I have a lot of experience with value add reselling as I am part owner of a corporate networking VAR in business for over 20 years. There is a renewed interest in my industry as companies move away from product sales and into services. Cisco and Symantec are two examples of companies that have, in the past few years, targeted the VAR market heavily and both offer VAR's support through deal protection programs and sales training. They want companies to become 'trusted advisors' not 'product pushers'.
How this works:
If I'm a Cisco reseller and I respond to an RFP for 10 switches, I will have to compete with the big distributers and lose on price every time. If, however, I've identified a client, worked with them to identify a specific need such as security, and designed the solution, Cisco will protect the deal by preventing others from registering it and giving me a discount bigger than them. In order to get this discount, however, I have to show that I have a specific talent (in this case security) than the big distributors and have worked to identify the deal. Any networking company can sell a switch, but not anyone can claim to have certified Cisco security professionals on staff to ensure the product is installed and configured correctly and support it going forward. That specialization is my value add and has led to a 50% growth of Cisco business in the last year.
How this can benefit ANY business:
Identifying the value your company brings to market will help you both sell the business idea and bring in market share. Each business is different, but some of the concepts are the same. Look through your business model and identify how it is different and how that is helping the consumer buy my product. This is not a comprehensive list but here are generic ways to think about adding value to your offering:
1) Service: Good service is always a value add that everyone states they will do. Back it up with an SLA and make sure you keep your word. We offer 4 and 8 hours response contracts and work to meet them. Don't over promise, be realistic. If you set an 8 hour response expectation and get there in 4 hours, you're a hero, if you set a two hour response expectation and get there in four, your toast.
2) Specialize: How do you compete in a saturated market? Specialize. Five years ago we were a run of the mill network VAR. I took my company through a specialization in network security which lead to a vertical in the local banking market. Security assessments led to security infrastructure deals which led to long term customers. Look at the PC amrket. Alienware saw a niche in gaming and took it. Could they have completed head on with Dell and HP otherwise?
3) Pricing Value: Notice I didn't say price by itself. Price alone is irrelevant if your product is different enough, just look at the car market. You can buy a car that gets you from A to B for $15,000 or $50,000. What's the real value in the $50,000 car? Answer for yourself and you will have the added value for that car. Is it worth that much more to you? Maybe, maybe not. Notice you don't see two Toyota Corollas for $20,000 difference in price. Are you selling the 'same car' as your competitor? Then be prepared to compete on price. Make a different car and you can find your market.
4) Value Demand: Don't add something you think adds value. Ask your customers if they really will percieve it as so. Is adding 'THAT' feature to the website adding functionality that will be used or adding clutter? If what you add is expected or unneeded, you may find you have extra overhead and have not added any value.
These are just some ideas, but they can apply to just about any business. Make your business stand out with some value that your competion doesn't have and sales will grow.
Good luck!





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