Are you interested in technology and making money? There’s a way to combine these two interests, and you don’t have to be an expert to do it.
If you don’t have a brilliant app idea or know how to make a tech product from scratch, you can still be successful. One of the most lucrative ways to do so is through technology reselling.
You’ve probably already come across tech reselling and didn’t even know it. Big companies don’t always sell their own products. Instead, they use both large and small businesses to get them to the consumer.
There’s plenty of reseller products to choose from, and you don’t need any special experience. Curious? Keep reading to find out how to become a reseller in technology.
The basic foundation of any reseller business is buying a product then reselling it at a profit. To maximize the amount made, the reseller will buy at a wholesale price for a lower price than they sell it on to the buyer.
This reseller buys from a manufacturer or wholesaler. They can even get the product from another seller like themselves. Provided, of course, that the seller has a low enough price, so the reseller pays less than what the product is sold for.
Some companies can send the product directly to your purchasers. This is a popular method for first-time sellers. This way, you can easily get started selling since you don’t need to keep an inventory.
How to Become a Reseller
A common way to sell tech is one you’ve probably already seen multiple times. This is retailing or selling the tech from a store.
This method requires buying stock. You can get it from either the company that makes the product or its distributor.
You can also act as a partner to the manufacturer. This form of reselling is called being a channel partner. That way, you manage and sell the products, and the manufacturer doesn’t have to deal with sales at all.
You can also choose to be a reseller that adds value to the product you sell. Bundling the services that come with a product is a good way to start. Add customer support to your package, or after-sales service.
This form of reselling is called value-added reselling, and it can be quite profitable. To become a value-added reseller or VAR, a contract with the manufacturer is usually signed.
The end product is then marketed and provided by you. Most resellers provide a turnkey or full-service solution.
In this way, it’s a win-win. The customer gets all the service and product they need. The manufacturer is free to focus on making their products and not selling or dealing with things like customer support services.
Types of Tech Products to Sell
The great thing about living in a technology-filled world is that you can choose from many different products. Reseller business opportunities are as diverse as tech itself.
If you’re a web designer, for example, you can make money reselling hosting. Both hardware and software are possible areas to get into. It’s all about seeing a demand for a product and carving your niche in the most profitable way.
Deciding on the types of reseller products that will work for you requires research. Ask the companies that actually make or sell the products for sales records.
To get the best products at the best prices, you’ll need to form excellent relationships with suppliers.
When you start making sales, gather feedback from your purchasers. This can also help with adding new products to your offerings in the future.
Researching Your Tech Products
Tech reselling is like any other business. You must do market research to be sure your business idea will work. Ask yourself, what does your target customer want? How can the tech you provide help them?
You may feel there’s a need for a particular product, but if your customers don’t agree, you won’t sell a thing.
Making a Profit
Since becoming a reseller is like any other business, you’re going to need some tactics on staying in the black.
Start by understanding the amount of upfront investment you’ll need to make in your reseller business. What are the ongoing costs you’ll have once you start?
From there you can go on to calculate your margins. To get this magic number, know the price you’re selling it at, then take away what it will cost for you to provide the product or service.
Understanding the Costs of Running a Reseller Business
Many people don’t understand what the cost to provide the tech product is. It’s not just what you paid for the item, but also the overheads you have with running the business.
There’s the cost of creating and running a website for your company, for example. Then, you may also have to pay for e-commerce or another system to facilitate payments.
Labor costs are another important part of planning the profits of a business.
Spending on staff is one of the highest costs a reseller will have. If you can, implement software to schedule and allocate staff to tasks. Also, use automation tools so that you can effectively allocate resources.
Making Money in Technology
The best way to be successful when you become a reseller is to understand what you’re selling. If you already have some knowledge of the tech products, you’re at an advantage compared to other resellers.
Once you’ve started, keep training and learning. Also, remember to constantly keep up with developments in the field.
Want to find out more about making money in IT? Read our article on profitable tech business ideas you can implement on your own.