Should Managed Service Providers (MSPs) sell hardware to their clients? This topic sparks much debate among professionals in the industry. Some argue that clients can often find cheaper options elsewhere.
Others worry about the lack of profit margins and the potential hassle of handling hardware sales. In this article, I'll provide clear insights into why selling hardware could be beneficial for your business.
As an MSP, you have the expertise to ensure your clients receive high-quality products that suit their specific needs. Your control over the hardware quality and maintenance can lead to enhanced customer satisfaction.
By considering partnerships with trusted suppliers, you can not only improve the support you offer but also create additional revenue streams. Let’s explore the advantages and challenges of selling hardware to deepen your understanding of this important decision.
Key Takeaways
Selling hardware allows for better quality control and customer support.
Strengthening relationships with suppliers can enhance service offerings.
There are financial considerations that can impact your business model.
The Discussion About MSPs Offering Hardware
Selling hardware as an MSP brings many opinions and questions. Some worry that customers can find better prices elsewhere. Others think handling hardware adds unnecessary stress and complexity to your business. The question is whether you should sell hardware or let customers buy from different retailers.
There are several hardware providers out there. You can buy from well-known brands like Cisco and HP, or opt for smaller businesses. For good deals, you might need to use a wholesaler.
Here are some recommended options:
Ingram Micro: Offers various deals on name-brand equipment with fast delivery.
CDW: Displays online prices and has a straightforward buying process.
Carbon Systems: Sells unique machines that customers can't easily price-check online.
Selling hardware has its advantages. By providing it, you ensure greater control over quality. You can customize the systems to meet your clients' needs by removing bloatware and optimizing performance. Additionally, you can earn some profit from these sales, even if the margins are low.
Support and maintenance also become easier when you sell the hardware. Companies like Ingram Micro, CDW, and Carbon Systems provide better assistance if you are a reseller. If you choose to buy directly from a major manufacturer, you might miss out if customers prefer other brands like Lenovo or HP.
There are challenges as well. You may need to pay upfront for the hardware, and establishing a solid relationship with vendors takes time. For instance, smaller companies like Carbon Systems often provide personal support, while larger ones like CDW might treat you as just another customer.
Warranty management can also create problems. If a customer buys equipment from Amazon, they might expect you to solve issues with it, even if you didn’t sell it. This could lead to frustration for both you and the customer.
Letting customers make their own purchases can reduce your workload but may create gaps in service. If they face issues with their hardware, they might question the value of your support. Balancing customer choice with your business model is essential for maintaining satisfaction and efficiency.
Details on Growth Tools and Resources Available
You might wonder if selling hardware is a good move for your business. This topic generates a lot of discussion because many people believe they can find better deals elsewhere. It's understandable if you feel hesitant. Still, the answer is yes, you should consider selling hardware.
Here’s why.
Growth Generators offers many ways for MSPs to gain support in areas like sales training and marketing. Your outreach has already helped many grow their businesses, and there are resources that can take you even further.
Check out the links provided in the description of this video or podcast. One great resource is growthgenerator.com. It features valuable tools, including:
Basic pricing calculators
These tools were created to help you succeed, so be sure to utilize them. When it comes to hardware, you'll encounter numerous providers ranging from well-known companies like Cisco to smaller brands like HP or Aruba. Typically, you would go through a wholesaler to get the best prices.
Here are some key suppliers to consider:
Ingram Micro: Offers excellent deals and a wide range of name-brand equipment including Dell and HP. They have a streamlined backend for shopping once you're logged in.
CDW: Displays prices online, making it easy for you to compare and find what you need.
Carbon Systems: They provide unique machines that won't appear in search results, allowing you to keep pricing details private while still offering quality products.
Selling hardware has its advantages. For instance, you maintain control over the quality, ensuring the equipment meets your customer's needs without unwanted software or issues.
There's potential for additional income, though margins might be small sometimes. More importantly, you can offer better support and maintenance for the products since you're involved in the sale.
Building relationships with companies like Ingram Micro and CDW takes time, but it pays off in providing reliable support. If something goes wrong, they are often more responsive to established customers.
On the flip side, selling hardware comes with its challenges. You may need to front costs for customers, as they might not always pay you upfront. Moreover, it can take time to gain respect as a customer among larger suppliers.
If customers buy their own products from places like Amazon, it might create more issues for you. They may expect you to handle support, even if they didn't purchase from you.
While there are some times when allowing customers to pick their own items can reduce headaches for you, it often creates confusion about your role. Keep in mind that working together on hardware sales can enhance the service you provide and strengthen your business relationships.
