Improving Margins in VAR Business

Although VARS act as excellent distribution channels, their business suffers from low margins. VAR business is traditionally not a very profitable one. However, things can improve if VARS are able to better manage their processes. The key is to improve efficiency, implement low cost strategies as well as look for newer avenues to increase sales.

Here’s what you can do to boost margins in your VAR business:

Do not hesitate to Automate Wherever Possible

The high cost of IT operations is often responsible for sluggish revenue growth. So if you want to improve margins, you need to reduce operational costs, which can be easily achieved through automation. You need to use an appropriate Business management solution designed to automate manual processes that take sales reps’ valuable time and energy. A Sales quoting software can accelerate quoting process, which when done manually is cumbersome, time consuming and prone to human error.  On the other hand, an IT catalog management software can help you to build product catalog in the most efficient manner. So automation does help to enhance existing processes, which can help to accelerate business growth and your margins.

Take your Business Online

Taking your business online can give you a strong competitive edge and help your business grow. With ecommerce being one of the fastest growing markets in United States, it is imperative to start an online store which can help you to be financially successful. Investment on an ecommerce store is far less as compared to physical store.

Your store is open 24/7, 365 days and moreover you can sell products across the world. With ecommerce, there is drastic reduction in the cost of inventory management. In fact, some of the most popular online retailers actually do not keep any stock. This is the reason why bringing the business online can help to increase your margins.

Promote your Online Product Catalog to Different Marketplaces

If you want to attract more qualified buyers and increase margins, think about listing your product catalog on marketplaces like Amazon and eBay. These marketplaces are known to attract millions of potential buyers on a weekly basis. So publish your catalog on these sites, which can help to boost revenue and profit margins.