Launching a Distribution Channel
July 1, 2020
Domestic Value Added Resellers
Starting Out With Direct Sales
Since WAZER began we only sold directly to end users. Our first customers were our Kickstarter backers in 2016 and until late 2019 have been selling WAZER exclusively online with the help of our inside sales team (Daniel, Roland, Bernard and Alex). Over the years we have received tons of interest from resellers domestically and worldwide who wanted to sell our products. The founders, Nisan and Matt, held off on granting anyone permission to resell WAZER until we had learned how to sell and support the machine ourselves. Training others to sell and support WAZER on our behalf was initiated late in 2019 with program design and planning.
Some of the reasons for beginning the program were that the Value Added Resellers (VARs) have their own existing client base for machine sales. The VARs would be required to install a refurbished WAZER to demonstrate to their clients as well as cut samples or test client materials. Our expectations were that these long term relationships would lead to a higher level of end user satisfaction, because the VARs can provide onsite installation, training, support, service, and repair.
We decided to start with domestic, technical-education resellers (EDU VARs). These EDU VARs are regional companies that specialize in selling advanced manufacturing equipment to educational institutions around the country. They had been our most interested group of resellers, and Nisan had met with some at an early trade show.
Nisan and Roland gained knowledge by speaking with various experienced people in the reseller market including consultants, lawyers, Channel Sales Managers, VAR principals, salespeople, and technicians. From these insights we established the terms of the program including the appropriate commission rate, process for deal registration, product return policies, payment terms, and developed an extended warranty product needed to sell to many schools.
After signing on the VAR firms and principals, the next step was to train their sales and support staff. Early in 2020, we began developing training programs and materials to be presented to the VARs via a road trip by the Channel Sales Manager, Roland, and an experienced engineer, Christian or Shuhuan. Seeing the impact Covid-19 was having on travel, we pivoted and designed remote training of the VAR staff via ZOOM. Roland trained the sales staff; Christian and Shuhuan trained the VAR technicians, entirely via ZOOM! We launched with 4 east coast VARs in March 2020, and now in July we have 7 fully onboarded.
Through the course of 2020, with the pandemic affecting every aspect of the business world, we were able to grow the program to 12 education and 2 industrial resellers. We learned through experience and iteration what qualified the resellers to be a “good fit” with WAZER. And we did have to remove one reseller because their team couldn’t handle WAZER support.
The resellers have done well selling, setting up, and supporting WAZER, even though many schools could not be visited or had students doing remote learning with no need for hands on machines at the schools. The VARs’ salesforce learned to work in new ways, including creating their own content about how WAZER works. We used the WAZER studio, created by our inside sales team, to offer the reseller’s salespeople a way to create virtual meetings with their clients and see WAZER in action.
By the end of 2020 we have full nationwide coverage for EDU resellers including Alaska and Hawaii. Anyone who is considering purchasing a WAZER and wants to see it in person can be referred to a local reseller.
When building these long term relationships, the first rule we learned was to treat everyone in the reseller firms with respect as though they are coworkers and colleagues. The rules of the office extend across the many organizations. We have over 14 firms, 75 salespeople and 30 technicians working alongside WAZER to sell and promote our products!