How to choose the best IT reseller for your business

The IT value-added reseller (VAR) market is projected to grow from $11 billion in 2024 to $20 billion by 2032, driven by rising demand for cloud solutions, cybersecurity, and industry-specific digital tools. IT resellers help businesses access the right technology products and services by offering procurement, customization, and support. But with so many options available, how do you choose the right one?

This article explains what IT resellers do, why they’re valuable, and how to select the best fit for your business needs.

Key Takeaways

• IT resellers are intermediaries between manufacturers and end-users. They offer products and crucial services like installation and support, particularly through Value-Added Resellers (VARs).

• Partnering with IT resellers can lead to cost savings, access to advanced technologies, scalable infrastructure, and enhanced logistics capabilities, providing essential support for business growth.

• When evaluating IT resellers, key criteria include their market reputation, product range, expertise, and ability to provide ongoing support tailored to evolving business needs.

What is an IT reseller?

IT resellers connect manufacturers, distributors, and end-users, making it easier for businesses to acquire technology. Hardware resellers and software providers source products from original equipment manufacturers (OEMs) or distributors and resell them, streamlining procurement for companies.

Direct resellers vs. Value-added resellers (VARS)

There are two main types of IT resellers: direct resellers, who sell products as-is, and value-added resellers (VARs), who enhance them with services like installation, consulting, and support. VARs provide complete IT solutions, helping businesses manage their technology more efficiently.

For suppliers, IT resellers expand market reach and reduce support burdens by centralizing distribution. Businesses benefit from bundled IT solutions, allowing for streamlined purchasing and better resource management.

Solutions offered by IT resellers

IT resellers provide various services beyond just selling products. Acting as intermediaries, they connect end-users with OEMs and offer essential product knowledge, ensuring businesses receive tailored technology solutions. Many IT resellers bundle hardware and software, enhancing the value of their offerings.

Resellers also offer network security solutions, ensuring businesses can operate securely and protect against cyber threats. This comprehensive approach ensures businesses get the products they need and the expertise to deploy and manage them effectively, including support from service providers.

Emerging trends in the IT reseller space include advancements like serverless computing, which lets developers focus on code deployment without handling server infrastructure, accelerating application development. Edge computing is also gaining traction, processing data closer to its source to enhance performance and reduce latency.

Advancements in cloud security, driven by AI and machine learning, enable real-time threat detection and response. These trends underscore the dynamic nature of IT reseller services and their ability to stay ahead of technological advancements.

What are Value Added Resellers (VARs)?

Value-added resellers (VARs) distinguish themselves in the IT reseller landscape by offering additional services that complement their products. These services include installation and pre-installation of servers and logistics capabilities that OEMs might not provide. Offering these value-added services elevates VARs from mere suppliers to trusted advisors for their clients.

Long-term relationships are integral to the VAR business model. Clients view VARs as trusted advisors who offer ongoing support and guidance. This trust is built through consistent, high-quality service and a deep understanding of the client’s business needs. VARs aim to keep businesses updated with the latest technologies, ensuring clients benefit from the most relevant and effective tech solutions.

Industries like technology services, healthcare, and financial services often utilize VARs, showcasing the versatility and adaptability of these resellers across various sectors. Engaging with IT resellers provides companies with specialized knowledge and diverse experiences across different industries, which smaller firms may find challenging to hire in-house.

Benefits of working with an IT reseller

Partnering with an IT reseller provides numerous benefits that can significantly impact a business’s bottom line.

Cost savings

One primary advantage is cost savings. Resellers often acquire products at discounted rates, enabling them to offer competitive prices while maintaining profit margins. Eliminating the need for full-time dedicated IT personnel further enhances this financial benefit, significantly saving money and time.

Wide range of products

Another key benefit is access to a wide range of products and advanced tools that may not be as easily obtainable otherwise. IT resellers provide businesses with the latest technology solutions, including personal computers, ensuring they remain competitive in their markets. This access to cutting-edge technology is crucial for companies looking to innovate and grow.

