Every customer must address how to pay for technology every single time they acquire a new solution, upgrade an old solution, or migrate to a different solution. TAMCO stresses to customers and their solution providers that addressing what to buy as well as how to buy are both critical to creating a total solution. Often, customers and solution providers discuss the acquisition of technology systems from the perspective of a cash purchase; however, that is often not an ideal payment approach for either party. TAMCO encourages end customers, value added resellers (VARs), managed service providers (MSPs), integrators, and manufacturers to consider some of the drawbacks of cash purchases described below as well as the potential benefits that can be realized when technology solutions are leased instead.
Phone systems and UC equipment are quickly depreciating assets and not the best use of capital.
If ownership of technology equipment is the goal, consider that most customers have achieved that goal already yet they are about to pay more, again, to upgrade or replace an existing solution. If customers are upgrading or replacing their current solution today, they should consider the possibility they may find themselves doing the same thing again at some point in the future.
Accepting a cash purchase does not enable a VAR to add any unique value to the overall solution because all competitors will accept cash as well. A cash sale does not empower VARs to influence the sales process in their favor. A cash sale does not have mechanisms to create a meaningful bond between the customer and solution provider for future business.
Leasing in general provides a manageable monthly payment allowing customers to avoid depleting their hard earned cash and preserve that capital for other financial needs and revenue producing investments.
Certain leases can offer financial reporting benefits and allow organizations to avoid accumulating additional depreciating assets such as technology equipment.
Most lease arrangements will result in a lower cost method of payment than a cash purchase, even if customers still prefer to own the equipment at the end of the lease.
