Being in the pawn business, there are a few things that we tend to hear from our customers day in and day out, especially when it comes to items on the sales floor. Let me know if this sounds familiar: (1) What's the best price you can sell this for? (2) Is this price "out the door," and (3) What kind of guarantee does this have?
To be honest, I was skeptical of using a Protection Plan. For many years I had just worked on making the customer a really good deal. After all, our sales were pretty strong and our cost of goods were very manageable. After chatting with Len for a bit we decided to offer a pretty solid Protection Plan. Our goal was to improve the customer's buying experience with peace of mind for gently used merchandise. Training was essential with our team, from verbiage and how to offer the plan to upselling and management involvement. For a small percentage, the customer can protect their purchase for up to 6 months on general merchandise or 1 year on jewelry. If an item is exchanged the customer would need to purchase a new Protection Plan for the exchanged item to cover the same way.
Talk about a hit! From one year to the next not only did our sales increase by over 20%, but more importantly, we also had better profit margins than our company has ever seen! Just imagine having the potential to add 10% to every item out for sale with a worst-case scenario of upselling the customer again in a few months. Below I have outlined a few key points about the protection plan module that have really been game changers for us. Thanks again to PawnMaster for the support and flawless execution with this feature.
Benefits of a Protection Plan - Business Standpoint
- Higher Margins
- Upsell possible for every transaction
- Returning customers & bigger sales
Benefits of a Protection Plan - Consumer View
- Peace of mind
- "VIP" status
- Guaranteed Loan Value