Channel Insider, the go-to source for all things channel, recently published “Making Channel Promotions Work Better“, highlighting the benefits of using Channel Mechanics to simplify doing business through the Channel.
For most channel partners, admitting that you compete on price is almost like confessing sin. Most channel “coaches” implore partners to avoid such behavior.
The reality is that helping clients take the best advantage of current manufacturer and software provider promotions has long been a competitive advantage for the best integrators in our industry. Licensing expertise is as valuable as technical acumen. Configuring a less expensive solution is still highly valued by many clients.
For marketing promotions through the sales channel, vendors, resellers, and distributors often find themselves in a tug-of-war in order to complete the necessary paperwork, confirm the actual purchase, then reimburse all parties. Channel Mechanics streamlines this process, so partners can optimize on this symbiotic relationship, rather than worry about potential losses.
When taking advantage of vendor promotions, the partners’ assumption is that they will be kept whole, achieving the same margin performance they would have without the promotion. Someone else, either the manufacturer or the distributor, will absorb the discount. This does not, however, take into account the hidden costs of vendor promotions.
One old channel joke that stopped being funny long ago is that you could employ people full time whose only job is to process promotions, rebates, SPIFs (sales performance incentive funds) and other “back-end” dollar programs. Any reseller who employs such people will find no humor in that. Just cost.