TechSelect Wants More VARs To Join The Party

The Clearwater, Fla.-based distributor will allow some solution providers to join the group on the assumption that they will meet the standards applied to the rest of the participants within a defined period of time, said Annette Taber, director of TechSelect.

"There are a lot of customers out there who don't know who Tech Data is. They don't do business with Tech Data," Taber said. "You're going to see a process where we will work with them to gain an exception to get these guys into TechSelect without meeting all the requirements but with the understanding that they will meet all of the requirements at the end of a 12-month period."

Currently, member companies must do $250,000 in revenue with Tech Data per year; have three technicians, two of whom must be on staff; have three vendor authorizations; and be credit-worthy. It also costs $2,000 to join the program.

There are now 400 solution provider organizations represented in TechSelect, and they account for about 15.5 percent of all of Tech Data's U.S. revenue, she said. The goal is to increase the membership and the amount of revenue generated by each member to a contribution of 25 percent of U.S. revenue by the end of 2005, she said.

"The group as a whole is growing at a rate of 17 percent in revenue year over year, so we should be able to make that," said Taber.

New members should be able to bring innovative ideas, said Joe Cunningham, general manager of Computer Professionals International, an Albany, N.Y., member.

"I think it's a good thing. Probably a lot of people that have only been [around] a few years can benefit from those that have been around a long time," Cunningham said. "And new entrants will come with new ideas that nobody else is thinking about. There's a good opportunity for sharing that at [TechSelect] events."

Tech Data also will create a number of demand-generation programs geared specifically to the group. They include a revamped Tech-SelectPartner.com Web site, advertising on behalf of the TechSelect solution providers in various vertical industry publications, an expanded number of Tech-Select regional events and the ability for network members to resell their services to each other via a marketing program run by Tech Data.

In addition, the distributor will partner with 15 software vendors to help members better target vertical markets.

"The ISVs won't need to have distribution contracts with Tech Data but will be able to come to TechSelect conferences so we can help penetrate some new vertical markets," Taber said.

Cunningham was happy to hear of the increased focus on vertical markets.

"We're starting to head in that direction ourselves. For example, I'd like to reach out to someone who has specific industry knowledge on legislative mandates to get us ramped up more quickly. We want to know how to talk to the boardroom types rather than IT-type people," he said.

Taber said the focus on demand generation will help solution providers take their business to the next level.

"What we have found is that in that $4 [million] to $20 million range, we have some customers that are kind of stuck," she said. "They need to break out and grow. So we are going to put programs in place to help these resellers learn how to grow their business."

Taber said that Tech Data's approach to support a network of small-business solution providers differs substantially from the rival VentureTech program run by Santa Ana, Calif.-based Ingram Micro, which requires members to purchase 65 percent of their orders from Ingram Micro in order to join.

"We have a kinder, gentler approach. We want to earn their loyalty rather than demand it. Who are we to tell someone they have to do 65 percent of their business through Tech Data?" she said. In addition, she noted that TechSelect currently has no formal services network, although it is mulling over the concept. "The larger resellers in the network have asked for that services network, and it's under consideration," she said.

In the meantime, Tech Data will try to continue to differentiate its network. "We want our own unique program; we're not trying to be a copycat," Taber said.

SCOTT CAMPBELL contributed to this story.