While modern studies show that technology spending is once again on the rise, there is the reason you have not heard the collective sigh of relief from the software industry. While numerous finances are once again permitting the purchase of the enterprise hardware, software, & peripherals, there is no question which today’s buyers are savvier, smarter, & discerning than ever. It is no longer enough to offer a software solution that meets potential customer’s requirements or even to provide it at the best price. Nowadays, smart vendors are continually looking for ways to stay one step ahead of the competition.
While increasing sales is always part of the competitive business strategy, software development companies often overlook the simple method of accomplishing the objective – making it easier for customers to purchase. One option growing in popularity among software vendors is to establish the customized customer finance programs that offer customer financing solutions with no-hassle for your prospective clients. In addition to ‘one-stop shopping’, your consumers can reap other benefits of customer financing options that make it easier for them to commit to the technology purchases, including –
100% financing: Several finance companies offer 100% financing for the cost of software & maintenance contracts that requires no down payment because customers do not have to come up with the down payment; they can make the purchase instantaneously, rather than hold up the sale with ‘wait & see’ mentality which often accompanies a dip to cash reserves. It also allows your clientele to invest more capital in revenue-generating activities.
Improved cash flow management: With consumer financing options, your customers can preserve the capital for reinvesting in their business & improve budgeting accuracy via fixed monthly payments. Financing also makes it easy for clienteles to access multiple-year budgets by paying for the benefit of software over its useful life.
Flexible payment structures: Customers can optimize project budgets by taking advantage of flexible payment structures available through financing to enhance the return on their investment. For instance, with software financing, customers can ramp up payments to match the revenue generation of the new technology project that utilises software being financed.
While customer financing services provide a clear advantage for the buyer, when the program is well planned, a list of benefits for the software developers, distributors & resellers can be even more beneficial. Sometimes the new businesses, & even some already well-established firms, are in great need of finances. Unfortunately, you cannot get money from individuals & not give something back in return via the product/service. So, how then can you finance your company? Here are nine simple ways:
1). Request & obtain the deposits before start manufacturing, shipping, labour, and processing. It assists that you have at least some money available for your expenses before you give your consumers their orders.
2). Otherwise, you can get paid-in-full before you start things in motion. It is the toughest to get, of course, but it is the most appropriate for your business to hold.
3). Sell the subscription. Instead of providing your information services & services one session at a time, offer a series of smaller & regular bits of information/service dates. This way, you will get more money at first, & you will maintain that consumer for much longer.
4). Use direct mail to get individual orders, with payment in tow. It is essentially payment in full & upfront.
5). License the rights to use the information or knowledge, perhaps the one-time fee or per time fee.
6). Get the retainer or the monthly fee, very much like a subscription. All this is the service contract which extends to the monthly retainer, rather than having to sign-up every month. You would be surprised as to how several companies have retainers.
7). Multilevel marketing is an interesting way that helps you grow your business. The company makes money from individuals who join in the line just about every time someone new joins. Moreover, monthly fees & required orders always make up substantial portions of the company’s intake. Genuine companies, not the pyramid schemes, although payment systems do form pyramid shapes, can be substantially more profitable for everybody, particularly at the top of the pyramid pile, than it would have been had the company been only buyer & seller, & that is it.
8). Factor your receivables. Receivables are always more appreciated than numerous individuals realize. Account receivables are also categorized as current assets, supposing they are due within a calendar or financial year. Of course, the customer would have to pay first, but just having their potential for imminent payments is enough to make your assets look significantly better.
9). Franchise your business. How do you think Subway & Wendy’s got so wealthy? Not by sandwich-making, but by franchising! They often purchase land & sell the license rights to somebody.