June 6, 2007
Part 1: Give Your Customers The Money To Buy Your Products
What a ridiculous concept. Why would I possibly give my customer the money to buy my own product? If I gave the customer the money to buy my products, then I wouldn’t have any money left. What kind of business advisor are you?
As crazy as it seems, the concept of giving your customer the money to buy your product is actually one of the most fundamental financial concepts that exist in the market today.
How many products are in the marketplace that the customer simply does not have the money to buy; but that customer wants those products very badly?
Left to his or her own devices, the customer would never be able to accumulate the resources to be able to buy the product or service that the vendor or supplier is selling.
Consequently it has become very commonplace in our consumer-driven world for the seller to provide the financial resources to the customers as a necessary accommodation to them.
Now this doesn’t mean that we reach into our pocket, give the customer the money, and then ask the customer for the money back. Giving the customer the money means that we help to facilitate the financial side of the transaction so that the customer can make it possible to make the purchase from us. Think about all of the industries where this happens.
Take cars for example. If a customer walks into a car dealership and picks out the car of their dreams, how many of them would actually be able to take out their checkbook and buy that car – right on the spot.
If the car dealerships had to rely on people paying cash for every item that is purchased from them, they wouldn’t sell very many vehicles.
So in response, the car dealerships have built financing right into their selling program: the last step in the purchase process includes a visit to the finance department.
When the customer enters the finance department, he or she knows what to expect. Sure, there will be a few upsell attempts, but for the most part, the purpose of the finance department is so that the car dealership can help the customer get the money they need to buy the car.
In Part 2 of this article series, I'm going to reveal more ways on how even you can start giving your customers the money to buy your products. In meantime, come join me tomorrow on my Insider Capital Secrets webinar. Please Signup Here — It's Free.
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Comments on Part 1: Give Your Customers The Money To Buy Your Products »
Part 1: Give Your Customers The Money To Buy Your Products | Joel Block's Blog…
This is an excellent article I've found from an underground business adviser for big corporations (like AT&T) and startup entrepreneurs. Read it… it's sure to enlighten your marketing prospective….
This is a very valuable technique. Mobile phone providers do this now by subsidizing the cost of handsets. TiVo should have done this instead of making customers pay the hefty up-front cost of the TiVo box — a portion of the cost should have just been included in the monthly fee.
Manufacturers of green/sustainable products are helping customers obtain government grants to pay for their equipment.
There are lots of ways to help customers improve the ROI of a purchase without reducing prices.