A Unique BrandBy Lawrence Walsh | Print
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As competition increases, Ingram Micro's Justin Crotty says solution providers must define their value in the eyes of their customers.
The better strategy for solution providers, Crotty says, is to create a service or product offering and create a unique brand for it. The reasoning is simple: The offering may have the same capabilities and features as a competitor, but the branding is unique and forefront in the mind of the customer.
"When you have well-defined and differentiated offerings, you can define pricing," he says. "That's key in value pricing. Customers need to understand what they're giving up for a lower price. They need to understand the pain and suffering they're going to get with the lower price."
It's a tough choice, but one Crotty believes solution providers should make. As competition gets more intense and end users look for suppliers and services that improve their businesses, the only ones that will win business and thrive will be those who can articulate their value proposition. Those who are addicted to commodity products will ultimately face deteriorating market positions and steeper challenges from those who do promote their own brands. In his mind, it's not only the right choice—but the best choice.
"If I was going to start a solution provider today, I would be service oriented, but I would spend all my money on marketing," Crotty says. "I could go win deals all day over the guy who has a booklet of certifications."