Between economic headwinds, industry shifts, and evolving customer preferences, the office technology landscape is experiencing a lot of change. And while some sellers froze in fear about what these changes would mean for their sales, others used them as an opportunity to get creative.
Those dealers who decided to innovate in the face of change didn’t just stay afloat amid disruption – they were able to power forward while their competitors stood still. And as a result, they witnessed increased profits and optimism for a successful 2024.
A recent survey of over 900 office technology sellers uncovered the following:
- New, non-traditional office technology service offering revenues are up 116% over 2017
- Profit from new, non-traditional office technology service offerings revenues are up 240% over 2017
- The average margin per sale of a bundled solution between traditional office technology and non-traditional office technology solutions is 36% higher than traditional office device leases alone
- New services with a payment option were 6.2x more likely to achieve first-year performance goals than those without
Sellers across the country also shared their insights on growth prospects of solutions like these for the remainder of 2024:
“2024 holds promise as our first-quarter results surpassed revenue and profit targets,” says the CEO of a Southwest office technology seller. “We achieved an 8% expansion in our recurring revenue base, nearly doubling our initial goal, while witnessing a 6% rise in services-based offerings. Our adaptability and evolution are evident in our revenue mix, which has substantially transformed over the past five years. Today, device sales or leases occur within a larger solution context over 80% of the time – a significant shift from five years ago.”
“Our year-over-year profits have surged by 15%,” adds the President of a Northeast office technology seller. “While the growth of as-a-service solutions took time to materialize, the present trajectory surpasses our expectations. Embracing these solutions involved significant risk, requiring us to extend our balance sheet. However, the higher profitability per contract, cumulative impact, and exceptional renewal rates indicate our journey towards our most profitable year yet.”
“We’re introducing new ‘packaged’ recurring revenue products this year, and the initial response has been incredibly encouraging,” recalls the CEO of a New England office technology seller. “Our market seeks innovative solutions bridging traditional office technology domain. By leading with payment options, an area where technology sellers typically lag, we’ve unlocked a multitude of opportunities for the present year and beyond.”
“With burgeoning manufacturing activities in the Carolinas, Georgia, and Alabama, we anticipated a surge in demand for technology solutions. However, we recognized the strain on businesses’ profits amidst this growth,” says the CEO of a Southeast office technology seller. “Our differentiation lies in addressing this challenge by offering as-a-service solutions that lower financial barriers and sustain project momentum amidst budget constraints. Our financing partnership has been instrumental in facilitating the conversion of high-ticket sales into manageable payment-driven solutions.”
As you plan your growth strategies for the remainder of 2024, embrace innovation and trust LEAF to deliver ideas and solutions that have been helping office technology sellers power their businesses forward for more than 20 years.
