The Loyalty Void

Crunk, who sells and supports products from Hewlett-Packard, Sun Microsystems, Computer Associates International, Cisco Systems, SMC, Toshiba and WatchGuard Technologies, said more often than not his biggest competition comes from vendors' direct-sales arms rather than other solution providers. That's a far cry from the vendor-partner relationships that were sowed when Central Data was founded 20 years ago.

These days, Crunk is putting much of his muscle behind Central Data's own branded digital video surveillance security system. The system, which Central Data has been selling for the past 18 months, provides security monitoring of public facilities and corporate offices. A Florida school system, for example, has used the system to capture a drug dealer and a student who started a fire in a bathroom. The product is a great example of a solution provider taking the high ground with cutting-edge technology that solves real-world problems.

The system, which delivers strong double-digit margins rather than the single-digit margins associated with single-product transactions, is driving an average solution sale of about $20,000, Crunk said. The solution is also turning heads among a growing number of solution providers, who are jointly selling and supporting it with Central Data.

Many vendors have structured their channel programs in the form of a vendor-contractor relationship rather than a partnership. What these vendors must remember is that business comes down to relationships. Companies that invest in relationships and partnerships that build loyalty in turn will be rewarded with loyalty from their channel partners. Crunk, for example, recently steered business to SMC rather than Cisco because of a strong relationship with his local SMC representative. Crunk also gives high marks to Toshiba and WatchGuard for working closely with Central Data on its digital video surveillance solution.

In the end, Crunk says he will foster strong field relationships with vendors willing to view him as a partner rather than a contractor. For those that view him as a contractor, Crunk's message is: Don't expect any channel loyalty if you're not willing to give it.

Where do you see the loyalty void? Let me know at (781) 839-1221 or via e-mail at [email protected].