When LDG Enterprises owner Louis Geddes got a 90-day notice that his bank was exiting the Canadian market he knew he had to act fast. An estimated 90 per cent of his vacuum sales business’ $2 million annual revenue was dependent on installment credit. Without it his staff’s ability to close sales would be crippled. His business would cease to exist. Louis needed a solution and needed it fast. What Louis did not expect as he started the search for a new financing partner was that he would end up with a better deal.
Building a National Business
LDG sells Rainbow vacuums, a water-powered vacuum cleaning system that retails for about $2500 with tax. It is a business Louis has dedicated 30 years to, selling in-home across the country. He has sold to people living in mansions, condos and basement suites. To couples, singles and families. Yet regardless of the audience faced, financing has always been a key tool. Today LDG employs about 50 sales staff across British Columbia, Alberta and Manitoba – selling hundreds of premium home appliances a year to a variety of customers. Sales are made in-house and by referral. In this line of business a single satisfied customer can be key to more sales: snowballing into further incentive-driven referrals. Buyer satisfaction is king and having the right financing can be vital.
Finding a Better Alternative
Louis made the switch from his previous financing provider to Crelogix financing about five years ago. He had heard about Crelogix through word of mouth and after he started his research was instantly drawn to the company because it offered dramatically lower interest rates than his previous provider. Making the switch and signing up with Crelogix turned out to be one of easiest business changes he ever made. “We just filled in the application to go with them and that was it,” he said. “It is much better with Crelogix – the rate of interest charged is better and the service is better. We were charging the customer 28-29 per cent interest with our previous financing provider, now it’s way less. Customers are much happier because it’s a big difference in the total cost of the machine.” Armed with this new financing option, his sales staff suddenly found their job easier and were closing deals more easily.
The Advantage of Ease and Experience
LDG sales staff close about one-third of their in-home consultations. This averages out to around two sales a month per person. “Crelogix helped facilitate this procedure: it made making sales easier,” Louis said. Crelogix brought more than 40 years’ experience working with consumer durable businesses such as Louis’ to the partnership. It knew what his business, staff and customers needed – and was able to quickly offer a flexible consumer financing solution for LDG with minimum hassle. Essentially Crelogix was in a perfect position to help Louis quickly and easily solve a problem that could have meant the end of his company. “The interest rates are the main reason we chose Crelogix when we did a search to find out who else did financing,” he said. “Customers are happier now – it’s a big difference in the total cost of the machine. I only wish we had made the switch sooner.”