Financing

[Micahbell]

An option to finance would be great.
Might I recommend Visa Dejardin if this is a possibility?
I worked at a small guitar shop for a long while, and was there as we set up our financing with them, and even placed the first order as well. So I can say from a merchants side it is very easy and quick to set up. I wouldn't say we saw a *great* deal of sales, but it was for sure worth it.
It would probably make a lot more sales for you guys because with specialty items there are tonnes of things that I see and think "Ahh, I want that so bad but can't afford it until (x date), but then by the time I have the money the item has sold.
Also, if you go with Dejardin, you don't have to make a down payment and there is no penalty for buying out early, which is a great selling point. I haven't worked at the guitar shop since december, so my memory sucks but IIRC, they just charge you 6% for financing over 12 months, and 8% for 24 months, but you can make extra payments or pay it all out when ever at no extra.

And I have myself used Dejardin to finance my bass rig (from a different store...the store I worked at had shite gear), so I can honestly say from the merchants and customers point of view - they are great to work with.

Who else supports this?
Anybody else had really good experiences with other financing companies you can maybe recommend to the big W?
I have only ever worked with this one, but I have friends who have worked with others and I gather Dejardin is generally considered the best...

 

[RLW]

Honestly, I've read your post three times, and I'm still not grasping what you're proposing.

 

[Micahbell]

I re-read and it makes sense to me, but I went out for drinks after work and am fairly drunk, so there you go.

I proposed that Warmoth should offer financing, then I gave an example of a company that I have worked with, and had great results, that I recommended they could do it through.

If they were to finance in house they take a bunch of risks, but if they were to go through another company there is no risk to them at all, so there really isn't any reason why they shouldn't do it.

 

[jackthehack]

It would add costs and be a tremendous pain to administer

 

[UTSC]

Save your pennies, don't go out to drink and you'll be able to afford that warmoth soon enough. Look at it this way... if you manage to save 10 bucks a day, you can have a nice warmoth in a little under 4 months. A new guitar every 4 months seems more than reasonable to me.

 

[Alfang]

I could see a layaway, or "easy pay" system working well, ie... 3 payments of $79.99 a month or whatever for a body or neck

That would actually be a bad thing as I'd be buying 10 times more than I need

 

[RLW]

As I've said before, PB&J sandwiches for lunch for a couple of months.

 

[Micahbell]

Why would it be a pain to the admin? As somebody who has set up the system, I can say it is a very easy thing to set up.
Also, with the the company the store I went through it was stupid cheap. I can't remember exactly what it cost to set up, but it was very, very affordable.

UTSC and RLW - oh hell yes, a new guitar every 4 months is reasonable. Unfortunately, lots of the killer bodies I want on the showcase don't last that long - that is where the financing option is handy.

Alfang - Yeah, thats exactly how it works - except if they do it in house, as it probably would be with layaway, the company takes a chance. If they go through a company like Visa, as soon as the customer is approved Visa pays the company and then the customer makes their monthly payments to Visa.
How it would work with the company I worked with, is if you are buying a 1000$ guitar, and you want to finance it over a year, Visa takes a cut of 6% (how they make their money, which they need to do obviously), bringing your cost up to 1060, then the number is divided by 12 and that is your monthly payment.

A good example of where this would be useful is when I made my last Warmoth I needed a bass ASAP and couldn't wait a while longer to afford a brazillian rosewood fretboard so I got something else thinking "No big deal, I'll get one on my next bass next year when I can afford it."
Then laws change and I can't get it any more. Where as if I could have just financed it and payed a two months later when I had extra cash, I would have gone wenge/BRW.
With Warmoth always doing special finishes and using wood that is becoming more and more rare this would be very useful.
Or if you, like me, would never order a spalt because they are so different one to the next but see a great spalt on the showcase, you don't have to pray it will still be there in two weeks.

 

[UTSC]

Why would it be a pain to the admin? As somebody who has set up the system, I can say it is a very easy thing to set up.
Also, with the the company the store I went through it was stupid cheap. I can't remember exactly what it cost to set up, but it was very, very affordable.

