ACTSMART
What is your most powerful sales tool?
ActSmart, writing for BikeBiz, takes a closer look at the impact retail finance can make on the businesses of bike retailers up and down the country…
RETAIL-FINANCED cycle sales grew by over 25 per cent in 2011, but this is just the tip of the iceberg. Research indicates that cycle finance sales could easily be increased between four and five-fold with a recent consumer survey (by Pay4Later) reporting that 93 per cent of customers were positively influenced by retail finance. So what’s restricting growth? Specialists too
often lag behind corporate-dominated retail sectors in implementing retail initiatives, but this needn’t be the case. Retail finance is possibly the easiest and cheapest form of promotion a shop can implement. It really can be as simple as just putting a swing ticket on a product. With five different APR rates to choose from,
payment terms from between six to 48 months and entirely flexible deposits, finance offers far greater flexibility than most other promotional offers and at a reduced cost to the business.
SPREAD THE COST The main attraction of finance to the consumer is being able to spread the cost and this has never been truer than in the current economy. The survey reported 57 per cent of consumers made a purchase purely because finance was available. A 19.5 per cent APR is
71 per cent of consumers surveyed would
have postponed their purchase had finance not been ‘offered’. Finance isn’t an easy subject for many consumers to broach, the option to spread the cost needs to be very evident to the consumer, but the individual finance proposition is under your control.
comparable to the rate charged by many credit cards, carries no cost to the retailer, but allows the consumer to make a purchase and spread the cost between 18 to 48 months. Many retail sectors have become adept at mixing finance options to not only negate costs, but to make money from finance. Offering interest-bearing finance makes larger purchases of bikes and accessories more affordable at no additional cost to the retailer. In fact, offering 23.9 per cent APR pays the retailer commission. Additional sales, upselling and higher APRs can offset the cost of subsidised lower APRs used for promotional purposes.
Bank loans are costly and not so easy to
come by nowadays, unless you are willing to opt for Wonga’s 4,214 per cent representative APR. So, if you offer finance you need to shout it from the treetops, not hide it under your counter.
36 BIKEBIZ JULY
“A 4.9 per cent APR 24 month term or even a 0 per cent 12 month offer can be more profitable than a nominal ten per cent discount offer.”
TAILOR YOUR POS The finance offering in your business can look like whatever you want it to. You can openly promote ‘finance available throughout the store’ on purchases over £350. Best selling products can be at higher APRs for consumers who want to upgrade and need to spread the cost. Large ticket sales can be upsold by offering 19.5 per cent APR over 12 to 48 months. Temporary promotions can be mounted at 9.9 per cent or even 4.9 per cent APR rather than offering price discounts that would erode margins far more adversely e.g. a 4.9 per cent APR 24 month term or even a zero per cent APR 12 month offer can be more profitable than a nominal ten per cent discount offer. You even have the option to flex the repayment period, offering longer terms for higher price points to assist the upsell and increase the deposit to help the consumer reduce the repayments. Zero per cent APR can be used for clearance, more aggressive and seasonal
promotions, including packaging accessory and clothing offers with a bike to deliver a much increased transaction value and the additional margin to fund the subsidy. You can increase the deposit required at zero per cent to further protect your margin – after all, it’s comparative to the cost of a cycle to work transaction. Retail finance has the potential to fulfil
every promotional offer you might need, all controlled by a swing ticket. You can even dual ticket product e.g. 9.9 per cent APR 24 months or zero per cent APR 12 months. Staff can be empowered to sell up by
applying your own simple rules as to at what products and price points they can introduce finance and at what level certain APRs or terms can be introduced. It’s a stepped offering that’s easy to learn and apply. We’ve all seen it on the High Street, so what better time to make it core to your business?
For more information call ActSmart on
0845 618 7256
www.actsmart.biz
BIKEBIZ.COM
THE WAY FORWARD
Retailer calculators, education tools and Cytech training courses – at
www.actsmart.biz National consumer promotion, consumer finance calculator and shop finder – NHS promotion live now Fully compliant, nationally branded point of sale to enable in store promotion Partner Finance Promotions – brand owners can create and help fund their own in store promotions see
www.pfps.biz live now Coming soon – consumers can choose a brand and find their local shop and pre-agree finance before they visit
Zero per cent APR can be used for clearance and seasonal promotions
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96