What's the Cost of Picking the Wrong Reseller?

What is the cost of picking the wrong reseller Image smallIs IT procurement simply a matter of identifying an application and an appropriate hardware platform? For very small companies who can rely on off-the-shelf solutions, or very large corporations with their own vendor relationships, it may be. But for mid-market companies, it’s a different matter.

What’s the cost of getting it wrong?

There are a number of potential costs to picking the wrong reseller; especially if the reseller provides you with an inadequate solution. Although these costs can be difficult to quantify, they can end up costing your business thousands of dollars in unnecessary purchases and lost opportunities. Here are just a few of the potential costs to your company.

Loss of investment

If the product recommended does not meet your needs, due to reseller’s lack of product knowledge and relationship with the manufacturer, then you will probably need to replace it with a whole new product – meaning that the original purchase is wasted.

Loss of productivity

An ineffective solution slows down everything – usually worse than the original problem did. This takes your employees’ time and resources away from your projects, because they’re busy working around issues and trying to make the solution work as needed.

Loss of project timelines

If you don’t have the base on which you need to develop or test a product, your projects will suffer more than loss of employee productivity – the entire project could be stalled or heavily delayed until a suitable solution can be procured and set up.

Going back to tender

The process of taking tenders is often lengthy and resource-hungry. Going back to tender isn’t as simple as pulling out the next-favourite tender proposal, as resellers may not have the same resources available to you as previously.


If the product put in place does not do the job sufficiently, you could find yourself in violation of SLAs due to loss of functionality or security.


An effective and knowledgeable reseller will be able to analyse your needs and point out the benefits to your business in using specific functionality or moving to a different version of your current software. This sort of advice can deliver a substantial business benefit, and could be the difference between your business thriving or just surviving.

Inadequate support

If the reseller does not possess a high level of familiarity with the products that they support, including access to manufacturer support for sticky problems, you face regularly losing time and productivity whenever a problem arises.


As you’ve seen, the cost of picking the wrong reseller can be high – and it’s usually expensive in more than just monetary terms. To avoid paying these costs, look for a reseller who has multiple certifications with multiple vendors; who offers a range of services to meet your ever-changing IT needs; who’ll track your needs and ensure that they are being met.

Julie B Photo small
Author Name: Julie Barbieri

Julie is the General Manager of Infrastructure at NTT Communications ICT Solutions. She is an experienced manger with 30 years in the IT Industry.  Starting her career as a Field Service Engineer, moving into Sales, Sales Management before taking on the role of a Business Unit Manager.

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Added 22 August 2014

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