Being in the equipment leasing industry for several years, I can’t tell you how many times I’ve heard business owners, sales managers, and sales representatives make the comment, “My customers don’t rent!” Then I’ll follow up with the question, “How do you know that?” The answer is usually something like “it never shows up” or “they never ask for it”.

Well, the truth of the matter is that the reason they don’t ask is simply that they don’t know there is a leasing option available, or they just don’t think about it. If you don’t ask you don’t know…

Most companies rent something!

A photocopy, your premises, vehicles or some equipment where the monthly payment option was provided in the sales process. In fact, all kinds of organizations lease equipment. Small and large, public and private, for-profit and not-for-profit, and governments and related organizations such as hospitals, school boards, and municipalities. If that’s the case, there’s no reason why they shouldn’t consider leasing the equipment you’re selling.

You can’t assume a prospect won’t or wouldn’t lease if given the opportunity. No one has ever lost a sale by providing a lease payment, but you have to wonder how many sales have been lost by not having the monthly option available. It takes very little time and costs nothing to incorporate a monthly payment into a sales quote or presentation; however, doing so can have a substantial impact on sales.

Think about this…

If you only provide the customer with the full purchase price, their options are limited to whether or not to purchase the product. If they choose to buy, they have to determine how they are going to pay for the equipment.

• Will it come out of cash flow, where it will tie up working capital?

• Will they make withdrawals from your line of credit, which may require approval from your bank?

• Do they have to approach their bank for a term loan or try to apply for a higher line of credit limit?

These are hidden objections that are not often shared with a seller. By offering a lease option, you are solving these problems for the customer and, in effect, creating a new line of credit for them.

Also, a monthly payment is likely to be considered an operating expense and can often be approved at a lower level within the organization. On the other hand, a buyout is likely to fall under the capital budget, which typically has a longer approval process.

By managing the financial aspect of the acquisition, you, as the seller, are actually in control of the sales process. How many times have we left a quote in the hands of a client, thinking that the sale has been made, and then, for no apparent reason, they change their mind. Usually this has something to do with money.

Finally, once you’ve fully addressed all objections to your product, leasing can be an effective closing tool, providing you with powerful closing statements.

For example…

“Mr. Customer, based on the conversation, I believe our ABC widget will save you the time and money it is designed to do. Do you agree? If no, please ask more questions about product concerns and handle la If the answer is Yes, use a closing statement such as “Mr. Client, that only leaves the question of your investment in the product. We discuss a purchase price of $23,167 or a monthly payment of $791 per month. Which would you prefer?” On the other hand, if the client committed to the lease option, a great closing question would be, “Mr. Client, would you like us to prepare the documents within 3 years at $791 per month or would you prefer the lower payment of $612 per month for a period of 4 years?

In short, leasing is a proven and time-tested method of increasing sales. It’s easy to implement and the results can be amazing. No matter what product you sell or what industry you’re in, leasing will help your business grow.