Ziff Davis Internet
News & Resources for the IT Reseller
NewsReviewsTech AnalysisCommentarySecurityLinux/Unix
My Account |  

Anthology Beats Channel Conflict by Padding VAR Margins
By John Hazard

Direct resellers such as CDW and PC Mall, even retail chains such as Circuit City, have always been a thorn in the side of VARs selling to the small to midsize business market.

But the vendors they serve cannot ignore the volume and market reach such outlets afford in a market where the lines between SMB and consumer buying habits are as blurry as the products.

Anthology Solutions, makers of the Yellow Machine storage appliance for SMBs and consumers, is one such company with a novel approach to keeping the peace—one price ($1,299) regardless of channel.

The 2-year-old company announced this week the addition of CDW, TigerDirect.com, PC Mall, OnSale, NeedThese.com, ClubMac, MacMall and PC Mall as well as Circuit City retail locations, but still relies on its more than 200 VARs to spread the word and make the pitch.

To level the field, the vendor manages an inverse margin that pads the sale for VARs so they might match the price of volume sellers.

The company offers further volume discounts for VARs and will extend the margin further if the VAR needs help landing a large customer, the company said.

The Channel Insider Special: Building Solutions for SMBs

The company’s preferred sales pitch—”How important is your data”—is still best delivered face to face by a VAR in a trusted advisor role, said David Leyman, Anthology’s director of channel sales.

“The VARs are the critical element of our sales,” Leyman said. “These are not technologies that a guy running a dentist office or a photography studio are familiar with, so it’s not an impulse buy. We need the extended sales force and the education component VARs supply.”

Direct resellers may discount the price 2 or 3 percent out of their own profit, but VARs won’t find themselves undercut by $200, Leyman said.

Available at up to 2.0TB, the Yellow Machine appliance is designed to quickly and automatically back up 20 PCs, allowing data to be securely archived with no administration.

New Masterpiece RAID DST (Disk Scrubbing Technology) in the Yellow Machine appliance can repair data on the disk or place it safer area, ensuring its accessibility.

The company plans to announce a steeper discount on the appliance in the next month and VPN remote access allowing VARs to manage remote diagnostics and a Managed Services Component to the pitch.



Free Hands-On Training Lab
Find out how key features of SBS 2003 can help you open up a new line of revenue. Register now >>

SBS 2003 Sales Reference Card
This handy reference card contains features at a glance, sales objection handling, pricing guidelines & more. Get it now >>

Microsoft Empower for ISVs rewards your big idea with big benefits and support.
Access key development tools at a low cost to help you develop that idea into an innovative application. Learn more >>

Changing Business for the Better: A Practical Guide to BPM

This paper provides an overview of the benefits of BPM technologies and identifies the characteristics of BPM solutions that lead to successful BPM process-centric integration projects.

Download this free white paper to learn more!

>> brought to you by IBM

Attention Microsoft Solution Providers!

Want to gain a competitive edge? Try Microsoft Watch – FREE!

Each week you receive:
  • Microsoft News and Insider Information
  • Expert Analysis
  • Code Names of Upcoming MS Products
  • Year-Ahead Calendar, updated monthly

    Click Here to sign up now for your FREE 14 Day Trial to Microsoft Watch.
  • Add up to $1,200 of value with the new BONUS PACKS.
  • HP PartnerONE: The key to increasing your margins.
  • HP Compaq nc6129 Business Notebook. $1149 Smart Buy
  • HP xw8200 workstation. Smart Buy price $1549.
  • ProLiant DL360G4p server: HP Smart Buy price $1647
  • Microsoft files new anti-piracy lawsuits. Learn more.
  • New offers with Windows Genuine Advantage.

    •Catalog Publishing
    •Dealer Management
    •Order Configuration
    •Price Management
    •Sales Management

    View All >

    Search the jobs you want & get the info you need – post your resume here today!

    Powered by Dice
    White Boxes
    MS vs. IBM
    Linux in the Channel
    Stay in the Zone
    Put The Channel Insider on your desktop.
    Subscribe to The Channel Insider: Channel News, Reviews, Resources and more.

    Make your selections below:

    Contract Watch

    The Channel Insider Update

    Preferred e-mail format:

    Enter your e-mail:

    view all newsletters >>
    Channel Insider Quick Links
    Ziff Davis Footer Logo