Crest Systems is a Value Added Reseller (VAR) and a brand new company. The company specializes in selling speciality inventory products to more than 1,200 VARs who sell in vertical markets. Each market serves a different industry. Crest will also offer inventory data collection hardware, which will be used to operate the software. VARs that sell in these vertical markets traditionally focus exclusively on the particular product or service they offer. These VARs do not have a product that they can offer their customers, despite having to keep track of inventory.
It is crucial to the product’s success that the customer can purchase an inventory management software solution for less than $5,000. Crest Systems has entered into a strategic alliance with Promerit Engineering in order to sell its software products via these VARs. Promerit Inventory Basic is the first product and it will be released in May. 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 be paid $250 for each unit sold. Crest Systems will also sell hardware to run the software. Crest Systems will offer portable data collection devices from Symbol and PSC. The cost of the hardware will be between $2,000 to $3,200 per unit. Crest Systems receives between $600 – $900 on each unit. The total cost for software and hardware packages will not exceed $5,000
While the company is concentrated on vertical markets VARs selling warehouse are also interested. Crest Systems will put together 1,000 VARs who manage warehouses and sell Promerit Inventory Basic.
Crest Systems will also be developing specialty software modules to integrate with Promerit Inventory Basic software. These modules will retail for anywhere from $800 to $1000. Crest Systems plans to maintain strong business relationships and provide additional software, hardware, and support products to its VAR customers.
Crest System’s owner Richard Torres has more than twelve years of experience in selling to vertical markets. Last year, he was Cycon Systems top salesperson with over $3 million in sales.
1.1 Objectives
The objectives of Crest Systems are to:
- Sell 8,000 units during the first year.
- To sell, it is important to establish strong relationships.
- Each year, increase the sales of software modules by 15%
- Promerit Systems needs to be in close contact with you so that we can improve the product quality and customer satisfaction.
Success Keys 1.2
The keys to success in Crest Systems are:
- 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
- A reliable administration that is ready to serve VARs, prepare accurate billing, follow-up on orders and other documentation, and maintain a close watch on expenses and collection of accounts receivable.