Digital signage is growing in popularity as an effective in-store marketing tool. It offers the opportunity for impactful, timely communication that can be precisely targeted to different customer groups. Not everyone wants to tie up capital in a purchase. A financing model can be a viable option at this stage, but there are several key factors to consider when making a decision. This article covers the four most important things that will help you make an informed choice.
1. Outright purchase vs. financing – impact on the company’s balance sheet
One of the first decisions is the choice between an outright purchase and a financing model. An outright purchase means the cost of the hardware appears on the company’s balance sheet immediately. This may be a good option if the company has surplus capital available and no other pressing investment needs.
Financing, on the other hand, spreads the cost over a longer period of time. This can free up capital for other critical areas of the business, such as content and marketing campaigns. The value of digital displays lies in their content, and without quality content, the potential of the hardware goes unused. With financing, you can invest in both the technology and the content simultaneously, maximising the return on the system.
It is also worth noting that financing is not “photocopier-level” expensive. Many well-known financing solutions offer competitive terms that do not place an unreasonable burden on the company’s finances. Several financing services are designed specifically for needs like these.
2. Freeing up capital for marketing
One of the greatest advantages of financing is the capital it frees up. When a company does not tie up capital in hardware, the available budget can be directed towards more effective marketing and content production. This is particularly important, as every day without marketing pushes the company’s growth opportunities further into the future.
Digital signage systems allow timely and engaging content to be created that reaches customers at exactly the right moment. By investing in content, you ensure that you get the maximum benefit from the system. Quality content not only attracts customers, but also improves their experience and strengthens the brand.
In addition, a financing model enables the company to respond quickly to market changes. New campaigns and product price changes can be implemented without delay, for example, when the budget is not tied up in hardware.
3. Objections to financing and how to overcome them
Financing solutions are often met with scepticism, and it is worth understanding and addressing these objections:
“Financing is expensive”
Financing always has a cost, but it is important to evaluate this in relation to the benefits it brings. When capital is freed up and can be used more effectively, the cost of financing is offset. In addition, long-term monthly costs are often easier to manage than a one-off commitment of capital.
“I’m committing for a long time”
Many people are concerned about the long duration of financing agreements, but most solutions are flexible. You can choose the length of the agreement according to your company’s needs. In addition, in many cases, the hardware can be purchased outright at the end of the contract, providing confidence about long-term use.
“I want to own the equipment”
Financing does not rule out ownership. In many cases, you can purchase the equipment outright at the end of the contract, often at a favourable price. This means you get the maximum benefit from your investment without initially committing a large amount of capital.
4. System flexibility and cost-effectiveness
Systems acquired through financing often offer flexibility that improves their usability. storefy’s Digital Signage system, for example, combines an easy-to-use management tool with extensive scheduling functionality. You can manage and update display content in real time from anywhere, which saves time and ensures communications stay up to date.
What is worth remembering about financing?
Acquiring a Digital Signage system through financing offers many advantages that support business growth and development. The most important things to keep in mind are:
Consider the big picture
Think about how financing allows you to optimise the benefits of both the hardware and the content.
Think about the effort involved
storefy handles the financing on your behalf, so no extra work falls on you.
Assess the return on the system
Investing in both the system and the content delivers greater long-term benefit.
Keep flexibility in mind
Financing models often allow equipment to be purchased outright and offer flexibility regarding the length of the contract.
What is worth remembering about financing?
Acquiring a Digital Signage system through financing offers many advantages that support business growth and development. The most important things to keep in mind are:
Consider the big picture
Think about how financing allows you to optimise the benefits of both the hardware and the content.
Think about the effort involved
storefy handles the financing on your behalf, so no extra work falls on you.
Assess the return on the system
Investing in both the system and the content delivers greater long-term benefit.
Keep flexibility in mind
Financing models often allow equipment to be purchased outright and offer flexibility regarding the length of the contract.
Summary
Acquiring a digital signage system through financing offers companies flexibility and the opportunity to free up capital for critical business needs. The choice between an outright purchase and financing depends on the company’s resources and goals, but financing solutions offer a modern and cost-effective way to implement an advanced in-store marketing system.
When properly planned, financing is not a burden but an investment that enables a better customer experience and increases business productivity.
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