Tagged With "month"
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COVID19 "Remote Working" Day Forty-Nine of Sales
Yay! It's 4:47pm and I'm getting to write my blog for the day. In order to stay sane with each passing week I'll turn to jibjab and create some ecards for my team members. It's easy to do because you can get their images from facebook, instagram or Linkedin. Today I had some extra time to search for ecards where I could input 5 people. No on is safe from these videos! I had time to cut three of them today. Just a few minutes ago I sent them to our team with the subject line "a little pick me...
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Twelve Days of Selling "Day 5"
Day Five saw me running on empty, for some reason I could not get to sleep until 2AM!!! My first appointment was at 9AM in Red Bank, and I made it on time!! The appointment was with a net new customer, did my regular...
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31 Ways to Close More Sales (#7 of 31)
I always to try to add some type of value for one of these threads that I post for "31 Ways to Close More Sales". A few months ago I had to purchase a new cell phone, the blackberry was crapping out and so were my eyes from staring at that small...
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31 Ways to Close More Copier Sales (#23 of 31)
Always keep in mind if you are doing something out of the ordinary with financing, you'll need to clear it with the powers to be and the leasing company first. Double and triple check your numbers, and when you're finished leave not...
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Re: COVID19 "Remote Working" Day Forty-Nine of Sales
While I have just recently joined the site, I am really enjoying reading about how you are working through this new playing field... thanks for the blog!
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Re: COVID19 "Remote Working" Day Forty-Nine of Sales
Thanx for becoming a member @John Bowling ! We're all here to share and learn
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Re: COVID19 "Remote Working" Day Fifty-Five of Sales
Great to see that business is still happening if you go and get it!
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COVID19 "Remote Working" Day Fifty-Five of Sales
I think we're going to make to an entire quarter of working remote in New Jersey. Phase two is schedule to start in two weeks (ten business days) and will be phased in over the next 4 weeks. As I said yesterday I don't see us opening up completely until Labor Day. Tonight I was on the phone with my good friend Jesse Harwell, he's the owner of Pahoda Imaging along with Perfect Copier . He tells me he's outfitted a really cool van and is taking a road trip east in 30 days. He wants to visit...
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Re: COVID19 Remote Working Day One Hundred and Twenty-One of Selling
Art, I spoke with you once before several months ago. I am the guy who came out of the Blueprint industry. 95% of our MFP sales are wide format devices. A3 / A4 is 5%. My question is pretty basic copier 101 level. Would you mind sharing with me what customary margins and packs if applicable are for A3 / A4 . Do most firms add a pack before calculating the salesman margin. For example the cost of a machine is 10k the house pack is 25%. The salesman sells the product for 15k. Gross profit...
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COVID19 Remote Working Day One Hundred and Twenty-One of Selling
COVID19 Remote Working Day One Hundred and Twenty-One of Selling Copiers I was able to have a chat with the manager of a University Print Shop today in New Jersey. I won't get into details about the call other than they are operating mostly remote with few students on campus. In additional purchases are put on hold and was told there is no timeline when things will return to "normal". That person made other statement to me, "I wouldn't want to be in your shoes right now, it must be...
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Re: COVID19 Remote Working Day One Hundred and Twenty-One of Selling
J Would be happy to help you . Please call me when you can 732.977.1211
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COVID19 Remote Working Day One Hundred and Eighty-Four of Selling
COVID19 Remote Working Day One Hundred and Eighty-Four of Selling Copiers The blog I wrote last week centered more about how I feel about the state of our industry. There's no getting around the fact that business is not what it used to be for copiers. But who the frak needs copiers when you can also offer up content solutions? Today I received a referral for a content opportunity and it's going to be a decent sized one. Thus in the last 30 day I have three content deals working. Yes, one of...
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Is It Time to Add an Additional Covenant to Copier Leases?
It's common knowledge that I've been struggling with hitting my numbers for the last 8 weeks. I should have expected a run like this since I had a run of 14 months that were above average. Instead of saying "Why Me", I'd rather stick to "Why Not Me". I had five appointments in the field today and that gave me a lot of windshield time and time to think. Because of the pandemic and now the ensuing Delta variant I have at least 5-6 leases that are in renewal. At this time I've not found a way...
