Offer Financing Options During Tough Economic Times

At Elite we believe that all shops should have financing options available for their customers. I realize that since the collapse of the economy money has been tight, and it is now a lot harder for many people to qualify. But before you judge the success of your financing programs based on the percentage of your customers who qualify, consider that by offering 90 days same as cash, you'll be able to promote "financing" in all your marketing programs. There's no doubt about it: This in itself will help you bring in more customers during tough times.

By Bob Cooper

At Elite we believe that all shops should have financing options available for their customers. I realize that since the collapse of the economy money has been tight, and it is now a lot harder for many people to qualify. But before you judge the success of your financing programs based on the percentage of your customers who qualify, consider that by offering 90 days same as cash, you’ll be able to promote “financing” in all your marketing programs. There’s no doubt about it: This in itself will help you bring in more customers during tough times.

Additionally, when a customer walks into your shop sees signage that you offer financing, it will put them at ease, and they’ll be a lot more receptive to your recommendations. You also need to consider that even if only one out of 10 applications you submit is approved; that’s one more sale than you would have otherwise had.

Lastly, by having financing available, it allows you to do what is referred to as a “trial close.” This is when a customer tells you they don’t have the money, then you tell them you offer 90 days same as cash on approved credit, and that it’ll only take a few minutes to run their application. If they balk at your offer to see if they qualify, it’s a good indication that there’s another concern that they have.

So before you get too disheartened over a high percentage of declines, consider the marketing value that comes along with offering financing, consider the additional sales you’ll be able to close, and consider the value of being able to use a trial close.

Finally, be cautious if you decide to finance customers yourself. If someone can’t qualify with an outside finance company that would love to get the deal, then that should speak volumes about the probability of the customer repaying you. Add to that, if they don’t repay you, then you’re going to be in the collection business. I am sure you’ll agree: That’s one place you certainly don’t want to be.

For the last 20 years, Bob Cooper has been the president of Elite Worldwide, Inc. offering automotive professionals sales, marketing and employee management solutions. To learn more about how Elite can help you build your auto repair business, visit www.EliteWorldwideStore.com.

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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