As an independent appliance store, you’re uniquely positioned to deliver intentional, one-on-one customer care and support. Consumers choose independent retailers like you because of the attention to detail, flexibility, and inventory you provide that big box stores can’t keep up with.
To thrive in this market, you must implement tools that meet customer needs and expectations, establish your business, and position it to succeed. Consumer financing is one such tool that every independent appliance retailer should utilize.
This United Consumer Financial Services article explores the many benefits of offering consumer financing for your independent appliance store. Let’s jump in.
1. Expedite the Buying Process and Close the Sale
Big-ticket purchases can cause trepidation in shoppers, especially those without cash or access to traditional loans or credit to cover the costs. Presenting financing options early in the buyer’s journey assures shoppers that they can purchase today using low monthly payments.
The price of well-built, quality appliances can drive buyers to postpone their purchase. They might feel stuck with their old, worn-out equipment, or in a jam because their refrigerator or stove is broken, and they need an appliance replacement immediately. Flexible payment options help them see that purchase is affordable and within reach. Consumer financing means the same dollar amount due each month for your customers, instead of a credit card at 30%+ APR with low minimum payments and up to a decade to pay off the purchase. It removes friction from the buying process and enables you to expedite the sale.
The smoother the payment process, the smoother the interaction and sale. Consumer financing allows you to make purchases approachable, accessible, and fast.
2. Establishing a Positive Experience and Customer Relationship
The first sale is the hardest. With appliances often outside the affordability range for many Americans, independent appliance retailers must provide flexible options that make these big-ticket purchases possible.
But before closing the sale, you must engage with shoppers and show them they can afford the new appliances they want. Making financing a central piece of your sales and marketing educates customers and highlights the affordability of your products. When given the option to break down a lump sum payment into smaller, affordable installments, your customers feel greater freedom—and power—to shop with you.
Highlighting consumer financing options from your first interactions establishes a positive experience with your store and creates a foundation for a long-term relationship. After using consumer financing for their first purchase, your shoppers are likelier to return for future appliance purchases and repair needs.
Consumer financing supports your efforts to create a customer-centric environment and gives you the tools to establish and maintain positive customer experiences. Simple, straightforward financing helps you close that first sale and sets you up for years of returning business and a high customer lifetime value.
3. Free Up Your Team’s Time and Energy
Today’s shoppers want financing options. Consumers need payment flexibility, whether for a smaller purchase, like clothing, or a more significant investment, like a new oven, ice maker, or microwave. Therefore, offering financing isn’t an option; it’s an expectation and demand.
As you consider implementing financing for your independent appliance store, you have two options: handle financing yourself or partner with a firm.
In-house financing poses many significant risks for your store, including
- Adverse effects on your cash flow – because with consumer financing you are paid within 1 to 3 business days after delivery or installation instead of monthly by your customers
- Risk for missed payments – meaning you have to handle collection and poor cash flow
- Additional employee costs – to offer financing and handle collections
- Legal risks – to know all state and federal lending regulations
Operating an in-house consumer financing program will drain your business of time, money, and energy. In addition to the resources required to train and hire a team member to handle your financing, missed or late payments can bring your business to its knees.
But when you choose a proven consumer financing firm like United Consumer Financial Services, you gain access to more than four decades of financing expertise. Instead of risking your business’s resources in hopes of executing a consumer financing program, you can instead rely on UCFS’s team to handle your program for you.
Our application and approval process is fast and straightforward, with approval notice typically granted in just minutes. UCFS’s autopay option makes loan repayment effortless, so you’re not tasked with following up on late or missed payments that are detrimental to your business.
UCFS’s Ohio-based team provides the support you need to offer accessible, affordable consumer financing, returning your time and energy to your business.
4. Reap the Benefits of Active Cash Flow
Positive cash flow is perhaps the most critical factor to your success as a small business. Even a week without cash flow can close your doors.
Your cash flow shows how much money moves in and out of your business. It’s the money immediately available, not the funds waiting for collection in accounts receivable. Maintaining a positive cash flow and access to those resources will determine the health and success of your business.
Consumer financing allows you to maximize your cash flow and pour those resources into your business. When you partner with UCFS, you see payment fast. Once you’ve completed the sale, you get paid in one to three days. Prompt access to fluid cash empowers you to take your business in any direction.
5. Empower Shoppers to Upgrade Their Purchases
Financing options increase consumers’ purchasing power. When a lump sum cost is spread over 2 or 3 years of monthly payments, shoppers enjoy increased flexibility and affordability as they browse your inventory without worrying about how a big purchase like a new oven, washing machine, dryer, or deep freezer will affect their savings account or planned monthly spending.
As you empower your customers’ purchases with consumer financing, you also increase your sales and average order values. Customers spend roughly twenty percent more when provided with a Buy Now, Pay Later option. Appliance upgrades are not only possible, but they make sense when you have a proper financing program. For a few more dollars each month, shoppers can choose the equipment they want, whether a single appliance upgrade or a whole-kitchen replacement.
Financing helps you increase your sales while empowering shoppers to upgrade their purchases –– and bring those items home same-day.
Sell More with Consumer Financing from UCFS
Offering consumer financing options will help you increase your sales and grow your business. Partnering with a proven firm like United Consumer Financial Services allows you to reap the many benefits of consumer financing without the stress or resources required of an in-house program.
We’ve spent decades developing solutions for small businesses like yours. We know your needs and customers, and we have the tools to provide realistic, affordable financing that serves your business and your shoppers.
Reach out to our team today to learn how to become a merchant with UCFS and how offering consumer financing can help your independent appliance store flourish.