Key Hardware Suppliers
When considering whether to sell hardware, it’s important to know the main suppliers available. There are many options ranging from large companies to smaller businesses.
Some well-known names include Cisco, HP, and Aruba. While you may think about buying directly from these manufacturers, it’s often more practical to go through a wholesaler to get the best prices.
Here are a few key providers to consider:
Ingram Micro: This is a top choice for purchasing brand-name equipment like Dell and HP products. They offer fantastic deals and have a well-structured platform for orders.
CDW: Known for their transparent pricing, CDW allows you to view prices online directly. This can help you make informed purchasing decisions.
Carbon Systems: They provide unique machines that might be harder to find elsewhere. With them, you can manage pricing since customers won’t see exact costs compared to competitors.
In selling hardware, there are benefits you shouldn’t overlook. As an MSP, you gain control over quality. You can customize products to meet your customers' needs by removing unnecessary software and ensuring their technology grows with them. Additionally, selling hardware can mean added profit, although margins may vary.
Another key advantage is improved support. Vendors like Ingram Micro, CDW, and Carbon Systems often provide better assistance to resellers. This can be crucial if issues arise with products.
While selling hardware has its perks, there are challenges. You might need to finance the purchase upfront, which can be a hassle. Building a strong relationship with suppliers takes time, especially with larger companies. If customers buy directly from places like Amazon and face issues, they might turn to you for support, complicating your responsibilities.
In some cases, it’s acceptable to let customers purchase their own items, like computer screens, to reduce your workload. However, doing so can lead to misunderstandings about your role as their MSP if they encounter problems with those products. It's key to balance these factors in your hardware sales strategy.
Advantages of Providing Hardware
Selling hardware can bring many benefits to your business. Here are some key advantages to consider:
Quality ControlWhen you provide hardware, you can ensure it meets your standards. You can remove unnecessary software and customize it to fit your clients’ needs. This helps the hardware last longer and work better as their needs grow.
Improved Support and MaintenanceYou receive better support from suppliers when you resell their products. Companies like Ingram Micro, CDW, and Carbon Systems recognize you as a reseller. This relationship often means you get quicker and more reliable help when problems arise.
Extra RevenueSelling hardware can create additional income for your business. While profit margins can be low, every bit counts. It adds up over time and helps with cash flow.
Customer SatisfactionWhen customers buy products through you, they expect you to handle issues. If there are problems with a product, they are likely to come to you for support instead of contacting a third-party retailer. This can strengthen your relationship and build trust.
Flexibility in OfferingsYou can cater to various customer needs by offering different hardware options. If a client prefers a specific brand or type, you can find it for them, ensuring they get what they want.
While there are challenges in selling hardware, these benefits can enhance your business and client satisfaction.
Quality Control
When considering selling hardware, it’s essential to think about the quality you can provide. Your clients may shop around for better deals, but controlling the quality of what they receive is vital. When you sell the hardware, you can set it up to meet their needs precisely. This means removing unnecessary software and ensuring the system performs well.
Using reputable suppliers is crucial. For example, companies like Ingram Micro, CDW, and Carbon Systems offer a range of products. By buying through these wholesalers, you usually get better support and service. This relationship improves when you resell their products, making it easier to resolve issues that arise.
Selling hardware also enhances your reputation as a managed service provider (MSP). Clients expect you to manage their technology, not just when it’s convenient. If they purchase from a retailer and run into problems, they may expect you to solve it, even if you had no role in the purchase. This can lead to frustrations on both sides.
There are challenges in selling hardware, too. You need to handle upfront costs and manage customer expectations. While it can be a hassle, providing hardware can position you as the go-to expert for your clients. It helps build trust and establishes a reliable workflow that benefits both you and your customers.
While allowing customers to purchase their hardware can save you time and headaches, it can also lead to complications. If something goes wrong, who will they turn to? It’s often best to keep that control under your management to prevent misunderstandings and service interruptions.
Potential Additional Revenue
When considering whether to sell hardware, it's important to think about the potential for extra income. Customers often look for the best price and may be tempted to shop elsewhere. However, you can offer value that they might not find with other suppliers.
Benefits of Selling Hardware
Control Over Quality: You can ensure that the hardware meets your clients' needs. By removing bloatware and customizing setups, you help provide a better experience.
Better Support: When you sell hardware from trusted vendors like Ingram Micro or CDW, you gain access to better support when issues arise. Being a reseller often means these companies will prioritize your requests.
Additional Revenue: Selling hardware allows for earning extra money, even if the margins are sometimes low.
