As an equipment dealer, perhaps this is a familiar scenario: You feel confident that you have done a great job explaining the equipment features and specs to your customer, and on top of that you’ve offered a great price to close the sale. But when you follow up with your customer, you find out you’ve lost the sale to a competitor. This could be due to any number of factors – maybe they offered a lower price, or the equipment wasn’t a great match for their needs, or maybe the competitor was able to fill a gap by offering financing. Whatever the reason, the message is clear: successfully making a sale hinges on listening to customers’ needs and working with them to identify the right solutions. 

Explaining Features and Specs Is Just Part of Closing the Sale

Taking the time to understand your customer’s needs is critical. Some may need to upgrade aging equipment to increase efficiency or reduce maintenance costs, while others may need equipment to develop added capabilities or fulfill a new contract. 

Customers respond to a sales consultant who understands their business, how they’ll use the equipment to generate income, and the finance options available for acquiring it.

Many sales representatives may be reluctant to discuss the payment aspect of a transaction early in the discussion, but failing to talk about finance options may limit the solutions you are able to offer. Ultimately, it may lead the customer to look elsewhere, for a number of reasons:

  • When finance solutions are not discussed until after the price has already been established and discounts already applied, finance flexibility becomes limited.
  • When options are discussed while equipment solutions are still in “development,” you have more opportunities for structuring financing, payment plan options, and term to meet the customer needs.
  • If you have a solid customer relationship, the right moment to engage your customer with your finance partner in a financial planning session may be before the equipment need is immediate. 

Ask Questions to Learn About Your Customer’s Business

Successful equipment dealers meet proactively with key customers – typically alongside their finance partners – to understand the customer’s business goals and accounting requirements and gain insight into existing fleet age, maintenance costs, and trade-up possibilities. In conversations with customers, some things to consider include: 

  • Current capital structure of a company and the balance sheet implications of various financing/purchase alternatives 
  • Equipment and capital spending plans 
  • Cash considerations 
  • Tax implications of an equipment financing decision (customers should consult with their CPA or accountant for advice) 
  • Financial statement/profitability considerations

Ready to Help 

Consider leveraging an equipment or vendor finance program to offer your customers flexible equipment acquisition solutions, with a wide variety of benefits. For more information, visit pnc.com/vendorfinance.