VARs get double their margin pleasure with Accpac

LAS VEGAS — VARs entering the C2K nightclub inside the Venetian hotel to see Accpac president and CEO David Hood’s keynote address received a pleasant surprise.

All Accpac VARs will now get double the previous margin for reselling Comprehensive Financial Optimizer (CFO), Key Performance

Indicators (KPI) and Business Health Test (BHT) products to accounting firms and banks. VARs previously received 20 per cent margins on these products.

That was only an appetizer as Accpac also announced a new third-party developer partner program. Called the Accpac Sales Success Distribution Program, it gives Accpac partners access to global customers and increased marketing programs.

Accpac’s third party development partners will now have their own products resold globally through the Accpac’s own sales force. The distribution program, however, will not include Accpac technical support at this point.

“”For those with a global appeal, with the global reach they are going to have to gear up their internal operations to be able to provide a level of support for that increased territory,”” said Mike Bongiovanni, senior vice-president of sales for Accpac.

What Accpac does do to prevent a third party developer from over extending its capabilities is they work with the partner to ensure they have the technical support already in place before the sales force starts selling their products, Bongiovanni said. He added that Accpac will help them with its professional services group as well.

Richard Morochove, computer consultant for Toronto-based Morochove and Associates Ltd., said the new program is part of the company’s move to reposition itself as an end-to-end business solution provider.

“”Instead of fighting the accounting features war like how many digits my general ledger accounting code can handle, which is ridiculous, Accpac is providing (more information to its partners),”” Morochove said.

“”Now, how they take this information and not make themselves an island is up to them (the partners). They need to bridge themselves to other areas,”” Morochove added.

Currently, Accpac’s sales force covers 14 North American territories with one inside sales rep processing leads and an outside sales rep working with the partners. In Canada, Accpac sales force covers five territories. Accpac sales force will now be compensated on sales of these third-party products.

Bongiovanni said third party developers are strong in developing products and responding to demands in the market, but need Accpac resources in distributing their products and in marketing their products.

“”Frankly, the more successful those developers are, the more successful Accpac is. The third party developers are a core part of our strategy. They allow our products to fit into vertical areas they would otherwise not completely suit,”” Bongiovanni said.

Some of the target markets for third party developer partners are in manufacturing and point of sale. Bongiovanni added that there are numerous developers who play in niche markets such as produce and hotel management.

“”Will we go out and do a strategic initiatives for the produce vertical? Probably not. But, certainly the larger ones that dove tail with our strategic initiatives. It really depends on the relationship the developer wants,”” he said.

Solution providers can earn Accpac marketing co-op credits, which help them build marketing activities. Also these partners will get a stronger presence on the Accpac Web site, custom-made direct mail marketing brochure templates, sales collateral inserts and participation in a quarterly e-mail marketing program.

As for the double margin promotion for CFO, KPI, and BHT, there will not be a time limit on this offer. “”Our business partners have the ability to sell those products and a corporate initiative to sell those (CFO, KPI, and BHT) products to financials and banks. Our business partners can get involved and steer us towards those opportunities when they bring them to us,”” Bongiovanni said.

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Jim Love, Chief Content Officer, IT World Canada

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