Holicent
VIP Contributor
1. It's a trap
Credit sales are often seen as the way to get customers into your store and then back out again. But they can be damaging to your business as well as to the customer.
2. You're not building a long-term relationship
When you offer credit, you're encouraging people to make short-term decisions that are likely to damage their relationship with you in the long term. This can lead to mistrust, resentment and problems in the future - none of which is good for your business or its reputation.
3. It's not financially viable
If you're offering loans on interest-bearing products, such as credit cards or personal loans, then you will need to charge high rates of interest on those loans in order to cover administration costs and profit margins for lenders like yourselves (and pay for your own salary). This means that each loan will be costing more than it's worth for the customer, who ends up paying more than he would have done if he'd taken out a loan from a competitor who didn't charge such high rates of interest in the first place!
4. It's bad for the community
If everyone is borrowing money at high interest rates just so they can spend it on conspicuous consumption items like furniture or clothes then how will they pay back at the right time.
Credit sales are often seen as the way to get customers into your store and then back out again. But they can be damaging to your business as well as to the customer.
2. You're not building a long-term relationship
When you offer credit, you're encouraging people to make short-term decisions that are likely to damage their relationship with you in the long term. This can lead to mistrust, resentment and problems in the future - none of which is good for your business or its reputation.
3. It's not financially viable
If you're offering loans on interest-bearing products, such as credit cards or personal loans, then you will need to charge high rates of interest on those loans in order to cover administration costs and profit margins for lenders like yourselves (and pay for your own salary). This means that each loan will be costing more than it's worth for the customer, who ends up paying more than he would have done if he'd taken out a loan from a competitor who didn't charge such high rates of interest in the first place!
4. It's bad for the community
If everyone is borrowing money at high interest rates just so they can spend it on conspicuous consumption items like furniture or clothes then how will they pay back at the right time.
