The term recurring revenue is not a new concept, but it seems to definitely be buzzing in the AV industry, especially among the big players. Truthfully, it needs to be on your radar too, if not already. Recurring revenue is predictable, sustainable stable income with a high customer lifetime value or CLV. What business wouldn’t want that?
Traditionally AV integrators sell equipment. You close a sale, customer pays cash, and on you go to the next customer. This has been the way of the world 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.
Enter the AV as a Service boom. It is not a phase and it is running rampant for all of the right reasons. You have two options if you haven't started making moves to adopt an AV as a Service offering. You can ignore the issue, continue on with this traditional box sale approach and hope you can stay competitive in the future. Or, you can choose to adapt and adopt an AV as a Service payment model for your AV solution sales. This type of subscription-based model is becoming the preferred way to pay and the early adopters who introduce and package it well will see the most success from it.
How An AV As A Service Model Helps:
- Bundling Maintenance - An AV as a service or subscription-type payment model offers a total solution as a monthly payment. A monthly payment is proven to make 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 AV As A Service Payment Model
Adapt to an AV 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 business’s 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. 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 its needs and maintain its competitiveness. The technology leaders of the world spend billions on R&D specifically for these purposes.
Ready to Adopt AV as a Service, But Not Sure How to Start?
TAMCO has been partnering with technology solution providers for over 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.
Learn about our exclusive AV as a Service offering, TAMCO Shield. It’s a payment option that is unmatched in the marketplace.
Learn how you can capitalize on offering AV as a Service option and build recurring revenue for your AV solution sales business. This eBook walks you through how partnering with TAMCO provides you with a value-adding equipment as a service procurement method that helps you build recurring revenue and increase your customer loyalty.