Why the 2007 VARBusiness 500 Seek Out New Vendors

Have you considered adding vendors to your rotation lately? We hear anecdotally that many VARs are less loyal and more demanding than in the past. They are constantly seeking new relationships as a way of maintaining their edge.

Our latest survey of the 2007 VARBusiness 500 quantifies what we've been hearing: Slightly more than 50 percent of respondents from the industry's biggest solution providers said they look to add new vendors when something sparked their interest; another 40 percent said they were "always" on the lookout. Overall, it seems, there is a strong willingness to add vendors.

One big criterion for selecting a new vendor, according to our survey, is that the new company offers quality products. Part of that is brand recognition. Some vendors are synonymous with quality -- and some are not. Ironically, that's the same reason many VARs stick with their vendors: Quality products engender loyalty. Offering top-shelf, brand-name products is, after all, a big part of what gets VARs in their customers' doors.

The solution providers surveyed said the vendors they select drive profit directly to the VARs' bottom lines. That's largely because of vendors' wide, substantial portfolios and investment programs.

"We offer a broad portfolio of products -- printing through enterprise storage -- so our resellers can offer a solution wrapping around software," says one highly regarded vendor. "Depending on a VAR's competencies, we offer them tools they want to invest in and use and get benefits out of these tools in certain areas."

These vendors offer more opportunities to extend their reach. Sure, they may start with an antivirus sale, but they can, with a little perseverance, wind up with a backup/disaster recovery solution.

Once they find new vendors, VARs are rewarded for selling more products from the same vendor, which generates loyalty to a point. So, you might be wondering, "Which vendor brands are the biggest profit drivers?" For that, you'll need to return to this site June 11 when VARBusiness releases not only the names of the distinguished solution providers on the 2007 VARBusiness 500, but also exclusive research culled from this upper echelon of the VAR ranks.

Until then, come back daily for previews of what's in store, including a rundown of which technologies VARs are adding; a sneak peak of who's new to the list; hallmarks of the fastest growing VARs; and what makes a successful VAR ecosystem.

Also, register now for the VARBusiness 500 conference, June 11-12, at the Marriott Marquis in New York City.