Having the right used equipment strategy can absolutely help your dealership reap greater profits.\u00a0 Whether you are going to use it to penetrate into new accounts or as a path to upgrade your customers into new equipment, dealers that are incorporating used equipment into their business plans are watching their profits soar.<\/p>\n
Every dealer handles used equipment, but not all are maximizing the profits that this hardware provides.\u00a0 That\u2019s right.\u00a0 I\u2019m talking about profits from hardware.\u00a0 And not just small profits.\u00a0 Dealers are enjoying 40-70% profits on selling used equipment to their customers.<\/p>\n
As dealers focus more on selling services and being flexible to customer needs, used equipment can play a key role in adding profitability.\u00a0 The bottom line is that you are really not selling hardware.\u00a0 You are selling yourself and your dealership.\u00a0 Won\u2019t you stand behind anything you sell with the same guarantee whether it is new or used?<\/p>\n
Used equipment sales vary among dealers.\u00a0 Some see it as managing lease returns while others have it as a key strategy to obtain new customers.\u00a0 It can be a small percentage of sales or up to 80% or more.\u00a0\u00a0 I was asked by a dealer at a recent industry show, \u201cWhy don\u2019t more dealers do this?\u00a0 It works.\u201d<\/p>\n
3 Ways to Maximize your Profits with Used Equipment<\/strong><\/span><\/p>\n Consider your MPS offering.\u00a0 The customer is paying you a blended CPP and you are managing their print environment.\u00a0 If the customer needs toner, you replace it.\u00a0 If a machine goes down you repair or replace it.\u00a0 Very rarely do we see a requirement for new equipment in MPS bids.\u00a0 In fact, new equipment in many engagements is never even discussed.\u00a0\u00a0 Used equipment will get you to a more aggressive overall CPP and increase the GP of your agreement.<\/p>\n When I talk about used equipment, I am including copiers and laser printers and any manufacturer brand.\u00a0 The combination of used equipment and MPS will maximize your profit and win more deals.<\/p>\n Create a Rental Pool and Loaner Pool<\/strong><\/span><\/p>\n How often are your customers requiring flexibility?\u00a0 You see it all the time.\u00a0 They want a short term rental.\u00a0 They want a loaner if a machine goes down.\u00a0 They want to upgrade or downgrade at any time.\u00a0 They want to cancel for convenience.\u00a0 They won\u2019t sign a lease.<\/p>\n These requirements are all too common and, to some, can be showstoppers in a deal.\u00a0 Used equipment is not only a viable solution, it becomes a differentiator.\u00a0 Dealers can offer as much flexibility as they want with used equipment.\u00a0 Creating a rental pool and loaner pool with used equipment will take your MPS offerings to the next level.<\/p>\n Mix Used and New Equipment to Win<\/strong><\/span><\/p>\n How many deals are you losing on price?\u00a0 Let\u2019s face it.\u00a0 Not as many deals as we\u2019d like are won on salesmanship, loyalty or incumbency.\u00a0 Especially in schools and government deals, it\u2019s all about price.\u00a0 Let\u2019s say you are in a 10 machine deal.\u00a0 You go to your manufacturer and get the most price support you can, but you know that it is not enough to win the deal.\u00a0 And a win would count toward your manufacturer quota.\u00a0 What do you do?<\/p>\n If you bid only new equipment you know you\u2019ll lose.\u00a0 Why not mix in some used equipment and re-price your deal.\u00a0 Assuming there is no provision against used equipment, you have now lowered your price, increased your chance of winning and you can still earn quota credit with your manufacturer.<\/p>\n What to Look For<\/strong><\/span><\/p>\n You want to look at the meter read, the accessories included, the condition (any codes) and the overall appearance of the machines (no stickers or cracked panels).\u00a0 Customers expect that they appear \u201clike new.\u201d\u00a0 You also want to look at the packaging.\u00a0 Used machines are usually shrink-wrapped.\u00a0 Some companies also will bubble wrap and corner board their machines.<\/p>\n The Right Partner<\/strong><\/span><\/p>\n Partner with a reputable wholesaler.\u00a0 All have warehouse guys who know how to turn a machine on and make copies.\u00a0 The difference is what they do beyond that.\u00a0 The best companies will provide turnkey programs, money back guarantees, on-site pickup and delivery, sales of used and off-lease assets, purchase of trade-ins and excess new and used inventory, shipping and storage services and hard drive data security.<\/p>\n The most profitable dealers have a used equipment strategy.\u00a0 Follow the strategies above and watch your profits soar.<\/p>\n","protected":false},"excerpt":{"rendered":" Having the right used equipment strategy can absolutely help your dealership reap greater profits.\u00a0 Whether you are going to use it to penetrate into new accounts or as a path to upgrade your customers into new equipment, dealers that are incorporating used equipment into their business plans are watching their profits soar. Every dealer handles used equipment, but not all are maximizing the profits that this hardware provides.