[vc_row row_height_percent="0" override_padding="yes" h_padding="2" top_padding="5" bottom_padding="2" overlay_alpha="50" gutter_size="3" column_width_percent="100" shift_y="0" z_index="0" content_parallax="0" uncode_shortcode_id="162050"][vc_column width="1/1"][vc_custom_heading uncode_shortcode_id="936777"]Beyond the Code: Why a Product's Commercial Model is its Greatest Feature[/vc_custom_heading][vc_single_image media="133227" media_width_percent="100" uncode_shortcode_id="896960"][/vc_column][/vc_row][vc_row row_height_percent="0" override_padding="yes" h_padding="2" top_padding="2" bottom_padding="5" overlay_alpha="50" gutter_size="3" column_width_percent="100" shift_y="0" z_index="0" content_parallax="0" uncode_shortcode_id="150838"][vc_column][vc_column_text uncode_shortcode_id="587350"]<span style="font-weight: 400;">At Selectec, we spend our days immersed in technology. Our role is a little unusual; we’re not only looking at the tech we use to run our own business, but, more importantly, identifying and shaping the software products we offer through our B2B distribution channels across the UK and Europe.</span>

<span style="font-weight: 400;">A common belief in our industry is that a truly great product sells itself. While elegant code and a slick UI are fantastic, experience has taught us that this is only half the story. The most successful technology is a perfect marriage of the product itself and its commercial offering.</span>

<span style="font-weight: 400;">And to be clear, when we say "commercial offering," we’re not just talking about the price tag or whether it's a perpetual license versus a subscription. It's so much more than that.</span>

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<h3><b>What is the Commercial Model, Really?</b><b></b></h3>
<span style="font-weight: 400;">The commercial model is the entire framework through which a customer </span><b>acquires, pays for, and accounts for</b><span style="font-weight: 400;"> a piece of technology. It’s about how the product integrates not just with a company's IT stack, but with its financial operations.</span>

<span style="font-weight: 400;">A truly sophisticated model must consider two critical factors:</span>
<ol>
 	<li style="font-weight: 400;" aria-level="1"><b>The Route to Market:</b><span style="font-weight: 400;"> How does the product reach the end customer? For a distribution business like ours, this means the model must work for us, our reseller partners, and the final client. If the model creates friction or complexity for the channel, the product will stall, no matter how brilliant it is.</span></li>
 	<li style="font-weight: 400;" aria-level="1"><b>Business Accounting Trends:</b><span style="font-weight: 400;"> We're witnessing a massive, sustained shift from Capital Expenditure (CapEx) to Operational Expenditure (OpEx). Businesses prefer predictable, monthly costs over huge, one-off capital outlays. A commercial model that aligns with this OpEx preference is inherently more attractive to a modern CFO than one that ignores it.</span></li>
</ol>
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<h3><b>A Lesson from the Giants</b></h3>
<span style="font-weight: 400;">This isn't a new concept. Business history is filled with examples of companies whose success was cemented by their commercial model as much as their innovation.</span>
<ul>
 	<li style="font-weight: 400;" aria-level="1"><b>Xerox</b><span style="font-weight: 400;"> didn't initially sell its groundbreaking 914 photocopier; the machine was too expensive and seen as unreliable. Instead, they leased it and charged per copy. This lowered the barrier to entry to almost zero and aligned the cost directly with the customer's usage and value.</span></li>
 	<li style="font-weight: 400;" aria-level="1"><b>IBM</b><span style="font-weight: 400;"> did something similar with its mainframe computers, leasing them to corporations that could never have afforded the astronomical purchase price. They sold computing as a service, long before the cloud.</span></li>
 	<li style="font-weight: 400;" aria-level="1"><b>Salesforce</b><span style="font-weight: 400;"> pioneered the Software-as-a-Service (SaaS) model. They didn't invent CRM, but they revolutionised its delivery, turning a massive software implementation project into a manageable, scalable operating expense.</span></li>
</ul>
<span style="font-weight: 400;">In every case, the genius was in making powerful technology financially and operationally accessible. The commercial model wasn't an afterthought; it was a core part of the product's design.</span>

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<h3><b>The Selectec Advantage - Funding and Expertise</b></h3>
<span style="font-weight: 400;">This is where we, as a distribution partner, add enormous value. At Selectec, we don't just ship software licenses. We build commercial bridges. By working closely with </span><b>funding institutions such as CF Corporate</b><span style="font-weight: 400;">, we can ensure our partners have access to tools to create flexible financial solutions for their channel customers.</span>

<span style="font-weight: 400;">This means they can help turn a large, daunting capital investment into a simple, budget-friendly operational costs. This empowers our reseller partners to close larger, more strategic deals and helps end-customers acquire the technology they need to grow.</span>

<span style="font-weight: 400;">Furthermore, Selectec invest in educating our channel sales professionals in </span><b>business funding</b><span style="font-weight: 400;">. This is invaluable. It means our team can engage in higher-level strategic conversations with our reseller partners. Designing long-term commercial plans that align with a customer's financial roadmap. They aren't just selling software features; they are architecting business strategies. They can  identify tactical opportunities, like using financing to help a client overcome a temporary budget freeze to solve an urgent business need. Or even opening the eyes of vertical market clients to potential methods to free up budgets in these financially constrained times. </span><span style="font-weight: 400;">
</span>

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<h3><b>Co-Creating Success with Our Vendors</b><b></b></h3>
<span style="font-weight: 400;">Our unique position in the market—sitting between the software vendors and the sales channel—gives us a powerful perspective. We see what works, what doesn't, and where the market is heading.</span>

<span style="font-weight: 400;">We leverage this insight to act as a </span><b>true technology partner</b><span style="font-weight: 400;"> to our software vendors. We provide feedback early in the development cycle, helping them understand how commercial considerations can be woven into the fabric of the product itself. Should it be modular? Should usage be easy to meter? Can it be structured to facilitate a multi-year, OpEx-friendly deal?</span>

<span style="font-weight: 400;">By helping our vendors design products that are sympathetic to commercial realities from day one, we ensure new technologies are primed for market acceptance and success.</span>

<span style="font-weight: 400;">This collaborative approach ultimately benefits the end customer most. When funding is structured correctly, it allows a business to be more </span><b>agile</b><span style="font-weight: 400;">. It frees up capital, improves </span><b>tax efficiency</b><span style="font-weight: 400;">, and enables the rapid adoption of new, transformative technologies for maximum benefit. Just think of the current race to implement </span><b>AI tools</b><span style="font-weight: 400;">. Businesses that can adopt these tools through flexible, OpEx-based models will gain a competitive edge far more quickly than those stuck waiting for a huge capital budget approval. </span>

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<span style="font-weight: 400;">In the end, the goal is simple: to ensure that the fantastic technology we represent is not just powerful in its function, but also brilliant in its acquisition. Because the right product with the wrong commercial model is a missed opportunity for everyone.</span><span style="font-weight: 400;">
</span><span style="font-weight: 400;">
</span><span style="font-weight: 400;">Learn more about all the tools and products Selectec has designed to help you grow your IT business by contacting the team. </span>

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