LEASING THE ULTIMATE SALES TOOL

Move More Product, More Profitability

One of the advantages a Leasing Program gives you is Selling Power to increase your sales and commissions.

Because leasing is one of the most powerful sales tools available to you, it can enable you to sell more equipment and higher priced equipment. Knowing and understanding leasing puts you in control of the sale and enhances your firm’s image as a true sales professional that has the answers and solutions to your customer’s buying questions.

In addition, a leasing program enhances your firm’s image, as a full-service organization that provides one-stop shopping for our customer’s equipment, service, and financing needs.

You add to your professionalism when you can speak to your customers in an educated way about lines of credit, saving working capital, and the other advantages of leasing.  Also you will be providing them with the information that will assist them in making a favorable buying decision.

Without Leasing Sales Can Slip Away

What can happen if you are not using leasing as a tool to close sales?

You have spent hours demonstrating the advantages of your company’s product.  The customer sees the need and recognizes the benefit their company will derive from the use of the equipment.  You have done a great job of explaining the capabilities and illustrating the benefits to your customer.  They are excited about the product and the only thing standing between them and the equipment is the price.  If you cannot overcome that objection at that point you could lose the sale! There is a natural tendency to put off making a buying decision when there is a capital expenditure involved.

Leasing Provides the Solution

With no capital expenditure, not even a down payment, your prospect can have the equipment when they want it, which is NOW! It is much easier to make a decision to write a check for $600.00 for the first month’s payment and deposit than one for $10,000. Furthermore, many purchasing agents, etc., cannot commit their company to a capital expenditure of that size, or have to put it in next year’s budget.  That same purchasing agent can, however, commit to an operating expense especially when they can relate the monthly payment to a monthly cost savings.

If you miss the opportunity to close the sale when your prospect is the most ready, the chances get increasingly greater with time that you will lose the sale.  If our prospect has to look elsewhere for their financing, you are losing control of the sale.

1. First of all, enthusiasm wanes with time.
2. The greater opportunity your customer has to be exposed to competitive products.
3. The Banker they consult for financing may steer them in another direction, or even to a different supplier

Increase Profits – Sell Payments, Not Price.

Not only is it easier to get your prospects to write a check for $600 instead of $10,000, but when you talk about as system in monthly payment terms, they may never even ask the price.  You shift their attention and their company’s resources to a different area of business – operating expense versus capital outlay and when you are not speaking about retail price, they probably will not ask about discounts either. Many times you can actually sell your equipment for a higher price because your prospect is not as price conscious.

Small Payments Sell Big

When you sell payments, your prospect’s attention is shifted to the product because you can show them the benefits of a more advanced product, with greater capabilities that will better meet their growth needs and they are not restrained from making the best product decision because of price.  The difference is no longer between choosing a $10,000 package and a $15,000 package — it is $230.00 a month versus $345 — a $115 difference, not a $5,000 difference. It is much easier to equate that $115.00 monthly cost to a monthly savings.  It is also much easier to sell ancillary equipment and accessories when you can talk about add-ons in monthly cost terms such as $25.00 a month.

Leasing Overcomes Sales Objections

The “leading with leasing” concept can help overcome probably the biggest objection of all:   “I can’t afford it.” When you start quoting monthly payments early in your sales presentation, the customer can concentrate freely on the benefits of the equipment without the concern of what the cost will be.  Leasing removes another major objection many prospects have — having to go out and borrow money to buy it.  Leasing offers a way to avoid this obstacle.

Tailor Payments to Their budget

Always quote 24 or 36-month lease payments first.  This gives you the flexibility of being able to lower the payment if necessary by going to a 48 or 60-month lease.

Leasing helps overcome the cost objection in another way as well, by illustrating the savings in comparison to the cost.  A persuasive argument for leasing state-of-the-art equipment is increased efficiency.  More efficient products save business time and time equates to dollars.  In presenting the lease payment, you can relate the amount of money to be saved to the nominal cost of leasing the system.  The $320 a month payment is substantially less than you would pay an employee for a week!

Tags: Leasing, vendor, working capital