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LEASING
The way we purchase things has
changed radically in the last twenty
years – for businesses and consumers
alike.
These changes have come about in
response to shifts in technology, markets
and customer demand. People want to
lease, rent or pay monthly because the value
of their big purchases tends to deteriorate
rapidly and new billing structures offer a
more consistent experience.
Where office equipment is concerned,
this payment structure is hardly a new
phenomenon; anyone working in this
industry is likely to be well ahead of the
‘pay monthly’ curve.
Even so, the tech titans of today can
teach printer resellers a thing or two,
especially in the following areas.
1
Product choice
There can be a tendency for resellers to
treat all customers as if they have the same
interests and expectations. The problem is
that where offices are concerned, one size
rarely fits all.
The same can be said of the average
Netflix customer, which is why the Netflix
platform accommodates eclectic viewing
tastes: action films, period dramas, stand
up-comedy and more. Over time, it develops
a clear idea of each user’s preferences and
is able to make an informed guess as to
which film or programme from Netflix’s
library they might like to watch next. These
recommendations are good. Crucially,
they’re also very easy for the customer to
act upon.
Printer resellers would do well to
adopt a similar approach: provide a wide
variety of products; offer them à la carte;
and support and guide the customer
throughout the buying process. If there is
an opportunity to draw up a contract that
discounts related items on a pay monthly
basis (e.g. toner and paper), you should let
the customer know.
If a customer feels that you’re always
trying to accommodate their needs and
provide the best deals, you’ll have an
advantage when they sign up – and when
it’s time to renew.
2
Choice products
Music taste is rarely consistent. Even if
you’ve always preferred a specific genre,
you’re liable to get sick of a particular song
or artist. When you buy an album for £10,
you get, on average, 10 to 13 songs. After
just a few commutes or car journeys, the
chances are you’ll be itching for something
new – whereupon you can buy another
album.
Just because you can doesn’t mean
you should. Streaming music services like
Spotify and Tidal give you unlimited access
to the entire discographies of thousands of
artists, popular and obscure, for a nominal
monthly fee. For the price of one album,
you can get access to millions.
Resellers might not be able to offer the
same value ratio, but the basic idea holds.
The money a customer has budgeted for
new office equipment will get them new kit
– but they’ll eventually grow out of it. And
when they do, there’s no assurance that
they’ll come back to you for an upgrade.
If they can lease monitors, PCs, printers,
phones and everything else, at a fraction of
the original cost and with the promise that
they can upgrade the minute new versions
of this equipment are released, it’ll be
much easier for them to justify the initial
outlay and any future renewals.
You’ll forge a relationship, not process
a transaction.
3
Both on demand
For better or worse, the shape of a
business changes over time – and not
always in ways the owner can anticipate.
A printer might serve a team of 5-10
employees reasonably well, but buckle
under the strain of supporting 25 or more.
If a company needs to scale up urgently,
but didn’t anticipate the cost of the new
item in their budget, it will have to find
the money elsewhere – or simply go
Resellers have a lot to learn from Netflix, says Chris Cowell,
Office Equipment Sales Director at BNP Paribas Leasing Solutions UK.
Choice, not compromise
without.
Equipment leasing providers already
offer a viable alternative, but they’d be well
advised to seek further inspiration from
Netflix and make it even more convenient
for customers to bolster their office setup.
If you’re signed up to Netflix’s single-
screen plan, for example, you pay a certain
amount per month for a single screen with
standard definition viewing. If you’re one
person watching it on a tablet or phone
that might be all you need. But what if
you get into a relationship and want to
share your subscription with your new
partner? Opt for an upgraded plan and
you get one additional screen. Let’s say
your relationship goes well, and you rear
a growing brood of TV-mad children. In
this case, you can pay a little more for a
premium plan of four screens and Ultra HD.
The genius of these price plans is that
they scale with the customer’s life trajectory.
If you can do the same with your customers’
requirements and allow them to upscale at
their pleasure, you’ll profit from it.
In fact, this model may well be the
most effective, reliable way for printer
resellers to turn a profit at all, as customers
are increasingly disinclined to pay for items
that have built-in obsolescence. You’ll
always get a good selection of movies and
TV programmes from Netflix; your Spotify
subscription will always give you access to
a vast archive of old and new music; Adobe
CS6 will always give you industry-leading
design tools at a manageable price point.
Buying vital equipment outright forces
the customer to compromise. The trouble is
that customers no longer feel they should
have to compromise. For the most part, this
is a good thing. When printer resellers and
their customers are in it for the long haul,
both parties will benefit.
Chris Cowell,
Office Equipment
Sales Director,
BNP Paribas Leasing
Solutions UK
If a customer
feels that
you’re always
trying to
accommodate
their needs
and provide
the best deals,
you’ll have
an advantage
when they sign
up – and when
it’s time to
renew.
