Computer distributor and leaser Econocom International NV’s Econocom Belgium is claiming to have started 1992 with a clean balance sheet, more comprehensive service offers and new leasing options in a market increasingly determined by the customer. The Belgian division of the Paris and Brussels-quoted group has the reputation of enjoying better health than the group as a whole despite its inclusion in the substantial debt restructuration of a couple of years ago necessitated by unsuccessful forays into foreign markets. Nonetheless, it too has seen an overall slowing down of its market and the shrinking of margins as competition rises, and the new product and service range smacks of an attempt to get as much out of that market as possible. Under the banner of the Rainbow Service range, Econocom has set out the totality of services, some new, some old, that it is prepared to offer to a more mature, but more difficult market – rainbow, for those of you that were wondering, is supposed to indicate the all-encompassing spread of the offer. The services divide into three groups. Among the Financial Rainbow services, there are the usual service lease contracts, standard long and short-term operational leases, leasing with a pre-determined buy option. A so-called Eco Lease contract targets the limited, but potentially lucrative set of customers that want to sign now for computer equipment they will actually need in two years’ time – for a factory as yet unbuilt, for example. The Sweet Lease offer is intended to unlock the small business sector with small repayments spread over long periods; the client has the option to to upgrade and replace its equipment as it expands. Finally, the Zero Lease deal lets the customer pay for peripherals and compatible products over a period of 12 months – interest-free. The Micro Rainbow Services range is an attempt to get customers interested in how efficiently they are using their computer system. It revolves around two Econocom software packages that make an inventory of all the computer equipment in a building and monitor how it is being used – for it appears that no matter how mature the computer user is purported to be nowadays, there are still a fair few secretaries out there with a whopping 100Mb disk going spare, while more intensive users have to scrounge for the odd byte on a hard disk half the size. The paying client is similarly treated to other Micro Rainbow services including analyses of computing needs, installation consultancy, training, and hotline support. Finally, Rainbow Technical Services covers hardware maintenance, technical support, remote diagnostic facilities, disaster recovery options, creation by Econocom of a computer security system, task optimisation for the AS/400 and repair centre. All of which, of course, costs money, and puts a heavy strain on personnel costs – and by stating up front that one is prepared to take on all that, there is always the risk of taking on business that is not really worth the while. Is this, then, the way Econocom and its competitors will have to go, faced with a leasing market that will see less than 10% growth this year compared with 30% in 1987, and an equally difficult distribution sector? Econocom Belgium general manager D Nieves-Asensio responds in the affirmative to the suggestion that the Rainbow offer will be a real stretch on the company – if, of course, the demand is there. One need not, therefore, take too seriously his whispered confession that he is really worried about being able to cope with demand – if customers decide they are ready to pay for the Rainbow services, they will of course be amply compensating for shrinking margins elsewhere. – Mark John
