How to offer finance for spas & hot tubs

How to Offer Finance for Spas & Hot Tubs

Offering finance options for your customers is an excellent way to increase sales, particularly when selling big-ticket items such as spas and hot tubs. These luxury products can be quite expensive, which may deter potential buyers from making a purchase outright. By providing flexible finance options, you can make the decision easier for customers and, in turn, boost your revenue.

In this article, we will explore how to offer finance for spas and hot tubs, why it’s beneficial for your business, and how partnering with a trusted finance broker like Kandoo can streamline the process for both you and your customers.

Why Offer Finance for Spas and Hot Tubs?

Spas and hot tubs are seen as high-end purchases that require significant upfront investment. While many customers may dream of owning one, the price tag can often be a barrier. Offering finance opens the door to a wider customer base and can be a key selling point. Below are some of the reasons why offering finance is advantageous:

1. Increased Sales

When customers are presented with the option to spread the cost of their purchase over several months or years, they are more likely to proceed with the transaction. Financing makes spas and hot tubs more affordable and accessible to a broader audience.

2. Higher Average Order Value

By offering finance, customers may be more inclined to choose higher-end models or add additional features such as advanced hydrotherapy jets, lighting, or sound systems. The ability to spread the cost makes these upgrades seem more feasible.

3. Competitive Edge

In a competitive market, offering finance can give your business an edge over competitors who don’t provide such options. Consumers are increasingly looking for flexible payment methods, and providing this convenience could be the deciding factor in their purchase decision.

4. Customer Loyalty

When you make it easier for customers to buy, you create a positive experience. This can lead to repeat business, word-of-mouth referrals, and a loyal customer base that trusts your brand.

Types of Finance Options You Can Offer

There are several different finance options you can provide to your customers, depending on your business model and the needs of your clientele. Here are some of the most common types of finance:

1. Interest-Free Credit (0% APR)

Interest-free credit is one of the most attractive options for customers. It allows them to spread the cost of their purchase over a set period without paying any interest. Typically, this is offered over 6, 12, or 24 months. While it’s a popular option, it’s important to consider that your business will usually have to cover the cost of the interest that would have been charged.

2. Low-Interest Finance

This is similar to interest-free credit, but the customer pays a small amount of interest over the repayment period. The interest rates are usually lower than traditional loans, making it an appealing option for customers who prefer longer repayment terms.

3. Buy Now, Pay Later

This option allows customers to take home their spa or hot tub without making any payments for a set period, usually 3 to 6 months. After the deferral period, they can either pay in full or start a repayment plan. This is particularly attractive to customers who want to enjoy their purchase immediately but may need some time to gather the funds.

4. Personal Loans

Personal loans are another option where the customer takes out a loan to pay for the spa or hot tub. These loans can be arranged through a finance broker or directly through a bank. The customer pays off the loan over time with interest. While this is less common than store-specific finance options, it can still be a good choice for certain buyers.

How to Implement a Finance Solution

Now that you understand the benefits of offering finance and the types of options available, how do you go about implementing a finance solution for your business? Below are the key steps to get started.

1. Partner with a Finance Provider

The first step in offering finance is to partner with a reputable finance provider. This is where Kandoo can be incredibly helpful. Kandoo is a UK-based retail finance broker that specialises in providing finance solutions for a wide range of industries, including spas and hot tubs.

By partnering with Kandoo, you can offer your customers a variety of finance options, including 0% APR, low-interest finance, and personal loans. Kandoo works with multiple lenders, which means they can find the best finance solution for your customers based on their individual circumstances. This flexibility allows you to cater to a wider range of buyers, from those with excellent credit to those who may have less-than-perfect credit.

2. Integrate Finance into Your Sales Process

Once you’ve partnered with a finance provider, it’s important to integrate the finance options into your sales process. This can be done both in-store and online. Make sure your sales team is trained to explain the finance options clearly and confidently. Additionally, display the finance options prominently on your website and in your marketing materials.

For example, instead of simply listing the price of a hot tub as £5,000, you could display it as “From £416 per month with 0% APR finance.” This breaks down the cost into more manageable amounts and makes the purchase seem more attainable.

3. Simplify the Application Process

Customers are more likely to opt for finance if the application process is simple and straightforward. With Kandoo, the finance application can be completed online in just a few minutes. Once the application is submitted, the customer will receive an instant decision, making the entire process quick and convenient.

The simplicity of the application process not only enhances the customer experience but also reduces the likelihood of abandoned purchases.

4. Provide Clear Terms and Conditions

Transparency is key when offering finance. Make sure your customers fully understand the terms and conditions of the finance agreement, including the repayment schedule, interest rates (if applicable), and any penalties for missed payments. Providing this information upfront helps build trust and ensures there are no surprises down the line.

Marketing Your Finance Options

Once you’ve set up your finance offering, the next step is to market it effectively. Here are some tips to help you promote your finance options to potential buyers:

1. Highlight Finance in Your Advertising

Make sure your finance options are a key part of your advertising campaigns. Whether you’re running online ads, social media campaigns, or print adverts, mention the availability of finance. Many customers are more likely to click on an ad if they know they can spread the cost.

2. Use Email Marketing

Email marketing is a great way to inform your existing customers about new finance options. Send out a dedicated email explaining the benefits of financing a spa or hot tub, and include examples of monthly payment breakdowns. This can encourage customers who have been on the fence to make a purchase.

3. Leverage Social Proof

Customer testimonials and case studies are powerful tools. If you have customers who have used finance to purchase a spa or hot tub, ask them to share their experience. Positive reviews can help alleviate concerns that other customers might have about taking out finance.

4. Offer Limited-Time Promotions

Create a sense of urgency by offering limited-time finance promotions, such as 0% APR for a specific period or no payments for the first six months. These promotions can encourage customers to act quickly and make a purchase before the offer expires.

The Role of Kandoo in Your Finance Offering

Kandoo plays a pivotal role in helping businesses like yours offer flexible finance solutions. As a leading retail finance broker in the UK, Kandoo works with a wide range of lenders to find the best finance options for your customers. Here are some of the key benefits of working with Kandoo:

• Wide Range of Lenders: Kandoo works with multiple lenders, which increases the likelihood of finding the right finance solution for your customers.

• Quick and Simple Application Process: The application process is quick, easy, and can be completed online. Customers receive an instant decision, which speeds up the sales process.

• Flexible Finance Options: Kandoo offers a variety of finance options, including interest-free credit, low-interest finance, and personal loans. This flexibility allows you to cater to a broader range of customers.

• Compliance and Regulation: Kandoo is fully regulated by the Financial Conduct Authority (FCA), ensuring that all finance offerings are compliant with UK regulations. This gives you peace of mind knowing that you are working with a trusted and reputable provider.

Conclusion

Offering finance for spas and hot tubs can significantly increase your sales, improve customer satisfaction, and give you a competitive edge in the market. By partnering with a trusted finance broker like Kandoo, you can offer a range of flexible finance options that meet the needs of your customers while streamlining the application process.

Remember, the key to success is to integrate finance into your sales strategy, market it effectively, and provide clear and transparent terms to your customers. With the right approach, offering finance can be a powerful tool to grow your business and make luxury items like spas and hot tubs more accessible to a wider audience.