You’ve started a small services-based business and you’re looking to increase your income a bit. A common choice is to become a reseller of products you work with on a regular basis. This seems like a good idea at first, but there are some things you need to consider before going this route. Some potential problems are listed below. This article in no way states that you should not become a reseller of any legitimate product, only that you should be armed with a few truths before making the decision for yourself.An Unintentionally Closed MindThis is one of the most pronounced drawbacks and it can really come back to bite you. Let’s say, just for the sake of having an illustration, you are a computer repair technician as I am. You get multiple calls from home users who need virus removal. When you go to remove the virus (or more realistically, viruses) from their computer you notice they have no anti-virus software so you offer to install your preferred anti-virus software on their system if they don’t have another preference for software. There is absolutely nothing wrong with this, and this is how many professionals work; they find a product which they like and which works and they recommend it when they see a need for it. If, however, instead of “I see you have no anti-virus software on your system, which puts it at risk for reinfection. I will be glad to install one for you if you would like.I can recommend some that have worked very well for other clients in the past if you don’t have any preferences,” you say “I see you don’t have any anti-virus software which puts your system at risk. I can install (product name) for you if you would like,” you could be shutting out an even better program just because of your reseller status with the first program. Likewise, if the new release of a competing anti-virus software is more effective and runs more smoothly than the one you are selling, you need to ask yourself if you would still recommend the one you have been working with or if you would do what would be better for your client. If the decision comes down to making the money as a reseller (meager though it may be), this may be a warning sign. If you own a services-based business, services need to be at the top of the food chain in your mind. anything that gets in the way of that could easily turn into a threat to your practices and reputation.Is Reselling Worth It?This may seem like a bash to the product-based companies that rely on their reseller channels for a portion of their business, but it isn’t. Let’s say you are reselling a product that costs $30. You have a generous deal with the manufacturers which gives you a 15% commission on each unit you sell. This is a nice commission as some places will give you significantly less. However, for each unit you sell, you get $4.50 in this scenario. You soon realize 15% isn’t as big as it sounds. I am not denying that if you sell a large quantity of the product that you can make a nice chunk of folding money, however for the small services-based business owner or employee, this is not likely to be a reality. The question must be asked, “What is my ROI for my time, energy and resources expended to become and be a reseller of this product?” If you are satisfied with the answer this shouldn’t be an issue, however it is an important question to ask.Why Are You Partnering With This Company?In a services-based business, it is important to keep your business revolving around services. When considering becoming a reseller, you must ask yourself why you are choosing each individual partner. Is it because you truly believe in this product or is it because of the commission you will be getting? It is important to remember your primary focus is the services you provide and the quality of service you provide to your clients. If you feel you have any motivation to become a reseller from anything other than to better your ability to do these things, you might want to rethink what you are doing.Again, I am not saying that becoming a reseller is a bad thing. It can be quite helpful and can aid in increasing productivity. The focus of this article has simply been to make you think about the possible disadvantages as well as your own motives. I wish you all the best of luck on your ventures.
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A Roadmap to Building a Great Brand
Let’s say I want to have a strong brand. How do I go about building a brand? Is there a process or roadmap that highlights the steps to follow? Here are 5 steps to building a strong brand:1. First, Be Different! Find a relevant customer benefit that you do differently and better than the competition. Ensure you have the organizational capability to continue to deliver this advantage over time and then commit to this positioning with total complete organizational focus. Look beyond the primary benefit and consider important secondary benefits as a point of difference. At Procter & Gamble, Tide is positioned on the primary benefit of superior overall cleaning. P&G’s other detergent brands have positioned themselves on other important platforms. Cheer delivers clean with superior color care and fabric protection. Gain uses fresh scent as proof of clean while Dreft focuses on gentle cleaning for babies clothes.2. Tap into Emotion. There is a big difference between “Product speak” and “Brand Speak”.In advertising and communication, product speak uses facts, figures, and product attributes to talk to peoples minds. It is a rational discussion design to logically convince the customer to buy your product. Brand speak goes after peoples emotions and tries to win people’s hearts. Branding appeals to what people are feeling instead of just what they are thinking. Branding understands that while people use rational thinking to help them “narrow down” what products they are considering, ultimately, the final purchase decision is almost always done on emotion. It is the emotional connection with customers that drives the success of brands like Starbucks, Nike, Apple, BMW, and even laundry detergent like Tide, Cheer, Gain and Dreft.3. Build your Brand Image. Once you know what you stand for, you need to commit to building the image of the brand. Define how the brand fulfills the hopes, dreams, and aspirations of your customers. In addition to the positive benefits, describe how it removes negatives experiences. Make sure new product development delivers a roadmap to build on this positioning because a strong brand image starts with a real difference. Develop all aspects of your brand identity, including visual imagery, emotional appeal and verbal imagery.4. Market the Image. Express, share, communicate, and live your brand image with “One Voice”. Make sure everyone in the company understands what you stand for, why that is important, and how they contribute to creating the image in the market. There is no better example that Disney. Every Disney employee knows their goals is to create a magical experience among their guests. They are fully trained on why and how to handle every task and every customer touch point. No detail is left out. Workers are called “Cast Members” and when they go from behind the scenes into the park, they transform into characters who have a critical role to perform whether they are acting as “Snow White” or whether they are scraping gum off the road. Everyone is “in character”. In the same spirit, every company should encourage all employees to embody the brand image of the company. From the CEO to the people in the call center, everyone plays an important role in reinforcing the brand image.5. Measure and Adjust. As the adage goes, “What gets measured is what gets done.” Any company that wants to build a strong brand needs to measure brand equity against the competition. Understand how the brand is doing, what customers think, how different do they perceive your positioning. Use this knowledge to make adjustments and to build and refine the brand over time.Great brands don’t “just happen”. They are conceived and diligently managed over time and with great organizational focus and commitment. But in the end, a great brand provides a strong ROI and is one of a company’s most valuable assets.
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