Tax breaks to make you smile

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Tax breaks to make you smile
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Scorpion has relied on Intel's marketing kit to target the government incentives. The kit comes with prepared emailing templates, brochures and posters.

"We don't have to do much more than utilise those materials," says Kartawidjaja.

"The consumer just needs to be made a bit more aware. If everyone knows about it then it would definitely make a much bigger impact."

Sydney's Impact Systems is running a small business network campaign on servers, including application servers and thin clients.

"For those businesses that have been holding off and not doing anything about their old or aged equipment, that will be a boost," says Peter Agamalis, sales director.

"We've incorporated a server with options of upgrades," from five to 30 racks, says Agamalis. The top package comes with a free UPS, corporate anti-virus, gigabit switch, onsite warranty and a 1TB external hard drive for backup.

Agamalis expects the thin client campaign to do well, which is based around Product N computing.

"We are announcing that we can save the end user up to 50 percent on hardware and software costs, up to 70 percent on maintenance costs, and up to 90 percent on energy costs."

The minimum investment for the thin-client package is $5300.

Agamalis hopes the tax breaks will improve on an April that "has been a little crappy".

The reseller is launching its first catalogue soon which should combine with the campaigns to make May and June stronger months.

"I think it's going to be good for everybody. It's almost equivalent to the Government's equivalent stimulus package, the $14,000 first time housing grant.

The tax cuts involved in investing in equipment is another way for industry to take advantage of those measures," says Agamalis.

It's deal time

Vendors like HP put together deals to take advantage of the $900 cash handouts.

HP won't say until its next financial results how successful those deals were at boosting sales, but it is following the same strategy again with the recent announcements.

"While we didn't specifically say it, they were designed to be a good pricepoint for people receiving their $900 payment.

If they were a family with children who qualified for the education rebate they could claim 50 percent of that back as part of the education rebate that the government has introduced," says Grant.

HP's tax deals targeted at small businesses include double memory, double the size hard drive offer which started on 1 March.

These improvements gives a PC more power, make employees more productive so they can respond to their customers more quickly, says Grant.

Another retail offer specifically for small business bundles a PC, printer and Microsoft Office, with price depending on configuration.

Grant says he doesn't know how successful these promotions will be. "It's very difficult to put numbers around that. But it is one of the most significant contributions the Federal Government has made for some time."

Software and other "intangible" assets are not covered by the investment allowances.

Where a taxpayer purchases a package that consists of hardware and software, only the portion of the cost that is attributable to the hardware will be eligible for the tax break, says a Microsoft spokesman.

Nevertheless, Microsoft Australia is working with its OEM partners to promote the value of its pre-installed software.

Distributor LAN1 is expecting SMBs to spend on telephony, because it is a technology that has delivered on productivity promises in the past, says Mark Roberts, IP networking product manager.

LAN1's telephony business has been growing steadily through the recession and the distributor has been approached by other vendors in this area, says Roberts.

The distributor is looking at going above 50+ seats serviced by its two partners Talkswitch and Vegastream, and below into the sub-20 extensions market.

LAN1 has put together low-cost phone bundles some of which are targeted at resellers themselves.

One not-for-retail bundle is a small business phone system by Canadian vendor Talkswitch that includes an IPBX and 10 handsets for less than $3000. A retail version costs an extra $1000.

"A lot of the resellers would fall in the category that qualifies for the benefits. They may have a couple of stores and if they use telephony intelligently they can loadshare across the stores," says Roberts.

"It's in their interest as well. It's not only saying the Government's giving us a helping hand to help you sell, it's also about coming up with special bundles including NFR bundles."

LAN1 has put together other bundles for security products, such as CCTV and UTMS devices from Sonicwall and Palo Alto.

Apart from targeting cash-strapped SMBs, the distie is also looking at emerging companies. "If they're a startup company and keen to get into the market then they are going to have to spend that money anyway."

No promotions were available for storage, LAN1's fourth focus apart from security, surveillance and networking.  "That's the three we are starting with at the moment. We haven't put together all the bundles yet because it's only been a week since announcement and working with vendors."

However, Roberts doesn't expect storage to be one technology SMBs will rush out to buy this time.

"I think a lot of storage sales are like the anti-virus sales of the past - they tend to look at it after the horse has bolted. They tend to be break-fix sales, not strategic for SMBs."

Kartawidjaja from Scorpion Technology says a generous 15 percent cashback on FujiXerox colour laser printers has been successful as have cashback deals from other vendors.

An Acer promotion promises to match a better price and give a rebate if a customer finds the same product advertised more cheaply elsewhere.

Leader Computers, the second largest Australian PC and notebook manufacturer, is releasing in June a national end-of-financial-year campaign on desktops and notebooks.

The campaign includes a full-colour catalogue going to every State, including Tasmania, which cost "around $50,000".

"We are disseminating this message through hundreds of resellers throughout the country," says Paul Kristoris from Leader Computers.

The catalogue ties in with advertising in the sports media, especially the AFL. The catalogue will be advertised through electronic signage at football games and consequently on TV.

"Right now we are focusing on brand awareness and the fact that we are an Australian manufacturer and that businesses only have a short window" to qualify for the new tax breaks, says Kristoris.

Kristoris says Leader's proactive resellers are using its catalogue in their own campaigns, some of which are advertising on TV, radio, print or direct mail.

"We anticipate a very strong May and June, and we expect very strong trading when other businesses [which] can't afford to buy any IT [now] will look to spend it in the new financial year," says Kristoris.

"We expect it to be a very tough market, but we still expect to grow.

"We've had a good first half of the year. It's been tough, but the people who have been positive and not sucked in by the negative news in the media have also done OK in a tough market. But our budgets for the second half of the year is that we intend to grow our market."

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