7 ways vendor finance can help you KO the business equipment competition
vendor finance knockout If you sell equipment to other businesses – be it machinery, cars, heavy vehicles or computers and furniture for the office – it’s likely you’re always on the lookout for a competitive edge.
Discounting puts you on the defensive
However, when you step into the ring with other vendors to do battle for sales, the last thing you want is for price to be the only weapon up your sleeve.
Offering the lowest price not only means you cut into your own margins, but your customer relationship is never based on loyalty.
In other words, if someone offers a lower price, there’s no logical reason for your customer not to switch corners.
Adding value means everyone wins
The best way to close sales – and keep customers coming back – is to offer something that the competition can’t match. Added value. And one of the most effective ways for any business selling equipment to do this is through vendor financing.
By offering your customer the option to pay agreed amounts over time, they:
- free up their cash flow
- gain tax advantages
- don’t have to worry about equipment becoming obsolete.
This way everyone wins. It’s easier for your client to buy, and therefore, easier for you to close the sale.
Unleash your vendor financing moves
Here are seven ways you can use vendor finance to boost your equipment sales, keep clients cheering – and knock the competition out of the battle:
- Differentiate yourself from your competitors. Do some research, find out what sort of finance benefits other companies are offering. Provide something different, better.
- Offer a monthly payment option to every face-to-face customer and with proposal that you send out to clients.
- Take clients through the payment plan using real figures. Show them how much they’ll pay each month for equipment they can use and make money from straight away ie emphasise the instant ROI.
- Small figures are always more attractive. Break down the cost to a per-user per day number. We see charities and other industries promoting the message ‘for just $2 a day…” very effectively. You can too.
- One vendor finance option may not fit all your customer needs. Make sure you can offer flexible, tailored packages – or work with a finance partner who can help with a quick phone call.
- When a customer signs the credit application form, in their mind they have bought the equipment. Consider it a sale.
- Rather than go directly to a bank or other financier, work with a good broker. They’ll search for the best rates from a wide range of financiers, include add ons and package up a far more flexible package for you.
Remember, vendor finance will never lose you any business – you’re just giving your customers another way to say “Yes!”
If you’d like to find out more about how vendor financing packages can help your business punch above it’s weight, feel free to give the Zenith Finance team a call.