I have a number of leases ending this year and I am looking for advice on the process to upgrade the clients. Are there specific questions I should be asking?
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If it is a 36 month lease, don't rule out the possibility of renewal. It depends a lot on what lease company you use and how your comp plan is set up. If your quota is all about revenue it makes it tough because you probably have to trade revenue for higher commission of the renewal.
Joe
Here's how I go about lease renewals, this is information you would gather before making the call for the renewal.
1. View the last four quarters (last 12 months) of maintenance invoices. Get the total amount of what they spent in the last year with you.
2. Take the existing lease payment and times by 12 to arrive at the total annual payment.
3. Add 1 & 2 together to get the total amount spent for that device.
4. Put that in a spreadsheet for total existing cost. Now, if your company has an annual escalator in their maintenance agreement make sure you add the escalator and show that price and not the price for last year. That's because we are focused on this years cost. Thus, if they spent $10k last year on MA & Supplies, I will show a cost of $10,600 for 2018-2019.
5. Prepare your new pricing for the replacement showing the annual lease cost.
6. Show in a spreadsheet what their cost would be for maintenance and supplies with a new device based on their current volume. Show that with annual cost also.
7. You then show the client their existing annual cost and then the proposed cost to move forward. In most cases it's a no brainer to get the order.
I'll attach one of my spreadsheets for you
Art