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A Hardware Financing Program with Real Impact

Case Study

How The Common Sense Approach of HaaR® Helped NuWave Technology Partners Adopt to the Evolving Buyer

NuWave Technology Partners, one of Michigan’s leading IT providers, designs, installs and services state-of-the-art communications and information systems—including data center/cloud solutions, networks, PCs, servers, voice over IP (VoIP) telephone systems and more—from top manufacturers in the industry. I had the opportunity to chat with founder, Chad Paalman, and learned a little bit about how he got started and his take on the evolving buyer. He also shared with us NuWave’s experience using the GreatAmerica HaaR program, and his perspective on the impending Windows 7 Sunset.

A Bit On NuWave's Background

Chad Paalman founded NuWave back in 2005 with his father and brother after identifying a gap in the market for a comprehensive IT provider, one that was well rounded and took ownership of both the network and the phone system. After the merging of a 10 year old IT company and a 10 year old phone company, NuWave was born, serving 600 customers by the end their first year.

Back then, selling IT hardware and services was a much different ballgame. People identified with specific product brands; they wanted a Cisco server or a Dell computer. The conversations that took place around upgrades sounded a lot different too. In fact, these conversations took on a more negative tone. The question wasn’t, ‘When/How do I upgrade?’ Instead, people asked, ‘Do we have to upgrade?’

A few years later, in 2007, Paalman’s company became an early adopter of the managed services business model. Prior to that, NuWave did all project-based-work, costing out project totals upfront based on the time and material needed. But as early as 2007, Chad could feel these conversations beginning to change. With the advent of subscription-based-services, customers had started to evolve their views on buying technology; instead of buying products or brands, they began viewing what they were buying as ‘outcomes’ – outcomes they wanted to achieve via a monthly payment that would include the costs of everything: hardware, services and support.

Why NuWave Opted for the HaaR Program

By 2015, Chad had evolved his business model even more – he started utilizing a GreatAmerica program called HaaR, or Hardware as a Rental. Chad liked that he could continue to reap the benefits of the as-a-service model he’d come to love, but could also take advantage of the equipment financing aspect, eliminating the need for his company to take on the burden of the upfront cash output required for large projects. Using HaaR, NuWave provides their customer a one-invoice solution for all hardware, software, installation and services without taking on any of the financial risk associated with the HaaS model.

Since adopting the HaaR model, Chad says NuWave has eliminated the bar in terms of the required upfront budget a client must have to acquire brand new technology, which has ultimately expanded his pool of eligible buyers.

HaaR has also helped to eliminate the opportunity for any kind of price negotiation on especially large projects. In fact, the talk track to sell customers on HaaR is vastly different in the sense that the full cost of a project isn’t even addressed in most situations. Customers are so happy with all they get for a monthly price, the total cost of the project rarely comes up. This has served to protect margins on the total cost of a project because there is no opportunity to negotiate. Chad also credits HaaR for the recent growth he’s seen in NuWave’s monthly recurring revenue. With a wider pool of clientele who are open to the idea of a monthly payment, he’s seen the number of monthly contracted deals increase which has had a positive impact on his businesses valuation.

Single Invoice Solution

Standardization of Stack

Monthly Recurring Revenue

Increased Business Valuation

Why NuWave Customers Love HaaR

"Owning Hardware Has Become a Nuisance for Customers…"

Soon after adopting the program, Chad saw first-hand why the HaaR model is so attractive to his clients. Around the same time, he found himself in a discussion with one of his current customers about the necessary evil of technology. The client was frustrated about the rate at which technology changes and how that creates a burdensome need for upgrades or unpredictable maintenance services. The client then blurted out, “Why do we even want to own this stuff?”

The question struck a chord with Chad – and it illustrated even further just how much the consumer’s mindset about buying technology has changed. The need to own hardware had all but evaporated, and rightly so. Why would you want to own hardware when things change so often? When the unpredictable happens? When you can’t realistically afford to buy brand new equipment every few years, but need up-to-date technology to operate effectively?

"Why do we even want to own this stuff???"

-- One of Chad Paalman's clients during a discussion about upgrades

It became increasingly apparent that customers aren’t buying hardware anymore – they are buying an expectation- an expectation that they will have access to working, cutting-edge, properly serviced technology. Hardware As A Rental provides just that.

Up-to-Speed Technology

Controlled IT Costs

Maximized Efficiency

Free Up Cash

How does HaaR Play into the Windows 7 Sunset?

As far as the opportunity that will be presented in advance of the Windows 7 sunset, Chad used a single word to describe it: Huge.

NuWave has been proactive about building this upgrade into their client’s technology road-maps and Chad believes that through the combination of the HaaR program and a reliable finance partner like GreatAmerica, solution providers will be favorably positioned to take control of this opportunity in a way that grows their businesses.

“Everyone will need new hardware and installation services. Why wouldn’t you offer HaaR as an option? By offering a single monthly payment and providing a single monthly invoice for everything they need, you will create stickiness. You’ll be positioned favorably for this huge Windows 7 opportunity, but you’ll also establish your company as a true partner ready and able to meet any and all of their future technology needs with no hassle.”

Thinking about adding HaaR to your offering? Download the FREE HaaR Marketing Toolkit!

We put together a packaged marketing toolkit with all the things you need to begin selling your customized Hardware as a Rental® program.

Included in the marketing toolkit:

  • Description for your website, brochures and sales pitches
  • Video for your website
  • Brochure you can customize with your logo
  • eBook on the hidden costs of technology
  • Email to send to prospects

This marketing toolkit has everything you need to start building HaaR into your offering today!

Download the HaaR Marketing Toolkit

Get in touch to learn more about how HaaR can help you!

Our HaaR program can help you shorten your sales cycle and take advantage of the Windows 7 Sunset opportunity. Submit the form below to request a meeting with your GreatAmerica representative.