Nobody knows digital signage and displays like the OEMs and dealers who sell those products.
But there’s another group connected to the document imaging industry that’s expanding its knowledge and influence in this emerging product segment and that’s the leasing companies. EverBank Commercial Finance is one of those companies moving rapidly along this learning curve. Earlier this year I interviewed Fred Carollo, VP of Originations Office Products for EverBank, for an article about new leasing products and programs as well as trends impacting EverBank’s current and future offerings. Digital signage and whiteboards were two of those emerging product categories referenced by Carollo in that interview.
Among the three players in this category—Sharp, Toshiba, Samsung—EverBank works most closely with Sharp, but is in discussions to expand its relationship with Toshiba.
Lately EverBank has been developing programs around digital signage and displays that will help dealers and direct branches sell more product.
“One is a term with option program—for example, three years with a two-year option—where you can continue with the current piece of equipment , upgrade to new technology or walk away,” states Carollo. “We created that program because a lot of end users might prefer to upgrade and not want to commit for five or six years at this time with the idea of technology advances that may be in the future.”
Fred Carollo
EverBank also has a dealer/branch ownership program.
“It’s still an open-ended contract for the end user with a purchase option, and the dealer can control that option at little or no cost to them at all,” states Carollo. “We’re thinking end users will continue to use the product as long as the technology doesn’t change much. If they want to upgrade, it enables the dealer to bring the existing equipment into inventory at a very low or at virtually no cost and then put it back out to a different level of end user while upgrading their current user to new equipment.”
Perhaps the most intriguing product for this segment from EverBank is a programming inclusive product, reminiscent of a traditional cost-per-copy program. “There are a lot of programming costs in digital signage and an ongoing monthly fee for that and that’s included in this program,” says Carollo.
With some OEMs pushing the content element as much as the hardware, Carollo acknowledges that this is essential for a leasing company to work into the programs for these products.
“For dealers and branches it’s essential from a gross profit standpoint and it makes it much easier to sell and much easier for end users to say ‘yes’ to.”
Even though EverBank has programs in place for these products there’s still a lot to be learned about the overall market.
“We’re still trying to determine the aftermarket,” explains Carollo. “From our perspective, the lessor, that’s essential.”
So is coming up with a profile of the end user in terms of who’s buying and how it’s used in a particular organization or business.
“Every environment is different so if we go from a hospital to a retail shop, it’s a very different environment,” notes Carollo.
The company is also looking at trends related to ownership of these products.
“Do end users keep it for 10 years, or three years and then upgrade?” asks Carollo. “We figured that out with copiers and printers, but the jury is still out on end user behavior with these products.”
He adds that it’s not all that complicated for a leasing company to take on a new technology since it can apply the same principles as with all the other assets.
“The element that’s missing right now is time and history and that’s essential,” emphasizes Carollo. “I wouldn’t say we’re being cautious, we’re being smart. We’re leaving ourselves room in case the trends go one way or in case the trends go another way. We’re trying to do it in a way that allows branches and dealers to sell this product competitively while we take the appropriate asset risk.”
Based on Carollo’s early observations of the channels selling these products, more business is funneling through the direct branches at this time.
“Independent dealers are still at an early stage with this product,” he says.
He expects that to change as more dealers carry these products and close more transactions, and find new opportunities with digital signage and display customers for the other products they sell.
For now, Carollo is optimistic that the digital signage and display categories are poised for a growth spurt for the OEMs and independent dealer community alike.
“We like the product and the need for it is pretty wide in the marketplace,” says Carollo. “I don’t think it will ever be a huge percentage of a copier dealer’s or branch’s business compared to copiers and printers, but it will be increasing as a percentage of what they sell, and we’d like to be able to accommodate and enhance our vendor’s and manufacture’s go to market needs and strategies.”