UTSC and RLW - oh hell yes, a new guitar every 4 months is reasonable. Unfortunately, lots of the killer bodies I want on the showcase don't last that long - that is where the financing option is handy.

Alfang - Yeah, thats exactly how it works - except if they do it in house, as it probably would be with layaway, the company takes a chance. If they go through a company like Visa, as soon as the customer is approved Visa pays the company and then the customer makes their monthly payments to Visa.
How it would work with the company I worked with, is if you are buying a 1000$ guitar, and you want to finance it over a year, Visa takes a cut of 6% (how they make their money, which they need to do obviously), bringing your cost up to 1060, then the number is divided by 12 and that is your monthly payment.

I dunno.. I suppose I just see it from a different perspective. It just seems that you're looking to buy on a whim, which is awesome if you have the money right, but if you're anything like me, you don't. When I buy gear though, I make sure I buy exactly what I want, and more importantly need. If you're patient that perfect body will come again when Warmoth decides to put out more of that scheme, just sit on the money, put it in an Investment Savings Account or something. Good things come to those who wait.

 

[Micahbell]

I just edited my post above to show examples of where this would be useful.

I do agree that there is a lot to be said for waiting and knowing exactly what you want, but for rarities, one offs, special finishes, woods that are vastly different from one to another (spalt maple, rosewoods, black/white korina, and a few others) it would be great to have an option that allows you to pounce on it if you don't have $1000 laying around, as needed for the Rosewood with maple lam tele that I have been dreaming of and praying they will still make in a year when I can afford it. I am not dis-valuing the importance of saving up and not putting things on credit, but as a lover of beautiful guitars I think there are situations that it is needed.

I am surprised there was opposition to this. Other people who read this later - still ring in your vote. I would love to see this as an option but if most people don't care for it then speak up.

 

[Wana_make_a_guitar]

Blah, Warmoth just needs paypal on their E-store and it's all good.  :icon_biggrin:

 

[ibob74]

Considering the current economic climate, I think it would be a very daring proposition; for both the retailer and the consumer.

 

[Micahbell]

igob74 - how so for the retailer?

 

[JamesL]

igob74 - how so for the retailer?

No one has money, and it's putting them out of products that won't be paid for...

 

[Micahbell]

When you go through a company, such as I mentioned, the product gets paid for instantly...am I missing something here, or could this somehow be bad for the retailer?

 

[mayfly]

When you go through a company, such as I mentioned, the product gets paid for instantly...am I missing something here, or could this somehow be bad for the retailer?

The bank takes the risk, not the retailer.  The bank also takes the interest on the payments mind you,  but that's how they make their money. 

There's no risk to the retailer except for the cost to set it up.  However, I imagine that Warmoth has enough business from folks paying cash that they don't feel that they need it. 

 

[tfcreative]

#1- Given the present economic climate, it would be some years before any respectable bank would finance guitar parts to individuals.

#2- Financing impulse purchases is a big factor in people becoming hopelessly indebted and bankrupt. How about just not buying what you cannot afford when it comes to non-essentials?

 

[GoDrex]

How about just not buying what you cannot afford when it comes to non-essentials?

What are you some kind of un-american commie?  :laughing7:

 

[dbw]

Warmoths are essentials!  :icon_biggrin:

Seriously though, Warmoth is not selling cars here.  I don't think financing would be that valuable.  Why pay interest on a guitar when you can just set aside some money each month, EARN interest, and pay cash when you're ready? 

 

[UTSC]

I dunno.. I suppose I just see it from a different perspective. It just seems that you're looking to buy on a whim, which is awesome if you have the money right, but if you're anything like me, you don't. When I buy gear though, I make sure I buy exactly what I want, and more importantly need. If you're patient that perfect body will come again when Warmoth decides to put out more of that scheme, just sit on the money, put it in an Investment Savings Account or something. Good things come to those who wait.

Warmoths are essentials!  :icon_biggrin:

Seriously though, Warmoth is not selling cars here.  I don't think financing would be that valuable.  Why pay interest on a guitar when you can just set aside some money each month, EARN interest, and pay cash when you're ready? 

you stole me response! (scottish accent)