Scalable infrastructure

Partnering with IT resellers also enables scalable infrastructure to grow with the company’s expanding needs. This flexibility is essential for businesses experiencing rapid growth or fluctuating demand. Ultimately, the combination of cost efficiency and flexibility from IT resellers provides a strong foundation for sustained business growth.

Understanding IT reseller agreements

An IT reseller agreement is a foundational contract that defines the relationship between a supplier and a reseller. This agreement outlines the terms and conditions of their partnership, ensuring both parties are aligned in their goals and expectations. Understanding these agreements is crucial for fostering a successful and mutually beneficial relationship.

Key components of an IT reseller agreement include:

• Commission rates: This specifies the percentage of revenue that the reseller earns on each sale. Clear commission structures motivate resellers to achieve higher sales volumes.

• Sales targets are the minimum goals the reseller must meet within a specified timeframe. Setting realistic and achievable targets helps maintain a steady sales flow.

• Support requirements: This details the technical support the supplier must provide the reseller. Adequate support ensures that resellers can effectively address customer issues and maintain high levels of customer satisfaction.

• Marketing obligations: These are the marketing activities the reseller must undertake to promote the supplier’s products. Effective marketing strategies can significantly enhance product visibility and sales.

How to evaluate an IT reseller

Choosing the right IT reseller is a critical decision that can significantly impact your business’s operations and success. Evaluating potential IT resellers involves several key criteria to ensure a beneficial partnership.

Market reputation

One crucial aspect is the reseller’s market reputation. A strong reputation reflects customer satisfaction and successful partnerships, indicating reliability and trustworthiness.

Range of products

Another factor to consider is the range of hardware products and services the reseller offers, especially if they are a global technology consultancy providing comprehensive solutions. Ensuring the reseller can meet your specific technology needs is crucial for a seamless, effective partnership.

Expertise

Additionally, the expertise of the IT reseller can be assessed through their use of accounting software like QuickBooks, aiding in managing finances and achieving better profit margins. It’s also important to evaluate the reseller’s ability to provide ongoing support and adapt to your business’s evolving needs. 

Advanced tools for IT reselling

In the competitive world of IT reselling, leveraging advanced tools is essential for streamlining operations, enhancing efficiency, and boosting revenue. These tools enable resellers to manage their processes more effectively and provide superior client service.

Key advanced tools include:

• Quoting and pricing software automates the quoting process and provides real-time pricing information, allowing resellers to quickly offer accurate and competitive quotes.

• Sales management software tracks sales performance and provides insights into customer interactions, helping resellers optimize their sales strategies and improve customer engagement.

• Customer Relationship Management (CRM) software manages customer interactions and provides a centralized platform for sales, marketing, and customer support, enhancing overall customer satisfaction.

• Inventory management software tracks inventory levels and automates the ordering process, ensuring that resellers can meet demand without overstocking or experiencing shortages.

By integrating these advanced tools, IT resellers can:

• Improve sales efficiency: Automating manual tasks reduces time spent on administrative work, allowing sales teams to focus on closing deals.

• Increase revenue: Providing accurate and competitive quotes can lead to higher conversion rates and increased sales.

• Enhance customer satisfaction: CRM and support tools facilitate timely and effective support, which leads to happier customers and repeat business.

• Gain a competitive advantage: Staying ahead with the latest technology solutions positions resellers as leaders in the market.

Best practices for working with an IT reseller

Partnering with an IT reseller can significantly streamline your IT procurement process and provide access to a wide array of products and services. However, to maximize the benefits of this partnership, it’s essential to follow best practices.

Here are some tips for a successful collaboration:

• Clearly define your requirements: Communicate your IT needs and requirements clearly to the reseller. This ensures that they understand your business goals and can provide the most suitable technology solutions.

