Giving your customers a payment plan option is a good way to help those customers struggling to complete larger jobs a chance to pay on time and in full.
Similar to the lay-by premise of old, customers can split their payments into fractions of their choice or a certain cash amount on a timely basis. But for you, the business owner, it means automatic payment and removes the hassle of chasing clients up after the fact.
“We’ve seen a massive rise over the past couple of years of payment method usage,” said Shane Wright, Operations Manager of Auto Masters.
“Obviously it helps our franchisees maintain more turnover because people often don’t have the cash flow to pay right then and there, so it’s a good option to go to for the bigger jobs.”
There are loads of payment plan companies out there – Zip, Humm and Openpay are just a few popping up within automotive businesses.
“On the negative side though, the higher the amount, the higher percentage fee we as a business have to pay – some are better than others, so it’s good for us having the choice of three merchants,” said Shane.
“We’re really happy with it so will continue using the services going forward.”
Do your research first – there may be one more suited to you and your business needs than others. At the end of the day, anything that makes your services more accessible to customers is a good business move.