In June I had the pleasure of attending a Varnex regional event in Chicago. Partners from Iowa to Ohio showed up to learn how new technology trends will impact the customers they serve. The highlight of the two day reseller event (besides the Cubs game) was the 90 Minute session with Mark S. A. Smith from Outsource Channel Executives. Heads were nodding in agreement during Mark’s unique and provocative presentation titled “Who Wants More Margin?”
Mark led with the “Ten Commandments of More Margin”. I will share just 3 of the universal truths that should become sales mantras for every VAR:
1. Stop Selling Products, Start Selling Outcomes: How often do you get emails from your customer saying something to the effect of “I need to your best price on 20 widgets”. STOP QUOTING PRODUCTS. Where can customers go to find products and prices? Just about anywhere on the internet! Don’t commoditize yourself. Move from the tactical level up to the strategic decision maker level. Why does the customer need this product? What are the desired outcomes? How are you as a VAR uniquely positioned to deliver the desired outcome? Sell the outcome and make more margin.
2. Every Deal Is Either Profitable or Strategic: This rule is closely related to the first commandment. Will selling this product at no margin lead to a much larger profitable deal? If not it may be time to walk away. Spending your time on unprofitable business is sapping your resources.
3. Know What Motivates EVERY Buyer, Especially Executives: Believe it or not, price isn’t the most important thing to every buyer. Different people in an organization have different motivations and incentives. Preparing a value proposition that satisfies the CFO, CIO, CEO and procurement team will lead to more sales. Get to know what motivates each buyer.
Call SYNNEX HP Business Development to learn how you can make more margin selling HP Printers and Supplies: