Have you heard the term “recurring revenue”? It’s not new, but it is definitely a buzzword among all of the big players in every technology industry. And it should be on your radar too, if not already. After all, what business would not want stable, predictable income along with a high customer lifetime value or CLV?Like many technology 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. In comes the X as a Service boom. It is not a phase and it has caught on fire for all of the right reasons. 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 that more customers are expecting you to offer.
How An Equipment As A Service Model Helps:
- Bundling Maintenance - An as a service or subscription-type payment model offers a total solution as a monthly payment. This way to pay makes it easier for you to bundle in to capture margin rich services such as multiyear support and maintenance, at the point of sale.
- 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. The as a service demand has never been higher.
What to Look For In An Equipment As A Service Payment Model
Adapt to a technology 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 things like the ability to scale, have greater control, and protection against technology 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 With today's rapid advancement in the technology sector, equipment becomes outdated, no longer meeting customer's needs much more often than ever before. The effect from operating with outdated technology is damaging to a businesses bottom line. It can bottleneck their growth and restrict them from being competitive.
Gone are the days when a business can keep a solution for 10 years and remain competitive. If a company is using antiquated security equipment how does that affect the protection and value of their assets? How can a business expect to grow if their audiovisual technology is from 2010? It is a major hindrance. 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.
Ready to Adopt Hardware as a Service, But Not Sure How to Start?
TAMCO has been partnering with technology solution providers for 25 years, helping integrators, resellers, manufacturers, and more offer progressive and exclusive ways to pay for technology equipment that offers the freedom, flexibility, and peace of mind businesses desire.
Then - Learn how you can capitalize on offering this equipment as a service option and build recurring revenue for your technology solution sales business. This eBook walks you through how partnering with TAMCO provides you with a value-adding equipment as a service procurement method helps you build recurring revenue and increase your customer loyalty.