The division has started. Some resellers are thriving while others are closing their doors. Just this morning, while meeting with a channel management colleague of mine, I learned that a well known reseller in the Southeast will soon close their doors within the month. Certainly, part of this problem is the economy. However, we agreed that many resellers are just poorly managed. The economy is simply exacerbating and exposing this fact. The bottom line:

Most resellers are acting like VARs – not solution providers:

• Be an advisor: If most of your selling involves product install, you’re in a commodity business. Product numbers are down, however many consulting firms are experiencing growth. Why? Companies need leadership. Their leadership is worried and strong advisors are welcome. Are you letting the economy pull you down, or are you stepping out to assist people who need help? Do the latter and move forward.

• Marketing: Many manufacturers are pulling back on marketing funds and even moving channel personnel into direct positions. They’re in trouble on Wall Street. Don’t get sucked into this vacuum of slow product sales. Solution providers can still move ahead by marketing solutions, searching out pain (such as we’re seeing in the security market), and providing service oriented solutions and managed services. Don’t stop marketing just because your vendor partners have stopped supporting the effort.

• Product Programs: Product contests and programs don’t produce the kind of gross profit you need to stay afloat in this economy. Your customers are probably delaying upgrades and new product purchases. Offer assessments to mitigate risk, managed offerings to reduce cost and risk, and staffing to supplement IT staff reductions.

Are you writing award winning proposals?

• Only about 10% of the new proposals an average rep writes will ever close. That says two things; they are writing too early and to the wrong person.

• Do people actually read your proposals? I recommend 3 to 5 pages in a simple layout that is clearly written and easy to follow. Try Information Mapping software - http://www.infomap.ca/IM/Resources/Software/FSPro/ to ease the formatting burden.

• Don’t use proposals to sell. Selling is done in person while proposals are written to finalize verbal agreements. In fact, I call my proposal a letter of understanding for that reason. It is my final agreement which follows my verbal proposal.

• How about pricing? Are you delivering options or just proposing one final solution. Options help the client see a range of prices and approaches. Your job is to improve the client’s situation, offering them a roadmap to success. Often they won’t have the funding required for all that is needed, so provide a few options to get them started.

One of the first questions I am asked when conducting a workshop is, “How are the kids’ businesses doing?” Here’s a quick update. The bee farm produced a record yield this year, and we’re gearing up for the next season with high expectations. The bees are not in a recession! The horse riding school has doubled in size, mostly due to my daughter’s creative marketing. As I write this, she has 30 visitors paying to attend a horse “fun day”. Their participation is due largely to the endorsements of the current school roster. How many of them will sign up for the next series of classes? Probably more than she can handle! The physical therapy platforms my son builds are selling robustly. He is expanding with new PT offices opening right down the street. The calls have already been made and offers put together. Since my kids don’t know what a recession is, it doesn’t affect their sales efforts. Maybe we could all benefit by copying their undaunted focus!