Outsource Relationships Out Perform VAR Partnerships

Many companies seek to avoid the cost and complexity of creating direct touch capability in Europe through traditional VAR relationships. These relationships appear to be a substitute for direct sales, but in many cases, driving the VAR to perform and to dedicate their resources to representing a companys product can be a full time effort, and the price to be paid for this strategy is to give away most of their margin to the VAR once they become successful.

London [September 15, 2002] There are compelling reasons for a company to establish their product and brand in Europe. Many companies seek to avoid the cost and complexity of creating direct touch capability in Europe through traditional VAR relationships. These relationships appear to be a substitute for direct sales, but in many cases, driving the VAR to perform and to dedicate their resources to representing a companys product can be a full time effort, and the price to be paid for this strategy is to give away most of their margin to the VAR once they become successful.

Cambridge,UK based Consalient Professional Representation (http://www.consalient.com) offer solutions tailored to client programme development needs. These solutions deliver focused, efficient sales and field support teams in Europe, operating to agreed performance metrics and supported by their own local management and administration teams. Consalient takes away all the administration, management and reporting, leaving you to focus on your core business. The result is to allow the client companies to keep the majority of their margins while reducing their operating costs.

When developing a strategy for high-density markets, deploying a direct sales model offers significant advantages over using VAR channels. Considerations such as retained margin, account ownership, brand management, and customer care are among key drivers in deciding to develop a direct sales capability.

Resellers can also require commissions as high as 35% or more, and this puts pressure on a companys own margins as well as their competitive position, but most importantly, the VAR relationship does not scale. The more they sell the more you pay!" said Richard James, Consalient Account Delivery Partner recently. The outsourcing solution limits your annual capital expenditure to a fixed cost and so margins become better as sales improve. The same is true of an in-house direct sales model, but the start-up investment and ongoing SG&A suppresses a clients margins. The VAR relationship returns consistently lower margins due to the high commission structure."

Additionally, Consalient recognises that as sales volumes grow, it may make sense for our clients to take over the outsourced operation and bring it in-house. That is why every one of our agreements has a no-hassle transfer clause that allows clients to transfer the dedicated employee or team to their own payroll." James said.

About Consalient Representation
Focused upon European markets, Consalient grows revenue and market share for its clients through aggressive outsourced sales and marketing services. These services include closing licensing deals, conducting marketing campaigns and providing additional post-sales support to the end customer.
Toll Free from the United States 1-888-667-8997,or in theUK+44-208-584 268.
Consalient News page: http://www.consalient.com/Whats_New/whats_new.html

Consalient Professional Representation
174 Parkers House, 48 Regent Street
Cambridge, England CB2 1FD United Kingdom
From the US: 1-888-667-8997
Global: +44-208-584-2268
Richard@consalient.com
http://www.consalient.com/