What is a Value Added Distributor?
As the name suggests, a Value Added Distributor (VAD) offers supplementary services & solutions that deliver extra value to clients in addition to the pick, pack & ship services for the products they sell. In contrast to distributors, VADs generally offer additional support besides delivering the product or service.
The new breed of distributor
In the present digital age, VADs are playing a key part in the emerging multi-vendor, multi-disciplinary settings that involve a shift towards performing multiple roles rather than just maintaining IT functions. Whether it be vendors or end-user companies, both are welcoming this trend change that is providing additional value to either side.
Value to the customer
The age of vendors laying down the rules & distributors exerting their authority in the channel is long gone. Nowadays, collaboration & agility that provides long-term value to customers is the name of the game. The top VADs support a wide array of leading vendors, thus ensuring no brand monopolies. Choosing the correct distributor now revolves more around getting a reliable strategic partner rather than just getting a product or service delivered.
Benefits of Partnering with Value-Added Distributors
As per research, most technology vendors reach their market by utilizing partnerships with distributors as the main route. Around 80% revenue of technology vendors comes from distributor partnerships. With VADs by their side, vendors get to have well-trained & supervised sales arms. Moreover, VADs play a vital role in go-to-market strategies. Let’s get to know the various benefits in detail!
A Fully-Equipped Sales Team
VADs generally have a completely equipped sales team to sell the products/services to their respective target markets. Experienced sales professionals can also make suggestions regarding the marketing of a specific product by emphasizing its various strengths & market position. Additionally, Sales Channel Managers are the point of contact for channel partners and are responsible for building & managing reseller networks.
Product and Market Specialists
VADs with a proven track record in a particular market have a comprehensive idea of the market and can provide related recommendations, data, valuable feedback & insights to resellers. This is particularly vital for B2C companies as they typically don’t have access to such info. Moreover, VADs possess a sales & technical team that usually has a better idea of the product as compared to the reseller.
Through their expert sales & technical team, VADs are accountable for delivering routine product training to help channel partners. These regular training programs are particularly important for new sales representatives of the channel partner team. In addition, they are significant for newly launched products at their go-to-market stage or the relaunch of existing products with recently added features.
VADs possess in-house professionals with technical expertise in various products. These specialized professionals can support solution design, development, product demonstration & system integration. Besides distribution, VADs can provide consultancy & customized solutions and implementation as well if required. Hence, VADs can play the role of a software house that can help in the development of different products.
Credit Facility Options
VADs via credit lines, margin-based pricing & leasing options push down the entry barriers for resellers to enter the market and sell a particular product. This allows several small and medium-sized resellers to partner with VADs to sell products that would otherwise not be possible.
The Value of Value-Added Distributors
VADs play a vital role in the success of any newly launched technology. Product vendors can convert their potential customers into sales through a suitable VAD partnership supplemented by effective sales & marketing strategies. Multi-vendor business models and multi-disciplinary environments are currently emerging in a big way, and this only bodes well for the entire business channel, from vendors to end-users. VADs like FVC that offer cutting-edge & tangible solutions across vital areas of enterprise computing are leading the way by ensuring maximum ROI! FVC's vast experience & technical expertise is backed by absolute service excellence and state-of-the-art innovation. If you are a technology product vendor or reseller, then contact us now by submitting the form below!
1) How does distribution add value to products?
Distribution adds value to products by providing easy & convenient access to consumers.
2) What is value-added reseller model?
Value-added reselling is a business model that involves providing services beyond simply selling products by offering additional features, solutions, etc.