Technology Channel VAR Financing Smart Money Tips by GTF

What do we mean by SMART MONEY?

Right Strategy + Right Capital = Provider Success

Execute the Right Strategy

When you think back, we have been called Dealers, Resellers, Enterprise Providers, Managed Services, Solution Providers, etc.  This reflects the ever evolving nature of the technology space and channel confusion created by vendors, and sometimes ourselves.  Why would we be constantly changing our name if we always knew our identity and function?

Simple! Our only value is as a Sales and Service agent.

Regardless of what our selling/service expertise is or evolves to – in response to changing technology and customer needs -

“The better we are at Sales and Services the higher our value, and the more we make.”

This is a remarkably obvious strategy but very easy to lose sight of. If an activity or opportunity doesn’t improve our position as a preeminent technology sales/service agent we should not pursue it.

For example, Solution Providers always struggle with a “low margin product” vs. “high margin service” financial dynamic. Yet, we are constantly being told by the channel press and vendors with an obvious hidden agenda, that the key to success is to abandon or “out source” product procurement and we should perform only technology related services.

To us, that is like trying to be a successful residential home broker without selling houses:
• The vast majority of customers want both a product and a service solution with one selling group responsible for both.

• To be successful in the Sale/Service business you must control all aspects of the customer experience or risk customer dissatisfaction, uninvited competition, account loss, sub-optimal financial returns and risk, wasted effort, etc.

• Common sense would imply that the more products you sell, the more (high margin) services you will perform; installing, maintaining, procuring, and advising on the products you sold. Therefore, the more valuable you become to the customer and the vendor.

Unfortunately, there are many examples that prove splitting product from service functions is a faulty strategy and focus.

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