In response to requests from Plumbing Manufacturers Intl. (PMI) and its members, as well as from other supporters of the U.S....
Offering financing options can make the buying decision easier
Many owners of companies large and small assume that most consumers do not need financing, or believe that if they cannot pay for something outright, they should not have it. Utilizing the power of financing to sell water treatment equipment, however, should be standard for any water treatment business.
In fact, most purchases in the U.S. that exceed $1,000 are financed. Consider the holiday season — many people bought items that cost $1,000 or more, and it is likely that most paid with a credit card rather than cash or check. Whether they intend to pay off the balance of this purchase when their credit card bills are due, or whether they choose to pay off the balance over time is irrelevant. The point is, they did not pay with cash on the day of the transaction.
The Buying Decision
Say you decided that you were going to purchase a new, fancy high-definition TV. You have been putting off this purchase for some time, but you cannot stand it any longer and are ready to dive in. You do all the research and decide which TV is the best. You go forward with the transaction and buy the one you want, paying for it with a credit card.
Let’s say that the TV costs $1,500. If you were required to pay cash the day of the purchase, would you have been able to pull the trigger and make the buying decision? Would you have bought the one you really wanted, or the one that made more economic sense — the one you could afford that day? In most cases, if you had to pay cash, your decision would have been altered in some way, and often it would have deterred the purchase altogether.
In this example, the new TV is something you really wanted, and you could not wait to get it. Maybe you had plans to have the guys over on Sunday for the big game. With all of these positive “I want it” endorphins flowing through your body, you would still alter your purchase plans if you had to pay cash for the TV.
Now, imagine that purchase was a water softener, a conditioner or a reverse osmosis system. Although these items may be highly regarded, they do not stack up to that big, shiny new TV. In many cases, a water treatment system costs even more than a TV. With such a big-ticket purchase, it makes sense to present customers with a sensible, affordable financing option, rather than expecting them to just pony up the money.
Without the option of financing, many consumers will not be able to pull the trigger on a water treatment system without making some alterations or additional consideration — or they may outright decline to purchase one. By changing the way you present purchasing options — including lending — you likely will find yourself enjoying a much higher rate of sales success.
Offer Up the Options
This is Sales 101, and it is really quite simple. By removing or reducing the financial burden on the day the consumer makes the buying decision, you can see your closing rates soar while also seeing the dollar value of your sales increase. If presented with the options, a consumer is much more likely to say yes. Consider offering one full year of no payments, a finance plan that allows them to make payments over time with no interest charges, or a plan that provides low affordable monthly payments that they can easily fit into their budget.
Make 2013 a success by promoting a financing option with every sale. To make it easy on yourself, pick one or two lending options and explain them in simple terms to each and every prospect to whom you present a water treatment solution.
There is a saying I have heard from many successful business people through the years: Keep It Simple Stupid, also known as the “K.I.S.S. Method.” In this case, make the buying decision an easy one by alleviating immediate affordability concerns. Put the consumer at ease about the most difficult part of the decision by erasing the burden of paying today and you will be amazed by the results.