quote:Originally posted by txeagle24:
I agree with your first point, but on the second regarding the time at which to upgrade a customer, you're leaving a LOT of money on the table by rolling in that much buyout with each upgrade. If the customer is paying $1,000 per month, rolling in 18 payments could cost you up to $18,000 in revenue and profit. I don't know how you're paid, but that would make a big difference to my paycheck. I know there's a greater risk of competition getting in the longer I let the lease ride, but if I keep the client happy, they rarely shop & even more rarely leave for the competition. That's a risk I'm willing to take in most cases for significantly more commission.
There is no money left on the table. If someone else upgrades them you have nothing. Also every time you upgrade you go wider and deeper into the account with solutions, MPS, scan stations etc..
Always do a TCO bundle with service.
Original lease $1,000 per month
Service 20,000 at .01 originally = 200 per month
Bumps after 3 years 20000 x 0.013 =260
total current payment 1,260
new service 0.008 = 160-1260 =1,100/.02 = 55,000-18k =37k thats just breakeven. How about charging $100 more? now you at 42,000.