Leasing

1. Leasing The keystone to building a profitable and secure business

2. Segment Objectives • Present new ideas and benefits to leasing. • Develop strategies that encourage the prospect to lease rather than purchase equipment. • Take new materials and goals back to the office and put them into practice.

3. True benefits to Leasing • Leasing gives you “guaranteed” business at a predetermined time in the future. It is real value that stays with your company. • This “Book of Business” can be a huge incentive for your top reps to stick around. Like a 401k, it is an investment that they would like to collect. • When a maintenance contact is included with a lease it virtually never gets canceled. Maintenance Contracts are likely your largest revenue item.

4. True benefits to Leasing • You have a built-in 20% lease rate advantage over the other guy. Why give this competitive advantage away? PB lease rate is as high as .0280 for 63 months. Upsell or ad more margin into your deals!

5. True benefits to Leasing • Leases are far more profitable than purchases as it is harder to shop and compare costs. Clients don’t worry about $300 per month the way they do a $15,000 outlay. You keep margin in your deal. • Leasing protects your customer base as it is harder for them to leave you. • Your vendors are happier as you turn over more equipment more often

6. Customers want to lease • Unless you give them a reason not to! • PB lease penetration rate is in the vicinity of 80%. The client wants to continue leasing as it is easy to budget and get approved. • What is your current penetration rate and what is your target?

7. Mistakes we make every day • Not selling the Manager / Influencer on why Leasing is critical to his / her future job performance. We need to partner with them. • Asking the Client “Would you like a Lease or Purchase price?” • Giving too many term or equipment options. We want them to make a decision, not get confused.

8. Mistakes we make every day • Itemizing everything. Unless it is absolutely necessary, don’t do it. Just give one price. • Going in too cheap. The client needs confidence that they are making a good choice by switching companies. • Assuming that the client wants the longest term available. Try to encourage shorter term leases.

9. Thought • Leasing is your “Carousel of Success”. Once the client gets on, they never get off. • And they’re happy to be on board!

10. Everyone gets to grab the Brass Ring and go for another turn! • Clients that lease are happier. When something breaks, it gets fixed, no extra cost or PO needed. • The decision maker doesn’t need to be involved. The equipment is never obsolete. It is simply handled.

11. Techniques for increasing Lease percentages • Sell your sales staff on the benefits to them. Higher commissions, recurring revenue, larger sales margins, etc. Show them how their “Book of Business” is a benefit they can count on. It has real value that you don’t want to discount.

12. Techniques for increasing Lease percentages • Sell the client manager on why they need to keep equipment up to date. • If they purchase they will have the machine until it is absolutely dead. How will they handle the workload? • Budget cuts may result in M/A getting canceled. How will they handle machines that are in disrepair? • Easy to budget. Lock M/A and Meter pricing. • Easier to get approved and get the equipment they need.

13. Techniques for increasing Lease percentages • Justify the extra cost in a payment, not the entire payment. • Give the client one “loaded up” option that the Decision Maker can say “No” to. • Track your “Book of Business”. Many leases go into renewal because the dealer is not paying attention. Work closely with your lease reps to identify these accounts. • Upgrade early and often. Start targeting upgrades 70% thru the existing lease.

14. Techniques for increasing Lease percentages • Lock in supply sales and “outspec” the competition with creative leasing programs. • Add in specific amounts of supplies. • Include equipment the competition can’t match, such as a paper shredder. • Use Deferred payment plans, especially when buying out a PBCC lease. • Understand how to figure a effective interest rate in case the customer asks.

15. What to look for in your Leasing Partner • Support • Are they there when you need them to help with a new account or give you information with an existing client? • Do they actively attempt to fix billing or other issues that will inevitably come up? • Do they get back to you in a timely manner when the answer is going to take more time? • Will the rep assist you in identifying upgrade opportunities before they go into renewal? • Is there a big buyout when something does go into renewal?

16. What to look for in your Leasing Partner • Financial • Rates are always important but what happens on the back end? • Are the settlement and buyout prices reasonable? • Is your rate a FMV or 10% residual rate? • What is their FMV percentage? • Does the company approve a high percentage of your deals? How long does it take to get an approval? • How often do you need to get additional docs signed, slowing down payment and endangering your account? • Are upgrades discounted to you to help you retain the account?

17. What to look for in your Leasing Partner • Other factors to look for • Lease company is financially sound and stable. You aren’t getting new reps all the time. • Lease terms and conditions are fair. Renewal periods are not excessive. • They hold your mutual data in a secure fashion. They give information to authorized personnel only. • Overall they treat you fairly as a business partner in all instances… and you do the same.

18. Summary • A plan for increasing your leasing percentage will dramatically affect your overall business. • Customers want to lease unless you give them a reason not to. • Understand and eliminate the mistakes we all make in presenting leasing. • Use proven techniques to influence your sales people as well as your clients. • Partner with a solid financial institution for your leasing needs.