Driving Higher Margins
One of the country’s premier hardware/software distributors needed to be able to package and sell complex technology implementation services that were consistent, repeatable and cost-effective. In-house personnel could handle most implementations without any problem, but more complex technologies required outside resources with specific capabilities. Their customer, one of the largest technology product distributors, had previously had to hire IT consultants for these implementations, which proved time-consuming and inefficient, without providing the scalability they needed.
The search for product-specific, on-site engineering and consistent, scalable delivery compelled the distributor to turn to Infinite Resource Solutions.
“Our partner’s primary business is selling hardware and software products not engineering and implementation services,” explained the partner’s vice president, business development. Although IT consultants were engaged in the past, profit margins were impacted and often didn’t solve the problem. The customer would still have buyers in the future who needed on-site engineers, and the existing consultant route didn’t provide a scalable, repeatable solution.
What the customer primarily needed was a services “bundle” as a series of SKUs for order entry â€” that would make the delivery methodology and services enablement understandable for everyone involved.
The partner selected Infinite because of its reputation in the industry. The distributor knew that Infinite uses a bundled approach to services, one that can be easily replicated and which supported the distributor’s transactional business model. This was the optimal approach, because our partner could easily sell the on-site engineering and implementation services as an “”add-on”” to product sales, and Infinite could consistently deliver complex implementations successfully.
For our distribution partner, Infinite’s bundled solution provides incremental revenue by providing a standardized service offering that can be attached to any order. This means additional sales opportunities with higher margins for the distributor. It also drives future incremental revenue â€” since the bundled services are easily scaled and repeated as necessary and positions them as a turn-key solution provider of complex technologies.
The customer came away with high-quality implementation services on its more complex technologies â€” all bundled into a single package from their product distributor.