What does a SteamChain Pilot Program look like?
OEMs are facing a number of challenges today
Increasing competition is driving your prices and margins down. From a sales standpoint, it’s becoming harder to differentiate why your customers should choose your equipment over that of a competitor, especially if your equipment is more expensive.
The added value of your improved quality and expertise is a hard benefit to quantify for a first-time buyer as they’re seeking to reduce their capital expenditures. You know that they can churn out more revenue and profit as a result of using your equipment, but they just don’t see it yet.
These misaligned incentives between you and your buyers make outcome-based pricing a great solution. (We often refer to outcome-based pricing as machine-as-a-service, or MaaS.)
We realize the complexity is overwhelming and your considerations in the past have left you to believe that now is not the right time.
These are some of the ways businesses are trying to solve these challenges:
- Hire more sales reps and spend more on advertising:This seems like an obvious way to drive your revenue up, but it can come at a high price. While it may provide you with more meetings with prospects, it doesn’t solve the ultimate problem of proving to them that your equipment is the best decision.
- Assemble your own outcome-based pricing strategy with a mix of different vendors:While there are many solutions for individual parts of an outcome-based pricing strategy, you’ll quickly discover that all these different tools create a lot of time-consuming complexity and administrative burden for your team and creates a lot of security and privacy issues with the manual steps to connect all the different parts.
- Do nothing: A safe enough bet, requiring you to make no sudden changes and make no additional investments. However, this isn’t a sustainable approach to ensure future success for the company.
The truth about these options is that none of them remove the technical complexity associated with an outcome-based pricing solution. Nor do they provide you with a strategic partner to guide you through the day-to-day decisions you’ll encounter.
You need an approachable starting point. This is why SteamChain was created.
We certainly don’t blame companies for electing to hold off on new strategies if they’re not yet convinced of their value. However, the aforementioned challenges are only becoming larger problems - and some of the realities of outcome-based pricing that used to be true, no longer are.
Our Pilot Program is an easy way to get started with this strategy. You only need one machine or line to get started with a pilot.
Throughout this initial program, you will see:
- What it takes to establish an outcome-based model (with one piece of equipment or line)
- How SteamChain drastically decreases the complexity of such a strategy
- See how it will help you move forward as a business with a unique offering you can make to your customers
How you get started with a SteamChain Pilot Program
Our pilot program is designed to show you how easy it is to take the first steps in building your MaaS (machine-as-a-service or outcome-based pricing) program. It provides a real world example so you can understand how MaaS works on your equipment and begin to design your pricing strategies with our help. We can also use the program to educate end users and consult with them to integrate their suggestions into the MaaS program.
These are the steps we’ll take together to start your Pilot Program:
First, we will work with you to define the outcome-based model and then identify which machine to use in the pilot program.
We collaborate with multiple business units to define the outcome based model and to deploy the technology on a production machine.
This may include initial implementation on an existing asset or be delivered on a new production machine.
Next, we will help you select an ideal customer to participate in the program.
We can help you engage with a few potential end users to introduce the pilot program and explore the potential fit to be included in the program.
This experience helps select which customer is the best fit to pilot your program with.
We record all of MaaS contract variables and compute the financial compensation for you.
Data privacy and security is of the utmost importance. All parties agree to a data rights agreement that controls what data any particular party is able to see and access.
SteamChain also provides invoices to your customer on your behalf.
Copies of these invoices and the entire audit trail of historic performance and financial transaction history are available on the SteamChain platform for long term storage and retrieval.
The scope of the pilot program will include financial exchange between the counterparties.
All parties will be supplied with full accounting details including complete Automated Clearing House (ACH) executable files.
What is the timeline for this process?
We expect the pilot program to last 12 weeks beginning with a kickoff meeting and meetings to discuss the business model. The last few weeks are hooking up a machine and visualizing the data and transactions on our platform.
When do you start to see some data that will indicate whether or not this is a good idea?
Once the business model is implemented on a machine, you’ll start to see data and financial transactions. We typically get to that stage within 8 weeks into the pilot, if not sooner.
Curious to know more about our specific platform?
We have a quick 10-minute demo to provide you with an overview of our platform, to answer key questions you may have and provide you with a visual reference.
We do ask for your work email address so that we can share this with you directly and open a dialogue with you about questions and hesitations you may have.