Considerations
While there are advantages, challenges also come with selling hardware.
Upfront Costs: You may need to front the cost of the hardware, which can be a hassle. Customers might pay upfront, but not always.
Building Relationships: Developing a good relationship with suppliers takes time, especially with larger vendors where you might feel like a small account.
Warranty Control: Handling warranties and tech support can become complicated if customers buy from other places.
Situations for Customer Purchases
Sometimes, letting customers purchase their hardware makes sense. For example, if they want specific screens or accessories, it's okay to allow them to handle that part. This not only reduces your workload but also saves costs when less critical items are involved.
In the end, selling hardware can create more opportunities for your business. Even with challenges, the benefits often outweigh the drawbacks. It's all about finding the right balance for your services and your clients' needs.
Enhanced Assistance and Maintenance
When considering whether to sell hardware to your customers, it's important to weigh the benefits and challenges. You might find that offering hardware can lead to better control and support for the products you provide.
Here are a few key points to keep in mind:
Quality Control: By selling hardware, you can ensure it meets your customer's needs. You’ll be able to remove any unwanted software and configure the equipment to run smoothly.
Improved Support: Reselling products from suppliers like Ingram Micro, CDW, or Carbon Systems can lead to better assistance when issues arise. These companies tend to provide better customer service to those who resell their products.
Profitability: Even if the margins are slim, selling hardware can bring in some extra income. It’s worth considering the revenue potential alongside the advantages of offering a complete service.
While selling hardware can seem like a hassle, there are significant advantages that can enhance your service as a Managed Service Provider (MSP). You'll have the opportunity to support your clients better and ensure that the products they use are reliable and effective for their business needs.
Partnerships with Suppliers and Vendor Assistance
In deciding whether to sell hardware to your customers, it’s important to consider several factors. Some clients may find better prices elsewhere, but there are strong reasons for you to take control of this aspect of your business.
You have options for sourcing hardware. Big-name companies like Cisco, HP, and Aruba are available, but often it is best to work through wholesalers for better deals. One recommended source is Ingram Micro, which offers excellent pricing and a variety of name-brand equipment.
Another good option is CDW, which shows prices directly online. You might also consider Carbon Systems for unique products that don’t have visible pricing, keeping your costs discreet.
Benefits of Selling Hardware
Quality Control: You can ensure that the hardware meets your client’s needs without unwanted software or features. This customization is vital as software demands grow.
Increased Customer Support: By reselling hardware, you receive better support and maintenance from vendors. Companies will prioritize your requests because of the relationship you build through reselling, unlike when customers buy directly from larger retailers.
Business Growth: Selling hardware can create an additional revenue stream. While margins might be thin, it's still a source of income and offers you more opportunities to assist your clients effectively.
Challenges to Consider
You will be responsible for paying upfront for hardware unless customers provide payments in advance. Establishing relationships with larger suppliers takes time, and being a small client can make your needs less of a priority. If a customer buys hardware directly from a retailer, they may seek your help when issues arise, which can lead to misunderstandings about service responsibilities.
While there might be times when it’s acceptable for customers to source their own products, this may also create complications. For example, if they choose a product from Amazon, they may not receive the necessary support, leading to frustration and additional work for you when issues arise.
In the end, selling hardware provides you with valuable customer relationships and the opportunity to deliver quality service that meets their technical needs.
Obstacles of Selling Hardware
Selling hardware to your clients can come with challenges. One major issue is the competition from other suppliers. Customers often find lower prices from well-known retailers or local businesses, which can make it tough for you to compete.
Additionally, you may not make a significant profit margin when reselling hardware. It's not always worth the hassle when the returns aren’t high. You also face the risk of your clients purchasing their own products, which can lead to support issues down the road.
Control Over Quality
When you sell hardware, you can control the quality for your clients. If customers buy from places like Amazon, they might get products that are not suited for their needs. You understand what your clients require and can ensure that the hardware works well for them.
Support and Maintenance
Providing hardware allows you to offer better support and maintenance. If issues arise, you’ll be in a better position to help if you sold the product. If customers buy from somewhere else, they might expect you to handle any problems, which can lead to frustration.
Warranty and Responsibility
When clients buy their own hardware, they take on the responsibility for warranties and repairs. If something goes wrong, they might not want to deal with the hassle of contacting the retailer. Instead, they may turn to you for help. This can create a headache for you, especially if it’s a product you didn’t sell.
Relationship Building
Building strong relationships with suppliers is important, but it can take time. Larger companies may see you as just one of many clients, making it harder to get quick support or resolutions when issues arise. This can negatively affect your service to clients.
