LEASING AS A SALES TOOL

SMOKE OUT OBJECTIONS

Knowing your customer’s budget restrictions will help you tailor a lease that is right for his budget.  Probe to determine your customer’s objections.  If you determine that his objection centers on cost, then leasing, being a flexible financial tool, can be used to overcome those pricing considerations. 

ALWAYS QUOTE THE MONTHLY RENTAL

Quoting the monthly payment helps you overcome the price barrier.  Quoting it early removes the questions of cost and leaves your customer free to concentrate on the features and benefits of your equipment.

INCREASE THE SIZE OF YOUR SALES

Since the cost of the equipment is quoted as a monthly payment, your customer may acquire additional needed equipment for a very small incremental increase in his monthly payment.  Suggest some accessories to the piece of equipment he has ordered.

RELATE THE COST SAVINGS

Your customer will probably be saving money by acquiring this new piece of equipment.  In some cases, the amount he saves per month by having the latest technology will be greater than the amount he spends per month on his lease payment.  In addition, he pays for the equipment as he uses it, not on the day it is delivered.

SHOW IMPROVED CASH FLOW

Point out that leasing offers a number of cash flow advantages.  Bank financing, for example, may require a substantial down payment, will impact a firm’s available credit line, and may involve fluctuating monthly payments that can be difficult to plan for.

MATCH THE CUSTOMER’S NEEDS

Leasing offers the flexibility you need to close the sale.  Extend the term to lower monthly payments.