Buy Now Pay Later: Why Financing Solutions Attract More Consumers
If you’re selling services and products, then the most important goal of your business is to actually make those sales. It’s no use if you have well-trained staff with years of experience if they can’t sell anything. Making the sale is your number one priority, and you need to equip your business with the necessary tools to do that.
Understand Your Market
Let’s say your business is in selling gym equipment. Some gym equipment is cheap and can be bought in a lump sum, but many professional-grade machines cost a fortune that few people can afford to pay in one go.
By having multiple price ranges for the merchandise you sell, you can attract more consumers with different sized wallets. However, you don’t want to limit your customers to buying in just their price range. Many people are willing to part with more cash than they expected if it gets them a better product, and they can be convinced by an experienced sales team.
The only way to make a sale to someone who wants an item outside of their price range is to offer financing solutions. By checking their credit history, you can decide if you want to offer a customer the option of buying now and paying later, or in other cases paying in monthly installments. Most financing solutions will generate more profit because of interest rates, but having a no-interest option is equally as important. At the end of the day, you’ll receive the full payment (or more) for an item.
Is It Worth the Hassle?
Offering your consumers full spectrum lending is crucial in growing your business and retaining customers. You don’t want to be seen as a business that only caters towards the wealthy (unless that’s your niche). You want to appear approachable to everyone and attract a wider audience in order to boost sales.
It’s understandable that you might not want to take the risk of offering an item on finance. After all, credit history doesn’t mean that someone won’t run off with the item. It costs a lot of money and time to chase people down, and either way, you won’t receive money for the item until they’re caught. You might also think it takes a significant amount of money to set up financing solutions, but it’s very affordable.
It’s Necessary For Some Businesses
If your business specializes in expensive items such as jewelry or designer clothing, then your products are only accessible to wealthy audiences and it’ll be harder to draw in regular customers. This is a bad move in business because you want to attract as many consumers as you can even if your merchandise is above the spending limit of most people.
Financing makes even the most expensive purchases affordable, and if it means paying interest over a year or two then it makes a pricey item much easier to swallow. Give your customers the option to finance purchases, and they are far more likely to visit your store more often, regardless of if it’s online or a brick and mortar location.
Photo by Hurst Photo | Shutterstock
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