Shoppers must overcome dozens of hurdles before they make a major purchase decision. Accessibility and affordability are among the primary factors dissuading shoppers from committing to their purchases, but it doesn’t have to be that way.
Providing consumer financing options empowers customers to confidently overcome financial barriers, choose the product or service they want, and bring it home today. Below, we explore some of the top barriers to purchase and how your business can overcome them with consumer financing.
Sticker Shock
High-value items come with big-ticket price tags, overwhelming shoppers with sticker shock. When all your customers see is a hefty price, they automatically assume they can’t afford the product, and the sale is lost. Consumer financing empowers retailers to overcome sticker shock by breaking down large upfront costs into affordable payments. A low-cost payment plan makes big purchases more affordable, more accessible, and less intimidating to shoppers.
Budget Constraints
Consumers feel the consequences of the last few years of inflation and economic headwinds. According to Bankrate, only 41 percent of Americans can use their savings for a major unexpected expense. A large portion of the population does not have disposable income for purchases unless they’re absolutely necessary. Businesses must provide payment alternatives that empower purchases without adding to their customers’ financial stress.
Consumer financing options specifically address budget constraints. Affordable, scheduled payment plans help customers afford the products and services they want without disrupting their monthly budgets or long-term savings goals.
Decision Paralysis
Consumers know that big-ticket purchases are a significant investment. Shoppers compare various products within the same line and across retailers. With the digital shelf at their fingertips, they can access endless information that empowers them to make an informed choice. However, a plethora of data combined with high prices can stop shoppers in their tracks. Decision paralysis fueled by pricing prevents consumers from not only purchasing from your business but also from experiencing the benefits of your products or services.
Affordable payment options give shoppers the confidence to choose the products or services they want when they want them. Financing keeps payments low, relieving big-ticket financial pressure, so day-to-day expenses can be handled. Affordable financing helps shoppers complete their purchase without the stress of high upfront costs.
Fear of Debt
Most consumers don’t have cash on hand to cover high-value purchases. For many, the only alternative is charging the purchase to a credit card, which, unfortunately, often comes with exorbitant interest rates. Shoppers know the increasing debt from revolving credit cards can be insurmountable. If even a single payment is missed, the accruing interest can derail your customer’s financial goals and planned budgets.
Structured, transparent payment plans help customers feel in control of their finances. By providing consumer financing, you give your customers an affordable path to purchase without asking them to add to their credit card debt.
Purchase Delays
Any friction in the sales process can cause hesitation in the customer’s mind. When consumers consider a big-ticket purchase, it’s easy (and, for many, natural) to justify putting off a purchase, especially when faced with a high price tag.
No matter what you’re selling, streamlining the sales process is crucial to converting shoppers. Facilitating a smooth, stress-free sale helps customers maintain their excitement about their purchase, reducing the chance that they’ll reevaluate their decision and talk themselves out of buying. If a shopper walks away from a sale, especially for a big-ticket purchase, the likelihood of them returning to commit is low.
Consumer financing helps businesses create a straightforward, stress-free, and affordable pathway to sale. United Consumer Financial Services provides a simple, online credit application. Once submitted, a credit decision is sent almost immediately, allowing you to proceed with the sale right away.
Perceived Risk
Many risk-averse consumers are hesitant to commit to a big-ticket purchase. The perceived risk of a large upfront payment or credit card charge might dissuade shoppers from moving forward.
A well-structured financing plan can make high-cost purchases feel less risky. For example, reasonable, set rates and a scheduled payment plan ensure consumers know the exact terms of their repayment. When a large sum is broken down into low monthly payments, shoppers know they can easily afford the purchase without allocating a lump sum of cash to the payment. Consumer financing provides accessibility and stability to shoppers wanting low-risk options for big-ticket purchases. And, for emergency-needed purchases, such as a new furnace, or for an engagement ring that’s wanted right away, consumer financing with monthly payment is less risk for buyers.
Comparison Shopping Pressure
An often-overlooked barrier to sales lies not within your company but on the outside: competing businesses. Your company must set itself apart from the competition by providing affordable pathways to purchase that not only serve the customer but also increase their purchasing power.
Consumer financing delivers affordable payment options that attract shoppers and help your business compete against the other guys. If shoppers feel like they can’t afford your products or services, they simply won’t buy. Highlighting financing options early and often helps you overcome comparison shopping pressure by giving customers the tools they need to choose the products they want when they want them.
Upfront Payment Concerns
Just the thought of a large upfront payment causes some consumers to avoid shopping big-ticket items and services altogether. Consumer financing gives customers payment flexibility by lowering the initial financial burden. Instead of an overwhelming upfront payment that drains savings or a high-interest credit card, payment plans empower shoppers with affordable payment options.
Consumer financing addresses questions or hesitancies regarding high upfront payments, providing an immediate solution to affordability concerns. Affordable payment plans give customers flexibility by lowering the initial financial burden, encouraging them to commit sooner.
Building Confident Customers with Consumer Financing from UCFS
You’re up against countless barriers to sale. Affordability shouldn’t be on the list. Providing consumer financing through United Consumer Financial Services helps you address customer hesitancies and give them the confidence to make their purchase today.
We offer
- Straightforward application and prompt credit decision so that you can proceed with the sale
- High approval rates that help you onboard more clients while making your services more accessible
- Simple, stress-free payment options that serve the customer
- A transparent fee structure that contributes to a positive client experience
- Financing expertise that eliminates the burdens of in-house programs
UCFS provides the consumer financing solutions you need to sell more and grow your business, and you can start today. Connect with our team to learn more.