Offer finance for a watch business

Introduction: The Importance of Offering Finance in the Watch Business

In today’s competitive retail environment, offering finance options can be a game-changer for businesses, especially in industries where high-value items are the norm. The watch business is one such industry. Luxury and mid-range watches often come with significant price tags, which can deter potential buyers. By offering finance options, watch retailers can make these premium timepieces more accessible, expand their customer base, and ultimately boost sales.

Providing customers with flexible payment options not only increases the likelihood of a sale but also enhances the overall customer experience. In this article, we’ll explore the benefits of offering finance in the watch business, how to implement it, and how partnering with a retail finance broker like Kandoo can streamline the process.

Why Offer Finance for Watches?

1. Making High-Value Purchases More Attainable

Watches, particularly those from renowned luxury brands, can be expensive. Not everyone has the disposable income to purchase a high-end timepiece outright. By offering finance, retailers allow customers to spread the cost over several months or even years, making it easier for them to commit to a purchase.

This flexibility can open the door to a wider audience, including younger buyers or those who are interested in luxury watches but may not have the immediate funds available. Finance options provide a solution that makes the dream of owning a premium watch a reality for more people.

2. Increased Sales and Average Transaction Value

When customers are able to spread payments over time, they are often more willing to purchase higher-priced items. Offering finance can encourage customers to upgrade to a more expensive model or add additional items to their purchase. For example, a customer considering a mid-range watch may decide to go for a more luxurious model if they know they can pay for it in instalments.

Retailers that offer finance typically see an increase in their average transaction value. This is because customers feel more comfortable spending larger amounts when they don’t have to pay it all upfront.

3. Competitive Advantage

In the watch industry, competition can be fierce. Many consumers are not just looking for the best product but also the best deal. Offering finance can set your business apart from competitors who may not provide such options. It can also help retain customers who might otherwise seek out alternative retailers with more flexible payment plans.

When a customer knows they can pay in instalments, they are less likely to hesitate in making a purchase and more likely to return to your store for future purchases.

4. Building Customer Loyalty

Finance options can help create a sense of loyalty between the customer and the retailer. By offering flexible payment plans, you’re showing customers that you understand their financial needs and are willing to work with them. This can lead to repeat business and positive word-of-mouth recommendations.

A customer who has had a positive experience with your finance options is more likely to come back when they are ready to make another purchase, whether it’s a new watch or an accessory like a strap or case.

How to Offer Finance for Your Watch Business

1. Partner with a Retail Finance Broker

The first step in offering finance is to partner with a reputable retail finance broker. A broker acts as an intermediary between your business and the financial institutions that will provide the loans or credit to your customers. They handle the complex processes involved in offering finance, such as credit checks, compliance, and payment collection.

Kandoo, a UK-based retail finance broker, is an excellent option for watch retailers looking to implement finance solutions. Kandoo works with a wide range of lenders to offer flexible finance options tailored to your business needs. By partnering with Kandoo, you can offer your customers competitive finance packages while leaving the administrative and regulatory work to the experts.

2. Choose the Right Finance Options

There are several types of finance options that retailers can offer, and the right one for your business will depend on your target audience and the types of watches you sell. Common finance options include:

• Interest-Free Credit: This allows customers to spread the cost of their purchase over a set period without incurring any interest. It’s a popular option as it makes the purchase more affordable without increasing the overall cost.

• Buy Now, Pay Later (BNPL): With BNPL, customers can take home their watch immediately and start paying for it after a specified period. This can be particularly appealing for those who may be waiting for a bonus or other lump sum of money.

• Low Interest or Deferred Interest Loans: For customers who are willing to pay interest, low-interest or deferred interest loans can be a good option. These loans allow customers to spread the cost over a longer period while incurring minimal additional fees.

Kandoo can help you select the right finance options for your business and ensure that you are offering competitive terms that will appeal to your customers.

3. Integrate Finance into Your Sales Process

Once you’ve partnered with a finance broker and chosen the right finance options, it’s essential to integrate finance into your sales process. This includes training your sales staff to explain the benefits of finance to customers and ensuring that your website clearly displays finance options for online shoppers.

In-store, sales staff should be equipped with the tools and knowledge to guide customers through the finance application process. This includes explaining the terms of the finance agreement, helping customers complete the application, and answering any questions they may have.

For online retailers, offering finance at checkout is crucial. Kandoo offers seamless integration with e-commerce platforms, allowing customers to apply for finance directly on your website. This makes the process quick and easy, reducing the likelihood of cart abandonment.

4. Promote Your Finance Options

Once your finance options are in place, it’s important to promote them to your customers. Many customers may not be aware that finance is available, so make sure to advertise it prominently in-store, on your website, and through your marketing materials.

Highlighting the availability of finance in your advertising can attract more customers to your business, particularly those who may have been hesitant to make a large purchase without a flexible payment plan. Be sure to clearly explain the benefits of finance, such as interest-free credit or low monthly payments, to entice potential buyers.

How Kandoo Can Help Your Watch Business

Kandoo is a leading retail finance broker in the UK, offering a wide range of finance solutions tailored to the needs of businesses like yours. Partnering with Kandoo provides several key benefits:

1. Access to Multiple Lenders

Kandoo works with a network of trusted lenders, ensuring that your customers have access to competitive finance packages. This increases the likelihood that your customers will be approved for finance and allows you to offer a range of options, from interest-free credit to longer-term loans.

2. Easy Integration

Kandoo makes it easy to integrate finance into your sales process, whether you operate a physical store, an online shop, or both. Their platform can be seamlessly integrated into your website, allowing customers to apply for finance with minimal disruption to their shopping experience.

3. Regulatory Compliance

One of the most challenging aspects of offering finance is ensuring compliance with UK regulations. Kandoo handles all aspects of compliance, from credit checks to contract management, ensuring that your business remains in full compliance with the law. This allows you to focus on selling watches while Kandoo takes care of the administrative details.

4. Customer Support

Kandoo offers ongoing customer support to both you and your customers. If any issues arise during the finance application process or after a purchase has been made, Kandoo’s support team is available to assist. This ensures a smooth and hassle-free experience for both you and your customers.

Conclusion: The Future of Finance in the Watch Industry

Offering finance in the watch business is no longer just a luxury; it’s a necessity. As consumer expectations shift and more people seek flexible payment options, retailers who provide finance will be well-positioned to thrive in an increasingly competitive market.

By partnering with a retail finance broker like Kandoo, watch retailers can offer their customers a range of finance options, increase sales, and build long-term customer loyalty. Kandoo’s expertise in finance and compliance makes the process simple and efficient, allowing you to focus on what you do best: selling quality timepieces.

Incorporating finance into your business model is an investment in your future success. With the right partner and the right strategy, offering finance can help you grow your watch business, attract new customers, and stand out in the marketplace.