3 Big Benefits of Accepting Deferred PaymentsPAI – Mar 1st, 2013
As a merchant, itís important to always be on the lookout for ways to increase business. Whether that means following the latest marketing trends or going out on a limb and trying something unique, getting customers in your door and spending money is what keeps you going. One aspect of business that many merchants, especially small and independent merchants, have never considered is the benefit of accepting deferred payments.
While many consumers and merchants think of deferred payment plans as something only offered at big box and well-known stores, this isnít true. Nearly any merchant can now offer deferred payment plans that will help grow sales and increase revenue by selling more expensive items, upselling and bundling additional products, and attracting new and repeat customers.
Sell More Expensive Items
Deferred payment plans give customers the ability to pay for an item over several months with less money out of their pocket at the time of sale. If the full amount of money is not required when making the purchase, the customer is able to, and often more willing to, buy higher cost items. For most merchants, increasing sales of their most expensive products also means increasing the companyís profit.
Upsell & Bundle Additional Products
Offering deferred payment plans gives you the chance to bundle or upsell additional products. When a customer purchases an expensive item, thereís a good chance that accessories or other products exist to go along with the expensive item. Whether itís a warranty, batteries, or a protective case, upselling products that go along with the big-ticket item brings in more revenue for you.
In addition to upselling individual products, you can package several products together and create a bundle. The bundle will usually cost more than the single big-ticket item, but less than if each product was purchased separately. The savings gives your customers an incentive to buy the bundle rather than just the big-ticket item, especially if there is even one product in the bundle they had already planned on purchasing.
Draw New Customers Away from the Competition
While selling higher priced items and more expensive bundles will help your revenue one sale at a time, attracting new and repeat customers is like a gift that keeps on giving. If you and a competitor offer the same product, but you also offer a payment plan, many customers will take advantage of your offer and choose you over your competitor. Once theyíve decided to purchase the item from you, you have the opportunity to increase their loyalty, resulting in potential referrals and repeat business.
While there are many benefits to accepting deferred payment plans, these are just a few that can have big impacts on your sales and revenue. Discover PAIís deferred payment solutions today.
Tags: [Merchant Solutions] – [Check Services]
What If I Say "No" to the EMV Upgrades?
Firearms Retail Licensing: What Processors Don't Always Understand
Improve the bottom line of your ATM Business with Dynamic Currency Conversion
Manage Vault Cash: How to Operate Your ATM Route More Efficiently
S.M.A.R.T. Goals for Your ATM Business
What Merchants Need to Know About EMV Compliance
Payment Alliance International Supports Small Business Saturday
4 Benefits of a Customer Loyalty Program
Why You Should Take Advantage of a Partnership with PAI
Top 5 Benefits of ATMs at Your Business
Whatís Better for the Merchant: Debit or Credit?
Dear Merchants, Keep Your Receipts