For more than half a century, Michigan residents have turned to Wolverine Water Systems for solutions to their water quality issues. And now, a company that was started in the middle of the 20th century is enjoying a booming business, thanks to a very 21st century concept—fast, easy consumer financing.
History
Founded in 1950, Wolverine Water Systems has been owned by Paul Mahaney for the past 30 years. Headquartered in East Lansing—with another office in Grand Rapids—Wolverine’s customers are located throughout Michigan.
“We cover the entire state,” said Controller Sue Allen. “And although the majority of our installations are residential, we have also done installations for places like Michigan State University, General Motors and the state of Michigan prison system.”
The company has been around so long, and has such a commitment to customer service, that its website asks customers, “Need parts for your 25-year-old Wolverine? We’ve got them!”
Wolverine manufactures its own water softeners and related products, and does about $5 million in annual sales with a sales staff of about 15. While telemarketing produces a lot of sales leads, the company’s longevity is a big asset when it comes to sales.
“About 25% of our sales are either repeat customers or referrals,” Allen said.
Another feature that has helped Wolverine create a niche in the active water quality marketplace is their unique 7000D valve, which was created about 10 years ago by Wolverine’s service manager.
“It’s a unique brass valve that lasts virtually forever,” Allen said. “It allows us to offer a strong warranty, including a one-year, 100% warranty, a three-year warranty on electrical parts and a five-year warranty on brine tanks.”
Financing Plays a Key Role
It is safe to say that Wolverine has an enviable combination of quality products and a long-standing reputation across Michigan. To complement this, Wolverine also offers its customers a fast, flexible financing program provided by the AquaVantage card from GE’s Consumer Finance division.
Wolverine’s sales staff is trained to present financing options as part of every sales presentation. Since adding AquaVantage to their financing arsenal a little over a year ago, they have been extremely pleased with the program.
“The turnaround time is great,” Allen said. “We love the easy paperwork and the great promotional offers, like 90 days with no payments and no interest.”
Accounts Receivable Manager Cheryl Szczubialka is excited to be using the new financing program. “GE is the first finance company that our salespeople mention,” Szczubialka explained, adding that about 65% of the company’s sales are financed. “It’s so easy to use, and we get credit decisions back from GE right away.”
AquaVantage’s high credit limits are important because the average ticket sale at Wolverine is approximately $3,000, Szczubialka said. “I like that all I need to do is make a call, and I’ll get a fast response.”
Building Business
Wolverine’s success with financing is being witnessed not just in selling water treatment products, but also in other types of home improvement retail settings. Studies consistently show that customers with available credit are more likely to buy and make larger purchases than they would if they had to pay cash.
Here are some examples of how other dealers have benefited from implementing a financial program.
Sheri Obney, store manager of Denham Springs Flooring in Denham Springs, La., recently added a GE revolving finance program. She quickly found that customers who were offered the card were spending twice as much as those without it. “I was stunned to see that the increases were so immediate,” Obney said. Last year, the small store funded more than $100,000 in sales on the finance program.
Another company, 3 Day Blinds in Laguna Hills, Calif., offers the Home Design credit card to its customers. “Not only are customers more willing to move ahead with their purchases when they’re approved for the Home Design program’s revolving credit card, but we’ve also seen that average ticket prices end up being about 75% higher,” said Al Schulten, 3 Day’s vice president of finance.
Quick and Easy
Some water dealers shy away from offering financing because they are afraid of adding more paperwork to their processes or spending time on the phone with the finance company.
Those fears are unfounded, according to Wolverine’s Szczubialka. “It’s so easy to use,” she said. “We get responses to our applications within a number of minutes, and the funding is so fast. I fax a sales slip in, and a day later, I get a fax back telling me the funds have been deposited into our account.”
The concept of “buy now, pay later” was not very common when Wolverine opened its doors in 1950. Fifty-six years later, purchasing on credit has become part of the American way of life. For water dealers looking for the path to increased sales and profits, it seems that credit will be paving the way in the future.
