Some ERP (or accounting) software companies only sell their system through a dealer network. Some only sell direct. Some are a hybrid and do both. There are advantages and disadvantages to all of these scenarios.
Selling Through a Dealer Network
Advantages:
- Theoretically, a local ERP dealer can be on-site faster, more frequently, and less expensively than a company that sells directly.
- Sometimes a local dealer represents more than one package. In this scenario, an honest dealer might help you choose the best package out of the ones they represent. Keep in mind that this advice can be intentionally or unintentionally clouded — the dealer has different profit margins with different products and tends to recommend the product they know best.
- Some ERP dealers also provide network and workstation configuration services, so you may be able to use one vendor for both your software and hardware needs.
Disadvantages:
- No matter how many years a local dealer has worked with the system you are acquiring, they will never know the system's capabilities and limitations as well as the developer.
- A dealer has a margin they have to work within, paying the developer a set amount for your license. By definition, there is less pricing flexibility in this arrangement than with a developer who sells direct.
- A local ERP dealer is more likely to go out of business than a developer, leaving you without support.
- Many times, developers who sell through a dealer network do not offer direct support to the client, forcing you to find another dealer if your current one is unresponsive.
- Local ERP dealers commonly have limited personnel, which means getting timely on-site or phone support can be a problem — which is especially problematic since timely support is the primary advantage of using a dealer in the first place.
Developers Selling Direct
Advantages:
- The person demonstrating the software is more likely to know the current version inside out, including where the system is going in the future and what its limitations are. Since they typically represent only one package, they tend to be true experts in it.
- The incremental cost to the developer to sell you a system is minuscule compared to a dealer. Developers usually have far more pricing flexibility.
- Developers who sell direct usually provide exceptional phone support to compensate for the fact that it is harder to be on-site, often including remote screen-sharing support.
- Most developers provide on-site implementation assistance using highly trained professionals.
Disadvantages:
- A developer who sells direct incurs travel expenses for on-site demos and implementation. Same-day on-site assistance probably isn't going to happen, though it is less likely to be needed.
- Most ERP software developers don't provide network and workstation configuration assistance — you will still need a local or in-house capability for those services.
- Developers who only provide classroom training make a successful implementation much more difficult.
My company, Carillon, sells our software, Carillon® ERP, direct. We experimented with dealers early on and didn't like the results. At Carillon, we assign a support team that includes a developer to every client, and clients always have their team's direct phone numbers. I have no doubt there are great dealers of other products out there — but I also see many scenarios where we can provide superior and timelier support than a local dealer.
There is no clear best answer. You have to decide what is best for you!