As a provider of heavy equipment, providing heavy equipment leasing is generally a no brainer. But if you’re a newer business, you might not realize how much of an impact that providing heavy equipment leasing can be.
In some cases, equipment manufacturers may have simply stuck with methods that worked in the past. The “if it works, don’t fix it” mentality. However, manufacturers that want to stay in business will need to not only stay on par with other competitors in the space but must also strive to get ahead of the curve by creating the best vendor finance program for their customers.
Heavy equipment leasing is a perfect option for manufacturers to not only stay with and exceed competitors, but also vendor financing will increase overall sales for their company.
Check out the following ways you can use heavy equipment leasing to increase your sales. If you have questions about vendor finance programs, don’t hesitate to reach out to us at any moment!
1.) Make your prices look more manageable.
We all know that heavy equipment isn’t cheap to make. And if you want to make a profit, you’re going to have to create some kind of margin.
While you could offer sales and discounts as incentive to get people in the doors and to make it easier to close sales, you can also use customer psychology to help improve the likelihood of someone making a purchase.
Rather than reducing your profit margins, you can restructure the way your costs are displayed when you start providing heavy equipment leasing. Rather than showing a sticker price in the tens of thousands, you can instead offer the monthly price for your average heavy equipment leasing agreement.
A customer that comes through your doors will be more attracted to a monthly price, simply because the number isn’t as significant and “overwhelming” to your customer at the first glance. First impressions are important!
If you’re not sure where to start your pricing, you can look at competitors in your market or look around at neighboring markets to see what kind of prices are being offered.
2.) The option to lease will give customers a better chance to spend even more.
In the same way that using monthly payments instead of the full price can make it easier for a customer to make the purchase, heavy equipment financing can also increase the likelihood that a customer will be more open to the possibility of making a larger purchase than they would otherwise.
In some cases, if a customer notices that the monthly cost of a piece of equipment is more affordable than they realized, they might even go as far as purchasing additional equipment for their operation or business.
3.) Equipment leasing opens the door for add-on sales.
Once you’ve got a customer hooked on a major purchase through heavy equipment leasing, it opens the door for you to secure additional sales in the form of accessories and add-on products or services. Heavy equipment may need additional guarantees, maintenance, or special “would be nice to have” products to enhance the initial product.
The sales might be small individually, but when you start adding them up from customer to customer, it can make a significant difference overall. Don’t overlook the indirect sales component when adding heavy equipment leasing to your business.
Send your customers equipment leasing documents with the monthly payment option (out of the gate shoot for 60 months) on it as early on in the sale as possible. You will increase sales if you're in the habit of leading with heavy equipment financing.
4.) Leasing heavy equipment will encourage the customer to return.
As long as you maintain a positive and respectful relationship with your customers, they are more likely to return to you at the end of their lease. If your only option was to provide heavy equipment in exchange for cash, they’ll be more likely to use the piece of equipment until it breaks or is no longer financially smart to keep repairing it.
With heavy equipment leasing, customers will get used to low monthly payment costs, easy upgrades through your leasing program, and the additional services you may provide for your heavy equipment. These can all contribute to building a loyal customer base that will not only continue shopping with you, but may result in recommendations to their friends, family, customers, and business partners.
As we’ve said before, don’t overlook the indirect impact of heavy equipment leasing and how it can create a positive “aftermath” of a single sale through heavy equipment leasing.
5.) Provide flexibility in your equipment leasing plan.
The great thing about having control of your heavy equipment leasing program is that you get to control what financial arrangements are made and offered. If you want to keep it straightforward and simple, that’s your option. If you want to provide more flexibility to your customers, that’s your option too - and we recommend it. Select a good finance partner that has a wide credit window to not only approve the good credits but can approve the start up companies and the heavy equipment financing bad credit deals.
Businesses that utilize heavy equipment will have up and down periods in their year, just like you will. You can have your financial agreements tailored in a way that allows them to pay normally during “prime” months and pay less per month during slower months. In the long run, you’ll still get the same amount of funding (albeit, over a slightly longer period of time), but it eases the customer into making the sale in the first place.
Another popular option in different industries is to provide “$99 for the first six payments.” Another option in different industries is to provide “seasonal payments.” Some customers have 3 months of downtime out of the year and would like 9 payments instead of 12. Another ideal equipment lease offering is a 6 Months pay cash or finance option. During months 1-6 the customers monthly payment is 1% (per month) of the total financed amount. At the end of the six months the customer has three options.
- Pay off all of the equipment and no additional interest.
- Pay off part of the equipment and finance the rest.
- Take no action and the lease will commence.
Final thoughts on 5 Ways to Increase Sales with Heavy Equipment Leasing
When we’re talking big bucks for heavy equipment, is it better to provide a little flexibility for your customer. With flexibility in your heavy equipment financing strategy, you’ll have a lot more sales.
We invite you to contact Trust Capital today at 866-458-4777 to learn more about our lowest heavy equipment financing rates, flexible payment programs and how it can help your business specifically to increase sales in your business and market.