Program will help consumers finance RainSoft water and air purification system installation
Alliance Data Systems Corp. announced its retail services business has signed a new multi-year agreement to provide a marketing-driven, private label credit card program for RainSoft, an international company focused on water and air purification products. This agreement reinforces Alliance Data’s strategic desire to move selectively into the growing $279 billion home improvement vertical, per the U.S. Census Bureau.
Meil promoted to vice president of finance and administration
Edward Meil has been promoted from corporate controller to vice president of finance and administration of Aquion Inc. His position with the company has been expanded to include the corporate human resources function and he will continue to report to Cal Stuart, president and CEO of Aquion.
Does your dealership offer financing? I hope not. That may be a shocking statement coming from the sales manager of a finance company, but allow me to explain.
Pick up your local newspaper or listen to a local radio station—everyone from plumbers to roofers “offers financing.” If you or your staff are using those words when speaking to customers or in advertisements, then you are just one of the pack. Your message lacks focus and becomes meaningless, which could cause customers to drift away, thinking they cannot afford to buy a quality water system for their home.
Improving sales with effective use of financing
In the spring of 2009, Water Quality Products (WQP) talked to Steve Webb, EcoWater VP of dealer sales and marketing, about the current state of financing for independent dealers. WQP Managing Editor Rebecca Wilhelm checked in with Webb to talk about what has changed since their last discussion.
Rebecca Wilhelm: How has the financing issue impacted dealers?
The recession has caused businesses and consumers to tighten their belts, rethink purchases and attempt to negotiate prices at every opportunity. Selling and financing in this environment is difficult, yet savvy dealers are able to grow their sales and even their margins. How do they do it? The following is a compilation of the best business and financing practices by water quality dealers that are not only surviving but thriving.
Analyze Your Business
Ten guidelines for growing your business
Every dealership has an opinion on what is most important in a finance company. Some care only about the interest rate the customer will pay; others worry more about how they will be treated or how quickly their loans will be funded.
By focusing on only one specific aspect of a program, a dealer may be missing out on some great financing opportunities. There is no one-size-fits-all answer to what makes the best finance company. Here is a look at just some of the criteria to consider.
Annual Percentage Rate
Selecting the right finance company for your dealership
It’s been a tough couple of years for the financing industry. Homeowners, once considered the safest borrowers, were defaulting on loans as foreclosures increased. This factor alone has caused finance companies to rethink credit models and underwriting guidelines.
Tips from a finance company’s perspective
Dealers seem to be of two opinions when it comes to consumer finance companies: some can’t live with them and some can’t live without them. While some dealers thrive without offering any financing, most dealerships could benefit from a partnership with a finance company. Because of the tumultuous nature of the financing market over the past two years, it is understandable that some dealers are wary of finance companies.
But as the economy improves and credit starts flowing again, dealers who embrace financing in this new economy can pull ahead of competitors and close more sales.
Building strong finance company relationships