hot tub finance
Hot tub finance UK
In many ways, hot tubs are the very definition of a luxury product. As such, even the most compelling deals on hot tubs and personal spas – including entry-level inflatable or pop-up models, both of which are increasingly popular with today’s homeowners – tend to represent a comparatively large single-item purchase for a majority of customers.
This means that, when a customer considers buying a hot tub for their family home or business premises, they’re likely to see themselves as making a fairly significant lifestyle investment. As with most such investments, it often involves committing to a relatively ‘big ticket’ purchase that often warrants careful prior consideration.
In other words, a hot tub sale won’t typically be an impulse buy, made casually at the point of sale. Customers will generally want time and space to evaluate the purchase more carefully, focusing on all aspects of the decision – and financial implications especially – before they fully commit to going ahead with it.
Navigating hurdles with retail finance
From the retailer’s perspective, of course, this familiar situation has two major implications.
Firstly, a degree of further encouragement or persuasion may often be required on the seller’s part in order to close the deal successfully. Secondly, there are multiple stages of the transaction at which the buyer might decide against completing a purchase. In the worst case scenario, these perceived hurdles can eventually lead to a would-be buyer backing out of the sale altogether.
There’s a delicate balance in play during this consideration stage, and – for both buyer and seller alike – it can feel a bit like trying to navigate a series of obstacles. From the customer’s perspective, by far the most problematic of these tends to be concern about the impact of the initial buy-in cost.
This is especially acute when there’s no option to spread those larger payments in more flexible ways, helping to make it more easily manageable. Retail finance is a proven solution for easing buyers past these obstacles, and onward towards a successful sale.
How can it help to offer your customers financing options?
Both large and small businesses involved in selling costlier items can benefit greatly from offering their buyers a flexible range of retail finance packages.
Retail finance options are an attractive and persuasive option for many prospective buyers. They tend to mean fewer perceived obstacles standing in the way of a sale from the buyer’s perspective, and ultimately fewer last-minute changes of heart. They also help to make your company stand out against competitors who don’t yet offer such a highly customer-focused service.
Regardless of which exact finance options you choose to provide, an extra degree of versatility in terms of payment plans and schedules can go a long way towards easing many widespread customer doubts and concerns. For example, popular hot tub finance options such as 0% finance or interest-bearing finance models are especially helpful for potential buyers already at the consideration stage.
This added versatility helps make your customers feel more confident and empowered going into a transaction, and leads directly to reduced rates of basket abandonment at point of sale (be it online or in-store). In short, these types of flexible financing arrangements are proven time and again to have a dramatic impact on completed transaction rates.
A case study in the benefits of hot tub finance
Case studies from our partner businesses in these sorts of retail environments have repeatedly shown clear and measurable benefits from offering these sorts of flexible business finance packages.
In fact, one such company we work with is luxury spa supplier H2O Hot Tubs. H2O brought Duologi on board to help provide their customers with an attractive 0% finance option. This was something the brand owners had already identified as a growing trend across the sector, and a key factor in staying competitive within an increasingly crowded marketplace.
The immediate result for H2O was a 30% uplift in numbers of completed sales, as well as greatly improved potential for upselling as part of the transaction. Specifically, the company observed a willingness among its customer base to spend an average of £600 more when offered terms for a cost-spreading payment plan.
Bespoke finance options across a wide range of markets
A similar pattern emerges in almost any sector where a business provides its buyers with various flexible finance options. Existing Duologi partners across the retail, healthcare, legal, home improvement, and education spaces have seen similar uplift when offering their customers a diverse array of payment plans and models.
You can read further case studies and reports on the real-world benefits of offering retail finance from many of our fastest-growing business clients here. And, for brands with a highly specific service model or retail approach, we’re always happy to design bespoke packages tailor-made to fit your individual business and customer needs.
Crucially, partnering with Duologi to provide various financing options means there’s no interruption to your normal cash flow. You’re still paid up front and in full for goods and services, while our expert team of business account relationship managers manage all the ongoing repayment plans with your buyers.
For more information or to discuss how Duologi can help with your next stage of retail growth, feel free to contact a member of our team any time.