Don’t be afraid to bring up financing early in the sales process
Consumer financing can be a sensitive subject to bring up during a sales presentation. The sales representative and the consumer may be reluctant to discuss it, usually for one of two reasons.
Sometimes there is a perceived embarrassment about financing, as if the customer cannot afford a large purchase without it. Then there is the general reluctance to talk about money, primarily because the conversation tends to get more serious when the topic comes up.
In either case, at a sales presentation, the topic of financing often is like the elephant in the room that no one wants to acknowledge.
But rather than ignoring the elephant, sales reps should embrace it fully and discuss it. After all, most home improvements involve financing, through the contractor, the bank, the credit union or elsewhere, so it’s a natural part of the sales process. It helps your customers afford bigger and better projects and allows you to earn the margins you need to maintain a healthy, profitable business.
Early Start
To help overcome any customer resistance, successful sales associates say the subject of financing should be introduced early in the discussion. Treat financing as a viable option for the customer, available if they want it. Financing can make the entire project more affordable and enable the buyer to select preferred upgrades and materials.
Most people underestimate the cost of their project. They base their dream on a number that sounds affordable. When the project estimate or price is more than the number they had in mind, the result is sticker shock – and that can be a deal breaker.
Some contractors respond by trimming features and cutting their margins to close the sale. However, this drains profit and often leaves the customer disappointed with the final product.
Financing is the antidote to sticker shock.
What may seem like a large purchase amount is much less intimidating when the customer considers that the price translates into affordable monthly payments. It ends up equaling a small amount each day, often less than the price of a cup of coffee and a muffin.
Consumer Confidence
When discussing home-improvement products, two factors are at work in the consumer’s mind: comfort and confidence.
They need to have a significant level of comfort with the sales associate. Most people are savvy enough to know that financing is used as the “deal closer”. They may begin to back away from a project if they think they are being “closed”.
To gain the customer’s confidence, you need to establish credibility. One way to help do that is, in addition to providing a good product and standing by it, to provide good financing options that benefit the consumer’s current situation. It shows them that financing will be fair, affordable and will meet their needs.
The bottom line is that you shouldn’t fear bringing up the topic of financing, it can help your sales associates be more effective and empower your customer to get the project to match with their expectations.
https://blc-consulting.com