With inflation and political and economic shifts affecting consumers across all markets, product- and service-based businesses must adapt to maintain affordability. Shoppers want and need payment flexibility, and consumer financing provides the solution.
United Consumer Financial Services delivers financing options that help your business gain profits while serving customers with low monthly payments that increase their purchasing power. Read on to explore how financing can help your business maintain affordability so you can serve more shoppers while increasing your sales.
New Product Launches
When a business introduces a new product or service, especially a high-priced or premium offering, financing is a game changer for both the company and its customers. Financing breaks down large lump sum prices into low, manageable payments that make high-value products accessible to a much broader audience.
Consumer financing alleviates shoppers’ hesitancy regarding big-ticket purchases. Instead of hefty upfront costs, financing breaks down those prices into affordable monthly payments that enable shoppers to enjoy the benefits of the purchase immediately without straining their budgets.
For businesses, offering financing can boost adoption rates and sales volume, especially when introducing high-value product or service launches. Instead of limiting sales to a smaller group of customers who can afford the total price immediately, financing opens the doors to a broader market, including those who may have been on the fence due to cost concerns.
Implementing consumer financing in a go-to-market strategy gives you a competitive advantage. Offering accessible payment options differentiates your business and appeals to all demographics of consumers who want payment options at the point of purchase.
Seasonal Promotions or High-Demand Periods
During holiday seasons or other peak shopping periods, customers tend to be more open to spending on premium products or making larger purchases, often influenced by discounts, promotions, and the spirit of gift-giving. However, even during these high-spending times, budget constraints can be a limiting factor.
Offering financing options addresses this concern by allowing customers to buy products immediately and pay over time, making larger purchases more manageable and reducing strain on their budgets. Consumer financing gives shoppers the freedom and confidence to purchase high-value items or services, or multiple items or services, without feeling a massive financial impact.
Businesses want and need to capitalize on peak shopping seasons or sales events. They must find avenues to remove the financial barriers that might prevent customers from completing their purchases. Shoppers who might leave items in their carts or walk away from the sale can be encouraged to utilize a financing program, knowing they don’t need to pay the total upfront.
Consumer financing is particularly beneficial for businesses selling higher-ticket items during high-demand seasons. It helps increase the volume and value of purchases, maximizing revenue during critical sales periods.
Alternative to High-APR Credit Cards
Consumer financing offers a convenient way for customers to make substantial purchases without the burden and hassle of credit cards, which can lead to a cycle of debt and financial stress. Unlike credit card providers who charge 25 to nearly 40 percent APR, UCFS charges between 19.99 and 24.99 percent, depending on the financed product or service. If a customer pays with a revolving credit card, they must pay off their balance within the first few months, or the compounding interest becomes impossibly high, potentially devastating their finances.
But when you partner with UCFS to deliver consumer financing, your customers benefit from affordability and predictability. We offer reasonable rates and clear, consistent repayment terms, which are helpful points for customers choosing between charging their purchase to a card versus financing it. Financing options empower customers to break down costs into manageable monthly payments that they can easily incorporate into their monthly budgets. Consumer financing is ideal for customers making substantial purchases, offering them flexibility when upfront costs are high.
By offering financing, businesses can foster stronger customer relationships, showing that they prioritize customer well-being and accessibility. Not only does offering financing increase affordability, but it also positions your business as a partner in the customer’s financial health. By supporting your customers’ financial goals, you create a foundation of trust that enhances brand loyalty and shows your commitment to meeting their needs in a way that’s both affordable and accessible.
Making Next-Level Products and Services Accessible to Current Customers
As businesses look to expand their product offerings, they must maintain affordability for current customers. When a company introduces elevated or expanded offerings, it needs to ensure its customer base can easily choose these upgrades or next-level purchases.
For example, elective medical and med spa companies might offer facials and other one-time services at around $100. But let’s say they want to provide and promote other services, like tattoo removal, ablative laser skin resurfacing, or CoolSculpting treatments, which may run $1,500 to $4,000. These businesses are not only onboarding new customers but marketing to existing customers as well. And when clients are accustomed to paying one to three hundred dollars per visit, jumping up to the one to four thousand payment range can be a shock.
Another example is an HVAC company that performs monthly maintenance. When a homeowner needs a new water heater or furnace, it can’t wait. Unfortunately, those costs often rise to thousands of dollars, leaving faithful clients needing an affordable payment option: financing.
Consumer financing through UCFS allows customers to integrate low monthly payments into their budgets so they can choose the services they want and need on their timelines. Payment flexibility not only helps businesses attract new clients but also helps them retain and serve their existing customer base, even as new products or services carry a more hefty price tag.
Offering Financing Solutions when Your Customers Want and Need More
Consumer financing helps businesses provide payment options that empower customers to get the products and services they need and want. With set monthly payments at affordable prices, companies can sell more while serving their clients.
United Consumer Financial Services provides accessible financing solutions that help businesses maintain affordability through economic ups and downs and across various markets. Contact us today to learn how easy it is to offer simple, affordable financing that helps you increase sales while keeping prices affordable for your customers.