Crest Systems (VAR), a new value-added reseller (VAR), has been established. Crest Systems is a vertical market-focused company that markets speciality inventory software products to more than 1200 VARs. Each market serves a specific industry. In addition to the software, Crest will sell the inventory data collection hardware that will operate the software. VARs that sell to vertical markets have traditionally focused on the specific product or service of their industry. Even though their customers need inventory controls, these VARs still haven’t had a product to offer them until now.
Critical to the product’s success is the ability to sell the customer an inventory management solution that costs less than $5,000. Crest Systems has signed a strategic alliance agreement with Promerit Engineering to sell its software products through these VARs. The first product is Promerit Inventory Basic and will be released in May. Crest Systems expects to sell 20,000 units within 36 months. The product will sell for $850.
The sale will bring in $400 for the VAR. Crest Systems will get $250 from each unit. Crest Systems will also sell hardware to run the software. Crest Systems will be selling portable data collection units made from Symbol or PSC. The cost of the hardware will be between $2,000 to $3,200 per unit. Crest Systems receives between $600, $900 and $3,200 per unit. The total package including software and hardware will cost less than $5,000
The company is primarily focused on vertical markets but VARs who are warehouse managers may be interested in a low end data collection solution. Crest Systems will create 1,000+ warehouse management VARs in order to sell Promerit Inventory Basic.
Crest Systems will also develop specialty software modules that can be integrated with Promerit Inventory Basic software. These modules will retail for anywhere from $800 to $1000. Crest Systems plans to solidify a strong business relationship with its VARs customers that will lead to providing additional software and hardware products.
Richard Torres, owner of Crest System, has over twelve years of experience selling to vertical markets. Last year, he was Cycon Systems top salesperson with over $3 million in sales.
1.1 Objectives
Crest Systems has the following objectives:
- Selling 8,000 units in the first year.
- Sales can only be achieved by building strong relationships with VARs.
- Build the software module business by 15% each year.
- Promerit Systems needs to be in close contact with you so that we can improve the product quality and customer satisfaction.
Success Keys 1.2
These are the keys to success at Crest Systems:
- Inventory control solutions for less than $5,000
- Rapid and reliable response to questions and other requests from VARs
- An administration capable of serving VARs, preparing accurate billing, following-up on all documentation and keeping a close tab on expenses and collections.