| In this article, we'll explore the two schools of | | | | non-branded desktops, non-branded servers and in |
| thought on whether computer consulting firms should | | | | some very limited cases, non-branded notebooks |
| resell products. | | | | (called white books). |
| Pure Computer Consulting Firms Defined | | | | To Resell or Not to Resell in Consulting Firms? |
| Some consulting firms want to be pure consulting | | | | The strategic decision of whether to resell or not |
| firms. They believe that they are never going to | | | | depends on where you want to be spending the bulk |
| make a penny off product margin and that there are | | | | of your time. Do you want your firm to try to pick |
| potential conflicts when reselling products. So these | | | | up some incremental profit off of product sales? Or |
| kinds of consulting firms don't choose to resell | | | | do you want most of your consulting firm's income |
| hardware, software, or peripherals. As consultants, | | | | to come from pure consulting dollars? Regardless, if |
| these companies will help clients decide exactly what | | | | you really want to be in a strong sales position for |
| to buy, what the specs should be, and show them | | | | your consulting business, you really should not be |
| where they can buy the recommended products. | | | | leading off with a product sale. |
| Purchasing Agents Are Almost Pure | | | | Are Products Sales a Good "Foot in the Door?" |
| A variation on this scenario includes becoming the | | | | Now many new computer consulting business owners |
| purchasing agent for clients. In this case, your firm | | | | wonder: Should you sell inexpensive PCs, cheap |
| does the purchasing for clients and your firm bills | | | | software and cheap peripherals to get a foot in the |
| clients for a couple of hours for that function. Your | | | | door to sell the consulting services? The answer in |
| firm gets and reviews quotes, places orders, tracks | | | | most cases is no. |
| orders, and carries the purchase through to | | | | Why not? Because then, all of a sudden you've |
| completion. Both of these (the referral role and | | | | shown customers that you want to be their |
| purchase agent role) are more of a pure consulting | | | | commodity broker. Will customers hire their |
| model. | | | | commodity broker for consulting? Not likely. They've |
| Hybrid Consulting Firms Are another Option | | | | got your firm pegged as the cheap, low-cost source. |
| With a hybrid-consulting model, your consulting | | | | If you want to resell products, resell products to |
| business resells some products. A lot of computer | | | | people that you have consulting relationships with. |
| resellers do what's known as white box PC reselling; | | | | And make sure your consulting firm makes an ample |
| selling what's known as PC clones. A computer | | | | profit margin for the time, capital, space, staff and |
| reseller offering white box systems is typically selling | | | | overhead that you must devote to reselling products. |