Do any Ham Radio Shops finance?

Discussion in 'General Technical Questions and Answers' started by KE7VOO, Mar 20, 2009.

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  1. KE7VOO

    KE7VOO Ham Member QRZ Page

    I am a musician and I buy most of my gear through a company that allows same as cash if you pay in full within a 6 month or 12 month time perod depending on the total purchase price. I just wondered if there are similar purchasing plans for Amateur radio gear?
    Jason Ferguson
    Chandler, AZ
  2. K7MH

    K7MH Ham Member QRZ Page

    They used to have credit applications in the catalogs but not anymore that I know of. I used to have a very dangerous AES credit card where they carried the credit. They dropped it not long after I got it. The major credit cards are used more than anything else these days. It used to be you would have all kinds of credit cards for each different company you wanted to buy from like different gas and oil companies like Texaco Arco Shell etc. Prior to Mastercard and Visa, people would carry several different cards even a dozen or more.
  3. KC8VWM

    KC8VWM Subscriber QRZ Page

    No, but it's a good idea and might help some of these floundering businesses to stay afloat during this economic downturn.

    Call it radio equipment "layaway" if you will.

  4. K7MH

    K7MH Ham Member QRZ Page

    Financing and layaway are two different things.
    With financing you take it home to use today.
    With layaway you take it home when it is all paid for and no sooner.
    In house financing isn't done much anymore that I know of and probably for good reasons.
  5. KC8VWM

    KC8VWM Subscriber QRZ Page

    Kmart is a good example and is an excellent business model to follow...

    In fact, statistically speaking the "lay a way" plan model has become more popular than ever at certain retail outlets since the economic downturn.

    Please try to keep in mind dude that you are not speaking with a rookie or some sort of CB operator who is simply spewing my uninformed opinion on the matter. I am a former wall street business person. You can find my name prominently displayed as receiving a prestigious award in the 2003 April edition of the Wall Street Journal. Your so called "Good Reasons" argument doesn't hold a grain a salt. What really matters is what people are willing to buy, and what vendors are willing to accept as a payment. ...The American way if you will.

    73 de Charles Bushell - KC8VWM
    Last edited: Mar 20, 2009
  6. W0DV

    W0DV XML Subscriber QRZ Page

    I've purchased many guns with the lay-a-way plan. That's how a local ma-pop gun shop stays alive here with the competition from places likes Scheels all-sports, Cabelas, Sportsmans Warehouse, and Gander Mountain all in the same city. $50 here, $100 there till it's paid then I take it home.
  7. W5HTW

    W5HTW Ham Member QRZ Page

    Years ago there were quite a few electronics companies that sold ham gear "on time" as it was called. Some of them by mail order, and most by in person sales. To name a few, Walter Ashe, Burstein-Applebee (I worked for them for a while) Trigger Electronics, Allied (Knight-Kit) and in Denver, CW Electronics and Rogers Electronics.

    Most of that was in the days before major credit cards appeared on the scene. Gradually store credit cards have disappeared, replaced by Visa, Master Card, American Express, Discover, etc. The exception is gasoline credit cards which are still plentiful.

    I know of no stores that sell ham gear on credit. I'm a bit surpised to learn of a music store that sells music equipment on credit. It is generally accepted that if you qualify for credit, you can get a major credit card. There are a few local exceptions in auto repair shops, usually one man operations, and local grocery stores. Just recently here a locally owned super market stopped permitting customers to charge groceries.

    As noted, layaway is a completely different animal. It usually has no finance charge but may have a small layaway charge, and unless you fail to pay it off in time it has no other fee. You pay the tagged price. But I don't think any ham stores have layaway either.

  8. KB9BVN

    KB9BVN Ham Member QRZ Page

    Yeah...that K-Mart model was so good they were filing bankruptcy a couple years ago. I wouldn't underwrite the financing of ham gear for anything. The loan security depreciates so fast it makes your head swim. The old finance companies of the 80's used to finance about anything they triple prime rates...most of them are gone now.

    So you brag about working on Wall Street...good luck with that. Personally I'd tell people I worked as a puppy exterminator first. They'll think more of you. <grin>
  9. K7MH

    K7MH Ham Member QRZ Page

    It would seem to me that what vendors are willing to accept or not except would be something that is based on sound reasons and business models. I never said I knew what the reasons would be only that if they do not use a certain payment plan such as in house credit, that there is probably a good reason that they don't. That seems to be a no brainer to me.
    Goody goody on your accolades though. Congrats!
  10. KA0SOG

    KA0SOG Ham Member QRZ Page

    Magic Money Dartboard Game

    My business sells and installs heating and a/c replacement systems. When the old furnace dies and has to be replaced it is rarely a planned purchase for our customer. So for their convenience and to facilitate the sell, we do use in-store credit so to speak. It is underwritten by (a name you'd know) financial company and they actually hold the indebtedness. We get paid in full by them when the job is done (less their fees). The customer's interest rate tends to be more than auto rates for example and yet much lower than credit cards. Sometimes it is a full blown loan, other times it is 90 days same as cash (which for those of you who don't know that is a zero interest loan where the merchant coughs up the finance charge for you so he can get the sell).

    It does cost my business to provide the opportunity of in-store financing. Usually a modest percentage. So if a customer gets a loan we have to pay the finance company fees for handling it. Plus the finance company gets loan interest from the customer.

    The fees are one reason small shops shy away from offering credit. It eats into their margin. Plus it makes the total acquisition cost for the customer higher making them perhaps reconsider the purchase. Credit cards cost merchants too but not as much. When you buy by credit card a small percentage of the sell is charged against the merchant as a credit card processing fee. As hard as it is for small business to make ends meet these days; giving up margin to a credit company to conveneince customers is a bigger decision than may appear on the surface at the end of the day. You have to weigh the cost of providing the customer credit against the risk of loosing the sale.

    So when you bought that $1700 Super Zapper HF6000 with 45 knobs with your VISA; the merchant only got maybe $1674.50.

    The merchant has to judge whether or not his loss of margin is such that it is easier to walk away from the sell since you can't poney up the cash or make less money on your deal. There is a tip over point for the merchant to make a profit or not so he can eat, pay rent and reopen for business tomorrow. So the merchant must choose at what point do the fees associated with offering you credit eat up the merchants possibility for making money? Which is the sole reason for being in business in the first place.
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