| “Why You Absolutely Should Offer Financing On Items Over A Couple Hundred Dollars” |
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“Why You Absolutely Should Offer Financing On Items Over A Couple Hundred Dollars”
There is security in being able to make payments. Some people live pretty much paycheck to paycheck. Other people are simply used to making monthly payments on credit cards rather than pay them off. That’s why offering payments will increase your sales. Sell the way people like to buy.
A store credit card works much the same way. If the buyer applies for a credit card with your store’s name as a private label, they are more likely to buy. Why? Because in many minds...having a $3,000 line of credit is exactly the same as having $3,000 in cash to spend. The buyer feels that the line of credit is money they already have. Silly, I know. But having a store credit card will increase sales. It will increase the sales per visit, and increase the number of visits per year.
Six months-same-as-cash (or 12 months) appeals to a slightly different buying need. Some people simply don’t have the money today for the purchase. Offering a deferred payment plan handles that problem in many cases. |