Monday, September 5, 2016

Are you Flying without a Seat Belt?

Are you Flying without a Seat Belt?

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 with your life or your family when a proven protection system like a seat belt is readily available. Wouldn’t you agree?

As business owners, your goal is to provide a predictable level of safety and stability to your employees and customers. Through the use 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 which includes hardware, software, and services. Invoicing of your clients properly, and in an efficient manner is one of the key components that are 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 combines 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 helps you to retain clients, improve your operational inefficiencies, 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`s 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 accidents. It’s time to evaluate your leasing partners, take control of your business portfolio, and use available tools as a differentiator and competitive advantage. It all starts with the assessment of your leasing partners and vendors and developing a strategic plan to smooth out your ride and take your business to the next level.