Somehow in the last few years the term “Reseller” has become an insult.  It’s not enough anymore to just sell a product, now to be a true Value Added Reseller (VAR) partners must provide services.  None of this is news but many partners are promoting themselves as a VAR when they may still be just a, dare I say it, Reseller.

As an end-user it becomes even more difficult to differentiate between the partners you go to in order to simply purchase product and those partners that provide you services above and beyond.  Partners truly have to differentiate themselves in the current market and economy which becomes even more difficult if your competing partners are getting the same air time from the vendors.

Word Play

There is nothing wrong with simply selling product but is there a different level of support partners need if they are a Reseller or if they are a Value Added Reseller?

It is as important for a partner to find and promote their value proposition as it is for the vendor.  If you don’t provide services it’s okay!  Really it is!  But you better add value another way (price, speed, accessibility).  The bottom line is with more and more partners claiming to provide services the market is getting murky and customers more confused.

If you claim to be a VAR you need to have the certifications required to promote yourself.  Vendors need to make the certifications comprehensive and provide marketing support for those who have completed it such as certified logos for websites and business cards and a partner finder on the corporate site.  Vendors also need to do their part to promote the services that should be offered with the product or set of products.  If the vendor site promotes “plug and play” then the partner has a hard time adding services.

There are opportunities for both types of partners, not providing services is not a bad thing but partners must capitalize on what they do provide.  Some end users only want a “plug and play” partner or they have the capabilities in-house and want a partner to leverage their relationship with the vendor to acquire product.  There needs to be different levels of service from partners and therefore, different levels of certification from vendors.

Vendors have you seen different opportunities for both?  Partners how are you differentiating yourselves?

Help is on the way for solution providers and resellers looking to tap into grant funding from the American Recovery and Reinvestment Act — the Obama administration’s economic stimulus package. Ingram Micro has expanded its partnership with The Grants Office to generate leads for solution providers and coach them through the grant submission process.

Looking for advice on how to tap into the grant money from the American Recovery and Reinvestment Act, also known as the Obama administration’s economic stimulus package?

Ingram Micro has expanded its partnership with The Grants Office, a company that specializes in identifying grants and creating grant submissions, in an effort to help resellers and solution providers get a piece of the stimulus pie.

The stimulus package calls for anywhere from $60 billion to $80 billion of IT spend, according to Bob Laclede, vice president of business development at Ingram Micro U.S.

“Sixty percent of those IT stimulus dollars are through line item budgets, and 40 percent are through the grants process,” Laclede says. In the grants process, federal agencies—Health and Human Services, for example—set up rules for how grant money will be awarded. Then those who are eligible apply for the grants.

“If the solution provider can get in and help the end user figure out what they want to buy, craft the solutions and maybe wrap some services in there—and then help with the grant request—the solution provider has a better chance of winning,” Laclede says.

Solution providers pay a fee of $2,500 to participate in the program. In exchange they get a list of leads—Ingram Micro customers whose technology purchasing needs are mapped against the Grant Office’s database of technology grant eligibility and sources of funds. Then The Grants Office can help coach the solution provider through the grant process, serving as a kind of a help desk for grant writing and submission, says Laclede.

The $2,500 fee, charged on a per sales representative seat/team basis, is also eligible to be rebated to the solution provider as deals are fulfilled through Ingram Micro. Once a sales representative is engaged in the process, he or she works with a firewalled representative within The Grants Office to prevent any conflicts between VARs that may be going after the same deals.

Laclede says Ingram Micro has piloted the program with two solution providers so far, and many more are looking to participate. Ingram Micro is looking to formally launch the program in July, and Laclede warns that the grant process can take anywhere from three to six months.

Ingram Micro has previously partnered with The Grants Office for help with some of its initiatives aimed at the education market in the form of the eRate program. The new program is exclusive to Ingram Micro, says Laclede.