How To Increase Your Sales
Increase Your Sales and Profit by up to 20% Using consumer Financing
Using Nationwide Acceptance for your consumer financing will:
- Eliminate time wasted by your sales force on customers that are not approved by your primary financing source.
- Increase sales and commissions for your sales force.
- Increase your cash flow and profits
Typical retail store revenue and cost structure per product
| 1. Gross Margin Per Product Sold: |
|
| Sales Price To The Customer |
$2,500 |
| Less: Product Cost |
1,250 |
| Gross Margin On Sale |
$1,250 |
| 2. Sales Units Requiring Financing |
100 |
| 3. Primary Financing Source: |
|
| Approval Rate |
60% |
| Average Funding Rate |
100% |
| 4. consumer Financing Source: |
|
| Approval Rate |
50% |
| Average Discount Rate |
20% |
| Average Funding Rate |
80% |
| 5. Sales Commission Rate |
10% |
| 6. Overhead Expense |
$10,000 |
Store with primary financing only
| Total Revenue From Sales |
$150,000 |
| Less: Cost of Goods Sold |
75,000 |
| Gross margin on Sales |
75,000 |
| Sales Commission Expense |
15,000 |
| Store Overhead Expenses |
$10,000 |
| Net Profit |
$50,000 |
| Total Unit Sales Financed * |
60 |
| Total Unit Sales Lost * |
40 |
| Total Revenue Lost * |
$100,000 |
| Total Sales Commissions Lost |
$10,000 |
* Using only primary financing, sales and revenue are lost since the primary financing source approves only 60% of the applications submitted for financing.
Store with primary financing and consumer financing
|
|
Added Profit |
| Total Revenue From Sales |
$190,000 |
$40,000 |
| Less: Cost of Goods Sold |
100,000 |
25,000 |
| Gross Margin on Sales |
90,000 |
15,000 |
| Sales Commission Expense |
19,000 |
4,000 |
| Store Overhead Expense |
10,000 |
- |
| Net Profit |
$61,000 |
$11,000 |
| Unit Sales with Primary |
60 |
|
| Additional Unit Sales With consumer Financing* |
|
20 |
| % Increase In Unit Sales * |
|
33% |
| % Increase in Net Profit * |
|
22% |
* Using consumer financing, an additional 50% of the applications declined by the primary financing source are approved and 80% of the amounts financed is funded, providing additional revenue.