Making “Spread Payments” Work

Here’s the way to make spread payments work for you. Don’t miss this.

Establish your price point for your manuals or packages of materials – the price you must have – regardless of payment method. Then add an amount for customers who spread their credit card payments. But don’t present it that way!

Here’s my script for presenting my credit card options (and it works every time).

“The total investment for my package of educational materials is $197 (and I let that sink in for a couple of moments.) You can pay cash, write a check or use a credit card. To make it easier for some of you, you can spread that $197 over three monthly payments of $65.67 (Now, the number they hear is $65.67, not $197—already you’ve made it easier.)

Then I say, “Those of you who know me know that I hate paperwork (and I do), so if you pay for your materials in full today, please take a bookkeeping discount of $20—and pay only $177.”

The $177 was always the real price and I’m content to get that. Offering to spread payments on a credit card increases your sales and you get a $20 premium for the extra work involved in billing the account several times.

The people willing to pay upfront heard the $197 price and now have been offered a discount. Everyone loves a deal and a $20 discount is a good deal.

Don’t make the mistake I’ve seem a lot of other speakers make. Don’t announce the price of $177 and then say, “For those of you who would like to spread your credit card payments over three months, add $20.” All you’ve done is make people feel bad about having to pay more than everyone else—and you lose the benefit of 90% of the people thinking they got a discount. It’s never a penalty to spread payments; it’s always a discount to pay upfront.

Never allow spread payments unless it’s by credit card. It’s way too time consuming (and expensive) to send and collect on invoices. That’s the one “easy payment” option I draw the line on.

Also, check the expiration date on the credit card to make sure you aren’t charging a card three months from now that expires in two.