IT resellers have an opportunity to capitalize when partnering with Lenovo. There are many ways for people to start a business today, but there are a lot of risks in doing so, including the unknown. That is why many companies begin as resellers. The IT reseller business model allows for businesses to adopt products to sell. There is no need to worry about product development. There are no concerns about having to manage the manufacturing of products. This is all designed to be handled by others. IT resellers benefit from the profits instead of the hassle.
What Is an IT Reseller?
IT resellers are typically people or businesses that purchase products from a manufacturer directly. They may buy from a wholesaler or another vendor as well. They typically make these purchases at a much lower cost than what is charged to the end user or customer. The reseller then resells the product at a higher cost to the end user. This is often done online through ecommerce websites, though it can also occur in traditional direct to consumer channels offline.
Many times, companies do not have to carry inventory with these products. That means that the company will ship goods to the end customer themselves. The business, then, just acts as a type of middleman, managing the transaction and order processing without having to juggle warehouses or other costs. This is why so many companies want to become an IT reseller – it is affordable, easy to start up, has fewer hassles, and doesn’t involve a lot of inventory storage.
What Is the Difference Between a Reseller and a Distributor?
For those who wish to become an IT reseller, one key question they often have is the difference between being an IT reseller and being a distributor. There is a difference, though it is sometimes subtle. A distributor is likely to have a closer relationship with the manufacturer than the term reseller entails. In some situations, distributors are a part of, partially owned by, or otherwise a subsidiary of the manufacturer in some way.
Those who become computer resellers, by contrast, are less likely to have a working relationship with the manufacturer at the same level. Rather, they are not likely to carry all the computer components and parts for these computers, for example. In addition, a computer reseller is less likely to have a staff that knows as much about the intricate details of a product.
In some situations, a distributor will purchase product directly from the manufacturer. Then, they may sell it to the reseller. That does not always happen, but in some situations, it works well. A business generally wants to become an IT reseller in the most profitable manner possible. Finding the best deal, whether from the manufacturer or a distributor, is often best.
Things to Consider When Starting an IT Business
For those who wish to learn how to become an IT reseller, the process does not have to be complex. There are a number of different avenues to consider. As with all business opportunities, the more information you have, the better the decisions you can make for yourself and your business.
Choose an offering and niche
The first step to learning how to become an IT reseller is to learn about the actual options available to you. You will find that a computer reseller program, for example, could be an option. However, some will narrow down to a very specific niche, such as becoming computer hardware resellers. The key here is to have a very specific niche you want to support. It is helpful to do some research here to gather as much information about that niche as possible. How much competition is there? Is this a niche that is growing in demand or fading?
It is important to find the right reselling fit for your needs. Some things to keep in mind include:
• You don't have to be an expert to sell the product. However, when it comes to a computer hardware program, you need to have a basic understanding of what the niche is, how the product works, and what motivates buyers to purchase.
• Understand the market landscape for that product. That includes the current level of demand, the competition that’s out there, and the price points for the product. You can do this by looking at various websites and comparing features.
• Consider products that help to supplement your current business. For example, you may want to become computer hardware resellers if you are a computer repair company right now. The program easily fits within your business model.
This is typically the biggest step you will take in this process. Be sure it’s the best one for your needs.
Locate a trusted manufacturer or provider
Along with that first step is the need to find the best manufacturer or provider to work with for your IT reseller business. This requires some research not just on available programs but also on the company’s offer to you and the structure of the program. Choosing a trusted manufacturer is important because:
• It helps you ensure your business is built on a solid product, one that you feel confident to stand behind.
• You know you are working with a fair company offering a competitive program.
• You can learn how to become an IT reseller through their program, as the best companies make the entire process easy for you to set up and manage from start to finish.
If you hope to be a computer reseller, Lenovo provides you with all of the tools and resources you need to get off the ground with success. This is where you typically want to get started – with a company offering well-respected product, outstanding customer service, and lots of support for their computer reseller program members.
As you compare manufacturers and providers, be sure to focus on the reseller agreement. You want to be sure you understand your rights and obligations before you enter into this type of agreement.
Register your business
Once you find a manufacturer you want to work with, the next step is to apply to work with them. Some require an application process, while others are more of a registration process.
In most cases, the manufacturer needs to know as much about you as possible. This includes your business profile – the age of your company, and the type of work you do. The company's size, including in revenue as well as the number of employees you have, can also play a role here.
In addition to this, you may need to provide information about your service coverage area, the methods and channels you use to sell, and your web presence. Do you have an ecommerce setup? Do you have online merchant tools already in place?
Apply with as much information as you can about your business. This helps to ensure that you are going to be able to build a strong business with the company based on their expectations and your own.
Consider your “value-add” offering
Consider your value added offering. A value added reseller, sometimes called a VAR, is a professional company that offers not just the product the customer is buying but also something else. That is, you do more than just offer the product you are selling. This helps to increase your ability to sell and builds a profit. It also helps the company to know you are knowledgeable about the product.
For example, if you enter into a computer reseller program, you may provide a service to commercial establishments where you install and set up their systems for them. Your added service is not just selling the system but handling the setup. If you enter into a computer hardware resellers program, you may provide the additional service of installing the hardware components that the customer buys from you.
Take some time to determine what this will be for you. Look for a program that allows you to become an IT reseller within an area that interests you.
Reseller storefront and website development
As a reseller, you will need to establish a storefront and invest in website development to allow your business to thrive online. Often, the company can help you to establish this, but if not, you will need to invest in it within any parameters the manufacturer has (such as with branding information or warranty data).
Website development is what creates your ability to sell online. You will need to have a way to manage orders, so that when a customer makes a purchase, the manufacturer can set up delivery directly to that customer, reducing your need to have inventory or to manage the order processing itself.
Ready to Get Started? Lenovo Can Help You
Purchasing products at wholesale prices and then reselling them directly to consumers is a business model that is a low-risk way to enter into owning and operating a product-based business. You don’t have to invest in product development or upfront inventory, and Lenovo as your supplier offers financing and additional benefits to get the most out of your IT reseller business.
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