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Are you in danger of becoming ‘just another reseller’ in a margin-squeezed industry?

Being different is good for business.  By definition, it sets you apart from your competition and stops you from being Just Another Reseller (JAR) - and there are many JARs in the UK Channel, all of which are competing largely on price for the same business.  The result? = low margin, tactical deals.

Just take a look at the CRN Top VARs 2018 list and you will see there are plenty of resellers on the list that continue to grow sales, but their margins are coming under increasing pressure.

Take the time to understand WHY your operating margins are falling

The sales model of the JAR tends to be order-based, as opposed to annuity-rich contractually based, with price being the only differentiator and the only mechanism a salesperson can use to win and manage client relationships.

While JARs can make good money, their dependency on their most capable salespeople can be very risky. Salespeople leave, and when they do it is common for client relationships, or at best margins, to deteriorate.

A salespeople-centric business model is also expensive as resellers will often poach salespeople from their competitors to help replace those they have lost – often paying a 10 to 15 per cent premium in the process. The result? = higher costs with no guarantee of a 10 to 15 per cent increase in sales.

If you have slipped into JAR territory and want to develop a stronger and more valuable business, now is a good time to set the transformational process underway.

The answer? A compelling value proposition

A relevant and compelling value proposition can help reduce sales cycles and boost profits.

The starting point here is to establish strategic business objectives, these can then be used to create focus in aligning your product/service propositions to ensure they are relevant to target audiences and deliver ‘real’ value together with the right customer experience.  Nothing really new here, but something few Resellers review/do often enough.

The transformation process to becoming an VAR

If you want to develop a stronger and more valuable business start the transformational process with these 10-steps:

  1. Understand your current and desired state
  2. Choose what you want to be famous for
  3. Do your research
  4. Choose your partners wisely
  5. Define your proposition
  6. Define your ideal customer journey, and broader customer experience (CX)
  7. Optimise your remuneration strategy
  8. Optimise your people strategy
  9. Give your people the tools to succeed
  10. Make some noise through your sales and marketing efforts

Or call us and let us help you fast track the process!  We’re helping your competitors increase their chances of winning business – maybe we can help you too.

Contact Boost to learn how we can help improve your business performance.

Call: 0203 740 4074
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