Most equipment sales businesses invest considerable time and energy in creating good solutions for their customers and then package it in an attractive and convincing way, however, they fail to package the expense in a similar manner.

Leases and purchase loans are essentially two different methods of financing (leasing is NOT renting). One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own positives and negatives.

When making a ‘lease or buy’ decision you must look not only at financial comparisons but also at your own personal priorities - what’s important to you.

Is having a new vehicle every two or three years with no significant repair threats more important than long-term cost? Or are long term cost savings more important than lower monthly payments? Is having some ownership in your vehicle more important than low up-front costs and no down payment? Is it important to you to pay off your vehicle and be debt-free for a while, even if it means higher monthly payments for the first few years?

So we find out that making a lease-or-buy decision is not quite cut and dry.

Form the point of view of the company making the sale - simply attaching a “price tag” to the solution can produce the following negative events:

. The client may not have allowed for any or enough capital expenditure and essentially does not have the cash to pay for a large upfront outlay.

. Even if the capital is budgeted, other events or competing demands may have priority over your solution. Keep in mind, capital is often budgeted 6 - 12 months prior to its estimated use and a lot of things can occur during that time.

. The decision makers (whom you may not be able to access) cannot easily justify the expenditure of a large sum up front, prior to any benefits being realised.

. Because of the amount involved, the focus quickly changes from the value of your solution to the cost.

These unwanted “sales blockers” can steal sales and margin from you.You generally avoid this negative phase of the negotiation if you take the time to package up the price into an affordable payment plan that your customer can readily relate to and justify.

A worthwhile vendor can offer qualifying equipment suppliers with a comprehensive finance solution, tailored to your business needs. A good set up can increase volume and margin, enhance customer loyalty, eliminate bad debts and reinforce your brand.

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