VARs need a better solution

Delivering what customers need is more important than keeping the price down, writes Gary Fowle

Most resellers would acknowledge that the art of successful selling is to deliver good value for money and build loyalty among customers, while boosting their margins.

However, when faced with challenging market conditions, strong competition and a widespread desire to reduce costs and capital outlay, there is a temptation to forget about delivering what customers need and to focus on just selling at the lowest price point.

Wireless technology is a good example of this. After many years of hype, most of us would agree that we are now working in a world where it is possible to go the whole day without needing to plug in a network cable at all. Indeed, UK train operator GNER announced only recently that it will complete its project to equip all of its trains for wireless internet access by August 2006. This is part of a wider vision to turn passengers’ train journeys from dead time into productive time.

So, if train operators have identified that their passengers want to be able to use their notebooks while on the move, why are resellers still selling customers low-end notebooks that do not have built-in Wi-Fi connectivity?

Selling a solution that has a higher value – both to the reseller and the customer – isn’t always that difficult, but are many resellers are not doing it enough. Some seem to be scared of losing out to a lower bid for the business. But this fear often means that customers are getting the wrong solution for their needs.

I have seen this first-hand, in situations where resellers were pitching entry-level products at the lowest possible price because they were convinced that this was all their customers wanted from them.

In fact, what the customer really wanted was to be guaranteed a low cost of ownership, a good set of features and added assurance about reliability. The outcome benefited all parties, because customers ended up with a better long-term platform for their applications than if price had been the only criterion.

It is up to both vendors and resellers to do their homework and find out a bit more about the factors that influence customers’ buying decision so they have a better chance of selling them the right solution.

This may sound like going back to basics, but it is necessary if all parties are going to end up with a better solution.

Gary Fowle is marketing director at Fujitsu Siemens Computers.