Comments on: Are Business Application VARs frogs in boiling water? http://www.salesworks.com/blog/on-the-road/are-business-application-vars-frogs-in-boiling-water/ Sales and marketing news, tips, and strategies from Salesworks Systems. Wed, 08 Feb 2012 17:34:00 -0800 hourly 1 http://wordpress.org/?v=3.3.1 By: Dawson Lane http://www.salesworks.com/blog/on-the-road/are-business-application-vars-frogs-in-boiling-water/comment-page-1/#comment-456 Dawson Lane Tue, 09 Feb 2010 03:30:39 +0000 http://www.salesworks.com/blog/?p=169#comment-456 Simply selling licences and quoting hourly rates is rapidly becoming outdated. Partners would do well to heed your sage advice and WAKE UP and Face the Tsunami! The greatest marketing companies constantly cannibalize thier own products and services. Do you see Apple worried about releasing the um-teenth version of the iPod? NO becuase if they don't some else will and the constant release of the iPod Video, Nano, iPhone, iPad, iBag, iRock, iBrush seems to be working just fine for them. The "intune" partners (pardon the pun) are re-thinking service offerings and developing innovative results based on easily purchase-able service offerings that customers value and can identify with rapidly. I recently was introducted to a SaaS ERP reseller who posts an innovative "Menu" of pre-packaged fixed price service offerings at very healthy rates way, above what traditional VARS would even think of charging today. An inquiry to thier sales people regarding availability revealed a 3-4 months backlog. No Frogs a boiling there. Great Post! Bang-On! as usual George! Simply selling licences and quoting hourly rates is rapidly becoming outdated. Partners would do well to heed your sage advice and WAKE UP and Face the Tsunami! The greatest marketing companies constantly cannibalize thier own products and services. Do you see Apple worried about releasing the um-teenth version of the iPod? NO becuase if they don’t some else will and the constant release of the iPod Video, Nano, iPhone, iPad, iBag, iRock, iBrush seems to be working just fine for them. The “intune” partners (pardon the pun) are re-thinking service offerings and developing innovative results based on easily purchase-able service offerings that customers value and can identify with rapidly. I recently was introducted to a SaaS ERP reseller who posts an innovative “Menu” of pre-packaged fixed price service offerings at very healthy rates way, above what traditional VARS would even think of charging today. An inquiry to thier sales people regarding availability revealed a 3-4 months backlog. No Frogs a boiling there. Great Post! Bang-On! as usual George!

]]> By: Wayne Schulz http://www.salesworks.com/blog/on-the-road/are-business-application-vars-frogs-in-boiling-water/comment-page-1/#comment-18 Wayne Schulz Tue, 27 Jan 2009 15:54:08 +0000 http://www.salesworks.com/blog/?p=169#comment-18 I think the days of selling boxes of software to win a fancy trip to the Caribbean are dead and done. You're right on the money comparing the consulting market to that of CPA firms. I think another closer comparison is to the fate that most computer networking VARS went through back in the late 1980's and early 1990's. When I first started in accounting there were half a dozen huge Novell and Microsoft networking shops in my area. They were making a killing on software and service. Fast forward 15 years and there's hardly any computer networking firms selling boxes of software. It's darn near all done at cost to get at the real profit which is... RECURRING REVENUE Thank you. I think the days of selling boxes of software to win a fancy trip to the Caribbean are dead and done.

You’re right on the money comparing the consulting market to that of CPA firms. I think another closer comparison is to the fate that most computer networking VARS went through back in the late 1980′s and early 1990′s.

When I first started in accounting there were half a dozen huge Novell and Microsoft networking shops in my area. They were making a killing on software and service.

Fast forward 15 years and there’s hardly any computer networking firms selling boxes of software. It’s darn near all done at cost to get at the real profit which is…

RECURRING REVENUE

Thank you.

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