Offer finance for a spa & hot tub business

Introduction to Offering Finance for a Spa & Hot Tub Business

In recent years, the spa and hot tub industry has seen significant growth, driven by an increased focus on wellness, relaxation, and outdoor living. For many potential customers, purchasing a spa or hot tub represents a significant investment, and while they may desire the luxury and health benefits of owning one, the upfront costs can be prohibitive.

As a spa and hot tub business owner, offering finance options to your customers can not only help them afford the products they want but also increase your sales, enhance customer satisfaction, and set your business apart from competitors. This article will explore the benefits of offering finance for your spa and hot tub business, the different financing options available, and how working with a retail finance broker like Kandoo can simplify the process for both you and your customers.

Why Offer Finance for Your Spa & Hot Tub Business?

1. Increase Sales and Customer Base

One of the primary benefits of offering finance is that it opens up your products to a larger audience. Hot tubs and spas can be expensive, and many customers may not have the disposable income to make a full payment upfront. By providing a finance option, you allow customers to spread the cost over a more manageable period, making the purchase more accessible.

This can lead to an increase in sales, as customers who may have been hesitant due to cost concerns can now commit to a purchase. Additionally, offering finance can help you attract customers who are actively seeking businesses that provide flexible payment options.

2. Improve Customer Satisfaction

Customers appreciate flexibility and convenience, and offering finance can greatly enhance their overall experience. By allowing them to break down the cost of their purchase into affordable monthly payments, you can alleviate the financial burden and make the buying process less stressful.

Happy customers are more likely to return for future purchases, leave positive reviews, and recommend your business to others. By offering finance, you create an environment where customers feel valued and supported in their decision-making process.

3. Stay Competitive in the Market

The spa and hot tub market is highly competitive, and offering finance can give your business a crucial edge. Customers are increasingly expecting flexible payment options, especially for high-ticket items like spas and hot tubs. If your competitors are offering finance and you are not, you risk losing potential customers to them.

On the other hand, if you are one of the few businesses in your area that offers finance, it can set you apart and give you a unique selling point. By meeting the needs of modern consumers, you can position your business as forward-thinking and customer-centric.

4. Boost Average Order Value

Offering finance can also encourage customers to opt for more premium models or additional accessories. When the cost is spread over several months, customers are more likely to upgrade to a higher-end spa or hot tub, or add on extras such as covers, steps, or water treatment systems.

This can lead to an increase in your average order value, helping you maximise revenue from each sale. Customers who might have been limited by a strict budget can now afford to invest in the features and upgrades they truly want.

Types of Finance Options for Spa & Hot Tub Businesses

There are several types of finance options that you can offer to your customers. Each has its own advantages and is suited to different customer needs. Here are some of the most common options:

1. Interest-Free Credit (0% Finance)

Interest-free credit, also known as 0% finance, allows customers to spread the cost of their purchase over a set period without paying any interest. This is an attractive option for customers, as they can pay for their hot tub or spa in manageable instalments without incurring additional costs.

For businesses, offering interest-free credit can be an effective way to drive sales, especially if customers are comparing your products with those of competitors. While you may need to absorb some of the costs associated with this option, the potential increase in sales volume can often outweigh the expense.

2. Interest-Bearing Credit

Interest-bearing credit allows customers to spread the cost of their purchase over a longer period, typically with an interest rate applied. This option can appeal to customers who want to keep their monthly payments low by extending the repayment term.

While the customer will pay more overall due to the interest, this option provides greater flexibility and affordability. It can be a good alternative for customers who may not qualify for interest-free credit or who prefer to pay over a longer period.

3. Buy Now, Pay Later

Buy Now, Pay Later (BNPL) schemes allow customers to take their hot tub or spa home immediately but defer payment for a set period (usually several months). After the deferral period, they can either pay the full amount or choose to spread the cost over instalments.

BNPL can be an attractive option for customers who want to enjoy their spa or hot tub right away but need some time to gather the funds. It can also help you close sales quickly, as customers are more likely to commit to a purchase if they don’t have to pay upfront.

