Continued search of some vendors for better market reach through the retailing sector, has created a fear of erosion of channels’ value among some resellers. Recently, I was talking to some resellers in the eastern region. Some of them have switched over to other business fields, and a few of them are preparing for the same. However, majority is full of spirit to continue, especially those who are doing system integration.
Severe competition too is one of the major reasons behind the channel partners’ frustration. However, as far as system integrators (SIs) are concerned, most of them are busy with preparation for catering to the emerging needs of the gamers and entertainment enthusiasts. Besides, demands are increasing in the Networking and security fields too.
While talking to some of the successful resellers, about the causes that they attribute to their success, I got a few points. Let me put those in front of you, assuming that those will make the community members – rethink, who are planning to wind up.
I found a concord among the business owners as they all informed, the most important thing is ‘Are you selling the right brand’?
What does it mean exactly? Every reseller has to ascertain what kind of promotional support is being stretched by the vendor? Is the vendor attending to the service calls promptly? Does it make changes in the price list very often? How soon the next upgraded models are launched? Does the company offer reasonably frequent sales and technical training to its resellers? If so, on whose cost? How does the vendor communicate with its channel? Does it have a healthy compensation plan in effect?
If majority of the answers to these questions are favourable to the reseller, then only an association with such a vendor may lead to a profitable path.
As far as the question of preferring retailing outlets of some vendors, mostly of finished products, is concerned, our community members should not overlook that some new vendors are still enthusiastically coming up with aggressive channel strategies to distribute their products through the IT channel.