By: Mitch Leahy– GreatAmerica: Monthly recurring revenue is a predictable and reliable source of income which you accrue when you sell your products, services, and more on a monthly payment plan. There are a variety of methods to achieve it, including subscriptions, leases and Hardware as a Service contracts, but the end goal is the same: monthly recurring revenue that is more consistent, predictable and valuable.
As a business in the office imaging space, you’re probably very familiar with selling a payment; hardware and services as separate obligations or bundled payments combining the two.
Not surprisingly, your customers are familiar and expect monthly payment options specific to their multi-function printers. They appreciate how it makes it easier for them to budget and more cost effective to refresh the solution down the road.
As the provider of technology, you understand how a monthly payment makes it easier and faster for you to close more sales, both in new contracts and in upgrades. You also realize the potential for increased margins when compared to those customers who end up buying with cash.
The Environment, Players, and Consumers are Changing
Though offering a monthly payment may have been business as usual for you in the past, the last few years have brought a lot of changes in the world of office technology. Providers are evolving from imaging focused offerings to an expansive array of interconnected office technologies tied to the network. The last 18 months have accelerated this diversification as many providers who had previously focused exclusively on imaging or print offerings, are now adding software, IT hardware, security, or cloud offerings into their solutions catalog.