Have you heard the term “recurring revenue”? It’s not new, but it is what all of the big players in the premise and hosted technology equipment industry are after. And you should be too. After all, what business would not want stable, predictable income along with a high customer lifetime value or CLV?
Like many solution sales companies, you sell equipment. You close a sale, they pay cash, and on you go to the next customer. It's been the way it is done for decades. However, the market is proving that this sales model, unfortunately, is becoming antiquated and it is not a healthy sustainable business model for growth and success. You have two options if you haven't started making moves on this. You can ignore the issue, continue on with this traditional box sale approach and see what happens in your future. Or you can choose to adapt and adopt technology equipment as a service payment models for your solution sales.
How An Equipment As A Service Model Helps:
- Bundling Maintenance - This way to pay makes it easier for you to bundle and capture much more margin rich services such as multiyear support and maintenance.
- Capture Network -Ability to secure related recurring revenue such as network services.
- Differentiation -Compelling value-add to your solution versus your competitors. Adapting and adopting this now will also put you miles ahead of competition.
- Aligning with Marketplace -Whether you choose to align or not both businesses and consumers are shifting to this buying preference. Stay aware of the marketplace direction and today's customer expectations.
What to Look For In An Equipment As A Service Payment Model
Adapt to an equipment as a service solution that aligns with modern customer's needs. Look to a solution that addresses the needs of today's constantly changing business operation. They need scalability, control, and protection against obsolescence. Obsolescence protection is more important than ever. With today's rapid advancement in the technology sector, equipment becomes outdated, no longer meeting customer's needs much more often than ever before. Gone are the days when a business can keep a phone system for 20 years and remain competitive. A business must continue to lean into technology advancements to fit it's needs and maintain its competitiveness. The technology leaders of the world spend billions on R&D specifically for these purposes.
Want to learn more about how you can build recurring revenue for your technology solution sales business? Download the ebook that walks you through how partnering with a finance company that provides you with a value-adding equipment as a service procurement method helps you build recurring revenue.