Everything you need to know about offering hot tub finance
Thursday April 21st, 2022
Everything you need to know about offering hot tub finance
Are you a hot tub supplier wondering how to offer hot tub finance? You’ll know that hot tubs are an investment for your customers – often being an expensive item to buy upfront without savings or a credit card.
But if you’re looking for a way to both increase sales and stand out from other brands, offering finance at the checkout can attract buyers by offering a more affordable and convenient payment method. To stay competitive in a growing market, why not offer your customers the choice to pay with finance? They’ll receive and enjoy their hot tub straight away, and pay for it over time.
How to offer hot tub finance
Thinking of offering consumer finance for your hot tub business? Here are the steps you should take to offer hot tub finance to your customers:
Decide on the type of finance you want to offer
You can decide if you’d prefer to offer 0% finance or charge interest on purchases. 0% finance may sound more appealing to customers and drive revenue, while charging interest would ensure you’re still making a profit.
Choose the right finance firm
Would you rather manage the finance yourself or choose a financing firm to handle things on your behalf? If you choose to offer finance with duologi, we’ll recommend the right finance for your business, tailored to the needs of your industry and your customer.
Why offer hot tub finance?
Put simply, because hot tubs can be an expensive purchase upfront. Some of your customers may take out a loan or apply for a credit card to fund their hot tub, which can be a time-consuming process. By offering finance at the checkout, you’ll take away the unnecessary hassle from the customer by having the product and a convenient way to manage the cost in one place.
Customer loyalty plays a big part in the growth of your business, and offering customer finance can encourage consumers to return for purchases in the future. Your customers are more likely to return to you if you offer consumer finance at the checkout, and not to competitors that don’t.
Reasons why finance can increase sales
Considering offering POS finance? Here are some ways customer finance can increase sales:
Improved cashflow: Offering customer finance lets your customers spread the cost of their hot tub over time, allowing you and your customers to benefit from an improved cash position.
More likely to buy: Spreading the cost of a hot tub with customer finance may mean your customers are more likely to buy, as the monthly payments spread the cost, making the hot tub feel less expensive.
Stand out against the competition: Customer finance can help your business stand out against your competitors who aren’t offering POS finance at the checkout.
High-value products: Your higher-value hot tubs may become a more popular choice as your customers are able to pay for them over time
What are the different finance options available?
We understand that each business is different, so we offer two types of POS finance to choose from to help optimise your customers’ journey:
With 0% interest finance, your customers will make payments spread over time, with no interest as long as they pay their instalment on time. As hot tubs tend to be a high-value item, offering 0% finance can improve your conversion rate and reduce basket abandonment at the checkout.
Interest-bearing finance works like a loan, with you charging a small amount of interest to help cover your subsidy costs. Like 0% finance, it helps your customers spread the cost of their new hot tub into monthly repayments.
Factors you need to consider when offering hot tub finance
When offering finance to your customers, it may be worth considering the following factors:
Customer preference: From a financial perspective, you’ll need to consider whether you want to offer 0% interest or interest-bearing finance. If you choose to charge interest, remember that interest rates are competitive and some customers will have access to low interest rate loans elsewhere. So it’s important that you offer a low, competitive interest rate and favourable repayment terms, to encourage your customers to take finance out with you at the checkout.
Straightforward process: Consider how you can make the process of organising the finance as easy as possible for your customer. Often, customers are faced with a lot of forms to fill out or have to get a quote and then approach a finance company, which can be off-putting. Offering finance through duologi can make the process quick and simple, so customers don’t feel overwhelmed at the checkout.
Disadvantages to offering hot tub finance
Not sure if offering hot tub finance is the right choice for your business? It’s worth weighing up the pros and cons. Here are some potential disadvantages to consider:
Some customer finance providers ask that you meet a certain transaction threshold to use them, as well as other eligibility requirements. Here at duologi, we typically ask that your business has been trading for at least 12 months, that you have a turnover of at least £250,000 and that you have a positive balance sheet.
Customer financing is a great way to secure new customers, but you’ll need to decide if the amount you’re paying to offer the service is making you a profit. Perhaps more of your customers prefer to pay upfront than in instalments? Make sure to assess how well your customer finance offering is performing after a few months.
Why use Duologi?
Wondering why your business should use our service? Instead, you should be wondering why you aren’t already.
We’re a forward-thinking solutions provider, using the power of technology to solve financial challenges in businesses like yours.
We make it easy for consumers to buy the products they want, when they want them. By giving your customers more ways to pay, you’ll give your retail business the best possible chance to soar.
We work with retailers of all sizes, from digital startups through to large multi-channel brands, and offer financing solutions on products from £150 to £15,000.
Book a consultation to discover more
Instead of wondering if customer finance is worth the try, why not contact us today and see for yourself? We’d love to show you how we can transform your business with simple and flexible solutions. If you want to explore your options, take a look at our case studies to see how we’ve helped some of the UK’s biggest retail businesses grow.