I’m sitting back in my chair, listening to my sales team talking to our customers and reflecting on what to write in this month’s Technology Finance blog. When we talk to Technology dealers the most common objection heard is “all my customers pay cash”. Do they really believe that, I’m not so sure, I am pretty confident though in saying that most technology dealers do not proactively offer finance. Technology Finance is not a concept they embrace and we often hear that all of their customers are cash rich.
Our challenge on a daily basis is being able to overcome these objections and to explain the positive effect offering finance can have on a company’s order book. We only have a small window of opportunity on a phone call and it is difficult sometimes to get our point across.
One perfect example is sitting on my desk right now, my new Apple iPhone 7 plus. The debate between Android and Apple will continue for many years however even if you are not a fan of the hardware you have to respect the company. My iPhone is bolted onto our company mobile contract, my wife’s phone costs me circa £40 per month which is an average monthly tariff. Let’s have a stat (I love a stat) followed by a few thoughts for you to ponder. Apple have sold just over 78 million iPhones and in their last quarter with reported sales of 42.62 million.
How many phones do you think they would have sold if the only method to purchase was paying the RRP in advance? The answer is easy, nowhere near as many, I can guarantee you that.
Why do you think that the cost of phones is included and spread over the contract period entered into? The answer is easy, BECAUSE THEY WILL SELL MORE.
Why do you think that phone contracts have increased to 2 years instead of the more traditional 12 months? The answer is again easy, the cost of the phone has gone up to a level that when split over 12 months it becomes affordable to less people and unattractive to more people. Split it over 2 years, the monthly cost comes down and guess what? THEY SELL MORE
Mobile phone contracts are essentially the same as the Technology Finance contracts we arrange just packaged and taken to market in a different way.
It’s a good job that when finance companies were calling around the mobile phone manufacturers and dealers back in the 90’s they didn’t float the objection “all my customers pay cash”, if they had of done the mobile market would be nowhere near as advanced and you would still be playing snake rather than sending tweets from your phone!
I hope I have managed to get my message across regarding Technology Finance, it makes sense for both the customer and the reseller. The customer gets the solution they want at an affordable price and the reseller closes more business.
If you are a supplier looking to offer finance or a customer investing in new technology call Bluestar Leasing now on 01420-481500 and we would welcome the opportunity of providing you with a finance quote. Alternatively just click here and complete our call me back form and we will phone you back.
My final thought – Next time you get a call from one of the sales team at Bluestar Leasing regarding Technology Finance, look down at your mobile. If it fits in your pocket you can thank us for that.