Too many industrial companies still give away one of their most valuable assets: their software. By bundling it with hardware exports, they not only inflate costs but also lose out on potential revenue.
Stop giving away your software. Start building your digital business model.
The Hidden Cost of Bundled Deliveries
In today’s global machinery business, one common mistake is silently draining profits: bundling software and hardware into a single exported product. This practice not only inflates the customs value of each machine, but also hides the real value of the software itself. As a result, companies face higher import duties, limited flexibility in depreciation, and missed opportunities for monetizing their digital offerings.
A Smarter Way: Separate Software, Maximize Margins
By decoupling software from the machine and delivering it via a digital app store like FLECS, manufacturers can significantly reduce export costs while laying the foundation for scalable digital business models.
The FLECS Approach:
- Export the machine with basic functionality.
- Deliver the full software suite via a secure, branded app store.
- Let the customer download, license, and install features on-site.
Key Benefits:
- Significant cost savings on duties and taxes
- Software depreciated in 3 years instead of 10
- Lower customs duties as software isn’t part of export goods
- New recurring revenue via subscriptions and updates
📊 Real-World Impact
A sample industry scenario demonstrates the potential:
Delivery Mode | Total Cost |
---|---|
Traditional (Bundled) | €1,200,000 |
FLECS Model (Separate) | €1,128,000 |
Savings | €72,000 |
Including tax advantages from faster depreciation, the total potential benefit may reach up to €94,000 per machine—depending on configuration and scope.
Transform Software into a Business Model
Beyond financial savings, separating software creates entirely new value streams:
- App-based upselling
- Modular licensing models
- After-sales feature expansion
- Transparent pricing and value communication
Stop giving away your software. Start building your digital business model.
Ready to Make the Shift?
With FLECS, setting up your own software platform and branded app store takes just six weeks. You maintain full control over customer relationships while unlocking digital monetization.
📥 Download our whitepaper to learn how to:
- Save on duties
- Improve tax handling
- Enable subscription models
- Communicate your software value