4. Personal Loans

Some customers may prefer to take out a personal loan to finance their purchase. Personal loans are typically arranged through a third-party lender, and the customer receives the funds to make their purchase outright. They then repay the loan to the lender over a set period, with interest.

While this option doesn’t involve your business directly providing finance, partnering with a finance broker like Kandoo can help customers access personal loans quickly and easily. This can be a good option for customers who want to spread the cost but may not be eligible for traditional finance plans.

How Kandoo Can Help Your Spa & Hot Tub Business

Kandoo is a UK-based retail finance broker that specialises in helping businesses offer flexible payment solutions to their customers. By partnering with Kandoo, you can provide your customers with a range of finance options, making it easier for them to purchase the spa or hot tub of their dreams. Here’s how Kandoo can benefit your business:

1. Access to Multiple Lenders

Kandoo works with a panel of trusted lenders, giving your customers access to a variety of finance options. Whether they’re looking for interest-free credit, interest-bearing credit, or a personal loan, Kandoo can match them with the right lender for their needs.

This not only increases the likelihood of your customers being approved for finance but also provides them with the flexibility to choose the option that works best for them. By offering a range of choices, you can cater to a broader audience and help more customers complete their purchase.

2. Quick and Simple Application Process

One of the main concerns customers have when applying for finance is the complexity of the process. Kandoo makes it easy for your customers to apply for finance online, with a quick and straightforward application process.

Once a customer applies, Kandoo handles the rest, from finding the right lender to managing the approval process. This takes the pressure off your business and ensures that customers can get the finance they need without any hassle.

3. FCA-Regulated and Trusted

Kandoo is regulated by the Financial Conduct Authority (FCA), which means they adhere to strict guidelines and provide transparent, ethical finance options. This gives both you and your customers peace of mind, knowing that the finance options offered are fair and compliant with UK regulations.

Partnering with an FCA-regulated broker like Kandoo can also enhance your business’s reputation, as customers will feel confident that they’re dealing with a trustworthy and professional company.

4. Increase Customer Confidence

By offering finance through Kandoo, you can give your customers the confidence to make a purchase, knowing that they have access to flexible payment options. This can help reduce abandoned shopping carts and increase conversion rates, as customers are more likely to complete their purchase when they know they can spread the cost.

Kandoo’s transparent and customer-friendly approach ensures that your customers fully understand their finance options, leading to greater satisfaction and trust in your business.

Best Practices for Offering Finance

While offering finance can be a great way to boost sales and attract more customers, it’s important to follow some best practices to ensure a smooth and successful process:

1. Clearly Communicate Finance Options

Make sure your customers are aware of the finance options available to them. Display information about finance prominently on your website, in your showroom, and in your marketing materials. The more transparent and upfront you are about finance, the more likely customers are to take advantage of it.

2. Offer a Range of Finance Options

Different customers have different needs, so it’s important to offer a variety of finance options. Some customers may prefer interest-free credit, while others may want to spread the cost over a longer period with interest-bearing credit. Partnering with Kandoo allows you to offer multiple options, catering to a wider range of customers.

3. Train Your Sales Team

Your sales team should be knowledgeable about the finance options you offer and able to explain them clearly to customers. Providing your team with training on how to discuss finance can help them close sales more effectively and ensure that customers fully understand their options.

Conclusion

Offering finance for your spa and hot tub business can be a powerful tool to increase sales, attract more customers, and enhance customer satisfaction. By providing flexible payment options, you make it easier for customers to afford the products they want, leading to higher conversion rates and increased revenue.

Partnering with a trusted retail finance broker like Kandoo can simplify the process for both you and your customers. With access to a panel of lenders, a quick and easy application process, and FCA regulation, Kandoo ensures that your customers receive the best possible finance options, while you benefit from higher sales and a competitive edge in the market.

By implementing finance options and following best practices, you can take your spa and hot tub business to the next level and provide your customers with the luxury and relaxation they deserve.