Customer Preferences
Some clients might prefer to shop for their own products, especially for items like monitors or peripherals. While you could save time, this approach can lead to misunderstandings about your role and the services you provide. Clients might wonder why they pay you if you won't assist with products they purchased elsewhere.
Financial Factors to Consider
Deciding whether to sell hardware can impact your finances significantly. While it’s true that customers may find cheaper options elsewhere, selling hardware can add value to your services.
Advantages of Selling Hardware
Quality Control: By selling hardware, you can ensure that the equipment meets your standards. You can set up systems free of bloatware and ensure they fit your clients’ needs.
Additional Income: Although profit margins on hardware can be low, selling it can still provide extra income to your business.
Better Support: Working with wholesalers like Ingram Micro, CDW, or Carbon Systems can lead to enhanced support. These companies tend to provide you with better assistance if they know you’re reselling their products.
Challenges of Selling Hardware
Upfront Costs: Purchasing hardware requires initial investment. While some clients may pay upfront, you’ll need to manage transactions with the vendor, which can be a hassle.
Establishing Relationships: Building a good reputation with larger wholesalers can take time. As a smaller business, you may feel overlooked, making it harder to get timely support when issues arise.
Warranty Management: If clients buy from retailers like Amazon, they may face challenges with warranties or product issues. They may expect you to solve these problems, which can lead to frustration if the purchase wasn’t made through you.
Selling hardware can bring challenges, but considering these factors helps guide your overall strategy.
Building Strong Connections with Suppliers
When considering whether to sell hardware to your customers, it's important to recognize who your key suppliers might be. You have many options, from well-known companies like Cisco to smaller businesses like HP and Aruba. Often, it’s best to go through a wholesaler to get better prices and access to various brands.
A few notable suppliers include:
Ingram Micro: They provide excellent deals and offer a range of name-brand equipment. Once you log in, you can see their entire product lineup.
CDW: They are transparent about their pricing, making it easy to find what you need.
Carbon Systems: This company offers unique machines that aren't available at typical retail prices, giving you a way to manage costs without letting your customers see the price upfront.
Selling hardware has several benefits. By controlling the quality of the products you provide, you ensure that equipment meets your customer’s needs. You can customize installations, remove any unwanted software, and offer tech support tailored to the specific products you sell.
Additionally, selling hardware can help improve your profit margins. While some hardware offers just a small profit, the key advantage is the better support you receive as a reseller. Working with companies like Ingram Micro or CDW means you’re more likely to receive timely assistance if issues come up.
Building relationships with suppliers requires some effort. Initially, you may feel like a small player among larger customers. However, nurturing these connections over time can lead to better service and support when you need it.
Remember, if customers buy their hardware from retailers like Amazon, they might expect you to handle any issues without any responsibility on their part. This can lead to complications when problems arise. If you manage the purchase, you have control over warranties and support issues, ensuring smoother resolutions when something doesn’t work.
In some cases, allowing customers to purchase their own products may reduce your headaches, but it can also undermine the value you bring as an MSP. You need to ensure that when customers have problems, they see you as the first point of contact. If they buy equipment themselves, that perception can change, leading to challenges in your relationship.
Maintaining these supplier relationships is crucial to your success as an MSP. Building trust and strengthening ties over time will set your business apart and improve customer satisfaction.
Customer Experience with Warranties and Support
When selling hardware, you hold the reins on quality control. By offering products directly, you can ensure they meet your customers' needs. This includes removing unwanted software and customizing setups. You know what will work best for them, leading to better long-term performance.
Choosing to be the hardware provider allows you to increase your profits, but it also gives customers access to better support. Vendors like Ingram Micro and CDW appreciate partners who resell their products. They tend to offer improved support for partners, which is beneficial when issues arise.
If a customer buys equipment elsewhere, they often face challenges with warranties and tech support. For instance, customers may not want to contact a big retailer like Amazon for help.
They might turn to you instead, expecting you to handle their issues. Without a direct relationship to the vendor, you may struggle to find solutions, which can lead to dissatisfaction. Instead, by selling products directly, you can address problems effectively and provide a smooth experience for your customers.
While letting customers buy their own products can save you some hassle, this may confuse your role as a managed service provider. If they encounter problems, they might question your value if you don’t engage with the hardware they purchased. Awareness of these dynamics can help you decide how to approach hardware sales in your business.
Factors to Consider When Customers Buy on Their Own
When customers choose to purchase hardware themselves, it can create several challenges for you as an MSP. While they have the option to buy from various retailers, their choices may not always lead to the best outcome for their needs.