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Re: Is It Time to Add an Additional Covenant to Copier Leases?
Great analysis Art. I have one account with two machines that are in this situation. Very frustrating. Leasing company is making out like a bandit and our dealership and I are seeing nothing out of it.
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Re: Is It Time to Add an Additional Covenant to Copier Leases?
@copyme I hear ya! In another couple of weeks the amount in rollover will be at 8 and no site of movement from any of them. If I were KING I would be on the horn with the leasing companies ASAP to make changes
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Re: Is It Time to Add an Additional Covenant to Copier Leases?
I feel you on this one @Art Post . We've had more customers go month to month OR buy out their lease and now own the units. While we're still getting service revenue and HOPEFULLY the opp to put a new device in when it kicks the can, you never know these days. The sales rep gets a small kicker on a lease buyout but nothing like if it was a new deal, especially not the revenue credit. In regard to the end of lease terms, I like the idea where it rolls to double. As some competitors have...
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The quid pro quo in Sales
About a month ago I had a call from an existing client to meet about upgrading two of their older copiers that they owned and were under a maintenance agreement. That call came from the new IT Director since the existing IT Director was retiring. That meeting went well and since there were four other A3 printers, service has been exceptional, I priced those two MFP's with acceptable gross profit (I'm not in this business to give **** away because we all have to eat). In addition when I asked...
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My Sales Month Just Ended, What about Yours?
I thought this would be a great reminder about how many selling days are available each month. Since my month ended today I've already calculated that I have 21 selling days for the month of May. May is a most generous month with no Holidays since I'll end my month on the 23rd. Thus a little more than four weeks to continue the grind and do the planning. A great sales person always has a plan. The start of each month kinda goes like this for me. See how many selling days are in the month,...
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Demise of the 60 Month Copier Lease
Posted below is a blog I wrote about a year ago on the old blog site. I'll be moving these over from time to time. A good way to remember that we need to shorten the term of leases that we are presenting and then if there is an objection...
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Re: Demise of the 60 Month Copier Lease
In my opinion, in most cases, the shorter term lease only benefits the salesman, not the customer or the dealership. A lot of the savings you are talking about would only be true if the customer does a 36 month lease and stops but normally as you discuss they don't stop the have a payment for life, it's just a question of how often they refresh their equipment. The shorter term lease does give the customer the benefit of newer equipment sooner but make no mistake, they do pay more for that.
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Re: Demise of the 60 Month Copier Lease
Agreed, 36 month lease is best for the sales person! But isn't that why work in this crazy business? if someone told me that I could only sell 60 month leases then I would be hard pressed to continue in this business. However, selling the 36 month payment FIRST, allows you to drop the cost of the payments by increasing the length of the payments. Therefor we can reduce the cost of the equipment rather than discounting the equipment. Discounting the equipment hurts the rep, and the dealer.
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Re: Demise of the 60 Month Copier Lease
Thanks for the post, Post ! I am guilty of pushing 60 month leases as standard procedure. I will take your advise and start to lead with 36 month terms.
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Re: Demise of the 60 Month Copier Lease
I'm just as guilty also, but will make a bettr effort this year of selling the advantages of the 36 month term. Thanx for the repsonse!
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Re: Demise of the 60 Month Copier Lease
I don't know about the sales process but as far as service goes customers are happier that get 36 month leases. The ones that go for 5 years often are calling way too often because their machines were shot a year ago. Pre ikon merge we had a lot of 36 month leases but now it seems like most are 60.
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Re: Demise of the 60 Month Copier Lease
I write almost all 36 month leases and almost all of them are renewed for another 24 months or 36 months. If you use a lease company with a guaranteed residual in the 10-15% range you can profit twice on the same box. With my company, I get credit for all the GP on the renewal since nothing is being set up or delivered, etc. I usually quote around a 65-75% payment on a 24 month renewal and a 50% payment on a 36 month renewal. I don't recommend either renewal unless the service history and...
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Re: Demise of the 60 Month Copier Lease
In my humble opinion the quote above is a flawed way of going about leasing for both you the sales rep and the customer. Choose the right lease term from the beginning and stick it out until the end of term. Rolling payments is bad for the customer and bad for you the sales person. As a sales rep I don't like to even roll a single payment into the new deal. I view that as a waste of potential profit and a reduction of my commission. If you look at my leases you'd see the vast majority are 48...
