Finance offerings could help kick-start market

Firms are putting off IT purchases because of the economic climate, but financing packages could make buying easier.

To all those VARs thinking about how to get over current difficult trading conditions I ask: why are customers putting off signing orders for new purchases?

The possible answers are the same across all sectors:

• They have no budget.
• There's no cash available.
• The project is not cost-justifiable.
• They are placing the order with a cheaper supplier.

So why not offer your prospects a finance solution?

There are now means of financing the complete package, including all aspects of a sale. Transactions can include maintenance over the lease, and there is plenty of competition amongst leasing players, which means your clients should get very competitive rates.

Why don't more resellers use finance? I think it is down to a lack of in-depth understanding of the use of finance, and also apathy; basically it is easier not to get a finance partner involved.

But with the introduction of online proposal systems you don't have to anymore; they are at your fingertips.

If you need any more persuasion, dig out a copy of the Financial Times from 15 January and find the article 'Vendors stack it high and sell it cheap.' It seems everyone in IT is turning to finance to help drive sales.

The article states that, beneath the surface, rapid change is occurring in IT financing, and vendors are coming up with more attractive financing and leasing packages to drive sales.

At last it is not just us beating the drum. We have been telling VARs that finance can drive sales for years. And now we have integrated our online offering for resellers into CRN Online Services.

We are delighted to be a part of CRN's new portfolio of sales support options for the reseller community.

Resellers are becoming more service-centric and discerning business users want headache-free IT solutions. They want the 'complete package', and are happy to pay for it.

Businesses are realising that there is no value in owning IT. The only value is in its day-to-day use, so it makes sense to pay for it that way, as the business receives the benefit.

As you form complementary business partnerships in order to enhance the level of service you can offer, and you begin to re-package your customer offering, don't forget to quote a monthly price for what they want.

Sean Williams is chief executive of finance and leasing firm Syscap.