\u00a0 That\u2019s right.\u00a0 I\u2019m talking about profits from hardware.\u00a0 And not just small profits.\u00a0 Dealers are enjoying 40-70% profits on selling used equipment to their customers. As dealers focus more on selling services and being flexible to customer needs, used equipment can play a key role in adding profitability.\u00a0 The bottom line is that you are really not selling hardware.\u00a0 You are selling yourself and your dealership.\u00a0 Won\u2019t you stand behind anything you sell with the same guarantee whether it is new or used? Used equipment sales vary among dealers.\u00a0 Some see it as managing lease returns while others have it as a key strategy to obtain new customers.\u00a0 It can be a small percentage of sales or up to 80% or more.\u00a0\u00a0 I was asked by a dealer at a recent industry show, \u201cWhy don\u2019t more dealers do this?\u00a0 It works.\u201d 3 Ways to Maximize your Profits with Used Equipment Use pre-owned equipment in your MPS program Create a rental pool and loaner pool Mix used and new equipment to win more bids Used Equipment in your MPS Program Consider your MPS offering.\u00a0 The customer is paying you a blended CPP and you are managing their print environment.\u00a0 If the customer needs toner, you replace it.\u00a0 If a machine goes down you repair or replace it.\u00a0 Very rarely do we see a requirement for new equipment in MPS bids.\u00a0 In fact, new equipment in many engagements is never even discussed.\u00a0\u00a0 Used equipment will get you to a more aggressive overall CPP and increase the GP of your agreement. When I talk about used equipment, I am including copiers and laser printers and any manufacturer brand.\u00a0 The combination of used equipment and MPS will maximize your profit and win more deals. Create a Rental Pool and Loaner Pool How often are your customers requiring flexibility?\u00a0 You see it all the time.\u00a0 They want a short term rental.\u00a0 They want a loaner if a machine goes down.\u00a0 They want to upgrade or downgrade at any time.\u00a0 They want to cancel for convenience.\u00a0 They won\u2019t sign a lease. These requirements are all too common and, to some, can be showstoppers in a deal.\u00a0 Used equipment is not only a viable solution, it becomes a differentiator.\u00a0 Dealers can offer as much flexibility as they want with used equipment.\u00a0 Creating a rental pool and loaner pool with used equipment will take your MPS offerings to the next level. Mix Used and New Equipment to Win How many deals are you losing on price?\u00a0 Let\u2019s face it.\u00a0 Not as many deals as we\u2019d like are won on salesmanship, loyalty or incumbency.\u00a0 Especially in schools and government deals, it\u2019s all about price.\u00a0 Let\u2019s say you are in a 10 machine deal.\u00a0 You go to your manufacturer and get the most price support you can, but you know that it is not enough to win the deal.\u00a0 And a win would count toward your manufacturer quota.\u00a0 What do you do? If you bid only new equipment you know you\u2019ll lose.\u00a0 Why not mix in some used equipment and re-price your deal.\u00a0 Assuming there is no provision against used equipment, you have now lowered your price, increased your chance of winning and you can still earn quota credit with your manufacturer. What to Look For You want to look at the meter read, the accessories included, the condition (any codes) and the overall appearance of the machines (no stickers or cracked panels).\u00a0 Customers expect that they appear \u201clike new.\u201d\u00a0 You also want to look at the packaging.\u00a0 Used machines are usually shrink-wrapped.\u00a0 Some companies also will bubble wrap and corner board their machines. The Right Partner Partner with a reputable wholesaler.\u00a0 All have warehouse guys who know how to turn a machine on and make copies.\u00a0 The difference is what they do beyond that.\u00a0 The best companies will provide turnkey programs, money back guarantees, on-site pickup and delivery, sales of used and off-lease assets, purchase of trade-ins and excess new and used inventory, shipping and storage services and hard drive data security. The most profitable dealers have a used equipment strategy.\u00a0 Follow the strategies above and watch your profits soar.<\/p>\n","protected":false},"author":78,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1649,1814],"tags":[],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/8914"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/78"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=8914"}],"version-history":[{"count":3,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/8914\/revisions"}],"predecessor-version":[{"id":8917,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/8914\/revisions\/8917"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=8914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=8914"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=8914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\nUsed Equipment in your MPS Program<\/strong><\/span><\/p>\n