Tech Data Creates New Offerings For SMB VARs

When Tech Data decided to take a closer look at its business late last year, specifically with small- and midsize-business-focused resellers, the distributor didn't like what it saw. Despite all the work it had done with vendors to increase their focus on the growing SMB market, many resellers still weren't happy.

"We found that our service level wasn't cutting it, and a lot of SMB resellers weren't growing their businesses with Tech Data," says Stacy Nethercoat, vice president of SMB sales at Tech Data.

As a result, Tech Data recently launched SMBAccess, which features a newly created, dedicated SMB sales division to improve customer service for the distributor's clients. In addition, SMBAccess provides exclusive small-business promotions for resellers, enhanced credit, additional sales and technical support, and regional road shows hosted by Tech Data. Nethercoat says the distributor had received strong feedback from VARs after it introduced a pilot SMBAccess program during the summer. After introducing SMBAccess in the fall and taking a more proactive approach to helping solution providers grow their sales in the lower end of the market, Nethercoat says Tech Data has seen immediate results.

"It has been about a year's worth of internal work," Nethercoat says. "We've spent a lot of time realigning, segmenting and identifying our customer base, and it has definitely already added to our bottom line."

Tech Data also made another move on the services front by teaming with ComputerRepair.com to launch TechSource, a free service network for members of TechSelect, Tech Data's exclusive group of SMB-focused resellers. TechSelect is designed to increase their services opportunities as well as to help TechSelect VARs partner with one another. The TechSource service network is supported by ComputerRepair.com, an online services marketplace that enables users to post service requests and engage resellers listed on the company's site. (For more specifics about ComputerRepair.com's business, read "VAR Matchmaker" on www.varbusiness.com.)

Tom Ducatelli, senior vice president of U.S. sales at Tech Data, says resellers showed much interest about creating a formal service network. But unlike the Ingram Micro Service Network, which is run by Tech Data's top competitor, Tech Data decided to approach it differently by outsourcing the network to a third party.

"We're a distributor. We weren't looking to get ourselves into the services business, which is why we teamed with ComputerRepair.com," Ducatelli says.

Jeff Leventhal, president and founder of New York-based ComputerRepair.com, says the alliance between his company and Tech Data provides a unique offering for resellers. "This isn't just another 'me-too' services network," he says. "There's an ability for the VARs to own each service call and control their own destiny."

More than 11,000 solution providers, VARs and IT consultants currently use the ComputerRepair.com platform, including 30 TechSelect members that have already joined TechSource. "We have deep coverage across the country in every ZIP code," Leventhal says.

Tech Data hopes to have many more of its resellers join TechSource, starting with the entire TechSelect membership, and then open it up to other Tech Data reseller customers. "Our goal is to have all 500 TechSelect members in TechSource first," Ducatelli says.

Leventhal's company takes a methodical approach to ensure each VAR has the necessary vendor authorizations, product certifications and technical expertise. He also says ComputerRepair.com's customer-feedback ratings on each VAR make it easier for prospective clients to put service requests out and find the solution providers they think will do the best job for them.

"We've seen this work successfully already--eBay is an $80 billion company," Leventhal says. "Amazon's model also works off of customer feedback."

The addition of TechSelect members to the TechSource network should increase the number of quality VARs on the platform, since Tech Data carefully recruits and monitors the VARs within TechSelect. "It's an ideal situation because we already know TechSelect members have financial stability and have the right technical expertise," says Annette Taber, director of TechSelect.

Leventhal believes that TechSelect members will see immediate benefits from TechSource and ComputerRepair.com, such as an increase in billable hours for technicians and engineers, and enhanced partnering opportunities with other resellers. Mark Sehi, president of Sehi Computer Products of Rochester Hills, Mich., agrees.

"Geographically, being part of TechSource helps us expand our coverage because we can team with other resellers," he says. "We can also add technical expertise by working with other resellers."