How to use financing to boost add-on sales

By Todd Liles How to use financing to boost add-on sales
Sales Lessons about Financing and Tacos

One of my favorite things about living in Texas are the taco stands.  Every Texan has their favorite taco stand.  Mine is El Roble in Kyle, TX, and not just for the tacos.  The sales lessons are great too!  Recently, my favorite taco stand taught me a valuable lesson on boosting add-on sales through financing.  RELATED – PRESS PLAY for Sales

This sales lesson here is worth thousands of dollars to you in personal income.  Don’t blink, because it happens fast!

The Sales Lesson in Action

“Good morning.  Let me get 2 tacos.  Egg, avocado and cheese,” I place my order at the drive through line.

“Ok, that will be $4.86,” says the young lady.

“Here you go,” I hand her my credit card.

“Oh, I’m sorry sir, but we have a $5 minimum on our credit card.  Would you like to add another taco?” she asks.

“Sure.  Sounds good.” 

I pay, get my tacos, and drive to work with 1 extra taco.  (Hey, someone will eat it!) 

With just one question, the young lady boosted her ticket with me by 33%.  Over the course of a year, that is an extra $126.36 minimum from me.  (Assuming I only visit once a week.) 

Imagine what that could mean to your average ticket when you’re selling toilets instead of tacos.  RELATED – 4 easy steps that boost service agreements

Using Financing to Boost Add-ons

You know that financing is a great tool.  It can help a client own those large plumbing or hvac items.  But, have you ever considered how it can boost your add-on sale?

#1 – A Credit Cards is Financing

I use my credit card when I buy tacos.  Yes, I have cash, but I enjoy the benefits of financing my purchases for the points I receive.  A credit card is a type of financing!  When your clients “don’t have the cash” remind them of the 30 day same as cash option that is sitting in their wallet.

#2 – Understand your client’s financial situation. 

Many of your clients can’t afford to let go of their cash.  Financing may be best way for them to keep some cash in the bank, and get the work they need.

#3 – Establish a minimum for financing. 

You most likely have a minimum amount the client can finance.  This amount may be established by your finance company, or by you.  Let’s set that amount at $500 for this example.  Establishing a minimum in your mind is important.  This creates a clear “line in the sand” for opportunities to use the minimum to boost sales.

#4 – Use the minimum to boost the add-on sale. 

Just like the young lady at the taco stand, you can boost your add-on sales just by establishing a “line in the sand” finance minimum.  Here is an example of how this concept works:

Your client’s situation is that they need to have a major rebuild on her toilet.  The total comes out to $387 dollars in plumbing repairs.  (Please note that everyone has different prices.)

You could install a new toilet for $537, and finance the replacement.

However, $537 financed would only be $12.37 a month.

So, you offer the options together in a way that just makes sense for her to choose financing.

The Scripting Example

Tech:  “Mrs. Smith, I can repair your toilet for you today, if you would like.  However, I think it’s in your best interest to consider the small investment difference for a new toilet.  May I go over that with you?” 

Client: ”Yes.”

Tech:  “The repairs today would resolve the issues of your toilet, and come with a 1 year warranty.  However, you would still have a 8 year old toilet.  A new toilet would come with a full 3 year parts and labor warranty.”

“The repair total would come out to $387.  A new toilet is $537.  Also, with a new toilet, you can use our finance options. Your monthly total would only be $12.37 a month.  Would you like to install the toilet and use the finance option instead of repair the toilet?” 

Client:Can I finance the repairs instead of the replacement?”

Tech:  “I’m sorry Mrs Smith, but there is a $500 finance minimum.  However, if they did allow you to finance the repair, that would be $8.91 cents a month.  The new toilet is only $3.46 more.  I have the toilet on the truck, and we can check the financing right now.  Would you like to go ahead and get started today?”

Client:  “Yes please.  That sounds good.”

Sales lessons can be found everywhere!  So, keep your eyes and ears open and keep turning learning into earning.

Question: Where have you learned some great sales lessons?  Share on Facebook and LinkedIn.

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