Monday, February 2, 2009

Reseller, VAR vs Opportunity

Request For Proposal:
(10) Media Players
Vendor: ACME
Partnumber:ABC123

(5) Media Player Licenses:
Vendor: AJAX
Partnumber: DEF456

(1) Server License

You get the idea. A customer sends out an inquiry for a specified bill of material which is a fraction of an overall project.

What is the Job Name?
Who is the specifier?
Who else is bidding?

The questions go on and on. The traditional model for digital software, and hardware vendors is through Resellers. Being a reseller, we understand the value of this model. In the same breath, it offers some challenges.

When an RFQ is received with a bill of material specifying a particular brand, that we are not a reseller we are forced into one of (2) directions.
Obtain pricing from a competitive reseller.
Provide an or/equal solution to the solicitation.

The challenge for the software vendors is to determine how to deal with inbound inquiries that have not been assigned to a reseller. In today's climate it may be worthwhile looking at enhancing the model. Or, just maybe, If it ain't broke don't fix it will prevail.

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