Keep Your Lighting as a Service Offer Simple
While ensuring a strong foundation it critical, the simpler you can keep the offering itself, the better.
To start, a simpler offering is easier to promote. Communication around the offering should stick to a few key points so that if customers ask questions of different people, they’re receiving consistent answers.
Next, if your LaaS offering has a lot of ambiguity or variables, that leaves the door wide open for customers to haggle, or in some cases, willfully misunderstand what you’re offering. A simple, clear, and well-defined offering also makes administration much easier.
In a nutshell, the contract can essentially state, “I’m going to loan you my product and install it in your facility, and I’ll be the one you call if anything is needed, and I’ll charge you a monthly fee for all of this.” LaaS service is most efficient when turned into one product, not a custom offering.
Enlist Lighting Retrofit Experts
Getting the right people to help you develop your offering is a great way to avoid future snags and turn your LaaS package into a smooth, streamlined, professionally designed service that practically runs itself.
While the offering itself may be simple, there’s a lot of ground to cover in the LaaS contract. To protect yourself and your customers, here are some of the areas where you may want to consult an expert:
- Warranty coverage – It’s important to have adequate warranty coverage in your offering. For example, you may write a seven-year LaaS contract, but if your products only have a four-year warranty, then you’re on the hook for any product failures that take place during those last three years, which could be a massive hit on your balance sheet.
- Property ownership/lease – What happens if the property changes hands? If the owner sells or the renter leaves, will the contract still be enforceable with the new owner or tenant?
- Setting up financing – Offering your own financing is a massive undertaking. A better option is to partner with a financing company who can take care of all the nuts and bolts of setting up the financial end of the contract.
There’s never been a better time to develop a Lighting as a Service offering. LaaS is a solution that pays for itself, delivers a better, safer working environment, and eliminates risk for the customer. And it’s a solution that diversifies your revenue while turning you into a trusted partner, not just a vendor.
The key is to obtain thorough, expert information, use it to develop a clear and simple offering, and then throw everything you have into making it succeed.
DLL can help you simplify the process and offer financing options to make LaaS attainable.
Reach out to us to learn more.