Page 26 - 77
P. 26
business model
Choosing the Right Pricing
Model for Equipment
as a Service
When sellers understand Mark Burton, David Burns and connected to the Internet of Things has
made it more feasible to deploy advan-
Ron Kermisch, Global Customer Strategy
the value of equipment to a & Marketing practice, ced pricing models based on time, usage,
output or financial results. Subscription
Bain & Company
customer’s business, they models offer clear advantages for buyers,
who can access expensive equipment wi-
can design service plans he business model of selling thout a large, upfront capital outlay, while
also sharing risk with the vendor. Sellers
that benefit both parties equipment as a service (EaaS) also benefit by capturing more of the total
has been around for a while: value created by the equipment.
Rolls-Royce introduced its Po-
wer by the Hour program, pri- So why hasn’t the model of equipment as
T cing their Viper aircraft engines a service taken off more broadly?
based on flight hours, back in 1962. Our conversations with executives suggest
that this pricing model is proving harder to
More recently, the rapid rise of sensors pull off than they expected—much harder
and the advent of machines and devices than the SaaS programs that have served
22 Impiantistica Italiana - Gennaio-Febbraio 2020
