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Is Your VAR Selling Buggy-Whip Software?

September 5th, 2008 | Posted in Industry

By Justin G. Cramer

Before Henry Ford created the mass market for automobiles, there were scores of buggy-whip factories. A few remain today and one of them is thriving. Hoover, that one-time buggy-whip company, now makes vacuum cleaners. Most other turn-of-the-century whip makers stubbornly stuck with dated technology and suffered the consequences, as did the coach manufacturers that bought from them.

There are many Value Added Resellers (VARs) today with a buggy-whip mentality. They are comfortable, or should we say complacent, with yesteryear’s software.

This is not to suggest that VARs are not a valuable resource. There are compelling reasons to use VARs. Good VARs not only know their software, but they know you. Working closely with a high-quality VAR can result in a smooth-running shipping operation.

VARs bring specialized knowledge in a specific area or vertical that no software manufacturer can. VARs take multiple pieces of dissimilar software and make them work as one In fact, here at Best Way Technologies we believe in VARs so much that we have made them our primary marketing channel.

But not all VARs are the same. Some are perfectly content to sell and install buggy-whip software.

The Benefits of Loyalty

Understand that it makes sense for VARs to stay loyal to specific brands of software. The longer they work with the software, the better they know it. They become more adept at determining where it works best and more efficient at installing, maintaining and upgrading it.

However, software can overstay its usefulness. It becomes buggy-whip software.

Unfortunately, some VARs stick with buggy-whip software too long. They refuse to adopt new, superior technology. It is too much trouble. The VARs would have to investigate and evaluate replacement products, retrain their sales and installation staffs, go through a learning curve, and face complaints from customers who do not want to pay for upgrades. Why bother? Why should VARs interrupt their smooth running, profitable businesses? The old stuff works. Sort of.

Software is not a commodity. It is not static. Some software gets better, some worse. New software comes along. Some software faces sunsetting and offered replacements may not be that hot.

We are not talking about superficial enhancements or “this year’s flavor.” We are talking about better software that can chop costs and improve a company’s competitive position.

VARs Must Reassess and Invest

So it makes sense for VARs to reassess and make the investment in time and money to be sure their customers have the best that is available.

By doing this they create happy, loyal customers and have the wherewithal to bring on new customers.

It is up to each VAR to determine the best route to take. Stick with buggy whips or change with the times.

Conversely, it is up to shippers to make sure their VARs are not selling buggy whips. After all, it is the shippers who are going to suffer in the long run. Shippers figure they can trust VARs who specialize in their needs. But if those VARs put in buggy-whip software, the shippers may lose ground to competitors who are taking advantage of the speed, features, flexibility and power of updated or newer software.

This means shippers have to do some due diligence of their own. This is not easy. Flip through your trade magazines. Each advertisement assures the reader that this product is the most productive and that product will thrill customers. Industry analysts can provide good information, but most companies do not have the budget for this.

So how to you find the best software for you?

How to Find the Best Software

Here is a tried and true approach.

o Make a list of new functionality that would be helpful now and in the near future

o Seek input from other departments, ranging from Sales to Loss Prevention

o Don’t forget to heavily involve the Shipping and IT departments

o Decide if you want your IT department to be able to modify business rules

o Compile a list of potential replacement software and representing VARs

o Cull out the ones that obviously do not have the features you need

o Call the contenders and get a list of customers you can visit

o Contact these shippers and ask lots of good questions

After doing this, you can contact your VAR and have a meaningful discussion about what is best for you. Hopefully there will not be a buggy whip in sight.

For more information call 866 944 2378

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