If you aren’t currently giving your customers an option to lease their equipment, you should. The margins are higher, the recurring revenue can build a predictable stable cash flow and it locks customers into longer-term relationships. Additionally, if you stay engaged during the length of the contract, you increase your opportunity to prove your value, build a stronger relationship and position yourself for upsell opportunities.
For your customers, leasing the hardware and software makes an install more affordable because it takes the larger up-front, one-time capital expense and turns it into a lower monthly operational expense.
Simply put, with all the upside, you should give every customer an option to make monthly payments. It might not be what they ultimately choose, but you’re leaving money on the table if you don’t at least try.
Competing with other monthly services
If you’re not convinced yet, know that your customers are being approached daily by cable companies, internet service providers and other direct sale “do-it-yourself” security solutions that offer low-cost monthly security service plans. The cable companies and internet providers will focus on the benefits of consolidating services under a single provider and even offer discounts for bundling. The do-it-yourself solutions promise ease of installation, affordability, and in some cases, no contracts. To an uneducated customer, these might seem like benefits that are hard to beat. You’re at risk of losing these customers.
Here's how to beat the competition:
- Highlight the value you provide—a do-it-yourself solution places a lot of pressure on your customer to properly install and service the solution. Cable companies and internet service providers aren’t security experts. They don’t know anything about preventing crime and only want to push products. Be sure to promote the value-added services and support you provide that far eclipse what your customers get with the alternatives.
- Offer better products—to keep costs low, do-it-yourself solutions and those offered from cable companies and ISPs typically rely on low-quality components. Be sure to use higher-quality technology and make sure customers know that you’re using it and why. Taking shortcuts on the components of a security system can weaken the effectiveness of the entire solution.
- Focus on your positives—As a full-service solution provider delivering high-quality service, you can offer your customers a much higher level of support compared to the call centers of your competition. In fact, many cable companies and ISPs have terrible support ratings. Ask your customers, “Do your customers really want to put something as important as security in their hands?”
If you want to buy 100 cameras and lease them out to separate customers, Ingram Micro can help. If you only have one customer who’s interested in leasing, Ingram Micro can help. To get more information on how you can make leasing work for you, contact Chris Kacala or our Physical Security expert, Jason Destein.