Trying to predict the future can be a tricky task usually best left to those gazing into a crystal ball. This is especially true for those working in office technology who are constantly having to adjust to meet ever-changing customer demands. For lessors, the future of office technology will take them far beyond their limited roles as just financers.
As customers demand one contract to cover all their needs, financing partners must now learn how to provide the total package to equipment manufacturers and dealers to include equipment, software and IT services. A single contract was once a “nice to have” but it’s quickly becoming a “need to have” for lessors who want to stay ahead of the game.
Fred Carollo, Everbank
Lessors need to understand the complexities of serving as the facilitator on a master contract, including the benefits they can deliver as the solution provider and the risks they undertake by facilitating a master contract for the end-user. Lessors can take different approaches to providing one full package. Some choose to build new products that offer several solutions in one bundle. Others create agreements where they bill the clients and then distribute payments across all associated vendors.
The master contract arrangement through the lessor offers the opportunity to build customized packages, adding on or removing services according to the end user’s needs. This creates a more attractive package and usually makes it more likely to be chosen from the competition. It also allows for the opportunity to showcase cost per employee rather than cost per copy, bringing it to a higher level from an IT perspective.
Even though a master contract presents many benefits to the end user, lessors need to remain aware of the risks they take on by facilitating it. Your reputation is now tied to the vendor’s performance, so if something goes wrong your reputation could be on the line. The lessors’ responsibilities may now also include billing and invoicing in addition to financing. Documentation is critical to ensure responsibilities and agreements are clearly outlined in case any issues arise.
The convergence between office products dealers that sell equipment with those who provide software solutions and services is quickly changing the landscape of the industry. Lessors may not have a crystal ball, but through due diligence and a strong customer focus they can still find the right partners to successfully carry them through to tomorrow.
