We could say it any number of ways: “Dredge up more money,” “Haul in more cash,” “Don’t lowboy your revenue,” “Mine your income stream,” “Articulate your best sales year yet.” Aside from the catchy clichés, we’re talking money, so you’re going to want to listen.

In a preview of a report to be released in spring 2014 by the Federal Reserve, survey results conclude that buyers are relying on check payments for larger purchases more, not less. Don’t take checks for equipment? Get ready to dig your own demise.

One of the biggest reveals of the 2013 Federal Reserve Payments Study directly concerns your industry: “Checks [are] being used for larger-value consumer bill payments.” That’s pretty simple to understand, but let’s break it down even more:

• Consumers are continuing to want to pay with checks.
• Consumers are showing a preference to wish to pay for more expensive items with checks. While the study does not offer a detailed explanation for this preference, speculation as to reasons may include:
  • Consumers not having the option-to-buy or open-to-buy amount to cover the equipment purchase on the credit card
  • Consumers not wanting to pay exorbitant APR or monthly fees on their revolving credit card balances
  • Wanting to be able to use a multiple check payment option, which lets you sell your equipment, allows the customer to take home the equipment, and covers your back and bank account for a process of 2-4 check payments over a one-month time period
• Some of your competitors are accepting checks for equipment purchases. If you want to sell these larger-value ticket items, you need to stay in the same competition arena.

According to the study, the purchase of these larger-ticket items is contributing to an overall upswing in the amount of money spent via check payments. A decade ago, consumers bought 29% less with checks. The average value of checks paid increased from $1,103 in 2003 to $1,420 in 2012. So, not only are people who use checks buying bigger-value products, they’re spending more in general. Can you afford to skip out on your piece of the 29% pie?

The average value of check payments is much higher than that of plastic payments. Consumers are using debit cards and credit cards for items of approximately $39 and $55 respectively. The study notes that the average value of both types of plastic payments has declined over the study period (unlike checks’ rise). Don’t forget that for every swipe for these low value items, you pay fees. If that’s the only type of noncash payment you accept, you’re paying an awful lot for the non-privilege.

The Federal Reserve isn’t advising you to “recycle” your plastic payment options out the door. If someone wants to buy a backhoe with a Visa or MasterCard, you will accommodate him. But the key part of the organization’s study is the clue it gives successful industrial equipment company owners: Customers want to buy your equipment, but they want to do it a specific way. Make that way available to them, and you could see more sales, lower interchange fees, and higher profits.

Ready to dig in? Start here by excavating this free guide to how you can quickly, easily, and painlessly add checks to your payment options menu: