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In the old days, choosing an IT distributor was simple: who has my product in stock, who has the cheapest price, and who can ship it the fastest? But business has changed.
The value of a proper IT distribution partnership cannot be understated, and you need to raise your expectations on what an IT distributor can deliver to your business. Choosing the right IT distributor to support your business should be an important decision that you consider carefully.
If leveraged properly, this partnership can open new doors for you, become an extension of your team, and even provide robust financial support beyond just offering you a line of credit.
By the way, I have extensive experience on this topic. Click here to schedule a free Strategy Session with me.
There’s a lot of choice out there. So what should you focus on when making this important decision?
What’s important in an IT Distributor?
I call them the 5 P’s. Here are 5 important criteria when considering a partnership with a new IT distributor:
- Portfolio
- People
- Partner Focus
- Programs
- Platform
- Price – BONUS “P” at no charge
The Top 5 Things to Consider When Choosing an IT Distributor
The top 5 things to consider when choosing a new IT distributor are:
1. Portfolio
What products and services does your company sell? Not just today, but in the near future as well? Ideally you choose an IT distributor that can provide all of your product and service needs – single source style. That goes for hardware, software, cloud services, financial support, etc.
Managing multiple distribution relationships adds a burden to your team. Research the solution portfolio and ensure they can handle all – or at least most – of your needs.
2. People
Every distributor will tell you their people are great. But obviously some teams are better than others. If you have personal relationships with some of the employees, that’s a bonus. If you don’t, ask colleagues of yours that know these people and can vouch for their competence and professionalism.
And don’t be afraid to interview the employees. Get some questions prepared, and ask them, taking notes on their responses. You need to gain trust with the people that will be supporting your business. Make the effort to get to know them.
3. Partner Focus
What is their partner support strategy? This is different than their sales strategy. It’s one thing to get a new reseller onboard, but how will they support you over time?
Some distributors have “Customer Success” programs. Take the time to investigate and make sure they have a methodical, thorough approach to supporting their resellers long-term.
4. Programs
What programs do they have in place to support your business? Programs can be vendor-specific things – for example, Microsoft, Cisco, Lenovo, and AWS all have specific programs in place with distributors to support their partners. Investigate them.
Another example of a program can be financing. As your business scales, your financial needs will become more sophisticated. What experience does the IT distributor have in offering customized programs to help companies grow (e.g. creative loan terms, supporting M and A activity, etc.)?
5. Platform
This one is critical. Automation should be a top priority for you. Partnering with a distributor that has a robust and highly automated digital marketplace is critical to your ability to scale your business.
Automation brings efficiency and cost savings. Not to mention your customers will demand it. Having a fully automated procurement process that is completely integrated from end to end is a huge competitive advantage.
As a bonus, your IT distributor may have the capability of leveraging their marketplace as a white-label, customer-facing marketplace for your customers, where your customers can order directly in a self-service fashion.
Do your research. Make sure that your IT distributor can deliver all of the automation that your business needs for the future.
6. Price (bonus P included at no charge!)
Of course. The pricing has to be competitive. But I left this point until the end on purpose. Arguing over a 1% pricing difference is beneath you.
If the IT distributor can deliver on the first 5 things on this list, you can afford to pay a little more. It will be worth it in the long run.
Conclusion
Don’t underestimate the importance of selecting the right IT distributor to support your business. It can make a world of difference, so take the time and get the decision right.
Find out what The Most Successful MSP Business Owners Do 1 Thing Differently here.
