Purchasing Construction Software: Vendor or Reseller?

Q:

I’m interested in purchasing some construction project management software in the near future. A colleague of mine referred me to a local software reseller, but I read somewhere that it might be a better idea to buy a system directly from the vendor rather than from a dealer. I’m not sure why it matters. Can you explain the pros and cons of each?

Hank
A:

That’s a very good question, and one that is rarely ever asked. VARs (value added resellers) are companies licensed to sell, install, train and support specific software packages. Many software companies contract with VARs so they can sell their applications through more channels without having to invest in sales and support personnel. Years ago, the one advantage dealers offered to buyers was their local presence, but since the arrival of cost-effective online training, that’s no longer a huge issue. The real question comes down to how quickly a dealer can respond to your support questions and issues.

In an age of acquisitions, rollups and economic uncertainty, there are more reasons than ever to buy your construction software and support directly from the developer. For one, you are dealing with the people who are most knowledgeable about the product and are likely to better assess your needs and provide you with superior training and support. Secondly, the relationship between you and your software vendor helps to ensure that the product continues to evolve and meet your changing market conditions.

Of course, Hank, there are many other factors to consider regarding your purchase. But it’s essential not to overlook a company’s sales and support model.

Fred

Construction Business Owner, April 2010