3 things equipment vendors can learn from McDonald's
Love it or hate it, you can't deny that McDonald's is savvy when it comes to attracting customers. Here are a few things equipment vendors can learn.
Over the past several decades, McDonald's has become the pinnacle of fast food - and love it or hate it, you can't deny the company's business savvy when it comes to attracting customers.
Whilst selling burgers to the general consumer customer base is a world apart from selling specialised equipment to businesses, equipment vendors can still apply the various tactics that Maccas has developed over the years, with the help of finance.
If you've been to McDonald's, chances are you've been asked to upgrade to a bigger portion at a slightly extra cost. For years, Maccas employees have been trained to increase the value of each sale by upselling orders. This is a trick used by sales professionals across most industries.
However, it can be a hard sell when the proposed upgrade is considerably more costly than the original item.
The upsell can sound much more appealing, when equipment vendors offer a payment plan.
Take this scenario: Machine A has a ticket price of $14,000. The higher spec Machine B has a ticket price of $18,000. Convincing the customer to spend an extra $4,000 upfront for a higher spec machine might not be an easy task. However, if you offer a payment plan the conversation turns to: "You could get machine A for $77 per week or upgrade to Machine B with added features for just $20 per week more."
Increasing the value of each transaction didn't just have to do with size upgrades. Bundling burgers into combo meals by adding fries and a drink worked just as well, if not better.
You have the same potential when selling specialised equipment, whether you’re bundling multiple machines and attachments or adding in a service and maintenance plan - especially when leveraging a payment plan.
For example, a machine that costs $18,000 is a hefty investment on its own, making the sale of an additional service plan difficult to pitch. However, if you could package both payments into a single monthly payment of $430, your customer may begin to see the value.
Give them what they want
Though Maccas has always kept its core menu offerings of a burger and fries, the company has also adapted to customer needs and wants. Now, McDonald's has a variety of healthy, gourmet options, it has responded to consumer demand for all-day breakfast and even installed touch-screen ordering stations.
With CAPEX budgets diminishing in recent years, businesses may be stretched to buy all of the equipment that they need. This has a dire effect on productivity but also the performance of equipment vendors too.
Offering equipment on finance, either on a rental agreement (operating lease) or on a secured loan (channel mortgage) is evolving with your customers’ needs, as they can stretch their budgets further whilst benefiting from your equipment now.
Classic Funding Group can help you offer your customers all these things and more, to find out more about offering your equipment on a payment plan, contact the Vendor Finance team on 1300 780 895.
Monthly amounts used are indicative only.