Skip to main content

Reply to "The Death of the 48, 60 and 66 Month Lease"

On the topic of servicing aged equipment, the manufacturers have to guarantee availability for 7 years after a model has been discontinued, you end up with machines that are 9-10 years old.  If the volume is moderate, & you have been getting annual service increases, these can become very profitable machines, especially if you use some aftermarket parts from Katun and like.  As our industry becomes more focused on recurring revenue & machines continue to become more reliable, older machines can be a cash cow.  We need to do a better of providing reps with incentive to grow recurring revenue.  A machine running 10k per month that generates $200 in revenue each month at 60% margin is much more valuable than a new one sold with little hardware margin & $90/month in recurring revenue at 40% margin.
×
×
×
×
×