budget. Also, given payments are made over time, a larger monthly payment may be possible, thereby increasing the size of the sale. This is how financing-savvy retail operations increase their overall sales.
Over 50% of consumers now research financing options online before they decide to make a purchase. If your business is not speaking to the consumer with the option to pay over time, it’s likely your business will be overlooked for another that does offer this option.
~ David Weyher