The Two Sides of Section 179

By | July 28, 2019

I’ll continue on Section 179, because I had a quick thought that I wanted to expand on.

Section 179 for Equipment

I have talked about Section 179 a lot, and how companies can use this great tax deduction to buy equipment that improves their operations and production. 

I have also talked about using Section 179 to sell more. In other words, if you sell equipment that is eligible for the Section 179 deduction, reminding your B2B customers that Section 179 can effectively lower the price of your goods is a winning strategy.

But that second part falls on deaf ears all the time. It’s almost like companies really don’t believe me when I tell them Section 179 is an awesome marketing tool. So I wish there was some way I could prove it. Then the answer came to me – Buyers are already proving this via the act of buying. 

Here’s what I mean:

If you are saying to yourself “hey, let’s take advantage of Section 179 and buy those updated widgets”, you just “sold” yourself equipment because of the Section 179 deduction. So is it fair to ask that the day before you thought of this, if a company making that same equipment said “buy our stuff and use Section 179 to save”, would that have prodded you? After all, you were clearly primed and ready.

See what I’m getting at? 

So use this same logic on your own products. Out of the 30+ million businesses in the USA, there are thousands (and perhaps millions) who will decide to buy products like yours over the next few months. And most of them will do such with the Section 179 deduction in mind. So you have companies who need your product and already have Section 179 in the back of their minds. How much will it take to trigger those two things and make them come together and buy from you? Not much at all. Trust me on this – I’ve seen companies raise sales time and time again using Section 179. 

One more time for clarity: If you use the Section 179 deduction to buy equipment, then you’ve already proven to yourself that using Section 179 to SELL equipment works.  It’s just looking at it from another angle, that’s all.

Ask us at Crest Capital about this – we help our vendor partners sell more all the time by using Section 179 as a marketing tool along with equipment financing.

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