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McC&A |
Why Should a Vendor Offer Financing? |
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Providing your customer with the best product to fit their needs is what the sales process is all about. |
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According to the Deciding
on your product is only half of your customer’s task: They must find a way to procure it.
Providing an access to financing allows non-decision makers an easier presentation
within their firm, and allows decision makers an easier understanding of how
they can have the equipment that they need now. By overseeing this
aspect, you gain control. Once your customer submits a
requisition within their company for funds, or starts to evaluate
obtaining/dedicating funds to a project, it has to be viewed with all other
capital requirements. The request might:
The decision might be made to solicit bids for similar products; a process that not only could lose your sale, but also compromise what’s in the customer’s best interest. Rarely are the people who really understand the intricacies of your equipment the same people who have the final say; at very least others will affect the final outcome. The buyer might take a competitor’s product – not because it is better, but because the competitor made the product obtainable by offering financing. This is why the customer must be made aware that you can help them with financing alternatives, especially in a potentially unstable economy. How? Among the number of reasons to offer
leasing/financing, the primary reason is to make placing your equipment with
your customer as easy as possible: They have to agree to afford it, and your
firm has to get paid. This is why many firms offer financing as a "value
added service". You are almost certain to see a lease price adjacent to
quoted prices with many products; just look at the advertising of every major
desktop computer supplier. Each quote that you provide should have a sample
lease payment next to the price quote, even when not asked for, to make
certain that all who see the quote are aware that financing
arrangements can be made. With many manufacturers and vendors, the
availability of financing/leasing arrangements appears on product literature.
Incorporating financing
information into a web site adds to your scope of services and augments the
professional image of your firm. For instance, under a tab for
"Corporate Services and Support" might come items such as:
Under "Financial
Services" your normal "Credit Terms" might be the first
subject, followed by "Equipment Leasing/Financing". This section
can be very simple, a paragraph that describes the scope of the services such
as terms and several types of agreements available, followed by several
bullet points such as:
Follow this with a closing
paragraph letting the customer know who within your
firm to contact for more information. When they contact you, you can let them
know that cost of funds are commensurate with market conditions and the
information we have regarding there qualifications, then offer to supply them
with a standard application by e-mail or fax, to be completed and returned.
This provides you with an additional method of control and monitor of the
customer’s commitment to your equipment. |
McCormick & Associates, Inc./Eastern Equipment Associates
2470 Vintage Drive
Colorado Springs, CO 80920
United States
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