Welcome to Westport Leasing.

Spring Selling Season

This second quarter is projected to be a significant one for manufacturers, distributors and dealers of commercial equipment. Most indicators and reports suggest that increased demand has now found its way into almost every sector of the economy, resulting in stronger buyer confidence and a need to reverse some of the contraction that took place during the recession. Business investment in machinery and equipment is supposed to be one of the key economic drivers in the coming months. Many companies have been postponing technology upgrades for an extended period and the time may finally be right for them to commit to methods of enhancing productivity.

However it’s important to recognize that it’s still going to take hard work and creativity to realize results in this environment. Just because more prospects now need and want new equipment, doesn’t mean they have the financial resources necessary to buy. And some may have the funds but not be convinced quite yet that they’re ready to part with them. Leasing and financing options will play an increasingly important role and it will be more beneficial than ever to know how to use these effectively in your sales presentations, cost-justifications, and proposals.

This month’s update provides more good information about leasing and how to use it as a sales tool. We hope it will help you take advantage of the opportunity at hand.

Why Businesses Lease - Reason #1: Expansion of Working Capital.

There are many potential reasons why businesses that could readily pay cash might actually prefer to lease their new equipment. One of the most common motives is the expansion of working capital it provides for growing businesses. Instead of tapping cash reserves to purchase outright, a company can lease needed equipment and redirect their cash to other priorities. Growing businesses have an almost unlimited need for capital and they’re often looking for ways to fund new contracts or larger projects, pay for marketing and advertising initiatives, hire new employees, expand inventory, offer favorable credit terms to their customers, or any number of other uses. Finding financing for these other types of needs is much more difficult that getting an equipment lease, so progressive companies will often choose to lease their equipment and conserve their capital for other purposes.

It takes only a couple of very simple qualifying questions to determine that a company is growing. Once you’re armed with that information, you can confidently present lease payments as an attractive option for acquiring the equipment you’ve recommended. You’ll find it’s much easier to cost-justify your equipment against a lease payment and, with some customers, the lease option may give you a competitive advantage.

Selling with leasing isn’t about offering a payment plan for customers who can’t afford to purchase your equipment. It’s about offering a complete solution that makes your proposals more attractive to your prospects. For information on how to increase sales by using leasing more effectively, give us a call. We can share some tips and proven strategies that will be successful for you too.

Spring Sales Promos

With trade show season in full swing and many of our Dealer Partners actively promoting new models or hosting open houses, creating custom sales promos has kept us very busy the past few months. The good news is they’re working. Sales reps are reporting positive results using them as a reason to follow up with prospects. They’re also a great way to get feedback on how receptive the client is to your proposal, when they might be looking to close a deal, and whether or not they have budgeted for the equipment purchase.

If you haven’t discussed a customized promotional strategy with Westport yet, or if you’re unsure on how to use incentives to close more deals, please call us so we can get you set up.

April Smart Sales Tip

So you’ve recommended new equipment and presented a sales proposal to your prospect. Naturally, you included a lease payment option and you compared the value of the benefits they’re going to receive against the monthly payment. There’s a compelling business case that the new equipment will have a positive financial impact. However the customer now asks if you have any room to move on your price. Is it possible they could get a discount? Is this the best deal you can offer? Can you sharpen your pencil?

If this ever happens to you, it may be tempting to view the customer’s response as a buying signal and jump right to the final haggling over price. But that’s not always the case and quite often discounting isn’t even necessary to close the order. If you’ve included lease payments in your proposal, there’s one important question you can and should ask before you engage in your usual conversation about price. Here it is:

“What monthly payment do you need to make this work for your operating budget?”

Now it may sound a bit assumptive to ask about monthly payment instead of what they’re willing to pay, but there are at least three reasons why you want to ask this exact question before you ask any other or even mention the word “price”.

1) The customer is likely to respond with a comment about their desired monthly payment or advise that they intend to pay cash so the payment amount isn’t relevant. Either way this narrows the issues down and makes it easier for you to deal with them. If they do plan to lease and tell you the payment budget they have in mind, Westport can help you structure a lease plan that hits their target with as little discounting as possible. If they state that they plan to pay cash, you can confirm that they have the funds budgeted and available to make an immediate purchase before you start any discussions about discounts. If they don’t have the necessary funds set aside and aren’t ready to commit to an order now, why should you offer a discount?

2) It’s an open question that you can use to take the prospect back to the issue of their operating costs. If the equipment is expected to improve their cash flow by reducing costs or improving productivity, this gives you an opportunity to remind them and put the focus back on the value of what the equipment will do for them rather than its cost. Some prospects will abandon their request for a discount at this point, and others will need less of an inducement to buy than might be necessary otherwise.

3) If the prospect is faced with a budget restriction or is looking to conserve working capital and wasn’t aware that a lease-to-own plan was available, this gives you the opportunity to discuss the option with them. The question also sets up a trial close so you can gain commitment that they’ll be ready to proceed upon credit approval.

This one very simple and easy to ask question offers a lot of utility and will save you thousands of dollars in avoidable discounts. Feel free to call Westport if you have any questions about it or are looking for more ideas on how to use our services as a selling tool.

Westport’s Strata and Condo Improvement Financing Program

Westport has been providing equipment leasing plans for residential strata and condo corporations for nearly twenty years. We routinely finance common area amenity assets such as fitness equipment, access control systems, security equipment, waste compactors, etc.

We recently expanded our offering for established strata and condo corporations and are now able to provide financing for common property repairs, retrofits, upgrades and other improvement projects valued at more than $100,000. This new program provides strata councils with an attractive alternative to depleting reserve funds or imposing large special assessments on individual unit owners. It will make it easier to plan for corrective action and achieve community consensus, and will also help maintain equity values for owners who wish to sell their units in future.

Virtually any type of common property repair or upgrade project can be accommodated. Including:

- Building envelope failures

- Energy-efficiency upgrades

- Fire suppression system enhancements

- HVAC system upgrades

- Geothermal systems

- Landscaping projects

- Parkade and driveway resurfacing

- Plumbing line replacement

- Roof repairs

- Swimming pool upgrades and repairs

- Window replacement projects

- General refurbishment

If you own a residential strata unit in a building or complex that is facing some of these issues, or if you know someone who does, please let us know. We welcome referrals and would be happy to provide additional information about our new program.