While managed services aren’t something customers actually finance, chances are good the equipment you service for your customers is purchased or leased through financing. Accessing financing with Ingram Micro Flexible Payment Solutions ensures your customers’ technology is up to date and efficient. It also enables you to provide the best possible service (which leads to greater customer satisfaction). Let’s examine this more closely.
Consider these scenarios:
Customer A is given a managed services bundle that ensures their technology is always up to date. They pay one invoice each month that provides them with ongoing managed services as well as the technology equipment they need to do their business efficiently. The equipment is leased through a financing option from Ingram Micro Flexible Payment Solutions that’s part of the monthly payment to their MSP.
Customer B is given a contract for ongoing managed services, with a recommendation from their MSP that they use a specific server and related equipment to ensure top-level performance. However, since they believe they need to purchase the equipment upfront, they say “no” to the contract, believing they can save money by purchasing equipment online at a discount.
The outcome: Customer A’s business is thriving. Their equipment is reliable and the cost for managed services cost remains consistent. Since they’re using up-to-date equipment, software updates are simple and they’re very satisfied with their services.
Customer B isn’t faring as well. The “great deal” they thought they were getting on the equipment didn’t turn out so great. The equipment they purchase online is insufficient for their needs, frequently fails and requires more service time than was initially allotted in the managed services contract. They’re losing revenue because of unexpected downtime—and they’re frustrated.
The above examples showcase why leveraging Ingram Micro FPS is so helpful:
- Financing makes purchases more affordable for customers and results in increased sales for you.
- Directing which products customers purchase allows for standardization.
- MSP profitability is significantly increased through equipment standardization for all customers.
How financing increases product sales
In a recent study, 81% of the executives and 70% of the sales people surveyed said more customers follow through with recommended technology purchases when monthly payment options are available to them. In another survey, 64% of buyers confirmed it’s easier to make technology purchases with monthly payments.
Financing also allows customers to budget for future products. Monthly payments create predictable budgets and ensure your customers consistently have access to the technology you want them to use. If your customers are already budgeting for the monthly expense and upgrades are wrapped into their bill, upgrading equipment doesn’t feel like a “gut punch” to their expenses. Financing becomes a fixed expense your clients can easily figure in as part of their monthly outlay.
How financing increases managed service profits
It’s very simple. Since financing bundles result in standardization of products across customers, less labor is required for managed services (thanks to a smaller learning curve for your employees with fewer product variations to manage). And you can devote the extra time on your hands to increasing the number of customers you serve and improving the services you offer to your top customers.
Want to see what steps and tactics you can start to implement into your business? Request an As-A-Service OML evaluation to see the steps you can take today to evolve your managed services business to an everything-as-a-service business.