VARs: 10 Steps To Business Growth In 2008

One mistake VARs can make is not communicating to their clients that they understand their business as well as technology. Another mistake some VARs make is not taking the time to fully understanding their customers' businesses. Actively cultivating that knowledge, on the other hand, invigorates long-standing partnerships built on trust, solution providers said.

Camera Corner CEO Rick Chernick says that's exactly what's kept his Green Bay, Wisc.-based company in business for so long. "If you don't know the customer, how are you going to sell to them what's right for their business?" he asked. "You certainly want to bring the technology to them to help them run more efficiently and if you don't know that customer you're not really going to know how to direct them the right way."

Customers may be hesitant to share everything about their company at once, Chernick admitted. Trust takes time, so the earlier you start asking the probing questions, the better, he said. "Once we get in there, we can figure out what tech solutions we can bring to them," he said. "Our goal is not to just sell them something but to help them reach a particular end."

7. Provide specialized, customer-sized solutions

Solution providers know it's not just about selling your customer the least expensive product on the market -- or the most expensive, for that matter. Where a VAR provides true value to the client is where the clients specific challenges are solved using a fluid, customer-sized combination of technology and innovation. To know the customer's business and be able to apply specialized solutions is an increasing demand for VARs -- a challenge Darren Patoni, president of Tempe, Ariz-based Information Technology Workshop, said his company is meeting.

"You really have to know what you're talking about," Patoni said. "It can't be a cheap solution you have to continually replace -- as IT solution providers we have to justify our own existence." The technology VARs provide is implemented to give the customer a competitive advantage -- shopping the same solution around to the competition negates the value of that solution. "It really does require customization," Patoni added. "Some of my competitors are coming to me because they don't have the skills to offer that level of specialization -- instead of investing in training they're coming to us because their customers are demanding it."

Keeping an open line of communication with the customer is also important, as is understanding that the client is likely looking to do more with less. "You want to make their limited pool of resources count," he said. "You want that customer to say, 'This company really cares about me'—that's how we do it."

8. Upsell, upsell, upsell

Everyone's heard the old adage about being savvy enough to sell ice to Eskimos -- but there's truth in that clich, and in an environment where margins are melting away, your company's ability to upsell and cross-sell to the existing client base as well as new customers will keep your sales force sharp and your revenues insulated. It is important to note that upselling without a value-add can damage the relationship with a customer. Translation: if you're pitching that extra ice, make sure it improves the igloo.

"We're upselling our value-added proposition," said Mike Novotny, president of Phoenix-based InterTech. "You've got to be able to tie [an upsell] back to the client's best interest." Sales incentives are a good way to foster a healthy spirit of upselling, as well as keeping sales staff up-to-date on client needs. Using your company's strength in services is also a great way to position an upsell, said Novotny, adding that a valuable upsell can pay big dividends. "I find our customers are more willing to trust our judgment on a longer term basis," he said. "They begin to place their confidence in our decision-making ability."

9. Expand new technology offerings

In a business that thrives on constant technological innovation, it's more important than ever that VARs are aware of new products and services that can better facilitate their customer's end goals. It is also important, however, to keep the focus on innovations your company is able and willing to implement. "Its extremely important to have the people in place to extend your brand into new technologies," said Neil Medwed, president of Richardson, Texas-based Preferred Technology Solutions. "Determine if you want to invest in the engineers and the salespeople."

When it comes to VARs specializing in advanced technologies, you have to be the very best at what you do, Medwed said. It can be difficult to take on more than one per year and still be proficient, he said. "One year it was voice, then wireless, then Citrix, this year we're trying to get stronger in VMWare," Medwed explaied. "You can't do it all at once." Aggressively marketing those proficiencies is also key. "If you've got a lot of high-paid talent, you have to put it to use," he said.

10. Virtualize

Virtualization is one of the hottest trends in the VAR universe right now, and solution providers can only expect the heat to rise -- accompanied by budding temptation to enter the virtualization market. One of the big advantages to virtualization is that it applies to all sizes of companies, says John Gunn, president of ISG Technology, in Salina, Kan. "It's one of the few things I can take to customers big and small and give them an ROI that's easy to show," he said. "It's driven our storage business and services biz through the roof."

Having a technical staff trained to handle customer demand for virtualization is crucial, said Gunn. "I get as many of my technical people trained in virtual storage as I can," he said. "When you get in front of customers, you better be able to talk the talk and deliver." While virtualization is a fast-growing area of the market, Gunn said he feels there's no need to rush in unprepared. Still, demand is rising, he said. "Customers are just soaking up every bit of information they can about it," he said. "We've experienced explosive growth and we don't even feel like we've scratched the surface."