Offer finance for consumer electronics (tvs, laptops, tablets)

Introduction to Consumer Electronics Finance

In today's fast-paced digital world, consumer electronics such as TVs, laptops, and tablets have become essential items in households across the UK. Whether it's for work, entertainment, or staying connected with loved ones, these gadgets play a pivotal role in our daily lives. However, with the rapid advancement in technology, the cost of keeping up with the latest devices can be quite substantial. This is where offering finance for consumer electronics comes in – allowing customers to spread the cost of their purchases over time.

Providing finance options not only makes these high-ticket items more accessible but also benefits retailers by encouraging larger purchases and increasing customer satisfaction. In this article, we will explore the benefits of offering finance for consumer electronics and how partnering with a retail finance broker like Kandoo can make the process smooth and beneficial for both businesses and customers.

Why Offer Finance for Consumer Electronics?

1. Increased Affordability for Customers

Consumer electronics, especially high-end products like 4K TVs, gaming laptops, and the latest tablets, often come with hefty price tags. Many consumers may find it challenging to pay the full amount upfront. Offering finance options allows them to spread the cost over several months, making it easier to afford the products they want or need. This can be especially helpful for families, students, or individuals on a budget who may need access to these devices for work, study, or entertainment purposes.

By breaking down the cost into manageable instalments, customers are more likely to make a purchase without feeling the financial strain. In fact, research has shown that consumers are more likely to complete a purchase if they are offered flexible payment options.

2. Boost in Sales and Average Order Value

When customers are presented with the option to spread payments over time, they are often more inclined to purchase higher-end models or add accessories to their order. For example, a customer may initially be considering a standard 40-inch TV but, with the option of financing, may upgrade to a 55-inch 4K smart TV with a soundbar. This increases the average order value, which is beneficial for retailers.

Offering finance can also lead to more impulse purchases, as customers who may have been hesitant to spend a large sum upfront can now justify the purchase with the convenience of paying over time. This ultimately boosts sales for retailers, making it a win-win situation for both parties.

3. Improved Customer Loyalty and Satisfaction

By offering flexible payment options, retailers can create a positive shopping experience for their customers. When customers feel that a business is accommodating their financial situation, they are more likely to return for future purchases and recommend the retailer to others. Offering finance shows that the retailer understands the needs of their customers and is willing to provide solutions that make shopping easier.

Additionally, customers who have a positive experience with financing are more likely to return for upgrades or additional purchases. For example, a customer who finances a laptop may return later to purchase a tablet or TV, further increasing customer loyalty and long-term sales.

4. Staying Competitive in the Market

With the rise of e-commerce and online shopping, the retail landscape has become increasingly competitive. Offering finance for consumer electronics can give retailers a significant edge over competitors who do not provide such options. Many large online retailers already offer financing solutions, and smaller businesses that do not follow suit risk losing customers to those who do.

By offering finance, retailers can attract a wider audience, including those who may not have the means to pay for expensive electronics upfront. This can be particularly important in an industry where customers are often looking for the latest technology at the best possible price.

How Retail Finance Works

Retail finance allows customers to spread the cost of their purchase over a set period, typically ranging from 3 to 36 months. These finance agreements are often facilitated by a third-party finance provider, who assesses the customer's creditworthiness and manages the loan.

For the retailer, the process is straightforward. Once a customer opts for finance, the retailer is paid in full by the finance provider, and the customer makes monthly payments to the provider. This means the retailer does not have to wait for the full payment and can continue to operate without any financial delays.

There are various types of finance options that can be offered to customers, including:

• Interest-free finance: Customers pay back the loan over a set period without any interest charges. This is an attractive option for many buyers, as it allows them to spread the cost without incurring additional fees.

• Interest-bearing finance: This option includes an interest rate, meaning customers will pay back more than the original cost of the product. This is often offered for longer-term financing.

• Buy now, pay later: Customers can take the product home immediately and start making payments after a certain period, typically 3 to 6 months.

The Role of Kandoo in Offering Finance

Kandoo is a UK-based retail finance broker that specialises in helping businesses offer finance options to their customers. As a broker, Kandoo works with a panel of lenders to find the best financing solutions tailored to the needs of both the retailer and the customer. Here’s how Kandoo can help businesses in the consumer electronics sector:

1. Access to a Wide Range of Lenders

Kandoo has access to a diverse panel of lenders, which means they can offer a variety of financing options to suit different customer needs. Whether it's interest-free credit, interest-bearing loans, or buy now, pay later schemes, Kandoo can help retailers find the right solution for their target audience.

By partnering with multiple lenders, Kandoo ensures that customers have a higher chance of being approved for finance, even if they have less-than-perfect credit. This flexibility is crucial in ensuring that a wide range of customers can benefit from the financing options available.

2. Seamless Integration with Retailers

Kandoo’s finance solutions are designed to be easily integrated into a retailer’s existing sales process, whether in-store or online. Retailers can offer finance at the point of sale, allowing customers to apply for credit in just a few simple steps. Kandoo handles the application process and credit checks, ensuring a smooth and hassle-free experience for both the retailer and the customer.

By simplifying the process, Kandoo enables retailers to focus on what they do best – selling products – while leaving the complexities of finance to the experts.

3. Compliance with UK Regulations

One of the most important aspects of offering finance is ensuring that the process complies with UK regulations, particularly those set out by the Financial Conduct Authority (FCA). Kandoo, as a regulated retail finance broker, ensures that all finance options offered through their platform are fully compliant with FCA guidelines. This gives retailers peace of mind, knowing that they are operating within the law and protecting their customers.

4. Customer Support and Education

Kandoo provides ongoing support to both retailers and customers throughout the financing process. This includes answering questions, providing guidance on the best financing options, and assisting with any issues that may arise. By offering excellent customer service, Kandoo ensures that customers feel confident in their decision to finance their purchase, leading to a positive experience overall.

For retailers, Kandoo offers training and resources to help staff understand how to promote finance options effectively. This can be particularly valuable for businesses that are new to offering finance and want to ensure they are maximising the benefits.

The Benefits of Partnering with Kandoo

Partnering with a retail finance broker like Kandoo offers numerous advantages for businesses in the consumer electronics sector. Some of the key benefits include:

• Increased sales and average order value: By offering finance, retailers can encourage customers to purchase higher-end products and add accessories to their order.

• Wider customer base: Finance options make it possible for a larger audience to afford high-ticket items, increasing the potential customer pool.

• Improved customer satisfaction: Flexible payment options lead to happier customers, who are more likely to return for future purchases and recommend the retailer to others.

• Regulatory compliance: Kandoo ensures that all finance options are fully compliant with UK regulations, reducing the risk of legal issues for retailers.

• Streamlined process: Kandoo’s platform makes it easy for retailers to offer finance at the point of sale, both online and in-store.

Conclusion

Offering finance for consumer electronics is a smart move for retailers looking to increase sales, improve customer satisfaction, and stay competitive in a rapidly evolving market. By providing flexible payment options, retailers can make high-end products like TVs, laptops, and tablets more accessible to a wider audience, while also boosting their own revenue.

Partnering with a retail finance broker like Kandoo simplifies the process, ensuring that businesses can offer a range of finance options to their customers while remaining compliant with UK regulations. With Kandoo’s support, retailers can enjoy the benefits of offering finance without the complexities, leading to a more profitable and customer-friendly shopping experience.

Ultimately, offering finance for consumer electronics is not just about making sales – it’s about building long-term relationships with customers by providing them with the flexibility they need to make informed and affordable purchases.