Imagine the ideal car dealership. What would it look like?
We talked with business owners, and the response was generally consistent. In an ideal dealership, the sales staff is friendly, courteous and approachable without being pushy or needy. The cars are high-quality and come with great warranty options – the car sells itself.
The service staff are hardworking experts and the owner is hands-on, and willing to forge friendships with clients on a first name basis. Something about the business makes people want to come back, but nobody can quite put a finger on it.
This might not sound far off from what you, as someone who sells equipment B2B, would like to create in your business?
Now, imagine as you walk around the lot of this dealership, you see only the full MSRP listed on the vehicles and no monthly lease option. Chances are, the price is $10,000 too high (no matter it is).
As buyers, we have a knee-jerk negative reaction to paying large sums of money out of pocket. That’s human nature; the price is always too high.
That why you always, always, always see the monthly payment quoted in bold letters before you see the full price.
Say what you will about car salemen, they have certainly mastered buyer psychology. The dealership knows that not all customers will use their lease option. Some will finance their purchase through the bank, and others will write a cheque. However, by showing their customers how the car can fit into their monthly budget they help show the true value of the car.
The same is true for the equipment business.
By presenting an affordable monthly payment, you can easily convert those customers that are reluctant write a cheque for the full amount into happy, paying customers.
Simply having the lease option available improves the tone of the discussion and increases the likelihood that your client will make a buying decision.
More often than not, your clients will find that leasing equipment produces a greater monthly operating profit, allows them to buy more of the equipment they need, and as a result, they will return at the end of their lease to upgrade or purchase more equipment from you.
Let’s face it, $199 per month is a lot easier to swallow than $25,999 (plus tax!) out of pocket.
How can you do the same thing in your next sales proposal? By offering an affordable, monthly lease payment that fits into your client’s budget.
You’ll be surprised at how effective it is.