Maximising sales opportunities with RBR Networks
RBR Networks has produced an interesting guide called the Net Profit, which it claims is the first guide of its kind to show resellers how to maximise savings and cut costs of replacing out-of-date equipment.
RBR is Cisco's leading distributor in the UK and the distributor says that the guide has full backing from Cisco, in publishing this guide - complete with industry secrets and honest prices. The 46 page guide details all the rebates offered to dealers when they are buying Cisco kit. guide also reveals what RBR calls `industry secrets' and clarifies all offers and discounts to make them easier to find and understand. The catalogue outlines potential cost-savings and shortcuts, such as taking new Cisco kit for free, when replacing out-of-date competitor equipment. Resellers will also find instruction on trade-ins and promotions, as well as guidelines on how to maximise savings as discounts and promotions change.
According to Mark Crocker, RBR's promotions manager, vendors and distributors are often tempted to keep the rebates hidden from resellers. "We've decided to blow the whole thing open, so resellers can pass the incentives on to their customers. For resellers, the guide enables them to be more competitive, as they can see exactly where there is money to be saved," he explained.
Over at Cisco, Phil Wright, the networking vendor's distribution sales manager, said that the guide is a great model for dealers to work with.
"We know it can be complicated to get to the bottom of the various promotions and offers. RBR has put together a comprehensive and effective catalogue of the entire Cisco range," he said.
According to Wright, the information has always been available to dealers, "but now it's all in one place, in an easy-to-use format."
Plans call for the guide to be issued quarterly, or when a major new promotion is on offer.
RBR Networkst;+44-1285-647000
Ingram Micro counts the costs of restructuring
Ingram Micro, the distributor, has revealed that the cost of trimming back its UK operations in May was 2.1 million dollars.
As reported previously, the distributor laid off 60-odd of its staff, at the same splitting its UK operation into four divisions, allowing the firm to target its dealers more effectively.
According to Jerre Stead, Ingram Micro's chairman, a total of 70 jobs were actually lost as a result of the changes, and the charge of $2.1 million during the second quarter of the firm's financial year was significant.
Despite the cost, Ingram now has four UK business divisions - commercial, retail, solutions and components.
As Dealer Info reported when the changes occurred, this means that each division will have its own set of accounts - a clear indication of what might happen if a division's profits do not go well.
Given the current bloodbath in the distribution channel, there's a good chance that one or more of the division may hit problems as regards its profitability - along with a number of other distributors - in the coming year, we predict.
Ingram Micro;+44-1908-260422 ;www.ingrammicro.co.uk
UK battle commences for free PCs
After watching several US PC retailers offering free PCs to customers willing to sign up for services such as telephone calls and other utility services, PC World, Time and Tiny Computers have all announced `free PCs' for customers in the UK.
The PC World deal requires the customers to sign up to phone service Cable & Wireless for a year when they buy a PC. At the end of the year, the customers gets a rebate cheque for 100, 200 or 300 pounds if their monthly phone bills are higher than 17, 25 or 42 pounds a month, respectively.
The Time deal requires customers to join its Internet service provider (ISP) - which costs nine pounds a month - for three years, in return for a free PC.
The Tiny Computers deal, meanwhile, requires customers to sign up for the firm's telephone service and commit to telephone calls of 25 pounds a month or more for a year.
The Time and Tiny deals offer customers a computer - minus monitor - worth around 300 pounds. The PCs plug into the user's TV, but the companies plan on selling monitors and extended warranties as a means of making extra profit.
The deal with PC World, part of the Dixons Group, is more of a rebate scheme, but it's ironic that John Clare, the CEO of Dixons, told a newspaper - just days before PC World's scheme went live at the end of July - that the Time and Tiny deals were not that great because of the commitment on phone bills.
The reality on all of the Internet/phone call deals for a `free PC' is that customers can do much better by sourcing a separate deal and simply paying for their machine in cash.
However, as a way of getting ongoing revenue from the `subscriber' and then selling them a monitor, warranties and other profitable extras, it's neat scheme - from the PC retailer's perspective. You can expect more `free PC' deals to arrive in due course.
First Web-only PC reseller arrives in the UK
WStore, the UK's first `online only' reseller has opened for business.
A subsidiary of the French company of the same name, which opened in October of last year, and is now one of the Top 5 e-commerce sites in France, WStore aims to redefine the nature of e-commerce by providing seamless links between distributors and the market-place supplying IT products to UK businesses, via the Internet.
According to Tony Price, the firm's manager, WStore's focus is on the customers' requirements, allowing the time-conscious customer a method of browsing the PC operations online.
WStore also provides a Web site interface for customers, that has back office systems linked to third parties in the finance, delivery, installation and support processes.
bPrice says that flexibility is achieved by tailoring services, including lease options, for those whose IT needs may change, as well as value added reseller (VAR) expertise and support.
At WStore, the firm claims that all leading manufacturers' products are easily accessible thanks to an exceptional search engine.
WStore's software allows comparisons of up to five alternative models as well as complimentary product suggestions. Stock and prices are clearly displayed and updated every 15 minutes for customer confidence when ordering.
Customer service is also enhanced by WStore through its direct links to UK distribution centres, allowing not only a wide range of products (a total of 20 million pounds-worth of stock availability and 7,000 products) but also an order tracking system and access to current and historical information.
WStore also offers a 48-hour delivery guarantee and boasts a dedicated help desk team who will become involved in the purchase process, upon customer request, at any time. For onsite services, such as network configuration and software customisation, WStore further provides for customer needs through a network of specialist partners. As WStore's business is concerned solely with e-commerce, it claims it is dedicated to providing solutions to problems such as customers' perception of security in Internet purchases. WStore appears to have made a success of its Web-based reseller operation in France. It will be interesting to see if the model takes off in the UK, where competition from other mail order houses with presences on the Web makes life a lot more difficult.
Tony Price, WStore,
+44-1252-378482
www.wstore.com