Proudly serving the industry for which it was named for more than 50 years, Outdoor Power Equipment provides dealers who sell and service outdoor power equipment with valuable information to succeed in a competitive market.
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FEATURE STORY By Steve Gibbs Kentucky dealer boosts profits with successful business plan speaks with great conviction when the topic is consumer financing. “Most dealerships don’t under- stand the importance of retail financ- ing. Almost 80 percent of our sales are G Garnett Vance, owner of The Vance Store arnett Vance owns three out- door power equipment stores and has 40 years of experi- ence in the business. He financed, and the net margins are 6.8- percent higher on financed sales,” said Vance, owner of The Vance Store, a chain of three outdoor power equip- ment dealerships in Kentucky with locations in Glasgow, Bowling Green and Madisonville. Clearly, he is a businessman who is sold on the value of consumer financing. “We live in a pay-by-the-month society,” he continued. “Financing makes selling so much eas- ier, and it creates loyalty to your business. Cash customers can buy anywhere, and they beat you up on the price. Customers who finance their purchase will likely come back and buy from you again.” Most OPE retailers would agree that con- sumer financing is vital to their success, but few of them use financing as effectively as they could. How can you get more impact from your financ- ing program? Experts say there are two important keys — sales training and marketing your pro- gram. “We found that the most successful dealers are those who do a good job of teaching their sales team to sell with financing, and those who pro- mote their financing program consistently,” said Gary Slagle, general manager, OPE industry for GE Capital Sales Finance. “Most consumers want financing options, and if they are presented with those options in the proper way, sales and profits tend to increase.” Financing can be a delicate subject, depending on how it is presented to the customer. Promot- ing your financing program in your advertising and in your store introduces the topic without you having to say a word. In fact, promotional fi- nancing can be an effective magnet that attracts customers to your store. When they arrive and see banners announcing your financing plan and signage with financed prices on individual items, it expands their thinking regarding what they need and how much they can afford to spend. OPE purchases tend to be expensive, so the opportunity to pay for an item over time is very appealing to most customers. It helps in their decision-making process if they can see the monthly price of every item, without having to ask. “We have signage on virtually every mower we sell,” said Vance. “And every ad we do, both in print and on TV, mentions our financing program and specific financing offers. Our goal for 2011 is to become the home of the $59-a-month zero- turn mower. That’s the approach we’re taking this year. If a customer comes in and determines they 18 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com