It’s a new year … time for resolutions to be made and a great time for change. It’s also a great time to review what is and isn’t working for you when it comes to your consumer financing programs. Here are a few ideas to help you start the new year right!
1. If you are NOT offering financing, you should start.
Customers are used to having financing options available everywhere from big box retailers to furniture stores to their doctor’s office. If you aren’t offering an affordable payment plan, you are missing out on sales. Period. Make it your resolution to sign up with one or two finance companies who will help you figure out how best to incorporate financing into your sales plan for 2013 and beyond.
2. Shake things up a bit.
If you always offer the “same old” promotions or financing programs, maybe throwing a fresh option into your advertising and marketing plan could help you generate more sales. Ask your finance companies for recommendations and you might find something exciting to “shake things up.”
3. Review your pricing – and consider your “secondary” financing plans.
Some dealers are afraid of “discount” financing because they are worried about their margins. Ask your finance company what their average risk discount was in your area or your product for the previous year. Or if you work with a finance company, you could ask what YOUR dealership’s average discount was. The new year is a good time to implement price increases, so if you find that you had an average discount of say 5% overall, you might decide to adjust your pricing for the new year to help you cover some of those fees. You can’t charge discounts to a customer on an individual deal, but you can raise prices overall … you can always give a discount for “cash payments” if you want. But having more of a “buffer” in your profit margin can help you accept more discounted sales and close more deals overall. This will lead to additional referrals, service revenues and a more robust bottom line.
If everything in your financing strategy is working for you, GREAT! But if not, the new year is a great time to make a change. Your finance company should be able to help you with ideas to make 2013 your best year yet!
Foundation Finance Company offers water treatment financing, unsecured home improvement financing, HVAC financing, vacuum financing, retail financing and more. Give us a call at 1-855-241-0024 to learn more about how our programs can help you close more sales.