How Alternative Financing Can Benefit the Firearms Industry
Clear Shot: How Credova Can Benefit Your Customers
When you’re in retail for a living, you want your prospective customers to have all the information and tools necessary to complete a purchase from you. If you learned that sales in a physical store would increase by 38% if you painted the bathrooms yellow or offered a brownie to each person who walked through the door, your fingers soon would be splattered with paint and chocolate dust.
But what about online retailers? Are you aware of alternative financing? More importantly, are you aware that offering alternative financing payment options can boost your sales on average by 38%? It’s true.
Point-of-sale payment methods like Credova have proven to be a boon to countless businesses, particularly those in the firearms industry. The ability for shoppers to browse, purchase, and finance their purchases online revolutionized the game.
Old Broken Ways
Retailers that prioritize a seamless shopping and checkout experience — both in-store and online — are better off than those that don’t. When you utilize an alternative financing option, customers will have more purchasing power.
Before point-of-sale evolved to include firearms, there was a slower method to “buy now, pay later” in the form of layaway — a pay now, pay again later, and eventually (maybe) a possess-the-firearm-down-the-line situation. While layaway may be a viable option for some customers, there are problems with the process that directly affect the merchant:
• Time delays between the purchase decision and its completion can lead to layaway abandonment and lost sales for merchants. Think about the customer who is going on a hunting trip in two weeks and needs new gear. That customer can’t get his or her items until the layaway ticket is paid in full. Not ideal, to say the least.
• The merchant will not see total funds for that item until the layaway plan is complete. For larger merchants, this may not pose so much of an issue, but for the midsize and smaller merchants in the retail market (which account for 70% of e-commerce retail), this can significant affect their supply chains. Again, less than ideal.
Layaway isn’t the only snag. The financial services industry has long put pressure on the firearms trade. But banks are not alone. Salesforce recently pushed all firearms-related businesses off their platforms. Many credit card processing companies refuse to do business with the industry. The financial options for retailers and consumers alike in this space are slowly drying up.
That’s precisely why alternative financing can be a blessing to your business.
Increasing your customer base goes hand-in-hand with elevating the spending power of those customers. Thin margins for firearm retailers require high sales volume, as well as the constant movement of high-priced hunting and gun accessories. A good pair of binoculars can retail for $400 to $600. A great scope easily runs $1,000. And as you know, many outdoor sporting goods, hunting, and firearms retailers make their profits by selling these add-on items.
The steep cost of these products can exclude a significant portion of your customer base, however — but not if you offer point-of-sale financing, which can increase the spending power of your customers and effectively drive average order value higher. Full credit spectrum financing gets more qualified consumers into your store and onto your homepage. Helping the customer afford the item via alternative payment options accomplishes all of the above.
Perhaps one of Credova’s best attributes is the simplicity to integrate and utilize the platform. Every customer expects a smooth, fast online checkout experience in 2020. We facilitate that. Rather than have shoppers complete applications off-site and fax in necessary paperwork, Credova offers a comprehensive API that lives within the merchant’s website. It drives sales up and cart abandonments down.
Merchants can enjoy our partnership worry-free, as our account service teams are always available for answers and support. Credova grants access to robust FAQ and information pages that break down our process in simple terms. No question goes unanswered.
Contact Credova today to explore what options exist for your business.