10 Tips To Manage Through Turbulent Times

The sky isn't falling. Of course, the economy could be better but millions of businesses all over the country are looking to grow their companies and looking for the technology to help them do it.

ChannelWeb recently asked executives from Arrow Enterprise Computing Solutions and some of its solution providers for 10 tips for resellers on how to manage their business in difficult macroeconomic conditions. Here are their answers.

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, a division of Entisys. "It's a lot easier to sell products and services that way."





2. Know your customers' total information technology 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," said Strohl. "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. 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," said Strohl. "There is more in that than what just seems obvious."

4. Focus on solving business problems for your customer -- not just selling them product. Anyone can do that, and solutions automatically sell more product, and are less price sensitive.



"Compliance regulations such as HIPAA [Health Insurance Portability and Accountability Act], the Sarbanes-Oxley Act and others are driving purchases around security solutions," said Jim Steinlage, president of Kansas City-based Choice Solutions. "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," said Steinlage.

6. Leverage the resources of your channel partners. Not asking for help from distributors or other solution providers could increase your cost structure and make you less competitive.



"Nettitude has worked with the DNS group of Arrow ECS for a number of years. We are able to tap into the specific product knowledge of Arrow ECS' technical team and partner with their sales and marketing resources to deliver targeted campaigns and drive sales," said Martin Watts, sales manager for Nettitude, a security reseller based in the United Kingdom. "This close relationship has contributed to a 25 percent revenue growth year-over-year in security products delivered by Nettitude."

7. Identify new customers. VARs must engage in marketing activities to find new customers. Without new customers, VARs cannot meet growth objectives and keep up with competition.



"New customers are indeed the lifeblood of a business," said Dan Lowery, president of St. Louis. Mo.-based Lowery Systems. "The intent is to get new names, and grow with them. By using resources that are available to us through Arrow ECS and IBM, the cost to us is greatly reduced."





8. Leverage supplier programs that protect margins. Supplier deal registration programs are critical tools for VARs to demonstrate and protect their value.



"I pay a dividend to train one person to track all certifications, rebates and SPIFs," said Lowery. "By utilizing market development funds from various sources, we are often able to put on a first-class event at minimal cost."

9. You can't be all things to all people. Know your value proposition, be able to articulate it and make sure your business is organized around it.



"It's never been more critical for VARs to have a value proposition and be able to deliver it. Communicate your value to suppliers and ensure your distributors are supporting that effort," said Andy Bryant, president of Arrow ECS.





10. It's important to know at all times where you stand on specific projects in order to predict revenue stream and the allocation of resources. "You really have to get underneath the pipeline and ask, 'is this project going to go or not?'" Bryant said.