EP 102: Wayne Schulz – Acumatica Service Provider Program (Podcast)

Click here for ways to listen offline and at 2x speed
Click here to listen to this episode on YouTube

Wayne Schulz
Location: Moodus, Connecticut

In this episode of Real Talk, we learn from Wayne Schulz, a veteran ERP consultant who helps shed light on the benefits and caveats of being certified as a consultant by software vendors. He and Tim discuss the new Acumatica Service Provider program, focusing on the transition from being a traditional reseller to a certified consultant. Wayne, drawing on his extensive experience in the industry, provides valuable insights into the changing landscape of ERP consulting.

The Shift from Reseller to Consultant (5:02)

Wayne shared his personal journey, highlighting the challenges that resellers face in the ever-changing ERP landscape. He started his career as a CPA at a firm that sold accounting and ERP software as part of their service offerings. Eventually branching out on his own as a reseller, he felt frustrated by the immense pressure to provide extensive pre-sale consultations without compensation. These consultations, often lasting several hours, were time-consuming and left him feeling undervalued for his expertise.

This experience led Wayne to make a strategic decision: he transitioned away from the reseller model, narrowing his focus to consulting only. This shift allowed him to channel his energy into providing value to clients rather than merely meeting sales targets imposed by publishers. By embracing the role of a consultant, professionals can prioritize delivering exceptional service, ensuring customer satisfaction, and ultimately, establishing a sustainable and successful consulting practice.

Challenges in the VAR Model (9:25)

Wayne and Tim shed light on the pyramid-scheme structure of the business, where resellers find themselves caught in a cycle of escalating sales goals and diminishing margins.  The constant need to secure new deals can divert attention away from providing quality service to existing clients, affecting customer satisfaction. Wayne’s candid portrayal of the reseller’s struggle paints a vivid picture of the industry’s challenges, highlighting the need for a more sustainable approach to ERP consulting.

The discussion also touches on the financial strain placed on resellers. Wayne explains how resellers are expected to cover all expenses, including travel and client meetings, while keeping pace with elevated sales expectations. This financial burden creates a significant challenge, especially for smaller resellers, forcing them to constantly focus on sales acquisition rather than investing in providing exceptional service to their existing client base. Wayne feels there is greater value in a more client-centric and sustainable consulting approach.

Certified Consultant Programs (13:28)

Wayne explains the concept of certified consultant programs, such as those offered by Sage and Acumatica, where consultants pay an annual fee and meet certain qualifications to be a member. He emphasizes the advantage of having a contractual relationship with the publisher, allowing consultants to open cases and seek assistance when required.

These programs aim to provide a structured framework for consultants to engage with clients effectively. Wayne explains that being a certified consultant enables him to handle licensing-related queries for his clients effectively. It also provides a certain level of credibility and trust to clients who seek certified consultants, knowing they have official backing and expertise in the specific ERP system. Although credibility helps, the program does not guarantee a steady flow of leads from the publisher. Therefore, Wayne emphasizes the importance of self-reliance, highlighting the need for consultants to generate their own business proactively.

The Importance of Recurring Revenue (17:39)

Wayne stresses the significance of establishing long-term relationships with clients, underpinned by recurring revenue streams. Wayne’s approach involves moving away from traditional hourly billing to fixed-price agreements, ensuring clients pay a fixed fee annually. This model allows clients to access services without hesitation, fostering a strong sense of trust and open communication. The predictable income from recurring revenue not only provides financial stability but also allows consultants to focus on delivering exceptional service without the constant pressure of acquiring new clients to sustain their business. By shifting the emphasis from transactional sales to building enduring relationships, consultants can prioritize client needs, enhance customer satisfaction, and cultivate a loyal client base.

Moreover, Wayne highlights the importance of setting clear expectations with clients and having open conversations about the scope of services covered under the recurring revenue agreements. Even something as simple as returning customer calls in a timely manner ensures that clients feel supported and valued throughout their ERP journey, leading to client loyalty, positive referrals, and a thriving consulting practice.

Handling Training and Exclusions (23:40)

ERP implementations often involve complex challenges that can become very time-consuming. Wayne notes that consultants must establish specific criteria, such as excluding upgrade procedures or disaster recovery efforts, to maintain transparency with clients. By outlining these limitations upfront, consultants prevent misunderstandings and unrealistic client expectations. This transparency not only ensures a harmonious working relationship but also allows consultants to provide accurate, reliable services within the defined scope.

With the rise of remote communication tools, training sessions have become more accessible and convenient. Consultants, especially in the current digital age, can conduct training sessions in shorter, focused segments, avoiding overwhelming clients with information overload. At the same time, with an annual fixed-price agreement, it’s not possible to provide unlimited training, so it’s important to come to an understanding with the client at the beginning of the relationship.

Wrapping Up (29:39)

In conclusion, Wayne emphasizes the need for consultants to carefully consider their billing methods and customer relationships. He advises consultants to establish clear expectations with clients and focus on building recurring revenue streams, ensuring long-term sustainability and profitability in the consulting business.