The top 3 ways VARs can boost their hardware margins

03/19/2020 | Hardware, Technology Education

Profit margins generally drive sales compensation. And when your solutions hardware matches your competitors’, it’s very difficult to keep those margins high. Instead, it becomes a race to the bottom as you and your competitors try to out-slash prices.

The result? Lower compensation for your hard work and less sticky customers. But there are ways to protect your margins as a VAR while ensuring that your customers get the solution they need. The strategies below will help you offer competitive pricing while preserving margin.

1) Propose Whitebox solutions

Whitebox solutions means you work with your hardware provider instead of competing directly with them.

You’ll also establish your own niche instead of struggling to stand out from the multitude of VARs offering the same hardware from Dell, HP, and Lenovo. Instead, with Whitebox hardware, your customers will get a unique solution with aggressive pricing, while you get a component partner who is invested in your success and not competing with you.

2) Work with supply chain

When working with Whitebox hardware you have greater flexibility to work with the supply chain team on component selection. This lets you and your customers optimize the solution for price/performance maximization.

Because you can select alternative components you can negotiate aggressively on individual component prices. And with lower-cost components, you can offer customers competitive deals on solutions while boosting margins by 20% or more, depending on the complexity of their configuration.

3) Work with sales engineers

Tier one hardware providers will try to lock you into standard configurations and pricing—unless you’re placing a huge order.

Instead, look for a hardware provider with a sales engineering team that will engage with you to optimize the solutions for price and performance. A sales engineering team will tailor the hardware to the customer’s environment on each project, pricing for their needs rather than just moving off-the-shelf configurations.

That means that your customers will trust you to offer them the best solutions while respecting their budgets. And in addition to building trust with your customers, cost-efficient hardware means you’ll wind up with higher profit margins to help your business flourish.

Want to learn more about boosting your compute and storage hardware margins? Contact our team here https://www.equuscs.com/contact-us/.

Contact our team

Category

Share This:

Related Posts

Infrastructure Featured Content Technology Education

How Lyve Cloud Improves Multi-Cloud Efficiency

Businesses are using more cloud tools than ever before and need a way to ensure more apps don’t lead to...
Read More
Data Management Featured Content Infrastructure

Exploring the Importance of Data Infrastructure in Your Business

Data permeates every layer of a business’s operations. Learn why data infrastructure is key to unlocking insights that propel your...
Read More
Infrastructure Featured Content

Slash Costs and Automate Admin Work with Hyperconverged Infrastructure

IT leadership cares about metrics like ROI, TCO, and resource utilization. Learn how disaggregated hyperconverged infrastructure improves every one of...
Read More
Servers Data Management Technology Education

What Is an Enterprise Data Center?

Data continues to grow at an unstoppable rate. Learn how businesses use the enterprise data center to manage their growing...
Read More
Data Management Infrastructure Servers Technology Education

How Can Composable Infrastructure Benefit Your Data Center?

Data centers often suffer from poor resource utilization, which hurts both performance and efficiency. Learn how composable infrastructure changes this.
Read More
Data Management Featured Content Servers

Improving Our Partner’s Computing Capabilities Through Our First Lab as a Service Lab

Testing is a crucial step before releasing any product or service. Learn how we’re providing Lab as a Service to...
Read More
Featured Content Technology Education

Why Rocky Linux Is a Great Choice for Your Enterprise Needs

The departure of CentOS left a hole in the market for enterprise Linux. Learn how Rocky Linux fills that void,...
Read More
Data Management Featured Content Servers

The Anatomy of a Quality Full-Stack Data Center Solution

Building a traditional data center is often too slow for modern businesses. Learn why many are turning to full-stack data...
Read More
Servers Featured Content

5 CXL Benefits That Improve Data Center Performance

Compute Express Link is revolutionizing how servers communicate with each other and elevating resource utilization to new levels. Learn how...
Read More