What does it really mean when your customers say, “I can’t afford it”? Besides the probability that your customer may not have the money to make large purchases outright, the statement likely comes from a place of concern for their cash flow.
Why isn’t their cash flow performing where they want? Finding out the real reasons your customer doesn’t want to purchase will help you find the best solution for them. Ask the question. Don’t give your customer an out, but if your customer tells you they can’t afford your product, ask them if it’s because of cash flow concerns. It’s natural to respond with a solution when the customer tells you their issues, making your advice appropriate to their situation. If they answer is yes, you can advise them on the talk points below. If the answer is no, they’ll likely correct you by telling you the issue, which is the goal.
Explain the cash benefits of investing in equipment.
Explain how getting this new piece of equipment will help them operate at max output and increase their cash flow. Remind the customer that technology changes rapidly, which means if they are operating with outdated equipment, it could be costing then a lot in potential sales. New equipment will increase their output; more jobs completed per hour means more money in their pockets. Ask your customer what their current output rate is, and if there is any bottle-necking during the process. Compare what the new equipment can do to what their current equipment does to show how the new equipment would benefit them dollar-wise. Ensure they understand that purchasing would enhance their cash flow amount rather than decrease it.
Recommend they lease.
Because leasing breaks down a purchase into smaller monthly payments, your customer can keep their cash reserve on hand to maintain cash flow while still getting their necessary equipment. A direct lender, like American Capital Group, can give your customers fixed monthly payments so customers know exactly what the cost is each month and can properly budget. With the Lowest Payment, Guaranteed* in the industry, your customers can purchase what they want and know they got the best deal. Not to mention, a lease payment is considered a business operating expense and can be written off. You can find more resources to help you sell more equipment here.
Offer the discounts you have available.
Your customers want to feel looked out for, so watching out for their budget is important. If you’re with a new customer, they may not be aware of your company’s promotions. Giving discounts, bundling deals, or any promotional offer is an incentive for your customer to purchase now. If you’re working with a previous customer, they may already be familiar with your business and have expectations. Do your best to meet or exceed their first experience with you. It wouldn’t be a bad idea to note that you’re giving them the discount because you understand their cash flow is tight.
Having a steady cash flow is the lifeblood of any business. Fortunately, there are effective solutions to increasing or freeing up the money available to business owners.
If you’re looking to help a cash flow conscious customer with an equipment purchase, have them apply for ACG Financing.