Promotional credit is still an attractive and effective tool to purchase higher ticket items. By offering promotional financing in lieu of a discount, you can protect the integrity of the brands you are selling. More importantly, today’s consumers want options. In the current economy they’re not as cash liquid as they once were. With a high-end item like jewelry, long-term financing can be more attractive than discounted prices.
Regina Leadem, Vice President of Sales for the Luxury portfolio at GE Money, shares simple tips to help make purchases more affordable for your customers:
- Credit markets are tight, but don’t “give up.” Even if you have a lower approval rate than in the past, financing is still a vital part of retail and the benefits outweigh the costs.
- Offer the availability of financing to everyone, early in the sales process. Don’t offer credit only as a last resort in an attempt to save a sale.
- View financing as an investment in a sales tool, versus an expense. (It is proven to boost sales, average tickets and loyalty.)
- Consumers are closely comparing the value of jewelry purchases to other categories (such as electronics, handbags and home accessories). It’s important that you are as competitive as ever -— even with the payment options you offer.
Take The Tip:
Jewelers of America members can take advantage of exclusive rates from The GE Money Luxury Program, which provides financing through branded store credit cards. Click here for more information.
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