Crest Systems (VAR), a new value-added reseller (VAR), has been established. The company specializes in selling speciality inventory products to more than 1,200 VARs who sell in vertical markets. Each market is different and serves a unique 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. Though their customers have inventory controls needs, these VARs have not had a product they could offer until now.

Product success depends on the ability to sell the customer inventory management solutions that cost less than $5,000. Crest Systems has reached a strategic alliance deal with Promerit Engineering to distribute its software products to these VARs. Promerit Inventory Basic’s first product will be made available in May. Crest Systems estimates that Crest Systems will sell 20,000 units in just 36 months. The product will retail for $850

The sale will bring in $400 for the VAR. Crest Systems will get $250 from each unit. Crest Systems will also offer hardware that runs the software. Crest Systems will offer portable data collection devices from Symbol and PSC. The price per unit will range from $2,000 to $3,000. Crest Systems receives $600 &#8211 $900 per unit. The total cost for software and hardware packages will not exceed $5,000

The company is focused on vertical markets. However, warehouse VARs are also interested in a low cost data collection solution. Crest Systems will assemble 1,000 plus warehouse management VARs to sell Promerit Inventory Basic.

Crest Systems can also develop special software modules that integrate with Promerit Invoice 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 founder Richard Torres brings over twelve years of vertical market experience to the table. Last year, he was Cycon Systems top salesperson with over $3 million in sales.

1.1 Objectives

Crest Systems’ objectives are:

• Sell 8,000 units during the first year.
• Establish strong relationships with the VARs critical to sales.
• Build the software module business by 15% each year.
• Promerit Systems is a good partner in order to increase product quality and customer satisfaction.

1.2 Keys To Success

Crest Systems success depends on the following:

1. Low-cost inventory control solutions, which can be implemented for as low as $5,000
2. Reliable and timely response to VARs’ questions and requests.
3. Reliable administration that can serve VARs, prepare accurate bills, follow up on orders, and keep a close vigil on expenses, collection, and receivables.