In my last post I talked about using Section 179 to sell more equipment, and focused on the fact that many business owners simply aren’t aware that Section 179 even exists. Let’s take that one step further and talk about a few specific strategies that can help equipment sellers sell more using Section 179.

#1 – Make Your Buyers Aware of Section 179

The first step is to make buyers aware that Section 179 exists. This can be in the form of website articles, blog posts, newsletter blurbs, Facebook posts, or similar. You need not even research or write in depth articles – a quick Facebook post with a link to a Section 179 informational site will work fine (simply search Google for Section 179 – you’ll have good informational websites within the first three results).

The bottom line is to start talking about it in your social media / blog / newsletter / other marketing.

#2 – Get Your Salespeople to Start Talking about Section 179

If you have salespeople, and they aren’t talking about Section 179 with every prospect, then listen up, because I’m about to make your next sales meeting the most beneficial (and profitable) one you’ll have this decade. Every single salesperson, on every single sales call, should be talking about the FULL PRICE DEDUCTION the prospect could take using Section 179. This is a powerful tool. Creative salespeople can even talk price, using Section 179 tax savings to overcome a price objection.

To give an example, a $10,000 piece of equipment has a net cost of $7,500 if you factor in taking the entire $10,000 as a deduction (this assumes a 25% tax rate. If the tax rate is higher, the savings are even more).  Tell your salespeople they can talk about a 25% cost reduction, and watch their eyes light up.

#3 – Get Section 179 Into Your Marketing Collateral, and On Your Website’s Product Pages

You can find Section 179 banners and icons online (again, simply search). Put these on your marketing collateral and website, and let prospects know a particular piece of equipment is Section 179 eligible. Like I mentioned last post, who cares if your competition can do this too? They aren’t reading ol’ Fletch – you are.

One more post on this topic next time, with a few more advanced strategies.

As you can tell from reading here, I’m pretty excited about Section 179 being raised to one million dollars. It’s a huge boost for companies, and to me, makes complete sense. Because when you allow a full tax deduction for equipment purchases, more companies will buy equipment – it’s really that simple. And that helps everyone – buyers and sellers both.

Let’s talk about equipment sellers today, and the huge sales gift that the IRS is (and always was) giving them. Because if you aren’t using Section 179 to help you sell equipment, you are missing out.

Now on the surface, you would think that it’s not a big deal for equipment sellers to tout Section 179. After all, assuming the equipment qualifies (most does), the deduction is available to every buyer, and all eligible equipment, regardless of manufacturer, can get the deduction. In other words, two identical machine manufacturers can both say their product is Section 179 eligible. So it can seem a little like an auto manufacturer saying “our car has wheels”.

Ahh, but there’s a difference. All car buyers are aware of the wheels (I hope so, anyway). But not all equipment buyers are aware of Section 179.  

Yes, believe it or not, there are thousands, perhaps even millions, of executives and business owners that are not aware of the Section 179 Deduction on a day to day basis. Oh, they will be aware of it when they visit their accountant at tax time, and the accountant gives them the pleasant surprise of a big deduction. But how many business owners would have bought more had they been aware of / reminded about about Section 179 earlier in the year?

There is no doubt in my mind that if every business owner in the United States was magically made fully aware of Section 179 tomorrow that equipment sales would spike markedly by weeks’ end.

So yes, using Section 179 to help sell more is, without question, a viable and desirable business strategy.  And lastly, who cares if your competition can technically do it also? They aren’t reading this blog – you are. Get a leg up.

Next time, I’ll talk about specific strategies you can use.

Twas a night in December
In an office on a hill
Where the executives all gathered
With their accountant named Bill

“Your taxes are too high”
Said Bill with a frown
We have nothing to claim
To bring the number down

“But what can we do?”
The executive VP did vent
Our profits were strong
And into the bank they went

We were told to curb expenses
So the old equipment we did use
Yes, it needed some duct tape
(that’s how Jim got that bruise)

“I have an idea”
said a voice from the right
The executives turned around
To see an intern bathed in light

We can replace the old equipment now
And here’s the part that’s divine
We can write the entire cost off
Thanks to Section 179

The executives all smiled
So wide they almost burst
But intern continued
“You need to act by December 31st“

The executives took action
A plan they did sketch
All because they listened
To an intern named Fletch

And that’s how I got my start. Ok, maybe the “bathed in light” part is a bit much. But it was a good poem, right? Have a great holiday, everyone. And remember, get those Section 179 equipment purchases in (and operational) by the deadline, which is midnight, 12/31.

See you in 2015!

Yes, it’s later in the year, but it finally happened. Our leaders in Washington (they are leaders, right?) have finally given Section 179 for 2014 a little love with the Tax Extenders Bill. And you thought it would remain at $25,000 all year… ahh, Fletch always knew better!

The new Section 179 limits for 2014 are $500,000 for the deduction, with a $2,000,000 threshold on equipment purchases (after which the deduction decreases on a dollar for dollar basis). PLUS, the bonus 50% depreciation has returned.

This is a really big deal, and a nice boost over the $25,000 it was set at. There’s also one more little wrinkle… it’s only good for 2014. In 2015 (which is only a few days away), Section 179 goes back to $25,000. Will they raise it again? Who knows?

So you know what this means? You need to get moving, because you really only have about two weeks to take advantage of this. To get the full benefit of the new higher deduction limits, the equipment must be purchased and put into use by 12/31/2014.

So what are you still reading for? Get shopping!!