Aversion to selling leasing and finance
It's not that leasing is bad, says Eddie Pacey, it's just not sold very well to the channel
Why do resellers rarely present or sell lease and finance offerings to end-users? Why, despite numerous articles extolling the value and virtue of such offerings, so few opportunities are grasped? I guess many have scratched their head, baffled at how the substantial benefit, both financial and as future business in locking-in of clients, has failed to penetrate or impress those directly in the last link of the selling chain.
The failure rests with those that provide precisely this facility, the vendors (with the exceptions perhaps, of Hewlett-Packard, IBM and Cisco), and with those that engage in educational or channel participation programmes that rarely include a serious presentation of the benefit of leasing and finance. Resellers themselves are also culpable of neglect when it comes to this topic.
It’s not just a case of showing how profit is maximised or how customer lock-in is achieved, or of introducing finance and leasing late into discussions. Effort must extend to selling alongside resellers, helping them to open the door of the end-user.
Finance companies have a lot to answer for. Instead of moving down a few rungs and engaging resellers in marketing their services face to face, they have consistently elected to sell from a distance or in printed form.
Like many, I tend to throw away such mail shots and, while reading articles may arouse interest, that interest disappears once the last page is turned.
Glossy pamphlets and complicated diagrams with arrows in every direction are a sure-fire turn off for any reseller. For resellers, the adage is that if it looks too complicated it probably is; and they have more on their minds, such as getting the deal done.
Finance and leasing companies do not seem to be prepared to invest a little time and money in working their wares into sales pitches, but prefer to wait for deals to come to them.
Those brave enough to take the challenge and spend now can only reap the reward. It is interesting to see how few finance and leasing companies participate in trade shows and how few resellers have been approached directly or been given time to fully understand offerings or how to achieve maximised returns.
Resellers are not total innocents. They view finance and leasing as separate, not as part of what they do; they remain suspicious and concerned they may jeopardise client relationships and future business in selling the finance or leasing angle as an adjunct.
They don’t see themselves as selling finance, but the more astute ones have seen the benefit, setting up their own finance or leasing arms to support this main reselling activity. A shrewd move, bound to yield a better return, more so as margin is squeezed in every quarter.
But it is amazing to see how few resellers check their clients out. If they did, they would find that a high percentage already finance or lease capital equipment expenditure, some after the product has been installed.
They may use their chosen finance or lease company, but each sale to such a business is wasted if finance or leasing is not offered at the onset.
However, until such time as the message is properly explained and sold, the impenetrable force field that has limited opportunities to a mere trickle will never be breached. Finance and leasing companies must adjust their sales pitch and offerings to differentiate themselves from the rest of the crowd and be noticed.
Much to our shame, finance and leasing may well remain a huge wasted opportunity.