Equipment Dealers - You're still not quoting a monthly payment?

Mike Duncan - Account Executive, Crest Capital - 11/16/2007

Right now, your competitors are getting sales that you are missing. Why? Because 80% of all equipment buyers use some sort of monthly payment. So it stands to reason companies that offer financing on equipment purchases will get more business.

To give an example, a local heavy equipment dealer offering financing on new and used backhoes, work trucks, and other business use vehicles automatically competes with the big brand-name dealers who have internal financing. That’s a pretty strong sales tool.

In the text that follows, we’ll explore the reasons one would want to offer financing to customers:

Do most of your customers pay cash?
Consider those who don't, or those who can't. Presenting them with choices could open doors for them and increase sales for you. For example, maybe they need additional equipment, but can't spend the cash up front. When you offer financing options, your client's purchasing power is increased and his money works harder and smarter.

Waiting for the customer to ask about payment options?
Don't. Initiate the financial discussion so they don't have to. Customers don't want to be perceived as unable to afford your equipment. You don't want to be perceived as being inexperienced, or worse, unconcerned about their business. Get payment options on the table up front and they will become more comfortable and more focused on your presentation.

Are you bringing up payment options only when you think the prospects can't pay cash?
Making that determination could be costing you money. Offering options to every prospect will make money for you. Differentiate yourself from the majority of your competitors. Many equipment sellers still fail to present financing proposals to their clients. Use the financing option as a simple but effective close: Will you pay cash or may we arrange financing for you?

Do your customers have their own sources for financing?
Offer them an option and give them the opportunity to make a change. Customers are looking for a total business solution and part of what you sell is customer service. Payment options should be included in that service. Your customers will appreciate the one-stop shopping aspect of doing business with you.

Don't lose another buyer to sticker shock.
Follow the proven success model of the automobile dealership. Much of their success results from the financing options they advertise and offer to the buyer. How many cars would they sell if they didn't? In effect, they are selling monthly payments, often easier than asking for the entire price at once. Follow their example and acquire that 80% of the market who will accept your financing proposal.

Reluctant to get involved in the financial aspect of sales?
Don't be. Instead, take control. Build a relationship with a lender who offers simplicity in the application process and promptness in the approval process. You'll avoid the pitfall of giving the client a list of lenders to contact on his own, where he risks being turned down. The end result could be your loss of the sale. When you secure the financing, you maintain control of the sale.

"Helping medium-sized equipment manufacturers &dealers – that (a) are not large enough, or (b) don't want their own financing arm -- compete with companies like Deere, Caterpillar or GE. Crest Capital puts our dealer partners on a similar footing so that they can go out and offer clients not just the product but also the financing."

Want more information? Sign up with our online Vendor Enrollment form and we'll show you the very best method to offer your customers a monthly payment solution.

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