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 Premium 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 Premium 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.
  11. KD0DKI

    KD0DKI Ham Member QRZ Page

    I really want a Ten Tec Jupiter, I'm saving up for the radio.

    I've done this for years with all the large purchases like my Martin D12 Guitar it took me years to save for it. I make a bit more now then when I was saving for the D12. I didn't even think of trading my 1907 Marten bowl back mandolin.

    I should be able to pay for the radio in a few months.

    Stop using credit cards, credit cards are part of the national debt!
  12. W5HTW

    W5HTW Ham Member QRZ Page

    There really isn't much difference between using a major credit card and buying "in store" on credit. As already stated, most of the stores that offer financing, such as furniture and mattress stores, actually award the finance contracts to someone like Security Paficic or Community Finance. The interest rate can be atrocious!

    I, too, (many years ago!!) bought some music stuff on in-store credit. I had to go to that store each week and pay on my guitar and amplifier. But that was a LONG time ago!

    I did, way back, order stuff on credit from Trigger Electronics (a Globe 65A, if I remember right) and from from Allied (a couple of 6 channel CB Knight Kits, that didn't do me any good as CB was useless. And all of that was in house credit.

    Years later I bought a guitar on credit from the same music store and they farmed the loan out. Cost me quite a bit more than in house credit would have.

    Credit is credit, though. I try to avoid it, but that isn't always possible. I try to actually purchase gasoline on my gas credit cards once a month, for gas companies are prone to cancel a card if you don't use it.

  13. AE1PT

    AE1PT Ham Member QRZ Page

    Actual "in-store" credit is long gone except for a very few stores that serve local communities of well known "usual suspects".

    Most have contracted with companies like GE and Household Finance to sub out the contract. Initiators (meaning the company) get their monies immediatiely, and a bonus for generating a certain minimum number of accounts. Otherwise, it is simply not worth the bother and risk anymore for a store to carry the credit themselves.

    THE TRUTH IS that if you do not have enough credit or credit worthiness through conventional card companies you do not need to be generating new in-house credit. Save your money week by week in a jar or envelope until you have enough to make your purchase. If you can not do this simple thing--then you cannot afford the item and attempting to do a purchase on someone elses expensive plan is an exercise in consumer stupidity.

    As Forrest and his momma said, stupid is as stupid does...:eek:
  14. W6CD

    W6CD Ham Member QRZ Page

    Don't know where - but agree it would be a good thing...

    I often utilize 6 and 12 month same-as-cash financing. Major purchases from the big box home improvement stores - stuff for my jeep - etc. I would like the option on ham radio purchases as well...

    I like using OPM (other people's money).
  15. KC8VWM

    KC8VWM Premium Subscriber QRZ Page

    Well I wish you luck with the puppy exterminator business.

    You are clearly uninformed of what is actually going on in the world around you. I would suggest you might try reading what is "actually" going on right now in the business community in the year 2009 for example.

    Try this link for example:

    Yes surprisingly, there are some people out here with more authority on business matters than you have. Do you still think I don't have any idea what I am talking about?

    You're of a typical subordinate mentality, I am a community business leader,... Yeah, whatever.

    73 de Charles - KC8VWM
    Last edited: Mar 21, 2009
  16. K7MH

    K7MH Ham Member QRZ Page

    Well like I said layaway and financing are two different things.
    Layaway is not so uncommon although you used to hear about it more in years past. It is one thing to layaway some stuff at K-Mart for a couple hundred bucks but another to layaway a radio that costs anywhere from $1500 to $10,000. None the less, In close to 40 years of looking at ham catalogs I don't remember that as ever being offered as an option. Just financing with interest. Which incidentally is what the original post was about, not layaway.
    So much for the community leader thing...
  17. KB3LAZ

    KB3LAZ Ham Member QRZ Page

    What an interesting concept, a "buy here pay here" radio dealer. I can only imagine the outcome of such. ah...can you say repo?
  18. W6CD

    W6CD Ham Member QRZ Page

    the money

    Most all small/medium businesses that offer same-as-cash terms do so via a third party finance company who actually carries the paper - and have no recourse to the third party finance company should the buyer default. So there is no risk to the seller. It's a cash sale from the sellers perspective.

    Yes, of course there is usually a fee to the seller - most often very modest. How can it be modest and the third party still make money? Because a large percentage of those buyers who purchase on same-as-cash terms do not pay it off per the same-as-cash terms (rather they just make the minimum payment) - so after the same-as-cash period passes, the third party finance company gets to charge a high percentage finance charge to the buyer, retroactive to the day of debt origination and going forward in time.

    One third party finance compnay branch manager who used to carry paper for me told me about 90% of their same-as-cash contacts do NOT get paid per the same-as-cash terms. Thus making the offering of same-as-cash financing very lucrative and a good way of picking up new customers for the third party finance company.
    Last edited: Mar 21, 2009
  19. W5HTW

    W5HTW Ham Member QRZ Page

    Being thankful I am not in that community.
  20. N5FOG

    N5FOG Ham Member QRZ Page

    True leaders know how to talk to their peers and subordinates with finesse and class, both of which you greatly lack as demonstrated in your postings.

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