While a third-party IT maintenance company strives to keep their clients' hardware and other IT components productive for as long as possible, the original equipment manufacturer (OEM) has a different mission. Naturally, the OEM is focused on selling new equipment to replace existing hardware that likely still has years of productivity as long as it is well maintained.
Extending the life of any enterprise's IT equipment can reduce capital expenditure significantly over a long period. If invested in product and customer service enhancements, those savings can make a real difference in growth rate and long-term profitability.
Spare Parts Cost Challenges for TPM Companies
One of the biggest challenges for third-party IT maintenance providers (TPM) is securing spare parts from the OEM at an on-demand competitive cost. Since the TPM provider's advantage is their ability to maintain and upgrade equipment from multiple OEMs, third-party maintenance companies are usually not agents for any single OEM.
As a result, TPMs must buy spare parts through equipment parts resellers that would result in higher costs for much-needed components.
What is Deal Registration?
Some TPM providers like thomastach LLC have countered the potential cost premium by participating in "deal registration" programs with their resellers. According to Channel Mechanics, deal registration is a reseller's practice that allows a partner (TPM) to "register" an opportunity and provide additional financial, sales, and marketing support.
While the process is invisible to the TPM's client, a reseller with a particular TPM customer that needs a price break for a product can "register" the deal with the OEM to lock in a price for that TPM and their client. This action assures the reseller of continuing business from that TPM for the particular component.
Once a reseller registers a deal, no competing reseller can access the same break, thereby providing price protection for the reseller and, by extension, for the TPM company and their client.
How Deal Registration Works for TPMs
Since only one reseller can offer the lower prices for a specific component because of the deal registration exclusivity, price erosion does not occur, and margins are protected.
With deal registration in place with various resellers, the proven, top-tier third-party IT maintenance companies like thomastech can assemble a roster of multiple reseller relationships to source their critical components at the lowest, "deal registered" process.
What Does Deal Registration Accomplish for your Business?
- Enhances Competition
Deal registration reduces the importance of the pricing factor and allows companies to compete on their ability to serve their clients. Companies compete without diminishing their margins and, as a result, can upgrade the quality of service to gain to win more often while improving their market share.
- Protects Margins
Establishing a fair price allows companies to maintain target margins and discourages the potential for competing at unsustainably low prices.
- Grows Service Performance Levels for Your Customers
Vendors and TPMs can focus on their clients in the industry, extending services that demonstrate their commitment to providing the clients with precisely what they need to expand their business.
- Improves Customer Satisfaction for Your Organization and Process
Focusing on helping clients become profitable while enhancing conditions that support their financial health is the mission of quality third-party service providers. By not having to swallow steep and non-competitive parts pricing, TPMs can focus entirely on an invaluable approach based on superior customer support.
Contact thomastech, the Right Choice as your Global Third-Party IT Maintenance Provider
With a worldwide presence, thomastech provides IT support for a broad range of both U.S. and European businesses in various countries. Having aligned with multiple parts suppliers locked into deal registration agreements, thomastech stabilizes their costs, provides customized IT support and tools, and extends the life of all your enterprise's IT assets and resources, saving you both time and money.
To learn more about our services and arrange a confidential evaluation, visit the thomastech platform at https://thomastechllc.com/contact. Or, feel free to call our expert professionals at +1 (330)-225-3117.
Part 1 – Applying Third-Party Oracle and SAP Support to Reduce Costs in Unprecedented Times: Cash is King
OEM Support VS Third Party Maintenance Amid the Covid-19 Pandemic: Which is Better?
Part 2 – Applying Third-Party Oracle and SAP Support to Reduce Costs in Unprecedented Times: Time Is of the Essence
Friday Feature: P9L83A
A Guide To IT Asset Disposition | What Is ITAD?
What is Third-Party Maintenance in the Data Center?
Third Party Support