It is important to give your sales team the tools they need to close more business. This video shows an example of why B2B Businesses should offer financing payments as part of their B2B sales strategy.
How to offer financing payments as part of your B2B sales strategy - Video
Scenario 1 - Company Not offering financing payments as B2B sales strategy
Your sales rep does a great job presenting the benefits of the product or service to the prospect. The prospect expresses interest and is engaged throughout the presentation, that is until the prospect acts how much is it? The sales rep replies $10,000 and the mood of the conversation changes quickly.
The prospect knows this equipment will increase revenue by $400 per month and realizes that it is going to take a while to make back the $10,000 dollars. The prospect needs time to think about this and your sales rep never hears back from the prospect.
Scenario 2 - Company IS offering financing payments as part of their B2B sales strategy
The sales rep does a great job presenting the benefits of your product or service. The prospect asks how much is it?
Your sales rep says we are running a special of $199 per month on approved credit. The Prospect realizes that he will immediately make $200 per month if he moves forward.
From a sales standpoint, your sales rep can leverage the fact that the prospect is losing out on money by not moving forward. Your sales rep is able to close the deal and has a happy customer. Utilizing financing and leasing as a sales tool can help you close more business.
B2B Sales Strategy to Overcome Price Objection
Even the best sales professionals have trouble overcoming price objections. You have done the follow up required and built a rapport with the prospect. You have put produced a sales presentation explaining the value in your solution. The prospect has been receptive and agreed with your points. The prospect agrees that it adds value and then you feel like your ready to close the deal. "Since we both agree the solution is a great fit for your company, when would you like to take delivery"
Then they respond with: It sounds like a good opportunity but how much does it cost?
Understand your customer's expectations
When you tell the prospect the cost it changes the mood trajectory of the sales process. Understanding a customer's expectations on cost can be a determining factor in closing the deal. When you look at Total Cost Vs Monthly Payment it can be perceived much differently
Customers Perspective: Total Cost of Purchase VS Monthly Payment
Offering Financing and Leasing allows Customers to think in terms of affordable monthly payments. By analyzing the monthly payment the customer can much easier look at a cost-benefit analysis of the purchase.
Finance Payments put value into perspective
It is much easier to put things in perspective for a customer when you offer to finance. When people are basing their buying decisions on the total out of pocket it does not put things into perspective.
Tie Finance payment into cost/benefit analysis of customers need
Understanding the customer's expectations is crucial in a situation like this. Understand what their alternative is to acquire the piece of equipment.
- Why do they need the equipment? Upgrade, Expansion, Replacement.
- What are their alternatives if they do not acquire the equipment? Outsource what the equipment would have done or rent the piece of equipment.
- What costs do they incur by not acquiring the equipment - Maintenance costs, Lost revenue from production, outsourcing costs? etc.
Another Important Note is that Financing would take the pressure off existing credit.
By choosing to finance as opposed to purchasing the equipment outright they will take the pressure off cash and existing credit lines. This can give the customer more breathing room and confidence that they will be better equipped for any emergency situations. On a more positive note, they will be better equipped to seize any quick opportunities.
With the right presentation, you can use leasing as a sales tool to close more business, close business quicker, and up-sell products.
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