Finance belongs in the quote, not just the checkout

Phillip Garlick, PPL’s CEO on why higher-value home projects may need finance built into the sales journey

If you are in the business of selling big-ticket items, you’ll know that they’re rarely bought on the spot. 

Whether it’s a kitchen, a bathroom, a set of solar panels or dental treatment, they’re all considered purchases. 

They aren’t made on a whim. 

Customers will visit your showroom or practice, ask questions, compare with other brands, come back, ask even more questions, often over several weeks.

And somewhere in that process, whether it’s right off the bat or at the very end, most of them will ask some version of the same question: 

“How am I going to pay for this?”

For many businesses, the answer is still 'in full' or 'we'll look at that at the end'. 

Even though that might be how you’ve traditionally operated, in reality, this is where you could be missing a big opportunity. 

That may be where an opportunity is being missed.

Finance is a commercial decision.

The way to think about finance is to give it the same level of attention as you do to your product range, your pricing and your showroom. 

Getting it into the quote, not just the checkout, may be a good place to start.

How home projects are actually sold

So how does that work in practice? Well, think about a typical kitchen or bathroom project from a customer perspective. 

They will visit your showroom or make an enquiry online. The next stage is the design appointment so they can discuss their plans in more detail. There might also be a survey. 

Then there's a quote, and often a period of reflection before the customer commits.

All through this process, your customers are weighing up what they want to pay against what they feel comfortable spending. Some will pay outright. Others would rather spread the cost and may be thinking about that long before they see a final figure.

So, if finance isn’t brought up early in the conversation, or only appears at the very end, they may make their decision without it, which could result in them scaling back their project, delaying it, or looking for a business that offers a way to pay that suits their needs and budget better.

Discussing the price as early as possible in the customer journey helps everyone have a clearer picture.

One option is not a credit offering

Where businesses do offer finance, it's often a single option. 

That can work well for a lot of businesses, but when it comes to higher-value purchases, the sales process and the customers’ aspirations of purchasing a bathroom refresh can vary considerably from someone planning a full kitchen installation. 

That’s why it’s important to understand that every sales journey and where finance fits are different.

Some of your customers may be best suited to a short-term option. Others may be looking for a longer-term, interest-free credit, or interest-bearing credit that spreads a larger amount more comfortably. 

Think of your credit offering like your product range; every customer that walks through your showroom door is looking for that product that best suits them and their project. Some customers might feel that if you only offer one finance option, it doesn’t give them the flexibility they need. Others might be happy with it and are happy to proceed. 

So, the reality is that, with every customer having their own needs, choice can be beneficial; it doesn’t necessarily mean every business needs every product. 

It's about working out what works best for you.

If you don't offer finance today

Businesses who don’t currently offer finance, often tell me the reason why is because it seems like a lot of effort to start the process from scratch, and they have a million and one other pressing jobs. 

But I always say, with the right support and a clear objective, it can transform how businesses operate. 

So, if finance is something you’ve been considering, think about the following from a commercial point of view, not a regulatory one; it should hopefully help you see your current offering as it currently stands and if there are ways you could improve it.

• Where in our sales journey does the cost conversation really happen?

• Do customers ask about spreading the cost, and what do you tell them?

• Who in the team would talk about finance, and how confident would they be?

• What would you want customers to be able to choose from?

Creating the right structure

Offering regulated consumer credit usually means either becoming an Appointed Representative of an authorised firm or applying for your own Direct Authorisation. You'll also need lenders, approved financial promotions, a complaints process, trained staff and the records to show finance is being offered fairly.

That can feel like a lot of moving parts, but with the right planning it can all fit together seamlessly. 

Set up, access, run

At Product Partnerships, we have a proud history of helping businesses set up, access, and run consumer credit through one partner.

We can help you choose and set up the right regulatory structure. As an FCA-authorised credit broker, we can introduce you to lenders on our panel.

Our Artemis platform supports financial promotions approval, complaints handling, e-learning and record-keeping. And our account managers stay close as your business, products and customers change.