Lake Union Financial

Cardinal Rules of Finance Salesmanship

1. Use financing to increase the size of your sale.

You have the ability to sell the top of the line to a customer who would normally insist on buying the least expensive model.

Example: If you offered the 3-year (36 months) rate initially, you can offer the 5-year rate on the more expensive equipment, which takes the edge off the new price tag.

Or, assume you have sold a $30,000 piece of equipment and you wish to add a $4,500 accessory. That $4,500 represents a full 15 percent increase to your sale, but you know the customer is not inclined to buy it. So, "Now, then—we can add this accessory for only $99.13 extra per month. Shall I write the order on that basis?"

Total Sale Monthly Rental
$34,500 $760.00
$30,000 $660.00
Extra Cost = $99.13

This technique allows you to build and increase both your sale and commissions.

2. Use financing to build repeat business.

Once your customer has signed the financial agreement and is thinking in terms of monthly payments, it is much easier to sell to that customer again.

If your original order was for $30,000 and you want to add a $4,500 accessory - two months later, you could say—"We can add this new equipment to your present lease for just $99.13 per month." Your customer is thinking in terms of monthly rather than $30,000 plus $4,500 to equal a $34,500 capital expenditure. Also, the customer is getting just one monthly invoice that is easy to budget and avoids extensive bookkeeping records that are required when equipment is purchased.

3. Use financing to close the sale.

At every possible opportunity, try for the close. Financing, if used properly, will give you the buying signal that tells you exactly when it is time to close.

You might say—"As I mentioned, you can finance the equipment for just $702 per month. Would you like me to write the order on that basis?"

Your customer can give you one of three possible answers:

  1. "Well, I'm not convinced I really need the equipment."
    This clearly establishes the fact that you still have a lot of selling to do. The customer is NOT ready to sign.
  2. "Tell me how this financing thing works."
    The customer is showing you a sign, providing you can satisfy him or her, that the price is right. (Call Lake Union Financial for assistance with financing questions.)
  3. "Yes that sounds like a good idea."
    Stop selling and start writing out the order. Your customer is ready to go.

4. Use financing to smoke out objections.

What you do NOT know will hurt you and you may never know what is bothering your customer and why he or she is reluctant to sign the order. The unspoken objection can be deadly and unless you bring it into the open, the sale cannot be made.

The finance can help you smoke out the unspoken objection.

Find out if MONEY is the problem, and a direct action question is often the best course to take—"Incidentally, I mentioned that you can finance the equipment for just $1,050 per month. Is that in line with your operating budget?"

If you get a NO answer—"No, that sounds too high."—you know that money is the unspoken objection, and by offering a longer term (from $1,050 / 36 months to $702 / 60 months) in all probability, it will overcome the money problem.

If you get a YES answer - "Yes, that’s no problem." - you know something other than money is blocking the sale and it is entirely logical to say - "Since the payment is not the problem, there must be some reason why you are hesitating. Can you tell me what it is?"

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