EXCLUSIVE INTERVIEW
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4Com commander set to
The phenomenal success of his telecoms systems business combined with a real understanding of the support resellers need to sell successfully has inspired Daron Hutt to unleash his ‘perfect storm’... a new distribution division he firmly believes will revolutionise the way the channel does business by offering resellers bundled sales packages underpinned by powerful lease contracts, focused sales training and a channel recruitment academy.
utt, founder and managing director of south coast based 4Com, is a man on a mission. For the last six months he’s been busily assembling a team of experts to launch his new channel distribution enterprise 4Com Channel Partners. But he squeezed in time for an interview with Comms Dealer alongside his new Channel Partners CEO Roy Carter and James Emm, joint CEO of Oak Telecom, who are a staunch supporter of Hutt and his channel ambitions.
H
“This is the first time I have done this sort of thing so I hope I get my points across well,” Hutt says as we all sit down in the lounge of his palatial home near Bournemouth, which is testimony to the success he has achieved since launching 4Com in January 1999.
He is quick to point out that his coyness has nothing to do with any lack of confidence. “I just haven’t needed to do this sort of thing in the past because 4Com’s success has been built on a simple formula. We have tried to sell better than anybody else in the market.”
That focus on honing sales skills and giving top salespeople the tools they need to sell more effectively has enabled 4Com to achieve an annual turnover of around £10m on hardware alone for the last five years. Impressive figures, but not the growth Hutt is seeking.
“Last year we had 12 sales people and turned over £10m and our top
sales people did around £1.4m each. We are fussy about the sales people we keep and our award structure is very high. But our focus on quality and running a sales team without adding more management tiers means it has been a struggle to efficiently grow our sales force and manage a bigger team. Basically, we have stayed at the same level for years.” Then came what Hutt describes as his ‘Eureka’ moment.
“Through months of meeting resellers one characteristic seemed to be resoundingly obvious. Outside the corporate space 80 per cent or more of the volume is being done by less than 20 per cent of reseller companies. We knew this already, but why? It is simply that there are those that can sell leasing and there are those that can’t. “The banks are not being very cooperative and most companies are avoiding large capital expen- ditures. Quite simply, leasing gives an opportunity for companies to get finance for their business. It’s a mainstay of sales and I suddenly thought, that’s it, that’s what resellers need. A channel support company that understands the relationship between finance and sales. It really was a Eureka moment. “I think the majority of resellers are
Daron Hutt
selling a low price phone system for cash, a 12 month network deal and a 12 month maintenance contract. If they add on a three year lease they’ll get a better price, double their sales and inevitably a discussion with the customer to take a longer term. Also, within leasing conditions the buyer is committed to have maintenance within the contract so it’s a win-win scenario. “Leasing means more leads, higher close rates, higher achieved prices plus longer term network and maintenance contracts. “ Hutt accepts leasing is nothing new, but firmly believes many resellers do not have a full understanding of its benefits and can draw on 4Com’s long term success in delivering
better deals for customers.
“As a reseller, we are very successful at selling leasing. We have sold nearly £100m worth of leasing in the last 10 years. We have always been conscious that system sales facilitate contract generation and build recurring revenue streams. Our churn is lower than most but it is important to understand that this come from the relationship between maintenance and leasing. Our maintenance contacts match our leasing contracts.”
So what are the key fundamentals of the 4Com Channel Partners offer? “Basically it’s all about our understanding and attitude.
A channel support company that understands the relationship between fi nance and sales. It really was a Eureka moment.
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