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Sunday, November 18, 2007

Close End of The Year Copier Sales with Section 179


Special thanks to a member of the Print4Pay Hotel, who reminded me of the Section 179 of the IRS Tax Code. I'll use his quote here. "Time is limited as the asset must be placed in service by the end of the year. Your customer can capture this deduction under a dollar out lease thus getting a size able reduction in tax liability for 2007 without any money out of their pocket".


There are many small business owners who either forget or are unaware of the advantages of IRS Section 179. Our job is too remind them of the special advantage at this time of year. Personally, I will use this close to give my customers a sense of urgency to buy before the end of the year.


My end of year strategy is too do a mass email to all of my accounts in reference to the Section 179, and then to follow up with "key" companies that I think maybe able to take advantage of the code. You may also want to consider a $1.00 out lease at no interest in your marketing plans. Here's one way of how to do it, take the MSRP purchase price of the machine and divide by the term. So if we take 15,000 and divide by 36 , we have a lease price of $416.66 per month. From there we can "back out" the rate to see what the $416.66 yields to the end sale. In this instance we would get (using the 36 month $1.00 out rate of .03283) funded $12,691.44 . Here we are paying the interest on the lease and the customer is not. Keep in mind that there is no discount with this type of offer, the customer is already getting the benefit of Zero percent financing.
The business is out there, we just can't lay down and have excuses for not prospecting or marketing at this time of year. Excuses or negative thinking such as "who the heck is going to buy Thanksgiving Week, or There's not much going on this week, so I'll just take some time off will not work! Keep pushing, keep knocking on doors and create a sense of urgency for the client!


Good Selling!



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