Better Profit Margins And Customer Needs For New Technology Drive The Addition Of New Vendors And Product Lines
The need for better, more robust solutions and the quest for higher profit margins are driving solution providers to add new technology and new vendors. In a business climate where IT investments must bring quick returns on investment, solution providers are constantly on the lookout for new vendors that can provide building blocks to their business solutions.
Solution providers of all sizes, from those with annual revenues under $1 million to those with annual sales in excess of $20 million, agree that client need for new technology and better margins are the top two motivators when adding new vendors.
Dan Evans, president of Nexus Information Systems, a Minnetonka, Minn.-based solution provider, said that he doesn't sign up new vendors on the basis of "having the next cool thing." Rather, he adds companies and products based on whether they can fill a niche in his existing toolbox of solutions. "We are pretty content with what we have and typically bring vendors on to fill a niche or to improve what we already have," he said. "Or we add new partners when one of the vendors we work with becomes complacent."