Resellers given lease of life
- 18 August, 1999 12:56
LAN Systems officially launched its leasing program last week in a move the company hopes will give its reseller partners extra bargaining power in customer deals.
The company now offers resellers a product known as LAN Systems Finance through a deal with finance company Leasetec, which it claims will give resellers the ability to provide the right solution without the need to squabble over pricing.
The company believes customer concerns over high up-front IT product and services costs are the greatest sales barrier resellers must overcome.
Nick Verykios, LAN Systems chief marketing officer, argues the company's leasing model also counters vendor-driven market assumptions that networking technology is merely a commodity.
"At the buying level, none of this technology is considered a commodity," he said.
"All the reseller has to do is focus on providing the right technology."
Verykios said the announcement completes months of negotiations and industry research. ARN first broke news of LAN Systems' leasing plans in March this year.
"We're hoping 30 per cent of our business will go through this program by June 30, 2000," Verykios said.
LAN Systems Finance is designed to allow resellers to negotiate financing options with a customer for an agreed solution, then receive a payment from Leasetec for the total amount once normal credit approval processes are completed.
Credit approvals are expected to take around 24 hours, while resellers can make instant quotes for customers online at http://www.lansystems.com.au.
Customers will typically lock themselves into a monthly payment amount, which covers the total cost of network design, implementation, training and product upgrades.
Verykios explained the program's "Technology Refresh" feature allows customers to upgrade their network with $27,000 worth of equipment after 12 months without changing their monthly payments.
Leasetec is the only company that assumes any financial risk through the transaction, he said.
Verykios said the only "hidden catch" for a customer is whether it can afford the agreed monthly payments. Resellers using the leasing arrangement must, however, agree to buy a specified amount of equipment from LAN Systems.