Software Alliance Group has signed a channel development agreement which took 18 months to negotiate. The aim was to restructure the way distribution of Sage Pastel software was conducted.
The new agreement mainly focuses on the pricing structure for in-house software use for resellers as well as new margin arrangements, which allows resellers to enter the Sage Pastel channel at lower levels.
Previously, resellers had to pay large fees to use Sage Pastel software internally with charges applied per module. The new channel program scraps this arrangement for a cheaper package deal.
Software Alliance Group intends to double its reseller base through the channel development agreement. It currently has 20 resellers on its books.
“We are looking for larger resellers. Most the ones we’ve had in the past are one or two man bands, which didn’t have much capacity to grow as Sage Pastel software, such as its ERP solution, becomes more complicated,” Software Alliance Group managing director, John North, said. “We need to find resellers with more than 3-4 employees that are consultancy companies.”
The distributor is expecting a 20-30 per cent increase in turnover through the new channel program depending on the success of its recruitment drive.