EXECUTIVE PERSPECTIVE By Mary Kariotis Differentiating Ourselves from the Competition Building Customers’ Trust How do we diff erentiate ourselves? First, by building customers’ trust. The basis for all relationships is trust, something the economy, demand or technology cannot change. Th e leasing industry is an anomaly. Th e unapprised assume the lease rate factor (LRF) repre-sents the cost of the lease, but the informed know better. The LRF is only one cost component of the lease transaction. As customers become more knowledgeable, they quickly realize what actually drives the true cost. It’s the terms and con-ditions and, ultimately, the DNA of the lessor they are working with. It is not what we say but what we do and how we innovate to bring solutions. We could always bid for the bottom and win, but that is a game of Russian roulette. Either the lessee or the lessor is going to win, and thus sus-tainability is lost. What is going to diff erentiate us? It is be-yond fi nding ways to get around the future classifi cation of FASB 13. We all know the leasing industry will long survive, at least for those whose service off erings go deeper than quot-ing the lowest LRF. I NNOVATING AND ADAPTING TO CHANGING demands from our customers have been the backbone of Merrimak Capital’s growth for the past seven years. We believe our success is dependent upon our ability to diff erentiate ourselves and our service off erings by solving not only our customers’ short-term needs but also their long-term challenges. Our continued commitment to these business practices will drive our future successes. engaging over 70 (and counting) of the Fortune 500 and like corpora-tions to our WBENC status. Th is leaves me speechless. Our custom-ers select Merrimak because we have earned their trust, provided a solution and, most important, we are competitive. Meeting Customers’ Needs Merrimak’s future success begins with a strong and unified team supporting our coveted customer base—another strength that sets us apart from the competition. We must present a compelling reason for customers to want to engage our services. Th is is not something that comes easy. It must be worked at every day and is essential to move to the next plateau. What problems are we solving that the competition is not? We must be able to execute within our customers’ time frame. I recall my fi nance group worrying almost with panic about available low single-digit equity. Th is concern was dismissed as I recognized that the equity would follow the deals, especially with the credits that we serve. Merrimak treats its customers’ interests as our own. Gain-sharing may come easy in the leasing industry but eventually results in the demise of the relationship. Being a one-term lessor or having a customer feel they have overpaid is short-sided. As a savvy lessor we know we must be willing to walk from a deal and not gamble. Ideally, lessees want to make real-time decisions with tangible outcomes. Cancellation options without penalties are ideal. Booming businesses in today’s economy are on-demand: Zip Cars, Pay for View, Cloud Services and Man-aged Solutions. Th e array of services and options are endless. Our challenge in the leasing industry is to adapt and provide on-demand services while continuing to satisfy the “hell or high water” funding requirements. Exciting and creative so-lutions will prevail from the winners. ■ Mary Kariotis is President and CEO of Merrimak Capital. Tapping into the Supply Chain Another way we diff erentiate ourselves is as a diverse sup-plier. In 2009 Merrimak obtained certification from the Women’s Business Enterprise National Council (WBENC), supporting the supplier diversity initiative of the custom-ers that it serves. Our WBENC status elevates our visibility within corporate supply chains every day. Th at’s where it all begins. However, while Merrimak recognizes that our WBENC status opens doors, we have to earn business on our own merit. Once we are “in the door,” we have to identify needs, provide solutions, have a purpose and, most important, gain the advocacy and support from the supplier diversity professionals. Competitors, banking partners and unbi-ased observers sometimes attribute Merrimak’s success of 48 JULY/AUGUST/SEPTEMBER 2016 EQUIPMENT LEASING & FINANCE MAGAZINE SHUTTERSTOCK