Take it outdoors Retail Finance - your questions answered
Posted on in Outdoor News
Take it outdoors retail finance is a powerful sales tool for retail businesses. It allows customers to get the products, clothes and accessories they want without breaking the bank, by spreading the cost of their purchase.
The Take it outdoors retail network is growing fast. If you haven't joined the hundreds of UK outdoor pursuits retailers already increasing their sales, then read on to find out the answers to some of the more frequently asked questions and see what Take it outdoors can do for your business...
Q. Why should retailers offer finance?
According to customer feedback, having the option of purchasing products on finance has a positive impact on the final sale.
- 71% would postpone their purchase if finance were not available
- 57% make their purchase because finance is available
- 52% would buy elsewhere if finance were not available
- 50% would spend less if finance were not available
Q: What can be sold via finance?
Retail finance doesn't just include the bigger items of equipment - it can be used when the customer is buying accessories and clothing as well, which provides an ideal situation to up-sell.
The minimum loan value is £350, so as long as the customers purchase meets this criteria, they are free to purchase whatever they'd like from the range of products available.
Q. What does it cost to start offering Take it outdoors Retail Finance?
Any retailer who wishes to offer retail finance to their customers will be required to have a Consumer Credit Licence (CCL) in place. The CCL can be applied for through the Financial Conduct Authority who regulates all consumer credit in the UK. The CCL costs just £100 p.a. for businesses wishing to offer finance for the first time.
Aside from the initial cost of a CCL, becoming a Take it outdoors retailer will not incur any other fees - unlike other finance schemes which will often charge a set-up fee.
Q: Will the cost of finance eat into the retailer's margin?
A: Selling products on finance can impact on the profit margin as retailers pay a small subsidy fee for some finance options (higher APRs incur a lower subsidy fee). However, retail finance has a proven track record of increasing the average sales price of a transaction throughout high ticket retail in the UK. Therefore, by increasing the size of the sale the retailer can fund the subsidy and still make more profit; that's the reason why retail finance is core to industries such as furniture and is now in such demand within the outdoors sector.
With Take it outdoors retail finance, the retailer is in control of their sales, with 5 different APRs to choose from, payment terms from 6 to 48 months and flexible deposits, Take it outdoors offers far more flexibility than other promotional offers at a lower cost to the business.
Q: How long will staff be tied up with the customer application process?
A: In the past finance applications have been long-winded and complex, but with the newly launched Take it outdoors system, all applications can be processed online and take less than 5 minutes from start to acceptance.
Customers don't require multiple forms of ID, just a chip-and-pin card that staff take the deposit from.
Q: What if a customer decides not to pay their monthly instalments - who is liable?
A: Once the customer has been accepted onto the Take it outdoors scheme there is no risk to retailer. The agreement is between the customer and the finance provider who will liaise directly with the customer in this scenario.
Q
: How can retailers promote Take it outdoors to consumers?
Many customers are already aware of the option to finance products in selected retailers, but to help specifically promote availability of the Take it outdoors scheme, point of sale (POS) materials are now available.
The POS has been designed to help retailers promote the scheme to their customers both online and in-store.
As well as retailers promoting the scheme individually, customers searching online can find their local Take it outdoors retailer through takeitoutdoors.co.uk - a website created to promote all shops within the scheme across the UK.
Q: What are the steps to become a Take it outdoors retailer?
- Contact Take it outdoors on 0845 618 7256 or visit www.takeitoutdoors.biz to request an application form
- Complete and return the application form along with any additional documentation required (details will be provided)
- Await acceptance to the Take it outdoors scheme
- Once accepted onto the scheme, apply for a Consumer Credit Licence online from the FCA
- Start promoting Take it outdoors finance offering with in-store POS and online web banners
Find out more about becoming a Take it outdoors retailer by visiting us at this years Outdoor Trade Show, Stand 14 and the Tackle and Gun Show stand B62