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Though sometimes it may seem like it is, the sky isn't falling. Of course, the economy could be better, but millions of businesses all over the country are seeking to grow their companies and looking for the technology to help them do it. With that in mind, we took a swing around the channel and asked a few solution providers and distributors for tips to manage during especially turbulent times. Here's what the tough-minded offer up to nervous channel executives.
1. Do Not Depend On Product Reselling As Your Only Source Of Profit
Have other sources of profit generation that support your businesses--successful value-added resellers must add additional value to supplier offerings to ensure a predictable and profitable revenue flow.
"If I create my own service offering outside of the products, then I'm in a situation that I'm having a solutions discussion with customers, focusing on a particular methodology or service offering that I've designed," said Mike Strohl, president of Concord, Calif.-based Entisys Solutions and Agile 360 Inc., a division of Entisys. "It's a lot easier to sell products and services that way."
2. Maximize Your Sale
Know your customers' total IT spend and be aware of how the solution fits into the end-user's environment with a view to fully "clothing" the sale. For example, is there opportunity for additional software, accessories, printers or personal computers? Ask questions to ensure that you are maximizing your selling opportunity.
"Knowing the total IT spend is important, but you should also know and understand your customer's budget cycle and get into that process," Strohl said. "There is extreme power in being a part of that process. You know all their projects, what they can spend and where their money comes from."
3. Recognize Your Limits
In addition to distributors, other solution providers can be a strong resource for partnerships. If a project requires skills you don't have, partner with another VAR. Don't just leave the customer looking for someone to address their needs. It invites competition into your accounts.
"The smart VARs are the ones that know their own skill set--that can identify what they're experts in--and find other partners with other products and solution lines that complement their offerings," Strohl said.
4. Sell The Solution
Focus on solving business problems for your customer -- not just selling them product.
"Compliance regulations such as HIPAA, the Sarbanes-Oxley Act and others are driving purchases around security solutions," said Jim Steinlage, president of Kansas City, Kan.-based Choice Solutions LLC. "I'm also seeing increased interest in solutions that offer opportunities to work remotely. With rising gas prices, companies seem to be more interested in those solutions."
5. Focus On Solutions That Have A Short-Term Return On Investment.
"IT decision-makers aren't into solutions with a two-year ROI right now. They are much more into the solutions with ROI of a year or less," Steinlage said.
Next: Look To Your Partners
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