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Re: Demise of the 60 Month Copier Lease
Speaking from the leasing company perspective - the 60 month lease is the preferred term today. 8-10 years ago it was 36 months. From my review of dealer portfolios and speaking with dealership principals, the 60 month lease is the most profitable lease term to the dealership - in terms of equipment funding and service revenue. Art - from a sales person point of view, it may also be very profitable. I can give you recent examples of a review I completed for two dealerships. With dealership...
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Re: Demise of the 60 Month Copier Lease
Originally Posted by fisher: In my humble opinion the quote above is a flawed way of going about leasing for both you the sales rep and the customer. Choose the right lease term from the beginning and stick it out until the end of term. Rolling payments is bad for the customer and bad for you the sales person. As a sales rep I don't like to even roll a single payment into the new deal. I view that as a waste of potential profit and a reduction of my commission. If you look at my leases you'd...
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Re: Demise of the 60 Month Copier Lease
I don't understand why the revenue changes from a 36 vs 60 unless a rep is selling the same payment on both. Over the years, I have heard of reps selling a 36 month term and payment but putting 60 months in the term box of the lease. Short of this kind of illegal activity, I don't see why the revenue changes. A $10,000 copier is either $XXX for 36 months or $YYY for 60 months but the funding (revenue) remains $10,000.
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Re: Demise of the 60 Month Copier Lease
Originally Posted by Old Glory: I don't understand why the revenue changes from a 36 vs 60 unless a rep is selling the same payment on both. Over the years, I have heard of reps selling a 36 month term and payment but putting 60 months in the term box of the lease. Short of this kind of illegal activity, I don't see why the revenue changes. A $10,000 copier is either $XXX for 36 months or $YYY for 60 months but the funding (revenue) remains $10,000. The revenue difference comes from...
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Re: Demise of the 60 Month Copier Lease
Originally Posted by Keith Hachey: The reason may not be this simple (but many times it is). It could be that you are proposing a solution the customer would like (machine+ software, multiple machines, better machines), but due to budgetary constraints, the customer will need to delay the implementation or reduce the scope of their project. Stretching the term makes that solution more affordable, while keeping their monthly payment the same or lower. There are many variables that factor into...
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Re: Demise of the 60 Month Copier Lease
Originally Posted by Art Post: Originally Posted by fisher: In my humble opinion the quote above is a flawed way of going about leasing for both you the sales rep and the customer. Choose the right lease term from the beginning and stick it out until the end of term. Rolling payments is bad for the customer and bad for you the sales person. As a sales rep I don't like to even roll a single payment into the new deal. I view that as a waste of potential profit and a reduction of my commission.
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Re: Demise of the 60 Month Copier Lease
Originally Posted by txeagle24: Originally Posted by Art Post: Originally Posted by fisher: In my humble opinion the quote above is a flawed way of going about leasing for both you the sales rep and the customer. Choose the right lease term from the beginning and stick it out until the end of term. Rolling payments is bad for the customer and bad for you the sales person. As a sales rep I don't like to even roll a single payment into the new deal. I view that as a waste of potential profit...
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Re: Demise of the 60 Month Copier Lease
Example: Based on the customer's budget, I can justify a total of $50,000 in funding. If I go in 6 months early, & they still owe $6,000 in remaining payments, I can only fund $44,000 in new equipment. If I wait until the end, & they don't owe anything on the old equipment, that is an additional $6,000 in Revenue and GP. It's the same benefit whether you have a Revenue quota or a GP quota. In the example above that additional $6,000 would translate into an additional $1,800 in...
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Re: Demise of the 60 Month Copier Lease
Originally Posted by fisher: Example: Based on the customer's budget, I can justify a total of $50,000 in funding. If I go in 6 months early, & they still owe $6,000 in remaining payments, I can only fund $44,000 in new equipment. If I wait until the end, & they don't owe anything on the old equipment, that is an additional $6,000 in Revenue and GP. It's the same benefit whether you have a Revenue quota or a GP quota. In the example above that additional $6,000 would translate into...