VARs: Demonstrate Your Position as a Trusted Advisor By Todd Baillie, Manager, Distribution Channels, LXE, Inc.
Decreasing resources from manufacturers means outsourcing to partners is imperative.
Every day we read more on how companies are "redeploying" their resources, or more directly how they are changing their support structure for their customers. This could be a change in manufacturing, operational cost cutting, and basic expense management. Generally businesses look to find ways to eliminate costs without changing their sales model as one doesn't want to neglect their customers at anytime -- but particularly not in these times when we need them more than ever. That said, it is unavoidable for us to look customers in the face and say, "we need to look at how we do things, and while we commit to maintain our service levels, just as you are likely doing -- we are looking at new ways to do so."
Consider Value-Added Tools
"Value-Add" is not limited to vertical markets, but geographic and creative opportunities abound as well.
Have you picked up the phone to contact your local sales, engineer, or support team from your primary vendors? Have things changed? Do you think those vendors have accepted lower sales even with those changes? Absolutely not. Manufacturers are looking for partners now more than ever to be our "feet on the street." "Being there" is as much a value as it has ever been, and while customers will almost always demand a value from channel partners beyond mere delivery of goods, the opportunity to now be seen as the expert is as strong, and unquestioned, as ever. New products are also being introduced as many manufacturers will use this carrot going in to 2010 to convince customers to upgrade and replenish. They will also be offering new products complementary to their historic line card looking for new revenue streams, this could also represent real opportunities for resellers to be seen by the customer as the true provider of value.
Seek out manufacturers who are actively looking to add value to their customers by introducing new products, and immerse yourself in to this value chain. I've had a number of acquaintances who have recently found themselves "redeployed" because of cost-cutting measures -- only to be rehired back by the original corporation and often at higher rates. Manufacturers and customers alike are starving for lower cost options to help us deliver our products within your value solution more so than ever. Can you develop new avenues for current manufacturer products? Can you be seen as the expert on a new product, and market, for a manufacturer allowing them to want, or need, to invest in you.
Differentiate Yourself; Stand Out
Become the leader now, and as capital is released, become the only option.
Once you have found a manufacturer that will "allow" (directly stated or not) you to immerse yourself within their sales and marketing processes, be sure that value is recognized and properly rewarded. Remember the margin you make is no different than a commission being paid to a sales representative, an ad campaign introducing a product, or a change in manufacturing.
Manufacturers with static product lines and overdeveloped channels (read: anyone with a pulse can sell their products) are not offering you the chance to insert any value. Resellers can however look for opportunities to engage manufacturers with new products going to complementary markets, and becoming the resource for them as they embark on new endeavors to survive in these times. This will give you the chance to become the trusted adviser, and leader, for both customer and vendor as the new solution is embraced ÃÆ'¢â‚¬â€ and eventually flourishes.
Todd Baillie has more than 15 years of channel sales, marketing, and operational experience working with manufacturers, distributors and partners. He has been with LXE for the past six years where he has played a major role in developing the company's channel program.
Decreasing resources from manufacturers means outsourcing to partners is imperative.
