As we transition from being “contractors” to “integrators,” and now on to becoming solutions providers, we also transition from capex (capital expense) to opex (operating expense) purchasing methods.
Technology evolution, combined with IT-centric solutions and buying decisions being made by IT vs. facilities management departments, leads to opex purchasing methods being favored in many cases.
Here’s what a typical opex proposal might look like …
After reviewing this, a few questions probably jump out at you. First, who in your company can sell this type of model? Does their compensation plan encourage them to make this type of proposal? Second, who covers the cost of buying this stuff? And these questions are just the tip of the iceberg.
- Why does the monthly fee drop every year?
- What happens to the equipment at the end of the three years?
- Whose balance sheet does the equipment sit on?
- What about ownership and replacement?
- Who covers the additional costs if something goes bad?
- What if the client wants to upgrade before the three-year contract expires?
- Why are some things listed as a one-time cost and others as a monthly payment?
These are all real questions we’ve received at NSCA in the last two weeks. As usual, NSCA can help! (And, if we can’t, our Business Accelerator partners can!)
Need the answers to these questions (and any other questions you may have)? The upcoming Pivot to Profit Conference on Oct. 23-24 in Atlanta is the perfect place to find them. There, we’ll show you how to move successfully into this new opex world, where everything imaginable is “as a service.” Our Business Accelerator partners will be there, along with some of the best and brightest in the world of managed services, RMR, and opex purchasing methods.
As you sign up to attend Pivot to Profit, also make sure you plan to come a day early. On Oct. 22, two special events are being planned to benefit our entire industry. See below for details! -Chuck Wilson, NSCA Executive Director
IGNITE Golf Outing
Canongate 1 Golf Club
Sharpsburg, GA
Come a day early to increase awareness and raise money for NSCA’s IGNITE program, an initiative to attract, engage, and encourage students and young professionals to our industry. Register at http://info.avisystems.com/nsca-ignite-golf-tour-2018.
Build-A-Bike, sponsored by alliantgroup
Atlanta Airport Marriott
Teams will be provided with parts and tools to build new bikes that will be given to the Joseph B. Whitehead Boys & Girls Club of Metro Atlanta. Network, meet new colleagues, and learn how to use problem-solving and teamwork to get these bikes out on the road. Email kperkins@nsca.org to register!