How did installment businesses see the rapid growth?
A little time ago I was reading a blog by Jordan Mckee at Forbes. It was truly an eye-opener for me. Well, it was good in a sense; as I personally like the installment model of business. This mode of payment was already in the market. But I think Pandemic is a big reason to boost buy now and pay later pattern of business. Covid-19 was the reason that incomes decreased. Finances shrank. So, consumers were looking for some alternative way to buy daily life products. As people need the products eventually. You should have a platform, through which you can contact the customers. If you have a user-friendly interface, then customers would buy everything online like furniture, bikes, home appliances like air cooler on installment, and many other products online. How the installment model is rising? Let’s read an overview in my below contents. Why “buy now, pay later” model is famous? How credit cards became a problem? What was the alternative solution? How an installment model of business works? How many types of installment plans can be there? How installment business is a win-win model? Why installment business is need for the time? Why “buy now, pay later” model is famous? I feel credit cards were a big hit in the history of human finances. As those cards made it easy for people to buy anything instantly. Those cards were offering masses to own anything at the spot. Banks were just requiring the healthy financial status of the consumers. And they were issuing cards to them immediately. Overnight, we saw that people started buying things at once. But then the real problem came; it was the due date of paying back the credit amount of the cards. People were facing a lot of difficulties in returning the loans on specific dates. How credit cards became a problem? Now consumer markets took a new turn. As credit cards now were a liability, a big burden than a luxury or facility. The biggest issue was managing the finances. Despite, all of the efforts; it was seen that only one day’s delay caused heavy fines and the consumer had to pay interest amount on each of the passing days. Credit cards are still existing in our lives. We are still buying products and home appliances through them. But we are now also more aware of their consequences. We know that those cards are not reliable. We always have to remain cautious and attentive to pay the credit bills. Now you are confident that Inverter AC should be the best buy for this summer season. You can buy everything at a reasonable price in Pakistan without worrying about summer home appliances like Inverter AC, Air cooler, Refrigerator and deep freezer on Installment. What was the alternative solution? Interest amount never inspires anyone. People simply don’t like it. They want convenience. A dire need for an alternative plan was there. And it was a little time! A specific sort of convenience. They don’t want to remain in a constant threat of fines and usury. Here comes the installment mode of payments. This looks pretty suitable to me. This mode of business is complying with all the businesses and retail sectors. This model is beneficial for both; vendors and customers. How an installment model of business works? When companies and businesses go towards the installment model; they present their products and commodities on installment plans. The biggest benefit of an installment procedure for the vendor is a considerable high-profit margin. As we know a merchant cannot sell his/her product at the retail price to the customer in installments. Here, I would also provide you a note on different types of installment plans. Usually, these are three types of installment plans presented by vendors. I have seen some of the installment plans of Klarna in Sweden, Acima in Morocco, and Sahoolat Kar in Pakistan. Ok, I was talking about different installment plans; there can be three different types of plans. How many types of installment plans can be there? A minimum of three types of programs can be offered to you. First is the basic plan of three months. If you are earning a handsome amount per month then ninety days plan is better. This is how they equally distribute the whole amount of the product in three months. Hence, you own the product in the shortest time possible. I recommend you this model as a priority. As you don’t have to wait long to buy and own the things. The product becomes yours in just three months. Two more plans are there. A six months installment plan and twelve months installments’ plans. Six months plan is a relatively long period. You get extra time of ninety days to pay the price in installments. But a standard time is of one year. By choosing this plan you pay the whole amount in twelve months/three hundred and sixty-five days. How installment business is a win-win model? By all means, this is the most convenient model indeed. An installment or leasing business provides time to the customer. Hence, people buy the products instantly and they pay gradually. They don’t have to spend the whole amount of price on the products. The price is divided into three, six, or twelve months. So, they pay easily according to their income. Vendors also earn a lot by adopting this model. As they increase the price from twenty to twenty-five percent. This percentage can be different as per the brands. So, they never go to a loss. They increase the price. Customers simply understand that the product price will be high. Because they are buying their favorite product by paying the price in monthly installments. This is how both the parties are equally benefited. Why installment business is need for the time? Well, I recommend you to consider this business model in all situations. If you are making any product then I suggest you go with this model as well. This is how you can surely increase sales. And you can gather a big customer database than ever. And if you are a customer then I would suggest you only avail the benefits of installment plans. I think; you should never worry about the high prices of the commodities that come with installment models. After all, you are getting extra time to pay back the price. So, isn’t it a great opportunity for you to buy home appliances and products in installments? So what are you waiting for? Visit our site Sahoolat Kar and Buy home appliances on Installments.