• Research the reseller: Investigate the reseller’s reputation, expertise, and product offerings. Ensure they have a proven track record and can meet your specific needs.

• Establish a strong relationship: Build a robust relationship with the reseller through regular communication and feedback. A strong partnership fosters trust and ensures that both parties are aligned in their objectives.

• Monitor performance: Regularly assess the reseller’s performance. This includes tracking sales, customer satisfaction, and the solutions' effectiveness. Adjust the partnership as needed to ensure continuous improvement.

Adhere to these best practices to ensure a productive and successful partnership with an IT reseller and gain access to the technology solutions you need to advance your business.

Challenges and solutions in IT reselling

In today's rapidly evolving market, businesses face numerous challenges that require innovative solutions to stay competitive and thrive.

Challenges:

• Lack of control over product quality, impacting customer satisfaction.
  
  
• Intensifying competitive landscape, requiring continuous adaptation of business models.
  
  
• Delays, quality issues, or pricing changes from suppliers disrupting operations.
  
  
• Difficulty maintaining healthy profit margins due to price competition and fluctuating supplier costs.
  
  
• Challenges in providing quality customer support, especially with limited control over products sold, including network security solutions.

Solutions:

• Adoption of managed service provider practices by VARs to offset declining product margins and increased competition.
  
  
• Implementation of effective inventory management to meet demand without overstocking or experiencing shortages.

Future trends in IT reselling

The IT reselling industry is rapidly evolving, driven by emerging trends that are reshaping the landscape. One significant trend is adopting everything-as-a-service models, which enable IT resellers to boost growth by offering more flexible and scalable solutions. 

Cloud computing is another major trend, enabling IT resellers to provide scalable solutions that meet the diverse needs of businesses in the global technology and Microsoft cloud products realm. These trends enhance the offerings of IT resellers and significantly shape the future direction of the industry.

As the IT reselling industry evolves, resellers must stay ahead of these trends to remain competitive. Embracing innovations such as cloud computing and everything-as-a-service models enables IT resellers to continue providing valuable solutions that meet the changing needs of their clients.

Why choose GroWrk for your IT needs

Choosing the right IT reseller is crucial for businesses aiming to streamline procurement, optimize costs, and stay ahead of evolving technology trends. IT resellers offer tailored solutions, support, and infrastructure scalability. By leveraging these partnerships, businesses can access cutting-edge technology, improve operational efficiency, and enhance cybersecurity.

GroWrk is a leading value-added IT reseller that connects companies with manufacturers and suppliers across the globe for instant procurement. GroWrk offers seamless device lifecycle management and secure disposal options. Whether your business needs IT equipment deployment, asset tracking, or eco-friendly disposal solutions, GroWrk ensures efficiency, security, and cost savings at every stage of the IT lifecycle.

Schedule a demo today and see how GroWrk can simplify IT procurement and asset management for your global workforce.

Frequently Asked Questions

What do IT resellers do?

IT resellers acquire products or services from manufacturers or distributors and market them to customers. They serve as intermediaries, facilitating end-users access to technology solutions and supply chain services.

What is the meaning of reseller in IT?

A technology reseller in IT refers to an organization that purchases IT products from manufacturers or distributors and sells them to end customers, serving as an intermediary in the supply chain. This role can encompass various partnerships, including those with large account resellers and distributors.

What are IT resellers?

IT resellers are intermediaries that acquire technology products, including personal computers, from manufacturers or distributors to sell directly to end-users, facilitating access to essential tech solutions.

What services do IT resellers offer?

IT resellers provide comprehensive services such as bundling hardware and software, network security, installation, troubleshooting, consulting, and implementation to support their clients’ technology needs.

How do I evaluate an IT reseller?

To effectively evaluate an IT reseller, assess their market reputation, the breadth of their products and services, their level of expertise, logistics capabilities, and their ability to provide ongoing support. This approach will ensure that you choose a reliable partner for your IT needs.