The monthly subscription model for technology, software and services has been a revolution in the current business climate. From cell phones to Microsoft Office to construction equipment, the monthly service fee as a replacement of the point in time capital expenditure purchase is here to stay and poised for growth. Recent imaging industry reports show that as-a-Service platforms could grow as much as 80% in the next 3 years. But there is a problem, only 3 in 10 dealers feel they are well-prepared to bring an as-a-Service-type solution to market.
The Customer Benefits of iDaaS
Why do people finance their mobile phones? I mean, it’s clearly more expensive than paying cash, right? Well, yes and no. There is a convenience factor at play which brings more value than just purchase economics. Imaging Device as a Service (iDaaS) is no different. Customers see enhanced value in the following areas:
- Predictable monthly payments to align with budget needs
- Preservation of cash that can be invested in higher ROI activities
- A more effective plan to stay on the cutting edge of technology
- Additional flexibility in the use and management of the technology
- A more affordable way to bundle secondary and tertiary services with the equipment investment
- Easier way to predictably scale for growth
The Dealer Benefits of iDaaS
While your customers are taking harder and harder looks at iDaaS for the benefits above, the dealer actually wins at least as much with items like:
- Monthly recurring revenues (MRR) make running the business easier
- A stable MRR base enhances the value of your enterprise
- Easier to sell services because of the bundled nature of the offering and enhanced margins
- Fewer sales obstacles at end of asset life for renewals
- Easier to sell additional units to growing enterprises
- ‘Sticky’ customer relationships that are less transactional
A Familiar Set of Benefits
Predictable expense streams, preservation of cash, a more affordable approach to technology investment. If these things don’t sound familiar, they should.
These are the core benefits of financing that you have been selling in the form of leasing, CPC and the like for years. So, why then are only 3 in 10 dealers prepared for a shift into iDaaS?
Change is hard. This will require a nuanced approach to what has likely been a pretty successful business model. For long-term success, most industry experts believe print has to start fitting into an IT world. Making a transition like this can affect billing, operations, and requires a detailed understanding of your costs. Though change can be hard, it may be necessary in today’s aaS climate.
LEAF can help.
Would you rather bring a solution like this proactively to your customer or have your customer ask you about it. If the latter happens, it might be too late. LEAF offers more than just leading customer finance programs. We bring decades of experience in the industry with a total suite of financial solutions to help you take on growth challenges.