What is Value-Added Distribution?
Markets are more saturated than ever, and companies need to stand out to be successful. Resellers and channel partners can do that by using value-added distribution and working with a Value-Added Distributor (VAD).
What are the advantages of Value-Added Distribution?
- Industry experts and product specialists
- Marketing support and custom-branded collateral
- White-label technical support and expertise
- Pre- and post-sales support
- Training and certification
- Exclusive product offerings
- More than just pack and ship the same day
- Help growing your customer base
- Proven recurring revenue model
- High-level service and support
- Excellent knowledge of the supply chain
- Lower go-to-market cost
Keep reading to learn more about VADs and how Value-Added Distribution might be the solution your business is looking for. When you’re looking for a VAD to partner with, it’s best to look for a company that provides services that can elevate your business, help grow sales, has a proven track record and a great reputation in the market.
What is a Value-added Distributor in Business?
One of the main reasons why vendors partner with Value-Added Distributors is to expand their market reach and sales expertise. Value-Added Distributors are the glue that holds the vendors and speech recognition industry market together.
Value-Added Distributors operate their own warehouses and buy their products in bulk. They then provide the product to their sales channels and the sales are essentially spread among reseller companies (also known as channel partners), Value-Added Resellers, Managed Service Providers, and end-customers. Value-Added Distributors also provide other services, and this is what sets them apart from distributors.
Value-Added Distributors like eDist can provide things like white-label technical support, market and product expertise, a proven recurring revenue model, access to a knowledgeable and enthusiastic sales team, training, marketing, and more.
These value-added services give resellers a broad range of options to offer their customers.
Value-Added Distributors like eDist can provide things like white-label technical support, market and product expertise, a proven recurring revenue model…
What Does a VAD Do?
Value-Added Distributors not only benefit the vendors and resellers, but value-added distribution is essential for a go-to-market strategy. One main role of Value-Added Distributors is to train and empower channel partners and give them the tools they need to be successful.
What eDist Offers:
White-label
technical support
Access to a high-level marketing portal
Training
and certifications
Access to a knowledgeable and helpful sales team
Proven recurring
revenue model
Excellent
customer service
Value-Added Distributors not only make sure your product gets to your customers, but they also offer solutions and services that add value to the products.
There are a variety of Value-Added Distributors from furniture companies, automobile dealerships, electronic devices, and speech recognition software.
Cloud-based voice recognition software such as Nuance® Dragon® Medical One 一 the industry leader 一 is secure, easy to use and it’s designed to save professionals time on note taking, documentation, form filling, sending emails, and more.
Some other responsibilities a VAD has include operating their own warehouses, making sure they have product in stock, and training, educating and empowering resellers.
The relationship between a reseller and a VAD is usually a long-term relationship. This means working together will be easier and smoother and the VAD will likely advocate for your company and product.
What is a VAD Partner?
There are a variety of differences between VADs and distributors. Simply put, VADs do more than the average distributor:
- Make selling easier
- Less infrastructure investment for channel partners
- Can provide credit lines and flexible financing
- Automated sales tax collections
- Have a faster response time when it comes to product and technical issues
Selling
Value-Added Distributors make it a lot easier for a reseller to start selling the product vs. a company who is just starting to establish themselves, their brand and their product line. A VAD already has a reputation, customer base and proven industry track record.
The VAD can get the reseller up and running with their products and the reseller can start selling right away. eDist also has a Marketing Portal that can help.
Infrastructure
A VAD can help get resellers up and running by providing resources such as personnel with the necessary skills to work on a full- or part-time basis or personnel with logistics capabilities that a reseller may not have.
This allows the reseller to spend more time focusing on selling. With the changing digital landscape, this service offering is highly beneficial. All these things not only help get your business up and running, but a streamlined infrastructure also leads to a more efficient and productive workflow.
Financing
At eDist, we don’t just want to be your partner. We want to be your partner in success. We offer credit lines and flexible financing to help get our resellers to where they need to be and to help them close larger sales.
Customer Service
Value-Added Distributors have the teams in place to offer excellent customer service and technical support. They can quickly help resellers fix any issues that may arise.
This is also where extensive product knowledge comes in. If it isn’t a technical issue, our Product Champions can quickly answer any questions a reseller may have about the software and its compatible devices.
What Do Value-Added Resellers Do?
A Value-Added Reseller (VAR) is also known as a channel partner. By becoming experts in the products they sell through certification training or partnering with a VAD like eDist, they add features or services to products and resell them to end-users as a complete turn-key solution.
An example of this would be a company pairing speech recognition technology with a dictation microphone. Resellers add value in the form of training, marketing, education, product knowledge and more. The reseller is not the manufacturer of the product but should have a thorough understanding of the product.
How Does a Value-Added Reseller Make Money?
Value-Added Distributors assist resellers with their go-to-market strategies and their network of connections helps resellers advertise their products to even more end-users. These connections help resellers get their product in front of more potential clients, which helps them grow their customer base and make a recurring profit.
Value-Added Distributors also have in-house product experts who can handle product demonstrations and system integration and assist with both pre- and post-sales support. When it comes to pricing, VARs often focus on products that have a minimum advertised price (MAP).
This ensures higher margins and allows for the proper installation and support of the solution as well as charges additional fees for other products or services bundled with the solution. eDist focuses on supporting VARs with the best MAP products in the speech solutions industry.
…these connections help resellers get their product in front of more potential clients, which helps them grow their customer base and make a recurring profit.
Become a Value-Added Reseller with eDist
A Value-Added Distributor can help channel partners be successful, especially with cloud-based software products like speech recognition technology. The right VAD partner can help resellers grow their business, realize recurring revenue, and help them target new customers.
eDist has proven sales and marketing strategies and can provide added bonuses like white-label technical support, a marketing portal, high-level product knowledge and updates, training, and certifications.
We don’t just want to see your business succeed. We want to be your partner in success.
Partner with eDist
If you’d like to become a reseller and make recurring revenue by selling high-level speech recognition products to help make professionals work more efficiently and productively, let us know. We carry Philips and Olympus dictation products. We’re also the exclusive distributor for Nuance® speech recognition software.