The Psychology of Monthly Payments vs Overall Price
Did you know that 81% of consumers prioritize monthly payment structures over the purchase price when making equipment decisions? Rising prices and economic policy have business owners actively seeking ways to conserve cashflow. Business owners see equipment financing as a way to mitigate risk and keep operating costs low.
Why Leading with Payment Structure Helps Sell More Equipment
Equipment vendors who offer financing will strategically position themselves to capitalize on this trend in buying behavior. Offering flexible payment structures makes equipment more accessible to a broad range of consumers, who may be hesitant to commit to a large upfront investment. It can also result in higher sales volumes, as it lowers the barrier to entry for potential buyers.
3 Strategic Applications for Equipment Sellers
We’re recommending three proven strategies to help you incorporate financing to stay competitive in an increasingly price-conscious market.
Financing Shapes Pricing Perception
Recent industry data shows that 67% of businesses would choose a higher total cost if it meant preserving short-term cash flow. If you're looking to increase your average order value, equipment financing can make high-end equipment more affordable. In turn, buyers begin to consider additional features they wouldn't consider otherwise.
However, if financing is not on the buyer’s radar, it's not in their plans. For example, if you're not promoting financing on your website or on the sales floor, you're not building awareness. By neglecting to promote financing options, you risk losing potential customers who are unable or unwilling to pay the full purchase price upfront.
Try These Ideas to Raise Visibility
Three Payment Options Are Better Than One
Vendors who present three or more payment options close 42% more deals than those offering a single solution. ​ Offering multiple payment options allows customers to select the plan that best fits their financial situation, increasing the likelihood of closing sales. By accommodating diverse financial needs, vendors can appeal to a broader audience, ultimately boosting their market reach and profitability.
Try This Strategy: Show your customers their estimated monthly payment over three different term lengths. Beacon Funding’s monthly payment calculator offers real-time quoting support. It’s easy to show the difference in payments between 36-, 48-, and 60-month terms.
Include Equipment Financing in the Sales Conversation
Equipment vendors that demonstrate financing benefits report 37% shorter closing cycles and increased customer satisfaction. ​ If you're worried that your lack of financing expertise is causing you to miss opportunities, turn to Beacon Funding. Our financing consultants can answer questions and provide the financing guidance your customers need.
Try a Joint Call: Beacon Funding is happy to speak with your clients and recommend payment options that align with their cash flow needs. Give your dedicated financing consultant a call Monday-Friday or send us the details via email over the weekend. With your equipment expertise and our financing experience, your clients will receive superior customer service.
Beacon Funding: Your Dedicated Financing Partner
Since 1990, Beacon Funding has built strategic partnerships with equipment sellers. Our goal is to help you convert more buyers by capitalizing on the demand for financing. By partnering with Beacon Funding, equipment sellers gain access to a wealth of financing expertise and resources tailored to enhance their sales strategies.
Beacon Funding provides personalized support and training to ensure vendors are equipped to confidently discuss financing options with their clients. Additionally, vendors benefit from Beacon's extensive network and marketing tools, which help increase visibility and attract potential buyers seeking flexible payment solutions. Reach out today to explore how we can support your sales and marketing efforts.