If you have just started with your IT distributor business and are looking for the right tips to begin, You are in the right place!
Here we are going to see some ways to take care of your IT distributor business and also how ICT Circle can help you.
So, before moving straight to the topic, let’s start with some basics.
Who is an IT distributor?
An IT channel distributor is essentially a business between the vendors and the value-added resellers or system integrators who handle the distribution of hardware or software. The client base of the distributor consists of the vendor’s resellers and system integrators, which are referred to as its “channel.” The channel consists of intermediates that are concerned with obtaining the goods from the producers and distributing them to the consumers. They’re the most common mediator between the vendors and the finished customer.
The product travels from
Vendor: Distributor Reseller/System integrator End customer
Types of IT Distributors
Yeah! There is more than one type of distribution channel there. It totally depends on which category the business model falls into.
Here are some types of distribution channels:
- The Straightforward
In this variety of distribution channels, the manufacturer sells the merchandise straight to the customer. This channel is the most direct channel.
- The indirect
This sort of channel has a further merchant between the manufacturer and the customer. Rather like a grocery store, it buys different kinds of products from totally different vendors, then offers the products for all the purchasers to buy.
- The Multi-Layers
In this channel, there are multiple vendors or intermediaries between the manufacturer and the customer. It always includes wholesalers, producers, and additional retailers. One example is online shopping. The client outlets for the merchandise online. However, the product travels between manufacturers, retailers, wholesalers, and so on.
Things to keep in mind as an IT distributor!
There are some things that every IT distributor should know and should take care of every time to become a successful distributor in the business world. A lot of successful IT distributors have followed these strategies to become one of the tops. Here are some of the things to start with:
- Back office!
Your back office is the center for all of your operations. It’s powered by individuals and technology. There ought to be well-defined processes and systems in place, implemented by using the proper software system, in order that you get an entire picture of what’s occurring in your business.
- Give priority to the top customers!
Most of your revenues and profits can be returned to a group of top customers. The top customers are often known to support higher sales and timely payments. Recognizing them early and incentivizing them will facilitate your business in the long run. You can build strong relationships with them by providing them with advantageous rates, deals, deliveries, and credit periods. If you offer them additional margins to earn, in order that they push your product,
- Remember the customer service?
Customers are currently searching for better services in terms of price and convenience. Therefore, ensure you prioritize customer service similarly while providing the most cost-effective price. Contact them often to find out if they have replenished stocks and keep them updated on the latest deals and opportunities. Digitizing your processes like ordering and fulfillment can make them faster and more reliable, which helps in earning customer satisfaction and trust.
- Inventory is on track!
Inventory tracking could be a common factor to miss, and usually, it doesn’t get a lot of attention. Ignoring it will result in losses in business. If you don’t do frequent inventory audits and don’t seem to be often awake to inventory, it can lead to many issues like stock pilferage, invalid stock, low inventory of profit-making stocks, accumulation of non-selling stocks, mismanaged warehouse, thefts, and alternative issues.
- Know the numbers!
It’s essential to look at your numbers regularly. Within the flow of everyday business, it’s straightforward to misjudge if you’re creating a true profit or not. This generally massive turnover fools you into thinking that you are just maybe making money. You want to look at real numbers and reports to see the true image and, therefore, to make sure that you’re marketing at the correct prices, keeping sensible margins, being alert of any hidden prices, and being aware of earnings in any case of costs and taxes.
What is the ICT Circle?
The B2B Platform for the ICT Channel: Vendors, Distributors, Resellers, and System Integrators from all over the world can transact with each other using the utilities of this platform. The features offered by ICT Circle are easy to use and give flexibility to seamlessly indent sales, procurement, marketing, and training to its subscribers, ultimately simplifying the day-to-day processes of the ICT fraternity.
How can ICT Circle help your distribution business?
- Regulated Inventories!
After using the platform for a certain period of time, distributors will get to know the buying patterns of their customers, and accordingly, they can stock up the things, manage their inventories, throw deals for unsold or slow-moving products, test market the new products, and offer services if required.
- A Complete Market Overview
A wonderful venue to learn what is happening in your markets, get first-hand feedback and reactions, witness the trends as they change, and gain insight into what needs to be stopped and what is new to be introduced.
- New Channel Partners!
Distributors can showcase their complete range of products and services to attract and onboard new clients who, till now, were not known to them in the geography represented by their region.
- Optimized Cash Flow
Distributors extend credits to the channel; this calls for a huge amount of investment and planning. ICT Circle makes it easy by bringing business intelligence available to them to optimize their business processes, which can reduce the investment pressures and free the management to focus on developing their core business.
- Right product management!
Creating the right product mix based on the customer demand patterns, investing in the products optimally, arranging proper product training, and providing the right market sentiments and feedback to the respective vendors, all in one place.
Want to learn more about the ICT circle?
Visit here: https://www.ictcircle.com/india