Stormy weather
The channel can turn the current economic climate to its advantage, says Phil Jones
The channel is already jittery about how it will survive the current economic downturn, but all is far from lost. There are plenty of opportunities out there.
Resellers need to ensure they offer the most effective support to customers in the short term while taking steps to protect the long-term relationships in which they have invested.
Competitors will be coming in with short-term price cuts that are sure to unsettle customers. However, via knowledge from relationships about customer business models, growth plans and business reactions to economic trends, resellers can offer a more consultative alternative.
Price isn’t the only way to a sale.
Resellers are in an ideal position to understand their customers’ businesses and what kind of technical features are actually going to drive long-term savings or help solve current productivity or efficiency issues.
Could duplex printing, for example, mean that paper costs are slashed over the next 12 months? Could scanning to email increase efficiency and release staff for business development work?
Will there be an increased need for colour printing as companies take their marketing in house?
By focusing less on price cuts and more on showing your knowledge of a company’s long term needs, you may protect a relationship responsible for larger orders in future. Be proactive with cost-saving advice. That will position you as a collaborative partner, maybe for years.
The market may be slowing, but most service businesses will be upping their prospecting – presentations and pitches will be increasing.
Is there a need for a high quality printer for introductory packs and proposals? Consider what the main activity focus will be for customers, and work from there.
Everyone likes to have a choice. But put pages of potential options in front of a busy IT manager and he or she may decide not to bother with a purchase at all. So keep the number of choices down. Offer a business lunch menu, not a la carte.
Although people will be looking for a bargain, stand your ground and justify your value and expertise. Look for compromises that will help both businesses.
If you do offer a discount, can the customer pay more quickly? Could you offer a better long-term package through a leasing agreement, rather than a one-off payment? For every concession you give, ask for one from the customer.
As well as making your relationship with your customers more effective, make sure your own house is in order. It may sound simple but ensure you’re running at maximum efficiency.
Get rid of anything eating up costs, such as old stock that isn’t shifting but taking up space. Get it priced down and moved on.
Make sure your distribution partners are paid on time and that you stay off the bad payers lists. Chase up any recurring late payers.
Phil Jones is channel director at Brother UK