Snapshot
Renting Sales From Equipment Customers
An office or shop equipment manufacturer effectively avoids the problem of the perceived high capital cost of its equipment by selling 'pieces' of output from the equipment instead of the equipment itself ... Check out below how to breed from this Sebir
Goal
Improve market size for existing products or services of an office or shop equipment manufacturer
Problem
Many customers cannot afford the high capital cost of the equipment and tools they require for their businesses
Sebir
Market size is enlarged for existing products or services through charging customers for 'pieces' of output from the equipment instead of the much more significant price for the equipment itself. Such equipment is installed at no cost to the customer. For instance, an office equipment manufacturer installs photocopiers at no cost and customers are charged 'per copy' each time their photocopier is used New customers do business with the manufacturer or supplier because they are able to avoid the significant capital cost of acquiring the new equipment, in lieu of a relatively small, day-to-day cost
Breeding Hint 2
Think how you might better align your pricing strategies with the internal approval procedures customers must follow (for instance, their approval process for capital expenditure). Taking account of such prerequisites could boost your revenue
Breeding Hint 1
Think about how you might transform your approach to customer pricing so that a relatively high capital cost is converted into a low, recurring expense for them. This could make your products or services appear less expensive to potential customers