https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Sales & Marketing


Selling Products Along with Your Services, Profitably

  • Written by Bob Godgart 2
  • April 6, 2010
Like it or not, products are an integral (and important) part of any IT Service business. Product s

Like it or not, products are an integral (and important) part of any IT Service business. Product sales and services sales go hand-in-hand, drive each the other, and produce a whole that is much bigger than the sum of the parts. With the latest product and services automation tools available today, if you’re not realizing a healthy balance of product and services revenue you’re likely leaving serious money on the table, and setting yourself up for erosion of your existing customer base.

Here’s why…

Back to the Future: A bit of VAR History

The term VAR (Value-Added-Reseller) came about as an evolution of the pure product dealer or reseller, who could make enough money on the margins they got pushing hardware for the large product vendors they represented. As margins got smaller and products got more commoditized, the dealer/reseller started to “add value” by either bundling together several products – often from a variety of vendors – to create so-called turnkey “solutions” and/or services combined with the product – such as training and implementation.

With the proliferation of more complex networks and systems, the break-fix repair and maintenance services side of the business expanded, and with the advent of Remote Monitoring and Management (RMM) tools, the Managed Services business model evolved, moving many VARs into an almost pure services business model, positioning themselves as “trusted technology advisors.”  IT “consultants” now abound, and many firms have completely given up on the product sale: “I’ll tell you what to buy, Mr. Client… then you can go out and get it from someone else.”

Don’t Change Your Business Model – Use Today’s Technology To Expand IT!

That’s all well and good, and you certainly should NOT think about changing a successful business model that is working for you. But here are some things to consider in evaluating potential big opportunities that you may be missing:

1. Product Sales Drive More Services Sales. You may or may not be making big margins on product sales today, but there are a variety of services and accessories/upgrades that can be attached to a product at the time of the sale – configuration and installation, training, warranties, etc. – that could make the transaction more profitable. Today’s IT Business Management tools will automate the process of up-selling and cross-selling, and produce reminders when products are nearing their end-of-life timeframes.

2. Services Drive More Product Sales. MSPs who know what they are doing are in a prime position to move A LOT of hardware. Let’s face it, you are on the front lines of your clients’ networks and you see what hardware and software is missing or inadequate for you clients’ operations. And, you are the resource to replace the items that fail and need immediate replacement. You are in close contact with your client and their business operations, and are in the perfect position to recommend for them future major technology projects.

What’s more, you have the opportunity to offer and deliver the consumables and supplies that often carry a nice annuity for certain types of technology products. Today’s Back-Office Quoting and Automated Procurement software can get you in the game for all these things.

3. The Opportunity for NEW Revenue. Admit it. Your customers are already going online to buy technology products from someone else, but with today’s technology, there’s no reason you can’t make it just as easy to buy the exact same products from you – at the exact same costs (maybe even lower) – and still make money.

That’s because there are hosted e-Commerce tools designed specifically for IT resellers. The best ones will give you total control over the products and prices that show up in your quotes or in your online store, include tools to automatically pull the best pricing from multiple distributors and let you set up different pricing and products for different customers.

Find a solution with built in tools that automatically recommend accessories and companion products or push close outs and specials and you can drive incremental sales without involving a dedicated salesperson or other resources.  In fact, with the right purpose-built e-commerce solution you can make margin even on low cost items because the transactions can be automatically processed, end-to-end, with little to no intervention.

So, spend some time looking at your own business.  Have you reduced the product side to making recommendations to clients, or can you bring some of that business back inside?  If you abandoned the product side because costs were high and margins low, today’s e-commerce automation tools might just change that equation for you.

Bob Godgart is the CEO of Autotask Corp., developers of Autotask hosted professional services automation software, the VARStreet family of advanced quoting and e-commerce tools and Taskfire, a hosted service desk and ticket management system sold by IT solution providers for businesses of all sizes with internal IT resources. Monthly guest blogs such as this one are part of MSPmentor’s annual platinum sponsor program. Read all of Bob’s guest blog entries here.


Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Best Practices Cloud From the Industry RMM/PSA Sales & Marketing

Related


  • No Racism
    Racially Charged Tweet Costs Alteryx CRO His Job
    Numerous individuals, including a customer, criticized Alteryx for the tweet, which led to the CRO's resignation.
  • Select a Hire
    AvePoint Taps Ingram Micro, Palo Alto Networks Vet to Lead Channel
    He held channel exec roles at Ingram and Palo Alto Networks
  • Word conclusion on paper
    Microsoft Conclusion on SolarWinds Hack 'Conflicts' with Other Messages
    A concerning aspect of this attack is that security companies were a clear target.
  • Vendors: How Do You Measure a Partner Relationship?
    Vendors still struggle to gain a genuine insight into their partners’ needs. So what can they do?

One comment

  1. Avatar Gravity Gardener April 7, 2010 @ 2:47 am
    Reply

    As you grow the company, business applications can be installed based on need, costs and return on investment. Business software in the categories listed below can assist your organization to become more effective and efficient.

    1. Customer Tracking Software – as your customer base grows it is crucial to retain your clients and keep them satisfied long after the initial sale. A happy customer can provide a wealth of references and repeat business. Tracking your customer behavior through sales and into support is a key strategy in long term growth.

    2. Business Continuity Planning Software – As your need for technology and information increase, your business and infrastructure must be up and running 24 hours a day, 7 days a week. Disaster recovery planning can help your company prepare for catastrophic failure of your communication, financial and manufacturing systems so your company can be operational and functional as quickly as possible if a disaster strikes.

    3. Small Business Payroll Software – Managing payroll is an essential component to any business. Ensuring your employees are being compensated properly and you adhering to governmental regulations regarding payroll taxes and 401K plans is critical.

    4. Small Business Inventory Management Software – If you are a manufacturing facility, your inventory systems can help ensure your products are manufactured and delivered on time and will help maintain costs typical in a warehouse environment.

    Gravity Gardener

    http://gravitygarden.com/my-business-software

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • The Smart Money’s on a Staged Approach to Security Services Provision
  • Xerox Financial Services Launches to Help Enterprise, SMB Customers
  • Protegrity Partners Get New Program with Added Training, Certification
  • Getting Clients Ready for an 88% Increase in Cloud Adoption

Galleries

View all

Critical Threat Protection Steps MSSPs, Other Partners Must Take Now

February 26, 2021

Industry Perspectives

View all

The “Roaring 20s” Are Coming

February 25, 2021

Three Ways MSPs Can Improve Supply Chain Security

February 24, 2021

SASE: The Key to Mitigating Business Transformation Risk

February 22, 2021

Webinars

View all

A Partner’s Perspective on Channel Success in 2021

March 17, 2021

XDR and Why it Matters to MSPs

March 24, 2021

Top Security Trends Impacting Technology Security Providers In 2021

March 25, 2021

White Papers

View all

Ready To Add Cutting Edge IoT Solutions To Your Portfolio?

February 25, 2021

What Is The Value Of Distribution For The Internet Of Things?

February 25, 2021

The Internet of Things (IoT): Where do You Begin?

February 25, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

#Threatprotection is no small matter for #MSSPs. Find out what vendors say you have to do this year to protect your… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

Cloud strategies and cybersecurity are key, and #COVID19 will have more impact than #Brexit on U.K. channel, says… twitter.com/i/web/status/1…

February 26, 2021
ChannelFutures

.@PaloAltoNtwks unveils latest NextWave #partnerprogram. #cybersecurity dlvr.it/RtVngg https://t.co/bBkobGzjgD

February 26, 2021
ChannelFutures

.@JuniperNetworks is building synergies between the solution sets it acquired last year. dlvr.it/RtVdVL https://t.co/d21FcnLEai

February 25, 2021
ChannelFutures

.@Arcserve and @StorageCraft to merge, expanding both #dataprotection vendors' market from #SMB to enterprise.… twitter.com/i/web/status/1…

February 25, 2021
ChannelFutures

The golden age of the #Channel is here. @ComcastBusiness #dataconnectivity #SDN #desktop #security #UCaaS #IoT… twitter.com/i/web/status/1…

February 25, 2021
ChannelFutures

.@OneLogin hires @pulsesecure, @Juniper Networks vet as VP of global channels. #cybersecurity dlvr.it/RtVThK

February 25, 2021
ChannelFutures

.@Fortinet loses another channel vet, this time to @DeepInstinctSec. #cybersecurity dlvr.it/RtVR1t https://t.co/XvY0UQDzQL

February 25, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X