Researching options for finance as part of the purchasing process has become the ‘new normal’ for consumers. The stats below show that more and more customers are reaching a buying decision before they even make contact with a vendor.
This makes the inclusion of a finance offering much more than a nice to have for equipment suppliers. It is an essential value add, especially if your competitors are already offering a solution. Without it, you could be losing leads that you didn’t know about, as your potential customers require finance to facilitate a purchase.
Equipment or Vendor Finance is an excellent enabler for suppliers. It has been shown to increase average transaction values, as customers are much more likely to increase the level of investment when there is an option to spread the cost.
57% of the purchase decision is complete before a customer even calls equipment suppliers.
Over two thirds of buyers wait longer to initiate contact with vendors than they did two years ago because they are doing more research themselves.
More than 50% of buyers consult third- party sources before consulting a company’s sales force.
Research shows that customers choosing to purchase with finance will often spend up to three times the amount of those not purchasing using finance.
When used tactically, finance can provide an excellent selling tool. This allows the creation of high margin ‘bundle’ deals that offer warranty and added services for a fixed monthly fee, demonstrating benefits to both you and your customers and creating an overall more attractive package.
Article was written by Rob Hulse LDF Finance May2016