E21 - with Jesse Davis, President of Home Improvement at GreenSky
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If you aren't using financing right, you could be leaving TONS of money on the table. This week, we're joined by Jesse Davis, a financing and sales guru, that will walk you through how to use financing properly and how it can literally double your revenue. You don't want to miss it! Listen Now!
What difference does financing make? |
Financing allows customers to purchase goods or services by spreading the cost over time, often through installment payments. The impact on your business can be HUGE.
There are various financing models, including in-house financing, third-party financing partners, or leasing options, each tailored to suit different business needs and customer preferences.
How Financing Benefits Your Business
1. Expanding Customer Base
By offering financing, you open your doors to a broader demographic of customers. Not everyone can afford to pay upfront for big-ticket purchases, but with financing options, you can cater to individuals who prefer manageable monthly payments. This inclusivity can significantly expand your customer base and drive sales.
2. Boosting Sales Revenue
Financing empowers customers to make purchases they might otherwise postpone or forgo due to budget constraints. This immediate boost in sales can positively impact your bottom line. Moreover, customers tend to spend more when financing is available, as they focus on the affordability of monthly payments rather than the total cost upfront.
3. Building Customer Loyalty
Providing financing can foster long-term relationships with customers. When they experience a smooth, hassle-free financing process and enjoy the benefits of flexible payment options, they're more likely to return for future purchases. Additionally, satisfied customers are likely to recommend your business to friends and family, further bolstering your reputation and customer base.
4. Competitive Edge
In a competitive market, businesses must differentiate themselves to stand out. Offering financing sets you apart from competitors who may not provide such options. It demonstrates your commitment to customer satisfaction and convenience, giving you a competitive edge that can sway purchasing decisions in your favor.
5. Mitigating Seasonal Fluctuations
Many businesses experience seasonal fluctuations in sales, with peaks and valleys throughout the year. Offering financing can help mitigate these fluctuations by smoothing out revenue streams. Customers are more inclined to make purchases regardless of the season when they can spread payments over time, reducing the impact of seasonal lulls on your business.
6. Increasing Average Transaction Value
Financing often leads to larger transaction sizes. Customers, empowered by the ability to pay over time, may opt for higher-end products or additional services they wouldn't have considered otherwise. This increase in average transaction value directly contributes to your business's revenue growth.
