Today’s small business owners are becoming more marketing savvy than ever before. They realize the importance of branding, quality products and services, competitive prices, and a good customer experience. These are the things that attract customers, generate referrals and, ultimately, keep the revenues flowing. So, what happens when small business owners are the customers, and they peruse the floor or lot at your equipment vendor business? If you do not take the steps to provide them with the brand experience they expect, they might take their business elsewhere, and that translates into missed sales opportunities.
Therefore, it is critical to be aware of your customers’ needs and expectations, and have the tools in place that make it easy to purchase the equipment, vehicles or software that you sell. One way you can do this is by offering private label financing to your customers, which is being offered by forward-thinking equipment vendors in myriad industries nationwide. This Balboa Capital blog post discusses the benefits of private label financing.
Helps you close deals.
Providing your customers with private label financing can help you close more deals. For example, let us assume that you own and operate a vendor business that sells new and used construction equipment. One day, a contractor in your town needs to purchase heavy equipment for an upcoming project, and he has two equipment vendors in mind, yours and one of your competitors. The contractor decides to check out the selection of equipment that your competitor sells first. Although he likes what they have, they do not offer an in-house financing solution. The contractor is on a tight schedule, and he does not want to tie up his line of credit.
So, he drives to your vendor business and sees that your lot has the heavy equipment he is looking for. After you crunch the numbers and show him the various repayment terms that are available, you present him with a private label financing option. The online application that features your logo and branding is completed in a matter of minutes right in your showroom, and a credit decision is provided before the contractor can finish his cup of coffee. Private label financing helped you do what the other equipment vendor could not: close the deal by providing the contractor with a convenient means of securing funding.
Enhances and builds your brand.
Your logo, website and marketing are just a few pieces of the branding puzzle. Business owners who visit your vendor business will formulate their own opinions about your brand based on a number of other things. These include your storefront, showroom appearance, equipment quality and pricing, and customer service. When each of these brand attributes convey value, they work together to create a powerful brand.
The addition of a private label financing program can further differentiate your vendor business and help it stand far apart from the competition. It shows that you are going the extra mile for your customers by offering them an easy way to secure financing, one that saves them a lot of time and effort. If you stop to think about it, the addition of a private label program makes your vendor business a one-stop shop for equipment, financing, and customer service. This combination of convenience and efficiency can help build your brand, make you a preferred vendor, and increase your sales.
Strengthens customer loyalty.
In today’s hyper-competitive business world, it can be difficult for equipment vendors to build customer loyalty. That is because most small business owners have many options to choose from, and they see special offers in advertisements, flyers, and emails all the time. Business owners typically start their equipment searches online to look at inventory and pricing, and then visit vendors in person.
When you offer private label financing to your customers, you are building a business relationship with them, and vice-versa. The better the equipment buying experience, the more loyal your customers will be. This can result in repeat business and, in some cases, customer referrals.
Now that you have learned how private label financing can benefit your equipment vendor business, it is time to put it into action. The first step is to select a financing company with experience in the equipment vendor space, and that offers a private label program. Do your due diligence and ask about rates, turnaround times, lending power, and marketing capabilities.
Finally, look for a financing company that has an in-house digital marketing team and IT staff. These professionals have a deep understanding of vendor marketing and technology; they can develop and deploy your private label financing program and ancillary marketing materials in a timely manner.
The information in this blog post has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, investing or accounting advice. You should consult with your accountant, lawyer or tax advisor before making any business decisions.