Hockey equipment financing

[AIREAYE 248]

So I stumbled across an offering by an LHS on kijiji that is apparently offering financing for high end hockey gear like the top end skate models from Bauer: http://www.kijiji.ca/v-hockey/markham-york-region/bauer-supreme-mx3-skates-0-financing-75-50-monthly-tax-in/1090012774?enableSearchNavigationFlag=true

They offer a few options like 0% interest, low interest and no payments for x mths for purchases over $500. The example they post is the 1X, which over 12 mths could work out to about $80.50 per with no interest payments and the retailer only taking a $50 fee.

I've never heard of this before and while I'm not saying it's sketchy, I'm curious as to your thoughts. Why offer long term financing? Does consumer demand have anything to do with it? A method to smooth out cash flow as we all know hockey is seasonal?

[Havok19 0]

Interesting to say the least.For ppl who want top end but are tight for a couple months it coule help hem get the stock the want.

[AIREAYE 248]

Out of the thousands of people that I've talked to, I've only ever encountered a handful who've expressed that regret and was serious about buying top-end. Maybe those guys saw more, but it's weird, their brick-and-mortars are located in relatively well-off areas of the GTA.

[flyers10 57]

Evolution of increasing prices. People finance $200/$400/$600/$800/etc amounts at places like best buy all the time. Enables more people to get what they want when they want it. Plus people tend to spend more when able to finance. I think we'll start seeing more of this over the next 5-10 years.

[Beleafer 14]

I saw the same thing on ebay with a seller. It was really bizarre.

[HDHockey 19]

I am in a different retail industry and the financing options help make the higher prices look more reasonable, which is where the price of skates/sticks has gone over the past 15 years.. "There is no way I am paying $950 for those skates", but that same person may see them as an option at $80.50 per month. Also, the hope in a lot of financing is I apply for the $950 skate but get approved for $1500, so might as well get another stick or a pair of gloves since I have 12 months to pay for it.

[IPv6Freely 2096]

I guess it makes sense in the same way department store financing makes sense. I'd just rather use a credit card though.

[AIREAYE 248]

Great answers, and it makes sense. Interesting that it would be a smaller LHS (2 stores) that are doing it first, rather than us hearing about it from the larger US stores for example.

[Chadd 916]

Great answers, and it makes sense. Interesting that it would be a smaller LHS (2 stores) that are doing it first, rather than us hearing about it from the larger US stores for example.

There's a bit of risk in a program like that. I can see why most shops would shy away from that.

[AIREAYE 248]

Of course, you're introducing default risk as an example. I would think that the chains with healthier balance sheets would be more able to undertake this. But then again, it would be the smaller stores that would show greater need to offer it.

[HDHockey 19]

They probably just teamed up with a Synchrony or Wells Fargo (or whoever is similar in Canada), they take the risk based on credit history, but take a percent of the sale probably slightly higher than the credit card fee would be (and probably the $49.95). That seems to be popping up here for auto repair/tires/home repairs/etc..., where in the past it was primarily furniture.

[mickz 107]

From a marketing stand point businesses want to stand out from the crowd. Aside from product selection and the level of service there isn't much to differentiate competing shops from each other. The shop in question is also in a part of the world that has a vast number of options for consumers to buy from.

[MThockeydad 469]

Speaking of consumers having a vast number of options to buy from, it would also help differentiate your small LHS from the online retailers.

[leftwinger37 43]

This retailer is totally underestimating the number of scumbags that play hockey.

All of you team managers get ready, the excuse du juor is now "Sorry Bud, I had my skate payment this week. I'll have to pay you next week instead..."

[IPv6Freely 2096]

This retailer is totally underestimating the number of scumbags that play hockey.

All of you team managers get ready, the excuse du juor is now "Sorry Bud, I had my skate payment this week. I'll have to pay you next week instead..."

The outer corners of my mouth turned upwards slightly.

[leftwinger37 43]

I hate to slander my own kind, but I am looking forward to a deep discount on a pair of top-tier, "reposessed" skates.

Announcer: On this weeks episode of "Operation Repo": Recovering a pair of Bauer Vapor 1x Skates from a 19 year-old college student's parent's house.

Repo Man: *bangs on door* We know you're in there, Hunter! We can see that your Xbox is on and "Call of Duty" is on pause!

[Havok19 0]

LoL

[KennyWu 24]

I've been to this LHS, it's not bad. Hope it helps them grow. Good service but haven't had good luck with skate sharpening.

[ArrogantOwl 7]

I wonder what group is worse, hockey players, or musicians with this kind of stuff.

[HkY_GuY 2]

this is awesome always wanted to purchase top end pair of skates but I can't dish out 900$ in one shot.. financing is a great option and it would help the sells of top end lines and possibly eliminating the various range instead of having 4 or 5 they will have 3 offers low,mid and high end reducing production cost at the same time.