Financing a solution wins over financing equipment
The competitive environment for manufacturers, vendors, and dealers is increasingly intense. As such, companies are seeing more and more pressure on pricing and risk. In every challenge, though, there is opportunity. Innovative thinkers are bringing new approaches to the market. Bundling services, technology, and support with equipment sales has long been a more “solutions” oriented approach, but most aren’t realizing the impact a finance program can have on the success of those efforts.
Financing more than the asset
Many times so much effort is focused on the asset component of the customer’s need, that the total solution is minimized. Delivery costs, installation, support services, attachments, maintenance are often key factors that help you win the business. They also can be some of the more important components of a profitable sale, yet equipment sales teams often miss out on how affordable they can make the purchase of these additional capabilities. Including them in the finance offering…with the equipment…can often open the door to a bigger and better solution for the customer.
While a customer may balk at the possibility of the service agreement, the addition of $150 per month may be a no-brainer. Or while high delivery and installation costs may be holding up the sale, adding $100 per month to get the total solution up and running might be the catalyst you need to close the deal. Finally, sales tax is often overlooked by your customers until the last minute. Financing helps manage the sticker shock at the very last minute of closing a deal.
Financing a total solution is also a huge step towards a competitive advantage. In all likelihood, customers have many options of where they can purchase commercial equipment, but if your team is bringing a total solution for the acquisition, management, and disposal of the asset over its life you have the advantage. And if you deliver that solution in an easy to afford monthly payment inclusive of the total solution and not just the equipment…you’re positioned to win.
If your team is innovating and seeking to make your equipment more of a total solution, having a finance partner that can take the time to learn how your solution is built is crucial. There are always limits to the amount of services or “soft costs” that can be wrapped into your equipment based solution. But an innovative equipment lender that is seeking true partnership will take the time to create options for your go-to-market strategies.
At Key Credit Corp, we’ve been creating customized programs like this for decades. In fact, we celebrate our 30 year anniversary in 2016, because we do the right thing for your customers—every time. If you’d like to discuss the creation of an equipment-based total solution for your customers, let’s talk.