Don't be afraid to choose

Resellers do have a choice if their vendor partnerships fail to work for them.

Recent growth in the thin-client space has led to an increase in opportunities for VARs. More and more companies are opting for thin clients over PCs, and vendors are looking towards the channel to satisfy that demand.

On the surface it may seem as if resellers are in an enviable position. Not only are vendors keen to drive their business through the channel, but customer demand is high.

Naturally, the vendors expect their channel partners to boost their profits, but in the meantime resellers should also enjoy healthy margins for themselves.

However, many VARs are finding that while the vendor benefits from the partnership, their own position becomes increasingly fragile. Prices are falling, margins are shrinking and vendor support is weak in some cases.

The obvious answer is to terminate unsuccessful vendor relationships in favour of those willing to enter into a mutually beneficial partnership.

Unfortunately it isn't that simple, because resellers are obliged to deliver products requested by customers. To satisfy demand, resellers are finding that they have little choice but to align themselves with particular vendors.

Even worse, the vendors are well aware of this and feel no need to offer VARs a better deal.

If certain vendors are unwilling to alter their position, resellers are left with little option but to change their own.

Selling products with high levels of brand awareness might seem like the easiest option, and lesser-known products can look like the harder sell, but in the long-term it can be worth it.

Many customers look to resellers to advise them on product selection, which offers a prime opportunity to introduce products they may not have considered before.

The appliance with the highest brand awareness is not necessarily the best fit for the customer, so they will be grateful to resellers able to offer them an extended product portfolio.

The good news is that this situation doesn't have to continue indefinitely. But to a certain extent instigating change lies in resellers' own hands.

They can influence which products are on the shopping list and diminish vendor monopolies.

Introducing an element of competition is not a bad thing, and some vendors would do well to remember that it isn't only customers they need to keep happy.

Mike Kantrowitz is chief executive of Neoware.