"Creating Solid Channels with Value Added Distributors"

Often, when breaking into new markets a favored route is to use a well-established, quality distributor to take your products to new resellers and in turn, new end users. When deciding upon this route, it is crucial that you engage with a distributor that best fits your desired business model, and echoes your company’s philosophy. By working with a value added distributor, they can give you an almost immediate impact into your chosen market.

There are a number of advantages to working with a distributor, such as ongoing communication and marketing programs, product managers, sales teams, as well as pre and post sales, to mention but a few. However, by not having the most ideal fit for your business, it can lead to loss of time to market, increased expense, decreased market share, and can set you back months even years.

At Bassi, we have been working with a number of value added distributors in different countries, both broadline as well as specialist, and we take a very pragmatic approach when engaging with a new company.

So, when deciding on the best profile of distributor that is an ideal match for your products, we then consider if they meet the following criteria:  

the Ideal distributor: 

Increases Revenue. 

Decreases Costs. 

Enhances Cash Flow. 

Available Resources. 

Limits Liabilities.

So, the next stage is to carefully consider their business model and how that would fit with your products and preferred route to market. We then aim to ensure that each chosen distributor fully understands how they relate to your company’s products and desired revenue goals. Only by doing this can we guarantee that they will be the Ideal Distributor.

We do this in the following ways:  

market segmentation: 

• Having sufficient reach into the market to find your ideal end-users.
• Full understanding your market sweet-spots.
• Knowing who your competitors are and the advantages you have over your competition.
• Ability to competently articulate your unique selling proposition.
• Collaborating with any complementary vendors to create an even more attractive value proposition. 

channel strategy: 

• The importance of the reseller channel to your business.
• A clear vision of your channel strategy, such as the number and profile of partners.
• If you have a direct sales team, how best they can work with the channel.

profitability: 

• Understanding your future product strategy.
• Catering for the right profit model to maximise margins.
• What lead generation and selling strategies will be employed.
• Clear identification of the costs associated with selling your products.
• Any particular administrative processes that need to be put in place.
• What support services can be provided.