Managing Partner of Consumer Credit Solutions, Andy Wallace, says consumers need credit to purchase.
In the kitchen industry there is a mass market who haven’t thought about offering finance and probably think it’s something it isn’t – high rate, high pressure – and not for us. But the reality is their customers may need it. Most of the UK population haven’t got £10,000 available to invest in a kitchen. There might be only one customer in 10 who has that sort of liquidity. The great mass market of the kitchen industry is definitely missing a trick – big time. For those who say “My customers don’t want finance”, this isn’t about consumers who are buying from you. It’s about getting different customers.
Offering finance on kitchens can increase sales
In research we conducted, 57 per cent of respondents said they would be more likely to buy if a good ‘interest free’ or ‘buy now pay later’ product was available. You’ve got to conclude, if you’re not in that space, you’ve got a bit of an issue.
Even if you read the OFT website, it tells consumers if you’re thinking about a large purchase, you may want to take the finance on offer because it protects your purchase and your guarantee. If you go back to the issues of MFI and Moben going under, consumers who paid cash lost their shirt and the ones on finance got their deposit back or the job completed. This was a lightbulb moment for many consumers.
Published in K&B News, October 2013