Retailer Handy Tips
For retailer use only
A real Win Win, a great deal for your customers and increased sales for the retailer
As you know 0% finance is one of the most effective tools to bring customers to your business and to enable them to buy that day.
Here are two great ways for you to manage the cost of such promotion and give your customers a fantastic deal.
1. Make your goods more affordable and let your customers cash go further.
Help your customers choose the best deal for them!
Did you know that you can almost half the customers monthly repayment compared to 12 months interest free by spreading the cost over 24 months at a low 3.9% APR. The cost of the subsidy to the retailer is virtually the same as a 0% APR over 12 months. Example on £1000
- 12 months at 0% APR. £83.33 per month Total Amount Repayable £1000.00
- 24 months at 3.9% APR £43.35 per month Total Amount Repayable £1040.40
Set a minimum deposit requirement, a 25% deposit reduces the cost of the subsidy by 25%. Obvious when you see it but often forgotten. Why not advertise 0% APR over 12 months with 10% deposit or 24 months with a 50% deposit. Again the cost to you will be similar but by giving the customer choice they can get the deal that they really want. This really appeals to cash customers looking to trade up.
3. Point of Sale Material
Showing the standard information including the monthly payment on your products using point of sale material will show your customer how they can spread the cost of an item they desire.
Finally, remember when looking at the costs don’t forget the saving you will make on the credit card merchant fee!
Moneyway promotes responsible lending.