Are you Flying without a Seat Belt?1 Jan, 2013 By: Harry Hecht, U.S. Bank Equipment Finance imageSource
When either flying in a plane or driving in a car, would you ever dare to think twice about refraining from the use of your seat belt? Why take unnecessary risks when a proven protection system is readily available. Planning to be safe is a necessity, wouldn’t you agree? Including in business.
As business owners, your goal is to provide a predictable level of safety and stability to your employees and customers. Through the use of readily available industry tools, vendor partners, and business strategies, you can provide a predictable stream of profitable revenues that will help your business grow and prosper for years to come. The question is…are you using them?
In the print environment, the sale, servicing, managing, and retention of MFP and printer assets are critical to your survival. As you know, there are many moving pieces inside this equation that includes hardware, software, and services. Even invoicing your clients properly and in an efficient manner is one of the key components that is often overlooked.
Detailed, timely, and uniform invoices have a greater chance of being paid on time, thus lowering your DSO. MPS and office equipment providers often have end-user agreements that consist of one invoice for equipment, and another that invoices for actual services. Is this the most efficient method for you and your clients?
Multiple invoices, reports, purchase orders and collections efforts are redundant and profit draining for your operation, and those of your clients. Moreover, what is keeping your clients from cancelling service agreements and moving them to your competition? An efficient expense-reducing approach that can combine lease financing and services into one unified approach, is a win-win for all involved. So why aren’t you doing it?
A “bundled agreement” or a single invoice that includes hardware and services is your safety belt and will help you retain clients, improve your operational efficiencies, reduce your administrative expenses; and can grow the profitability of your business. Taking services up when funding a deal with your lease provider is not a long term or sustainable strategy. It is time to think longer term.
A bundled process that provides for: annual service escalations, equipment add-ons, pooled billing, individual asset upgrades, no termination or trade up fees, daily ACH remittances for services from your lease provider, and protection from competitive “take-outs” is a long term solution that a real financial partner can provide.
So go ahead and fasten your seat belt and protect your business from unforeseen incidents and accidents. It’s time to evaluate your leasing partners, take control of your business portfolio, and use available tools as a differentiator and for competitive advantage. It all starts with the assessment of your leasing partners and vendors; and developing a strategic plan to smooth out your ride; taking your business to the next level.
Office Equipment Services Solution
Consider customized financial solutions for leasing options, financial products and services provided with other value-added features. Where applicable build a true partnership for:
- Ongoing education and training for your sales teams
- Integrated solutions for your particular equipment financing needs
- Technology that allows you to report on your entire portfolio
- Access to buyout and trade-up information related to your contracts