Security companies face a challenge offering top-tier equipment, monitoring, and maintenance services to their business clients while balancing the need for competitive pricing and manageable payments. One powerful strategy that can boost your business sales is offering a bundled financing program.
Bundled financing is a model where multiple related products and services are combined into a single package. Instead of paying separately for each element (e.g., equipment, installation, monitoring, and maintenance), the customer makes a single regular payment that covers all components. This model is particularly beneficial in industries where initial equipment costs, ongoing service fees, and maintenance expenses can add up.
Here’s how bundled financing typically works:
1. Combination of Costs: The total cost of products (like cameras, sensors, or other hardware), installation, monitoring services, and maintenance is calculated. This entire amount is spread over a predefined term (e.g., 24, 36, or 60 months).
2. Single Monthly Payment: Instead of the customer having to pay separately for equipment and services, everything is rolled into one monthly payment.
3. Zero or Low Upfront Costs: Bundled financing usually comes with zero or minimal upfront payments, which can make high-cost solutions more accessible to customers who might otherwise be deterred by a large initial expense.
4. The Vendor is Paid Upfront: The security company gets paid for all products and services offered for the term upfront.
5. The Lender is Responsible for Billing: Since the customer has opted for financing, billing and collecting will be done by the lender rather than the security company.
Why Should My Company Offer Bundled Financing?
1. Increase Your Sales
Expand Customer Reach: With bundled financing, customers can access state-of-the-art security technology without a large upfront investment. This can attract small and medium-sized enterprises that may not have the cash flow for a significant initial outlay
Overcome Cost Objections:When presenting a single monthly payment option, sales representatives can focus on the value and benefits of the solution rather than facing objections about cost.
Add-Ons: Your customer can opt for add-ons that may not be fiscally possible without financing.
2. Enhance Customer Satisfaction
Convenience: Bundling equipment, installation, maintenance, and monitoring into a single monthly finance payment simplifies the purchasing process for customers and makes it easier for clients to budget.
Affordability: By spreading out the upfront costs over time, bundled financing makes your services more affordable for businesses.
Customization: Length of contracts and payment options are customizable to fit your customers’ needs.
3. Improve Your Cash Flow
Upfront Payment: With bundled financing, you receive payment for everything upfront rather than monthly, improving your cash flow.
Reduced Administrative Burden: The lender handles billing and collections, freeing up your resources to focus on delivering exceptional service.
4. Gain a Competitive Edge
Differentiation: Offering bundled financing sets your company apart from competitors who may not have this option, giving you a distinct advantage in the marketplace.
Market Leadership: By providing a valuable service to your customers, you can position your company as a leader in the security industry.
A well-structured bundled financing program can be a game-changer for your security company. Contact EMR Finance to learn more or to start offering financing today.