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Our client is one of the world's leading manufacturers of high-precision machining centres and production solutions, serving industries including automotive, aerospace, medical technology and mechanical engineering. With a strong reputation for engineering excellence, the company sought to complement equipment sales with innovative outcome-based commercial models that reflect changing customer expectations.
The client had already established a successful leasing offering and built partnerships with financing providers. However, as manufacturers increasingly sought greater flexibility, lower upfront investment and performance-based commercial arrangements, the company wanted to take the next step by introducing a Pay-per-Use (PPU) business model.
The ambition was to understand the economic viability of Pay-per-Use for its equipment portfolio, define a commercially attractive offer, and launch an initial pilot in Germany before broader market deployment. This required balancing customer flexibility with profitability while developing the internal capabilities needed to sell, finance and operate a usage-based model.
Black Winch partnered with the client to design the commercial, financial and operational foundations of its first Pay-per-Use offering. Together, we developed the tools, business model and pilot approach needed to confidently bring a new recurring revenue model to market.
Strategy
We designed the overall Pay-per-Use strategy by analysing asset characteristics, including equipment lifespan, utilisation patterns, residual value and service requirements. We evaluated different commercial flexibility models, from fixed subscriptions to fully usage-based pricing, and assessed customer behaviour, usage data and operational implications. A dedicated lighthouse task force was established to guide pilot implementation and future scale-up.
Sales
We developed the company's first Pay-per-Use modelling tool, enabling sales teams to design and compare multiple commercial scenarios. The tool incorporated three levels of commercial flexibility (Fixed, Opt-in/Opt-out and fully Pay-per-Use) allowing teams to assess the associated revenue, profitability, cash flow and risk implications of each option. By providing clear financial insights alongside customer value propositions, the tool empowered the sales organisation to confidently position, tailor and sell the new offering to pilot customers.
Finance
We assessed profitability across the complete service lifecycle and modelled the financial implications of multiple Pay-per-Use scenarios, including revenue generation, margins, cash flow, risk exposure and funding requirements. This gave management a clear basis for evaluating the commercial viability of the new model.
Operations
We analysed machine usage data, data flows and operational processes to determine how consumption could be measured, monitored and invoiced efficiently. This work established the operational foundations required to deliver a scalable usage-based business model while ensuring accurate billing and customer transparency.
Whether you're exploring Pay-per-Use, Equipment-as-a-Service or other usage-based business models, success depends on balancing customer flexibility with commercial viability. From strategy and financial modelling to sales enablement and operational readiness, Black Winch helps industrial companies design, test and scale recurring revenue models that drive sustainable growth.
Contact us to discuss how we can help bring your next business model to market.