Article | August 13, 2019

To The Reseller: Make The Right Changes Today For A More Profitable Tomorrow

Source: ConnectWise

By Craig Fulton, ConnectWise

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Reselling is your comfort zone—it’s what you know inside and out. But it’s not providing the returns it once did. Increasing competition in hardware and software means you’re relying on margins that get thinner every day to keep your business profitable. Gartner has predicted that 40% of VARs will go out of business if they do not adopt a recurring revenue model. It’s time to evolve to save your business.

Disclaimer: We’re not advocating that VARs become MSPs. Just that adding services to your existing business has been proven to be significantly beneficial.

Paul Dippell, CEO of Service Leadership, Inc. , refers to this approach as being ‘services-led,’ meaning that you can remain a predominantly product-centric business. However, you shift to approaching the marketplace and the sales process with the service offering at the forefront of the discussion.

Get in the Services Game

The longer you stall, the more behind you become and your competitors just get further ahead, creating a snowball effect. Recurring services are becoming the norm, and sooner or later, your customers are going to look elsewhere if you’re not ready to meet this demand.

While change may seem scary, a brighter, more profitable future waits for you on the other side.

What if the change that you’re avoiding is the one that gives you wings to fly?