New retail finance profit margin calculator
Posted on in Cycles News
There are many factors which can impact negatively on your profit margins, but with the new Ride it away net profit margin calculator you'll see that retail finance doesn't need to be one of them.
Despite the fact that it's proven to increase sales, many retailers are still discouraged from offering retail finance due to the impact they fear it will have on their margins. Whilst some finance options do incur a higher subsidy charge, there are 20 different finance options now available, from 0% to 15.9% APR and term lengths from 6 to 48 months, plus the brand new Buy Now Pay Later products, so finance can be as low-cost as you'd like! In fact, an APR of 15.9% (payable by the customer) over 24 months is better than the rate charged by many credit cards and is completely free of subsidy charge to the retailer, protecting your margin completely!
With the new retail finance profit margin calculator you can work out your net profit when selling bikes and accessories using Ride it away retail finance.
Being able to see exactly how much a different finance product will impact on your net profit margin means never having to take a cut bigger than you can afford. For example, if you'd normally allow a minimum net profit of 30% on certain products, use the calculator to determine exactly what finance options you should be offering to ensure you retain this margin.
Simply click the button below and log in using your My ActSmart details to see the calculator.
Finance Calculator
Don't forget there is also a consumer calculator to help your customers see just how much buying on finance will cost them each month. Whilst the higher APRs will ensure you retain your margins, customers would obviously prefer to have zero interest. Use the finance calculator to show your customers that for just a couple of pounds more each month, interest bearing finance will allow them to get the bike and accessories they really want.
The consumer calculator can be accessed via www.rideitaway or alternatively log in to My ActSmart to download a calculator to use on your own platforms.