Financing Options Up Front Reduce Price Negotiations

Today’s big thought: Want to spend less time negotiating on price? Want to get paid in full? Offer TimePayment financing.

• Here’s the deal: 89% of small business owners attempt price negotiation—regardless of their actual budget constraints or your pricing structure.
• Yes, but: Equipment deals that include financing options see 45% less price negotiation and close 23% faster.
• Between the lines: This means most of your pricing battles aren’t really about money. They’re about payment comfort.

Psych 101: Small-business owners often negotiate equipment prices not because they can’t afford your pricing, but because large up-front costs trigger their bargaining instincts.

• When you shift the conversation from total price to monthly payments, you eliminate the psychological trigger that starts price negotiations.

What are three top takeaways for sellers?

• Negotiation is psychological, not financial: 73% of equipment buyers who negotiate price actually have the budget for the full asking price. Buyers facing larger order totals automatically pursue cost-reduction strategies, regardless of their actual financial capacity.
• Monthly payments bypass bargaining psychology: When customers see “$610/month” instead of “$24,999 total,” they evaluate affordability rather than start negotiating. This reduces confrontational sales conversations by 67%.
• Financing conversations focus on value: Customers discussing monthly payments spend 78% more time on equipment benefits and 34% less time on price objections, creating consultative rather than transactional sales experiences.