By Guest Blogger, Terry Hopper
“0% In House Financing and Payment Plans available on all packages!”
That phrase is GOLD. You will see it on my DJ company’s brochures as well as hear me “casually” mention it toward the end of meeting with a prospective client. It’s usually then that their eyes widen even more, and they ask for a pen to sign the contract.
I’ve borrowed this concept from the auto industry, which introduced it after 9/11 to help stimulate their sales.
The Best Thing About This Offer
What’s the best thing about offering “0% In House Financing and Payment Plans available on all packages” to prospects? I secure more bookings and have had to change nothing in terms of my contract. A deposit is still required and the rest is due fourteen days prior to the event. Easy peasy.
The value to a prospect is in how your offer is presented. Suddenly, $2,000 becomes only $200 a month.
When you think about it, we have already been financing our clients by offering two or more payments in our contract terms. All it takes is a little accounting work to keep track of how much a client owes, and when and how much each payment is made.
Keeping Track of Payments
I incorporated a “For office use only” section on my contract with space for me to note payments.
I also find out the best way to contact my clients after payment terms have been agreed on, and then send them monthly reminders via email, PayPal, text or “snail mail” with a self addressed stamped envelope.
It’s well worth the extra time every month to handle the accounting and communication aspects of my company’s financing offer.
IMPORTANT NOTE: Be prepared to refund all payments made (except for your non-refundable retainer) in the unlikely event of cancellation in accordance with your own contract terms and conditions.
An Added Bonus
Communicating with clients on a monthly basis helps build our relationship because I also use the opportunity to ask them how their planning is going as well as possibly upselling them on our other products and services.
I love the fact that even during slow months I have a steady stream of income flowing in!
If you have any additional questions, feel free to contact me.
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Legal Disclaimer: This article is intended for information purposes only and is not meant as legal or financial advice.