Street Smarts

How Technology Resellers Can Sustain Growth in Today’s Economy

  

 delicious  

  

It is estimated that worldwide spending on enterprise technology, a driver of demand for computer equipment wholesalers, could reach $2.7 trillion in 2012, a 3.9 percent increase from the previous year, according to Gartner. It was the eighth consecutive month of year-over-year employment increases for the computer and software wholesale sector and the sharpest rise of 2011.  While the marketplace continues to grow, wholesale prices for computers and peripherals have steadily declined.  Prices charged by US manufacturers fell by 30 percent between 2003 and 2008.  Increasing reliance on cheaper foreign production can be expected to keep pushing prices lower.

While most companies have focused on offering the lowest price to stay afloat, that is no longer enough.  Adding customer value will be key to technology resellers in order to differentiate yourself from your competitors.  While most distributors offer value-added services such as hardware integration, product support, and maintenance agreements to provide customer solutions beyond being an intermediary between product and the manufacturer.  One key area can make a big difference in your sales is offering your prospects financing options.

Driving revenue is about making it easy for your customers to buy.  One of the ways you can do this is by making it easy for your customers to buy what they need—not merely what they can write a check for today.  By giving your prospects payment options that will help them need to buy your products, you are not only closing more business but you are able to differentiate your company in this tough credit climate.

Here are three key areas to consider when offering your prospects financing options:

Net 30 payment terms are no longer good enough. 

While many companies are seeing the day’s outstanding going higher and higher, it’s not enough to just extend payables.  This is costing you more money than you are thing.  By offering your customers net terms with a built in long-term finance option, you not only improve your own cash flow but you reduce the strain on your relationship with your customers.  You get paid upon delivery and your customers get the product they need when they need it, without sacrificing other projects and initiatives.

Keep It Simple

Customers love convenience.  Making your organization a one-stop shop for all your customer’s needs sets you apart from the competition.  By offering your prospects and customers virtual finance services, you help your customers feel comfortable about financing their equipment.  Offering financing after the sale is too late, by letting your prospects know what their options are before they buy has proven to deliver greater closing rates as well as more satisfied customers.

Train Your Sales Staff to use Financing and effectively

Sales training is a powerful ingredient for success in any organization.  You need to do more than just offer financing to your customers, you need to train your staff how to position these options to help close the sale.  Once salespeople realize how just a few simple steps in their sales process can increase their commissions exponentially, projections, quotas, and profit targets are quickly exceeded.

While corporate profits continue to rise and profits are strong, new competitors are entering the market place all the time, and many manufacturers are even starting to sell direct.  This causes many challenges to most Technology Resellers.  Fortunately, there are options available to help you differentiate your offerings.  Take the time and see the benefits to your company of offering financing options.  It will be time well spent.

To learn more download The Technology Resellers Guide to Financing Options.