Quote:
Originally Posted by **********
Anybody who can count knows that option #1 is the cheapest way to go if they plan to stay with you for the long term. In addition its good for you because you get a high payment up front which I'm sure covers the typical setup costs and hand-holding you need to do with each customer.
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Mark, you hit the nail on the head. The only problem is that a majority of the people signing up won't know simple math if it knocked on their door and fucked their wives and impregnated their cats.
Psychologically speaking, a lot of people are intimidated by large upfront numbers. If you can make it manageable and worthwhile (explain that one sell will cover their monthly payment), then it's easy. But telling someone they have to pay a grand to get started is usually intimidating to most. This isn't designer clothing where I can charge a premium upfront...I have to find a middle ground where I'm making some money up front and more money on monthly charges.
For example, if you went into a Ferrari dealership and they told you that you had to put $50k down and your payments will be $500 a month sounds a lot better when you say it's a $1k down and $1,500 a month. Once they hear $1k down and you're driving this car, it's game on. They don't think about monthly payments because chances are they will only make one or two payments.
You see my quagmire now?