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You are here: Home / Services / Distribution Channels

Distribution Channels

 

Image of Distribution Channel Flowchart for Software & Hardware

Software & Hardware Product Distribution Channel Services

PJM Consulting provides strategic and tactical Distribution Channel consulting services to both established and early stage software companies. We can be retained for as little as a few weeks of “intensive intervention” with a troubled channel business or indefinitely to provide ongoing, long term advice. PJM doesn’t provide “theoretical” advice; we have many year of establishing and adjusting distribution strategies which include VARs, distributors, Retailers, OEMs, independent reps and non-traditional channels across all regions of the world. We have worked in a wide range of products, technologies, markets and price points, including SaaS, traditionally licensed, consumer, enterprise and more.

Our typical engagement utilizes an affordable monthly retainer with no long term commitments. In addition to our conventional management consulting engagements, we are also available to serve as your interim VP-Marketing, VP-Business Development, VP-Sales. We can engage for a set period of time for a product launch, or on an open-ended basis to turnaround a sagging business -“until the job is done.” It depends solely on the requirements of the specific situation and preferences of the client.

In certain circumstances, we will consider taking a minority part of our compensation in equity, if the situation warrants it and it is the clients desire. The only way we won’t engage with a client is on a contingency basis.

To learn more about how we approach Channels, you can read articles on our Blog focused on Distribution Channels or VARs specifically, or view a Video on Selling and Marketing Software through the VAR Channel.

The following sample engagements below illustrate our core Sales Channel competencies, but we can assist across a wide variety of situations and needs:

SAMPLE DISTRIBUTION CHANNEL ACTIVITIES:

Below are some of the common activities we often perform in Distribution Channel assignments:

Establishment of worldwide distribution strategies:

Are you currently “Direct-Only”? Are your products being sold through every channel that is applicable? Are you only selling in your home country, leaving the rest of the world to your competitors? We can help—we’ve established new channels successfully too many times to count.

Channel Turnarounds:

A common reason for a management consulting engagement or interim assignment is the need to quickly change the sales & marketing direction that a company is headed in, whether the case is a problem of red ink or a “dead end” strategy. Adjusting or completely re-vamping an existing channel strategy is often an area of low-hanging fruit to set the stage for a turnaround.

Coaching of the senior sales channels staff:

We serve as senior advisers who can serve as a “sounding board” and provide an outside, honest view of the situation to sales channels functional heads as well as expert advice on the best path forward.

Channel Profitability: Drop more to bottom line without adversely impacting the future:

Your sales are rising, but profits are lagging—or non-existent. Is your company in the “habit” of always “investing” and never “profiting”? Which product lines are creating revenue but have little hope of significant profits? What expenditures are truly driving the business, and which could be eliminated with no adverse impact whatsoever? Learn which departments are core, and which activities would be more efficiently outsourced. We can show you the way to maximize what really counts in any business—the bottom line.

Channel Sales force effectiveness, tactics and compensation plan review:

Are you getting the most out of your channel sales force? Is the sales compensation plan fully aligned with overall corporate goals, and does it limit conflict with direct accounts? Is the sales base/incentive split such that the sales people are properly motivated? We can help make sure that your hot product moves as fast through sales channels as possible.

Optimization of Channel Marketing mix within organizational budgetary constraints:

Everybody loves to see an ad of their newest product in their favorite magazine or website. Or go to an industry trade show to “show it off”. But you have a limited marketing budget and window to hit your revenue targets—are these the fastest and most efficient ways to the promised land? Every product, target market and market stage is a little different—and no one marketing mix “fits all”. We can design a marketing approach that maximizes your marketing effectiveness through just VARs or ALL channels. Let us design the best plan for your situation—and stay with you to help you implement it until you’ve reached success.

Channel Partner Planning, Selection and Recruitment:

A very underutilized strategic approach is to partner with complementary suppliers. From potential channel partners to vendors who offer non-competitive products to the same target audience (with readily accessible channel partners), there’s great potential to partner when trying to access new channels. Strategic partnering can be very inexpensive when done by experienced and skilled business developers. We can guide you and assist in this effort.

Contact PJM Consulting today for a no-obligation discussion of your distribution channel needs!

"We originally engaged PJM Consulting to review and revamp our marketing. Our sales at the time were in a slow decline. Phil Morettini helped us re-position our company and product line, changing the emphasis from consumers to business customers.

Concurrent with re-aligning our company's operations for this new focus he improved our existing operations, including dramatically enhancing our consumer distribution channels--raising the number of retail outlets carrying our software from less than 10 stores to in excess of 1500. Our revenues began growing briskly again. We would gladly work with PJM in the future."

Scott Pickett
President & CEO, Adept Computer Solutions

Distribution Channel Consulting Articles

The Rise and Fall of Novell

Once again one of the great brand names of High Tech has been prominently in the news, this one  for it’s demise as a standalone company. This time it’s Novell, Inc.  Attachmate announced that it had closed its purchase of Novell, which becomes a brand of Attachmate.  The price was $2.2B–not chicken feed, but much […]

Marketing and Selling Technology Products through the Value-Added Reseller (VAR) Channel

Selling through multiple channels is one of my preferred strategies in technology marketing. If done properly, it allows a company to fully exploit its expensive, hard-earned intellectual property to the maximum extent. One of the most popular channels (and one of my favorites) used to sell B2B software and hardware is the Value-added Reseller, or […]

Selling SaaS through the VAR Channel

The move toward Software-as-a-Service (SaaS) has been the strongest trend in the software business in recent memory. It changes the software business model in a number of fundamental ways. For the purposes of this article, I’m assuming the reader has a basic understanding of the SaaS business model. I’m also going to assume a basic […]

Flattening of the Growth Curve

In every company’s history, there comes a time (or two or three or four times!) when your momentum slows and the sales curve begins to flatten. A period of flat or declining tech company growth can be one of the most trying and frustrating times for software and hardware company managers. No, I don’t believe […]

Technology Sales & Marketing-Is a direct or indirect approach best?

A question that often arises with early-stage software and hardware companies is “How should we sell our product? Should our technology sales approach be to sell directly, or should we sell through distributors, dealers/retailers, or OEM partners?” Best Technology Sales Method: It depends The answer, like most topics discussed in this forum, is rarely as […]

Channel Conflict

In my consulting practice I do a lot of work with software and hardware companies in area of channel development.  One of the hardest things to manage while growing a channel business is the inevitable conflict between all the players throughout your various distribution methods, including your direct sales force. Of course, my colleagues in […]

Additional Distribution Articles

  • A Software Startup Video Case Study
  • Selling and Marketing Software Through the VAR Channel: Morettini on Management Video Series
  • Musings on Software Market Segmentation and TV Morning Shows

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Company Profile

PJM Consulting
San Diego, CA 92130
(858)792-1062

Founded 2001
Management Consulting & Interim Executives for Software and Hardware Companies

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