I’m not interested in bundling the service.
This is a great idea until they need service. And they WILL need service. Most of the time the total cost of ownership is significantly reduced over a normal device life by bundling the service option in with the financing. At only a nominal extra fee per month, customers benefit from less downtime, fewer unpredictable expenses and even longer life cycles of equipment usage.
I’ll just pay cash.
Paying cash for a depreciating asset is not the same thing as setting fire to money. But it’s close. Office products lose value relatively quickly. If your customer hasn’t embraced a “pay for use” model, then they might not be well connected to the value of the office products solution in the first place. Taking a longer view, the client will realize longer term financial and operational benefits to paying monthly for the solution rather than just paying cash.
What’s your rate?
Financing your equipment is not about the rate…it’s about the payment. Their local bank might be able to offer a crazy low rate, but because they don’t understand the equipment the way you do and our finance partner should, they may only be able to finance a shorter term, require big cash up front, have zero mid-term flexibility or not be able to finance things like installation or delivery. That low rate might actually lead to a higher payment with more cash out of pocket wrapped in an inflexible agreement.
Buying the new model is too expensive.
While newer technology will almost always yield higher upfront prices, it will likely cost less in the long run. When bundled with the right finance program, the cost of the newer technology is only marginally more per month and given the fact they can likely finance the newer equipment longer, the monthly expense can even be cheaper. Also, older technology will typically carry higher operating costs as parts, supplies and even the cost of maintenance is generally always higher.
At LEAF, we help office product sales teams by making your equipment easier to buy. Our customized solutions solve real problems – like overcoming a few unintelligent customer responses. To begin a discussion, reach out to your LEAF Account Champion.