Online Campaigns, Online Advertisement and Common Sense

Increase Sales In A Slumping Economy

One of the challenges of running a retail store is persuading customers to make large purchases. It is not the staple items that keep a store afloat; while they are bought with predictable frequency, often they are low-profit solutions for an independent store. It can be the infrequent large ticket items that pay the bills. Encouraging these purchases is essential to prosperity.

In a slumping economy, it is the large and nonessential things which are ignored. People revert to the basics and are content with a big, fat old TV set and an old pair of sneakers. Many business are loosing money because of this trend, and there is the real risk a shop close to home might just close down. To prevent this from happening, it is possible to woe them with easier Customer Financing Options. There will always be those reluctant to shovel out, but monthly payments somehow manage to conceal the total price tag.

Large stores use lay-a-way. A small store can hire an independent credit agency to provide consumer finance options. Customer Financing allows the customer to collect their appliance or other item quickly and puts cash in the merchant’s hand. The process of keeping track of and collecting the tab falls to the customer finance provider. The process is painless for the store owner and can dramatically improve sales rate.

In American society, people still depend on money they have not earned yet. Although the recession has the market tightening its belt, the long ingrained habit of spend, spend, spend does not break easy. Although the recession is in, many still shell out like it is still a long forgotten age. To help drive home the bargain, explicitly advertise the contract time. A big poster announcing “90 day financing” should get some attention. If a purchase can be spread out over several months, it makes life easier for everyone.

Financing for customers is no longer a luxury for chain stores who have deals with banks. Third-party providers are on the rise, and can work with even the most seemingly insignificant merchant. Some short term financing providers understand how important the underdog is, because it is from these humble outlets their combined income is made. Working with such an agency is not expensive. A transaction fee is involved, which might cost the merchant a little, but it is just like any other advertising device. The extra service can drive business into the store.

Financing for customers is not for everyone, because they simply do not have the money to spend and are afraid of having their future earnings locked up. When people are thinking of survival, they do not want to buy luxury items. That said, 90 day financing can be a blessing to someone in financial distress, because they might still have a job but are just pinched at the moment.

Customer finance generally does not consider credit rating. With a very large purchase, it can be important, since the buyer must have the ability to pay, but consumer finance is not a long-term loan. It is paid within a year, typically much less, and penalties cover the risk of default. Some people might take out a financing option just to improve their credit rating, if it shows up on their record. If the loan is defaulted, then the third-party agency bears the risk. It is out of the store owner’s hands and is being taken care of by experts.

Tags: ,

Leave a Reply