Consumer financing can be a sensitive subject in a sales presentation. Both the sales representative and the customer may be reluctant to discuss it, usually for one of two reasons.
Sometimes there is a perceived embarrassment about financing, as if the customer cannot really afford a system without it. Then there is the general reluctance to talk about money. It is fun to talk about the product’s features and benefits, but when the topic of money comes up the conversation tends to get serious. In either case, discussing financing during a sales presentation is often like the elephant in the room that no one wants to acknowledge.
Rather than ignoring the elephant, sales representatives should embrace it. After all, most sales involve financing, so it is both a necessary and natural part of the sales process. It helps your customers afford bigger and better projects, and it helps you earn the margins you need to maintain a healthy, profitable business.
Presenting Finance
Successful sales associates will tell you that financing is so important that it should always be introduced near the beginning of the sales presentation. That way, the customer does not feel as though he or she is being “closed,” and any discomfort with the topic is completely diffused. It also helps change what is considered affordable in the mind of the customer by providing greater buying power.
It is important for sales associates to remember that most potential customers underestimate the cost of the project or products they have in mind. When the project estimate is more than the number they have in mind, the result is sticker shock, and it can be a deal-breaker. Some companies respond by trimming features, selling lesser products and cutting their margin to close the sale. This drains profit and often leaves the customer disappointed in the final product.
Fortunately, financing is the antidote to sticker shock and works best when applied early in the conversation. If the customer is already aware that you offer flexible, affordable financing options, the surprise is greatly reduced when the project price is determined. What may seem like a large purchase amount is much less intimidating when translated and considered in terms of an affordable monthly payment, or when afforded the opportunity to take advantage of 90-day, six- or even 12-month promotional financing.
Comfort & Confidence
When discussing home improvement projects, there are two factors at work in the mind of the consumer. One has to do with comfort, the other with confidence.
It is vital that the customer have a significant level of comfort with the sales associate and his or her company. Consumers usually get very uncomfortable if they think they are being “closed,” and most are savvy enough to know that financing is often used as the deal-closer. They may, therefore, begin backing away from a project when the subject of money comes up. This is simply a fear of commitment.
To help overcome this resistance, sales associates should introduce the subject of financing early in the discussion. Treat financing as a valuable option for customers, something that is available if they want it. Financing can make the entire project more affordable and enable the customer to select preferred upgrades and materials. It helps the customer feel more comfortable and in control, not as though being sold.
Gaining the confidence of the customer is also important in any sales opportunity. Customers want to know who you are and that your company can be trusted with their project. One way to establish credibility is by associating your business with a well-known, trusted finance company.
Customers need to understand that your company provides a great product and stands behind it, and that the financing will be fair and affordable. Associating your company with a reputable, respected lending partner helps you in both areas. Consumers gain confidence when a major national lender chooses to back a local dealer. They know that reputable lenders typically do not partner with unreliable companies. Furthermore, major lenders usually have a high level of brand awareness. If the financing company is well-known and established with a proven track record in the marketplace, this is another confidence builder for the customer.
The bottom line: Do not fear financing—embrace it. Financing can help you be a more effective salesperson by managing the process and margins and empowering consumers to get the products and services they desire.
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