Purchasing needed equipment for your business can be tough. While improved equipment can cut costs, increase sales and help create a healthier bottom line, strict budgetary constraints make it difficult for business owners, both small and large, to buy or upgrade equipment that will allow their companies to operate more efficiently.
A great way to avoid budgetary objections is to lead with a monthly payment option. It’s simple, if you make your equipment easier to purchase, more people will buy it. Even though it is necessary for their business, owners are often nervous about spending tens of thousands of dollars on equipment, but a monthly payment can be the game changer that makes the purchase more approachable.
However, research is surprising, only nine percent of sales reps lead their sales pitch with a monthly payment option despite the fact that buyers are 48% more likely to choose a less preferred brand if a payment is offered up front, according to SLS Financial Services.
Vendors who do not actively promote a monthly payment option to their prospective buyers at the beginning of the sales process are leaving sales on the table and losing money to their competitors who lead with a payment. According to a 2016 study done by the U.S. Small Business Administration:
- 85% of all companies lease equipment.
- 89% of those companies that lease equipment will lease again in the future.
- 75% of all companies that lease equipment indicate that leasing is their best means for financing equipment purchases.
From these stats, it's evident that offering a payment option is crucial for equipment suppliers to hit/surpass their sales goals and stay competitive.
So, if business owners need to finance their equipment purchases, why don't more salespeople present a payment option to their customers? A study found that 76% of sales reps said they feel "pushy" when talking about a payment despite the fact that salespeople who offer payments up front are 600% more likely to hit their sales budget!
By offering monthly payment options you can actually have more satisfied customers leading to repeat business and hitting your sales goals. Those benefits certainly outweigh the thought that it might be “pushy” to offer a payment option up front. This divide between what sales teams do and what their customers want is costly and needless.
At Univest Capital, Inc., we successfully partner with vendors nationwide across a variety of industries to provide leasing programs for equipment and new technology. Most importantly, we make sure our vendors get reimbursed quickly to keep business moving forward. We understand the sales process so we are able to tailor leasing programs to a vendor’s specific market whether it’s healthcare, energy, manufacturing or municipal financing.
By providing financing you may be able to close more sales, make more money and build better, more prosperous relationships with your customers. Interested in getting started? Call me today at (866)-604-8160 ext. 5022.
Univest Capital, Inc. is a subsidiary of Univest Bank and Trust Co., an Equal Opportunity Lender