You know your customers like to pay-over-time for large purchases, regardless of their credit worthiness. So, you spend time, energy, and money putting into place a consumer financing program. Now, you’re ready to have your customers finance their purchases. There’s only one problem. They have no idea you have consumer financing options!
That financing word is taboo
Talking openly to a stranger about their credit or that financing may be how they pay for something is a sensitive topic one likes to avoid. Many stores treat financing as taboo, only to be discussed if brought up by the customer. Many sales associates find it awkward and sometimes embarrassing to discuss financing purchases with customers. The easy path for most people is not to bring it up and hope they whip out a credit card for the purchase.
Consumer financing isn’t just for those with bad credit
Many retailers and their sales associates feel the reason they have a financing program is for those who don’t have other means to pay for the product/service. To the contrary, there are many reasons why subprime, near-prime, and even prime credit consumers want to finance a large purchase. Here are a just a few of them:
- Wanting to keep plenty of credit available on their credit card for an emergency
- The convenience of fixed monthly payments to fit in to a budget
- The timing of when that amount of money would be available for the purchase
Let the world know!
Consumers are conditioned to and often demand monthly payments. Subscriptions for both products and services are becoming more commonplace. Some retailers are not just listing the price of an item but also the monthly payment (if financed) alongside it. A ring in the jewelry store might be listed for $2,499 or “as low as $69/month”. Here’s an example of what is becoming a popular method of pricing products.
Financing is a need for some and a convenience for others. So, don’t let the fact that you have a way for customers to pay-over-time be a well-kept secret. Shout it out! Put it on every marketing piece and have your sales associates mention financing as a payment option up front with your customers. When consumers use financing for large purchases, they tend to purchase more.
~ David Weyher