Just a short story from an order I had last week. The client was an existing account, almost five years ago it was net new. Thus I had some promo's I could throw at the client in order to secure the order. Now it comes time for the renewal almost 5 years later, there are some payments left in the lease. There is no way I can sell them at the same lease price per month. I also made an early mistake on the pricing when I met with the client.
I never presented the lease price for the new hardware. What I focused on was the annual cost to the client for the lease and the maintenance/supplies. I presented one annual price for the new device with maintenance and supplies and show the client their existing annual price for maintenance and supplies.
The initial savings was about $1,200 per year and the client was happy with that, however they had asked about a few additional options. I knew that would raise the lease payment even more, but I decided to keep with the annual savings. I priced up two different options. However instead of stating the lease price increase I stated the reduced savings. I stated option (a) would reduce you the annual savings to $800 per year and option (b) would reduce to $600 per year.
The client picked the option with reducing the option (b). Thus no was the time that I had to deliver the lease with the monthly payment. The payment increase was $80 more per month from the old lease. I received the signed lease back the next day.
It's all about the presentation
Enjoy the these threads from 15 years ago this week!