Control Over Quality
You understand the importance of providing high-quality products. When customers buy independently, they may overlook necessary specifications and bloatware that could affect performance. By selling hardware directly, you ensure the devices meet their requirements and are optimized for use.
Support and Maintenance
Selling hardware also enhances the support you can offer. If a customer buys from a store, they often face challenges when issues arise. You, as their MSP, are better positioned to provide reliable support for products you sold. This relationship leads to faster resolutions and a better experience for your clients.
Warranty Control
Warranty management becomes complicated when customers buy hardware from third-party retailers. If a problem occurs, customers may expect you to handle their issues, even if they purchased the product elsewhere. This can create frustration on both sides and complicate your ability to deliver excellent service.
Flexibility and Cost Savings
In some situations, it can be beneficial to let customers make their purchases. For example, if they are set on a specific product or find a better deal, it may save you both time and effort. However, this can also lead to misunderstandings about your role and the services you provide.
Building Relationships
Establishing connections with suppliers is essential for providing optimal service. When customers buy independently, it can hinder your ability to gain preferred vendor status with equipment manufacturers. A strong relationship with suppliers can lead to better support and timely assistance when needed.
The Risk of Low-Quality Purchases
When customers shop without your guidance, they may end up with subpar or incompatible products. These choices can create unnecessary work when you must troubleshoot and resolve issues with hardware that does not meet their requirements or expectations.
Evaluating these factors will help you determine the best approach when it comes to hardware sales. It is essential to balance customer independence with the need to maintain quality service and support.
When Customers Should Purchase Their Own Hardware
Deciding whether to sell hardware to your clients is a common topic of discussion. Many believe customers might find better prices elsewhere, and some MSPs prefer not to deal with the complications that can arise from hardware sales. Still, it may be beneficial in certain situations.
Key Considerations
Control Over Quality: When you sell hardware, you can ensure that it meets your customer's needs. This includes removing any unwanted software, known as bloatware, and customizing the setup for optimal performance.
Support and Maintenance: Offering hardware means you can provide better ongoing support. Suppliers like Ingram Micro and CDW are more likely to give you high-quality support if you resell their products.
Profit Margins: While profits from hardware sales can be small, they still add up. Selling can offer some additional revenue and strengthen your relationship with clients.
Challenges of Selling Hardware
Upfront Costs: You often have to pay the vendor upfront, even if the customer plans to reimburse you later. This can create cash flow challenges.
Building Relationships: Establishing trust and recognition with suppliers takes time. As smaller partners, you might not receive the best treatment initially compared to larger buyers.
Warranty and Support Issues: If customers purchase their hardware independently, they may expect you to handle warranty claims and support issues. This can create confusion and added responsibilities for you.
When to Let Customers Buy Their Own Hardware
There are instances when it makes sense to let clients purchase their equipment. For example, if the hardware is not business-critical or if there are significant cost savings for them. This can save you from potential headaches related to support and maintenance.
In these cases, you can guide them to make informed choices without taking on the burden of managing those purchases. However, be clear about how this affects your role as their MSP to avoid misunderstandings.
Considerations on Selling Hardware
Selling hardware can bring mixed opinions among MSPs. You might hear concerns about price competitiveness and whether it's worth the trouble. It’s essential to weigh these factors based on your unique business model and customer needs.
When you consider suppliers, there are large providers like Cisco, HP, and smaller companies too. You often need to go through wholesalers for the best deals. Some recommended options include:
Ingram Micro: Offers excellent deals and a wide variety of equipment.
CDW: Features transparent online pricing for easy access.
Carbon Systems: Sells unique machines, helping to keep your pricing confidential.
The benefits of selling hardware include better control over quality. When you provide the equipment, you can ensure it meets standards and functions well for your clients. You can also eliminate unwanted software and set it up to fit their needs.
Additionally, selling hardware can enhance your service offerings. You often receive better support from vendors when you resell their products. As an MSP, it strengthens your relationship with suppliers, which can improve problem resolution if issues arise.
Despite these advantages, there are drawbacks. You generally need to manage inventory upfront, which can be a hassle. Establishing a good rapport with suppliers takes time, particularly with larger companies. You might find yourself navigating warranty issues or support calls if customers buy equipment elsewhere.
In some scenarios, allowing customers to handle their own purchases can simplify things on your end. However, this could leave you in a tough spot if they encounter issues with their purchases. Balancing these options is key to providing quality service while managing your business efficiently.
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