Everything you need to know about offering outdoor living finance
Monday April 25th, 2022
If you’re an outdoor living business, you’re probably looking for new ways to stand out from your competitors and attract new buyers. There’s no better way to stay on top of a growing market, than by offering customer finance at the checkout.
Perhaps you’re a garden centre, looking to increase the sales of your more expensive items like garden office furniture, or maybe your business specialises in garden equipment for tradesmen. You’ll know that your products can be on the expensive side, often being too expensive to buy upfront without savings or a credit card. By offering garden office finance you’ll give your customers a convenient way to pay – allowing them to spread the cost of their outdoor living purchase into monthly instalments.
If your business is looking for retail finance solutions, Duologi can help your business improve customer retention, boost revenue and stand out from the crowd.
How to offer finance as a garden centre
From families looking to deck out their garden with a climbing frame for the kids, to those looking to spruce up their garden for the summer with new garden furniture, offering customer finance as a centre can help you customer spread the cost of their garden plans into monthly repayments.
Here is how to offer finance as a garden centre:
Decide on the type of finance you want to offer
You’ll need to decide if you’d prefer to offer 0% finance or charge interest on your customers’ repayments. While 0% finance can attract customers by not charging extra, charging interest would make sure you’re still making a profit.
Choose the right finance firm
You can choose between managing the finance yourself, or choosing a financing firm to handle things for you. If you decide to offer finance with Duologi, we’ll recommend the right finance for your garden centre, tailored to the needs of your business and your customers.
How to offer finance as a garden equipment supplier
As a garden equipment supplier, it’s likely that your customers fall into two categories – those who enjoy DIY and gardening themselves, or tradesmen who offer gardening services.
Similar to the above, you’ll need to decide if you want to offer 0% finance, or charge interest on your customers’ repayments. You’ll also need to decide whether you’d rather offer customer finance yourself or choose a finance firm to handle things for you. If you decide to offer finance with Duologi, we’ll recommend the right POS finance for your business.
Why offer finance as an outdoor living business?
While many love the idea of new garden furniture for summer or need to invest in a new lawnmower, these can be expensive purchases. Your customers won’t always have the cash to pay upfront for bigger purchases, and some may take out a loan or apply for a credit card to pay for outdoor living appliances, which can feel stressful and be time-consuming.
By offering customer finance at the checkout, you’ll take away the hassle of finding the funds elsewhere, by having the product and a way to manage the cost, all in one place.
By offering finance as an outdoor living business, you’ll stand out from your competitors and encourage your customers to return to you in the future.
Reasons why finance can increase sales
Wondering how offering POS finance can increase sales? Here are some reasons why:
More likely to buy: Customer finance can spread the cost of outdoor living purchases into monthly payments, which can make the item feel less expensive, so your customers may be more likely to buy.
Improved cash-flow: POS finance spreads the cost of outdoor living purchases over time, allowing your business to benefit from an improved cash position.
Stand out from competitors: You’ll stand out from the competition by offering customer finance against those who don’t offer it at the checkout.
High-value products: Your higher-value products may become a more popular choice as customers are able to spread the cost over time.
What to consider when offering finance to customers
If you’re looking to offer finance to customers, there are some factors you should consider:
Charging interest: You will need to decide if you want to offer interest-bearing finance or 0% interest. If you do choose to charge interest, it’s important to remember that interest rates are competitive and your customers may have access to low interest rate loans elsewhere if they have a strong credit score. So it’s important that you offer a low, competitive interest rate and favourable repayment terms, to encourage customers to take finance out with you.
Processes: Try to make the POS finance process as straightforward as possible for your customer. Customers may find it off-putting if they have to fill out several forms, or get a quote then approach a finance company elsewhere. If you choose to offer customer finance through Duologi, the process should feel simple and straightforward so customers aren’t left feeling overwhelmed and change their mind at the checkout.
Benefits of offering outdoor living finance
Not sure if offering outdoor living finance is the best thing for your business? Here are some benefits of POS finance to consider:
Sales increase: Customer finance can help close more sales by giving customers the flexibility to make repayments that suit their budget. POS finance can also help to eliminate a big pain point for businesses – selling higher-priced products. By spreading the cost of expensive purchases, the item can feel less expensive, the customer will receive the item straight away without having to pay the full price upfront, and your business will increase sales.
Average order value: Customer finance can be a great tool for upselling, which can increase your business’s average order value.
New customers: By offering customer finance, you should see a growth in your customer base by making your products more affordable to customers. A lot of customers won’t have the money to hand to buy garden furniture upfront, but POS finance helps spread the cost into manageable payments. That way, more people can afford the product, which widens the pool of potential customers for your business.
Repeat business: Customer finance may encourage customers to return to your business, which can build brand loyalty and increase revenue. Once your customer is satisfied with the product they’ve received and their payment plan, they’re likely to return to your business next time and recommend you to others.
Disadvantages of offering outdoor living finance
Before you commit to customer finance, it’s important you consider the pros and cons. Here are some potential disadvantages of outdoor living finance:
Costs: You’ll need to make sure that the amount you’re paying for the customer financing is also making you a profit. Make sure to look at your customer data after a few months to see if your customer finance is performing – it may be that your customers prefer to pay for items upfront, rather than in instalments.
Make sure you’re eligible: You may need to meet a certain transaction threshold to offer customer finance, as well as other eligibility requirements. Here at Duologi, we require you to have a positive balance sheet, ask that your business has been trading for at least 12 months and that you have a turnover of at least £250,000.
Why use Duologi?
Wondering if your business should offer customer finance? Instead, you should be asking why you aren’t already.
Here at Duologi, we get a buzz out of solving financial challenges in businesses like yours, through the power of technology. We’re a forward-thinking solutions provider, using the power of technology to solve financial challenges.
We make it easy for consumers to buy the products they want, when they want them. Offering your customers more ways to pay for the products they love gives your business the best chance to thrive.
We work with retailers of all sizes and industries, from digital startups to large multi-channel brands, offering finance solutions on products from £150 to £15,000.
Book a consultation to learn more
There’s no need to weigh up if customer finance is right for you – instead, contact us today and discuss your options with us. We’d love to show you how we can transform your business with simple and flexible solutions. If you want to learn more about what we can offer, take a look at our case studies to see how we’ve helped some of the UK’s biggest retail businesses grow.