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Is it Really Risky to Buy through a VAR? We Think Not

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September 26, 2011

Is it Really Risky to Buy through a VAR? We Think Not

By Linda Dobel, TMCnet Contributor


As anyone who has made a business technology purchase in recent years knows, companies in the tech sector often rely on value added resellers (VARs) to sell and service their products. (Service is where the value-add comes into the equation of resale.)


Vendors like to employ the services of value-added resellers for a number of reasons. Among them is their ability to create operational efficiencies that they might be able to with a direct sales force because VARs often have larger networks. In addition, as Nate Nead said in a July 1 post this year on Deploid, “By being in direct contact with customers, VARs help a large corporation with a “helicopter view” get a microscopic perspective on the needs of their customer base.” He went on to explain that another benefit of VARs to vendors is that because they aid in providing customer support, “the distribution network can become more customer-centric.”

So, from the end-user customer perspective, what could be wrong or risky with this scenario? Apparently there has been some hesitation on the part of some end-user companies to buy through a VAR because they have concerns about ending up with a disconnect in the support and service they will receive or are confused about who will be providing them with support.

While this might prove to be an issue with a small number of vendors and their value-added resellers, it is not the case for most, especially if the end-user takes the time to learn about the relationship between the two before they enter into a relationship with a VAR.

The key to working with a VAR without worry is to be sure it has a seamless relationship with the original solution provider. Actually, it should be more than a seamless relationship: it should be a seamless partnership.

A prime example of a company that has achieved seamless partnerships with its VARs is Zeacom. Zeacom (News - Alert) provides unified communications and contact center software for small-to-medium-sized enterprises and sells its Zeacom Communications Center (ZCCC) software exclusively through VARs and its channel partners.

What makes Zeacom such a great example? The Vice President of Sales at Zeacom Brady Cox (News - Alert) was recently quoted in Connected Planet Online as saying of its sales and support process, “A key driver for Zeacom’s success is our ongoing commitment to customer service, and a belief that a sales cycle continues long after a deal closes.”

Customers are obviously reacting to this arrangement and rewarding Zeacom with purchases through its VAR network. An article in Telecom Reseller (News - Alert) quoted one of Zeacom’s VARs, Dallas-based Source Telecom, that says it all: “I’ve won every bid where I’ve proposed Zeacom,” said Debbie Magnanti, director of Sales and Support Services at SOURCE Telecom. She explained in that article that, “Zeacom differentiates us from the competition with its seamless, agnostic approach, architecture and better, more efficient customer care.”

That same article said Zeacom provides it VARs with a host of resources and unlimited access to all levels of personnel at Zeacom. In addition, the article said, “Once a customer comes on board, Zeacom provides a full portfolio of on-site, face-to-face end-user training.”

The take-away here is that if a company offers a superior product but sells and services it through a VAR, as long as the company has an established and proven partnership with its certified VARs like the one described between Zeacom and its VARs, the proposition is not a risky one at all.  


Linda Dobel is a TMCnet Contributor. She has been an editor in the contact center space for more than 25 years, and has the distinction of being the founding editor of Customer Inter@ction Solutions (CIS) magazine. To read more of her articles, please visit her columnist page.







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