A recent study on the conservatory industry by First National, a leading provider of point of sale (POS) finance in the home improvement market, has revealed that customers who choose POS finance spend a massive 90 per cent more than those using other methods of finance. The research also reveals:
  • customers financing through POS finance spend an average of £10,500;
  • customers using other finance (eg bank loan) spend an average of £8,500;
  • customers paying in cash spend £5,600 on average.

The research was conducted amongst conservatory specialists and customers. The results indicate a buoyant mood among suppliers, with a majority of respondents predicting that the industry will continue to grow.

In addition the results demonstrate that offering POS finance has clear benefits for suppliers. The customer is more likely to choose a premium model and to make a purchase decision on the spot rather then shop around. In addition, the flexibility of POS finance can enable suppliers to offer discounts for immediate sales.

Unsurprisingly customers list quality and affordability as the two most important factors when buying a conservatory. Customers believe a finance package is a positive if it helps speed up the process, secure the sale and is convenient and hassle free. The offer of interest free credit as well as conventional interest bearing loans can also be used as a significant incentive.

Interestingly, a majority claim that the persuasiveness of the salesperson has very little influence on their purchase decision.

Mike Lawton, Director of Unsecured Loans at First National, said: 'The conservatory industry is becoming increasingly competitive and suppliers are looking for ways in which they can gain an advantage. The findings from our research send out a clear message, by offering POS finance, suppliers can significantly increase the average size of their sale.

'As a leading provider of POS finance, First National is in an ideal position to help conservatory suppliers maximise their sales opportunities and really set them apart from other suppliers.'

Source

Glass Age