Understanding added value

There are a number of ways in which resellers can truly add value for their customers. Craig Hill looks at how to stand out from the crowd.

The term ‘adding value’ is used in various business contexts and has become a buzz word for vendors working with the channel. But what does it really mean? How can the reseller best determine the measurable benefits of what is described as ‘added value’?

Added value means different things to different businesses. The following elements are examples of some ways that are perceived by manufacturers as added value.

• History and industry expertise: Working with a manufacturer that has well known brands and heritage in a particular area can offer benefits. It can give resellers knowledge of the market, advise on the interoperability between products and how the functionality of a device can be exploited in a number of applications.
• Access to R&D: If a reseller’s strategy is to make fewer, high volume sales to a corporate/public sector customer they will need evidence to support their tender. Manufacturers can share R&D to demonstrate a solution to a business problem.
• Marketing support and special offers: To make the most out of seasonal sales and to guarantee a good margin on promotions, manufacturers can support resellers by advising on which products to bun-dle and discounts on purchasing product bundles. Also involving resellers in advertising and PR campaigns heralds benefits.
• Incentivise the VAR: Incentive schemes are designed to boost the volume of product sales and also to create loyalty between the reseller and manufacturer. Incentives can be financial or reward based and aimed at individual sales staff or business units.
• The personal touch: A single point of contact or group of contacts at the manufacturer can ease the communications process. The knowledge that a reseller can call and speak to someone that knows about an order, and at the same time talk about the next marketing campaign or a pro-duct launch can save the reseller time and trouble.

These factors are by no means an exhaustive list, but are commonly associated with ‘adding value’ to a channel proposition. To ensure that they gain the most from a relationship with a vendor, resellers must establish their goals at the beginning of the relationship. They must make it clear to the manufacturer what their customers want and what they need. When your expectations are clear from the outset, your perception of ‘added value’ will live up to its name.

Craig Hill is sales and marketing manager at Imation.