You would think it would be difficult to differentiate yourself by recommending payment options. They're a commodity. Everyone can provide a cash purchase price or a $1 buyout lease. This makes it easy for customers to shop. They shop for the lowest price, causing you to take yours lower and lower and having to shrink your profit margins.
TAMCO Shield can help you keep your margin's integrity without worrying if your customer is shopping around. Shield allows you to differentiate yourself with added value that traditional how to buy options cannot provide, and neither can your competitors. The following features are exclusive to Shield, and provide customers with added value and allow you to close more sales.
The biggest "wow" factor Shield has to offer is its ability to be flexible in multiple ways. Most notably, the Solution Replacement Guarantee (SRG.) With the SRG, customers can upgrade their equipment (without penalty) at any time if the equipment were to no longer meet their needs. This allows customers to escape the inevitable trap of obsolete technology.
Also, Shield has flexible end of term options. Shield gives customers the option of renewing with or without the SRG, the option to return the equipment, upgrade to new equipment, or, if desired, the customer would purchase their existing solution. With traditional monthly payment options and especially a cash purchase, this flexibility is virtually nonexistent.
02: Peace of Mind
It's rare for traditional purchase options to have any added perks that provide security. However, Shield provides Act of God coverage that covers insurance deductibles up to $5,000 if the equipment were to incur damage from a natural disaster. Shield also has features that make bundling in maintenance a breeze. This provides added security for the customer, and, the maintenance payment is passed through to you, putting that money directly in your pocket. Who doesn't want a multi-year revenue stream on a higher margin item like support? It's a win-win!
03: Lowest Bottom-Line Cost
Money talks. We're all guilty of wanting the most value for the lowest price possible. In previous blogs, we've combatted the belief that a cash purchase is less expensive than a traditional monthly payment option if ownership is the goal, as it's a very common misconception. But, it's a myth. We also took the financial analysis further to illustrate that Shield is often the lowest bottom-line cost due to the Time Value of Money, accounting treatment, and tax benefits.
These three key features of Shield allow you to give your customers the most bang for their buck. An outright cash purchase cannot offer that kind of flexibility. Traditional financing won't allow that peace of mind. A bank loan cannot offer that type of bottom-line cost.
We have numerous resources (listed below) to help you explain these benefits to your customers to help them see that Shield truly is the smartest way to pay for their technology solutions. However, often the best way to get customers to say yes is to simply recommend Shield as their way to pay. Most don't even know the option exists.
- How Financing is a Smarter Procurement Choice Than Cash When Buying Voice, Video, or Data Equipment
- The Truth About Interest Rates: One Size Does Not Fit All
- The How To Buy Option Guide: Helping you understand the four primary ways to pay