Crest Systems, a new Value Added Resell (VAR), is now open. Crest Systems is a vertical market-focused company that markets speciality inventory software products to more than 1200 VARs. Each market is distinct and serves a particular speciality industry. Crest will also offer inventory data collection hardware, which will be used to operate the software. VARs that sell to vertical markets have traditionally focused on the specific product or service of their industry. Even though their customers need inventory controls, these VARs still haven’t had a product to offer them until now.
Critical to the product’s success is the ability to sell the customer an inventory management solution that costs less than $5,000. Crest Systems has entered into an alliance agreement with Promerit Engineering for the sale of its software products through these VARs. Promerit Inventory Basic, which will be released in May, is the first product. Crest Systems anticipates that Crest Systems will sell 20,000 units over the next 36 months. The product is expected to sell for $850
The VAR will receive $400 from the sale. Crest Systems will get $250 from each unit. Crest Systems will also be selling hardware that can run the software. Crest Systems will sell portable data collection systems from Symbol, PSC. The cost of the hardware will be between $2,000 to $3,200 per unit. Crest Systems gets $600 to $900 per unit. The total cost for software and hardware packages will not exceed $5,000
The company is primarily focused on vertical markets but VARs who are warehouse managers may be interested in a low end data collection solution. Crest Systems will put together 1,000 VARs who manage warehouses and sell Promerit Inventory Basic.
Crest Systems also offers specialty software modules which can be integrated with Promerit Software Basic. These modules will sell for $800 to $1,000. Crest Systems intends to develop strong relationships with its VARs customers which will enable Crest Systems to offer additional software products and hardware.
Crest System owner Richard Torres has over 12 years experience in vertical markets. He was Cycon Systems’ top-selling salesperson last year with more than $3 million in sales.
1.1 Objectives
Crest Systems’ objectives are:
- In the first year, we sold 8,000 units.
- To sell, it is important to establish strong relationships.
- Each year, increase the sales of software modules by 15%
- Promerit Systems must be kept in regular contact to ensure that product quality is maintained and customers are satisfied.
1.2 Keys To Success
Crest Systems success depends on the following:
- Low-cost inventory control solutions, which can be implemented for as low as $5,000
- Quick and reliable responses to all VARs’#8217’s questions and/or requests
- Reliable administration who is available to serve VARs and prepare accurate billing. Follow-up on orders. Keep a close eye on expenses and collect accounts receivables.