Doing business in the IT channel during a recession is becoming harder, however there are a number of companies that continue to be successful despite the economic crisis facing the industry today.
One of the secrets to beating the economic blues is to be aware of new business challenges - and opportunities - that arise during a recession, says Graham Duxbury, CEO of Duxbury Networking.
“Needs change. In the channel, as in many other sectors, recession mean lower employment levels, fewer customers and a need to cut operating and capital costs,” he says.
“However, customers do not stop spending money completely - they simply spend less, while making sure their cost-benefit analysis is positive for every purchase.
“For dealers and resellers in the channel it's a time to ensure that end users get what they should have been paying for all along - value for money and return on investment.”
Duxbury says many dealers are experiencing problems as a result of charging too much for average products and services when end users weren't as price conscious as they are today.
“These dealers are stuck with this reputation and its going to be hard to shake. Now companies are demanding to see value and are examining quotes carefully, cutting corners where they can and looking for quality products and reputable brands - with solid technical backup - at every opportunity.”
Duxbury draws a comparison with the motor industry where reputable brands and even luxury cars are doing better in the recession than the 'cheepies' at the bottom end of the product range because buyers are looking for quality and value in their purchases.
“It's for this reason that I don't necessarily see 'the crisis' as a bad thing,” he notes. “It has already improved the competition in the channel - providing stimulus to those who understand the dynamics of a recession - and ultimately will result in better deals for the end user.
“I support the views of economists who believe this recession is a natural occurrence to put everything in perspective again and re-establish equilibrium in the marketplace.”
Duxbury says one of the opportunities presented by the recession is skills training. “Training is important to equip people to enter a more competitive job market.
“A trained staff member will make a more positive contribution towards helping dealers increase their customer support levels which will lead to sales successes.”
Boosting skills in the channel is a powerful form of consulting service - and one that Duxbury Networking highlights through its Training Academy.
“Working with our dealers and resellers we are focused on enhancing technical, sales and marketing skills throughout the channel with the ultimate goal of providing better customer service to end users and greater profitability for our channel partners.”
In conclusion, Duxbury says dealers should not let the economic downturn keep them from adding new business ventures to their companies. “The money-making ideas are just different from those in economic boom times, but no less rewarding,” he adds.
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