Offer finance for high-end footwear

Offer Finance for High-End Footwear

The luxury footwear market has experienced significant growth in recent years, with consumers increasingly willing to invest in high-quality, high-end shoes. However, the price point of such footwear can sometimes deter potential buyers, even those who appreciate the craftsmanship, design, and prestige associated with these premium products. Offering finance options for high-end footwear can provide customers with the flexibility they need to make their purchases more manageable, while also benefiting retailers by increasing sales and customer satisfaction. In this article, we will explore the advantages of offering finance for high-end footwear, the various financing options available, and how partnering with a finance broker like Kandoo can make the process seamless for both retailers and customers.

The Importance of Offering Finance for High-End Footwear

1. Expanding Your Customer Base

High-end footwear often comes with a significant price tag, making it inaccessible to some consumers who would otherwise love to purchase luxury shoes. By offering finance options, retailers can make these products more affordable by allowing customers to spread the cost over several months. This opens up the market to a wider range of buyers, including those who may not have the disposable income to pay upfront but are willing to make payments over time.

2. Increasing Sales and Average Order Value

When customers have the option to finance their purchases, they are more likely to buy. Studies have shown that offering finance can increase conversion rates, as customers are less hesitant to commit to larger purchases. Additionally, the availability of finance often encourages customers to spend more than they originally intended, as they can afford to upgrade to higher-priced items or purchase multiple pairs of shoes.

For example, a customer who initially planned to buy a single pair of high-end trainers may decide to purchase two pairs when given the option to pay in instalments. This not only boosts the retailer's sales but also enhances the customer's overall shopping experience.

3. Building Brand Loyalty and Trust

Providing flexible payment options demonstrates that a retailer understands and values its customers' financial circumstances. When customers feel that a brand is accommodating and trustworthy, they are more likely to return for future purchases. Offering finance can also foster a sense of loyalty, as customers who have had positive experiences with financing may be more inclined to continue shopping with the same retailer.

In the highly competitive luxury footwear market, standing out by offering finance options can give retailers an edge over competitors who may not provide the same level of flexibility.

Types of Finance Options for High-End Footwear

When it comes to offering finance for high-end footwear, retailers have several options to consider. Each option comes with its own benefits and considerations, depending on the retailer's goals and the needs of their customers.

1. Interest-Free Credit (0% APR)

Interest-free credit is one of the most attractive finance options for customers, as it allows them to spread the cost of their purchase over a set period without incurring any additional interest charges. This type of financing is particularly appealing for high-end footwear, where the cost can be substantial.

For example, a customer purchasing a £500 pair of designer shoes could pay in 10 monthly instalments of £50, making the purchase much more manageable. Retailers who offer interest-free credit may see a significant increase in sales, as customers are more likely to make larger purchases when they know they won't be paying extra for the privilege.

However, it's important to note that offering interest-free credit can come at a cost to the retailer, as they may need to absorb the interest charges themselves. This is where partnering with a finance broker like Kandoo can be beneficial, as they can help retailers navigate the financial implications and find the best solution for their business.

2. Low-Interest Finance (APR Below Market Rate)

Low-interest finance is another option that allows customers to spread the cost of their purchase over time, but with a small interest charge added to the total amount. While this option may not be as attractive as interest-free credit, it still provides customers with a more affordable way to purchase high-end footwear, especially if the interest rate is lower than what they might expect from a standard credit card.

For example, a customer purchasing a £600 pair of luxury boots might choose to pay over 12 months with a low interest rate of 5%. This would result in a manageable monthly payment and a relatively small amount of additional interest.

Retailers who offer low-interest finance can still attract customers who are looking for flexibility, while also potentially reducing the financial burden on their own business compared to offering interest-free credit.

3. Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL) is a popular financing option that allows customers to make a purchase and defer payment for a set period, usually 30, 60, or 90 days. This option is particularly appealing to customers who may be waiting for a payday or who want to try the product before committing to payment.

For high-end footwear retailers, BNPL can be a great way to encourage customers to make a purchase without the immediate financial pressure. However, it's important for retailers to work with a reputable finance provider to ensure that the terms are clear and that customers are fully aware of their obligations.

How Kandoo Can Help Retailers Offer Finance for High-End Footwear

Kandoo is a UK-based retail finance broker that specialises in helping businesses offer flexible payment options to their customers. By partnering with Kandoo, high-end footwear retailers can provide their customers with a range of financing options, including interest-free credit, low-interest finance, and Buy Now, Pay Later.

1. Seamless Integration with Your Business

One of the biggest advantages of working with Kandoo is their ability to seamlessly integrate finance options into a retailer's existing sales process. Whether you run a brick-and-mortar store or an online shop, Kandoo can provide a tailored solution that meets your business's specific needs.

Kandoo's platform is user-friendly and designed to make the financing process as smooth as possible for both retailers and customers. By offering a streamlined application process and quick approval times, Kandoo ensures that customers can access the finance they need without unnecessary delays.

2. A Wide Range of Finance Options

Kandoo offers a variety of finance options to suit different customer preferences and financial situations. This includes interest-free credit, low-interest finance, and BNPL, allowing retailers to cater to a diverse customer base.

Kandoo's flexible approach means that retailers can choose which finance options to offer and customise the terms to align with their business goals. For example, a retailer might decide to offer interest-free credit for purchases over £300 or low-interest finance for purchases under £200.

3. Compliance and Transparency

When offering finance, it's essential that retailers comply with all relevant regulations and ensure that the terms are transparent and fair for customers. Kandoo takes care of the regulatory aspects of retail finance, providing peace of mind for retailers and ensuring that customers are fully informed about their payment options.

Kandoo is authorised and regulated by the Financial Conduct Authority (FCA), meaning that they adhere to the highest standards of financial conduct. This helps to build trust with customers, as they know they are dealing with a reputable and reliable finance provider.

4. Boosting Sales and Customer Satisfaction

By partnering with Kandoo, retailers can offer finance options that not only increase sales but also enhance the customer experience. When customers have the flexibility to spread the cost of their purchase, they are more likely to feel satisfied with their shopping experience and return for future purchases.

Kandoo's finance solutions are designed to be customer-friendly, with clear terms and competitive rates. This ensures that customers can make informed decisions about their purchases and feel confident that they are getting a good deal.

Conclusion: The Benefits of Offering Finance for High-End Footwear

In today's competitive retail landscape, offering finance for high-end footwear can be a game-changer for both customers and retailers. By providing flexible payment options, retailers can make luxury footwear more accessible to a wider audience, increase sales, and build long-term customer loyalty.

Partnering with a trusted finance broker like Kandoo ensures that the process is simple, compliant, and tailored to the specific needs of the business. With Kandoo's support, high-end footwear retailers can offer a range of finance options that meet their customers' needs, while also boosting their own bottom line.

Whether you run a boutique specialising in designer shoes or an online store selling luxury trainers, offering finance is a powerful way to enhance your business and provide customers with the flexibility they need to invest in the footwear they love.