Stephanie Jones, marketing manager at Moore Finance, explains why leasing out equipment could have big benefits for dealers and not just end users:
With competition rife, catering equipment dealers need to find a better way to sell in order to secure more deals. And leasing could be the perfect tool.
In the catering and hospitality market, equipment is often crucial to the successful running of an operation, affecting productivity, output and quality.
If equipment fails or isn’t efficient, then service can drop and profits can plummet. And when the business is cash flow dependent, often operators make do and don’t upgrade or replace.
Some catering equipment can be, quite rightly, expensive and end users may often find it hard to justify the outlay, so dealers can miss out on the sale.
By offering a leasing facility, it becomes an affordable option – end users get the latest kit, they can spread the cost out over an agreed period, they can manage the monthly or quarterly repayments and benefit from the tax deductions.
So what’s in it for a dealer? First and foremost, the sale is secured and the dealer is paid out once an end user has signed their lease agreement.
Maintenance contracts can be collected with an operator’s lease agreement so the customer base is preserved and protected and service revenues secured.
The operator’s end of lease date is known so they can be encouraged to upgrade their kit at the appropriate time – keeping the competition at bay.
The sales cycle can be reduced – end users are more likely to upgrade or replace old kit on a lease basis, as the costs often remain the same.
End users are highly unlikely to ask for a lower price so the maximum potential on commission can be achieved.
So why work with Moore Finance? We work in partnership with catering equipment dealers and their sales teams, giving them the confidence needed to integrate leasing into a sales model.
We provide training, telephone and e-mail support, tangible and digital sales aids, support at trade exhibitions and live quotations, as well as an online proposal system so that enquiries can be processed on the go, and a dedicated account manager to get to know the business.
And if leasing is already integrated within the business model, the New Year could provide catering equipment dealers with the perfect excuse to review and add another funder to the offering, giving better rates, higher acceptances and happier customers!