Oct

16

Think about the car business: does anybody really concern themselves with the selling price of the car anymore? No, most are only concerned with the monthly payment. That’s why that industry has gradually de-sensitized people to longer terms; from a norm of 24-36 months to a norm of 48-60 months.

America lives by payments, and is largely conditioned to think about the payment amount rather than the purchase amount. Just about anytime you are selling something with a price that is “significant” to your market, you ought to offer installments. Offering and emphasizing payments vs. price can improve response by as much as 50%.

In mainstream consumer marketing, we have discovered an advantage to monthly payments below $50.00. In business to business, the amount is less important. If selling a fairly high-priced item, you may want to “weight” the financing in your favor, to cover all costs with the first installment and only finance profit: Egs. a $1,000.00 purchase - $500.00 down, 5 monthly payments of $100.00 each.

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Comments

Oct

16

Think about the car business: does anybody really concern themselves with the selling price of the car anymore? No, most are only concerned with the monthly payment. That’s why that industry has gradually de-sensitized people to longer terms; from a norm of 24-36 months to a norm of 48-60 months.

America lives by payments, and is largely conditioned to think about the payment amount rather than the purchase amount. Just about anytime you are selling something with a price that is “significant” to your market, you ought to offer installments. Offering and emphasizing payments vs. price can improve response by as much as 50%.

In mainstream consumer marketing, we have discovered an advantage to monthly payments below $50.00. In business to business, the amount is less important. If selling a fairly high-priced item, you may want to “weight” the financing in your favor, to cover all costs with the first installment and only finance profit: Egs. a $1,000.00 purchase - $500.00 down, 5 monthly payments of $100.00 each.

Tags: , , , , ,
Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.

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