CRN Chat: Are local distributors undervalued?

The Council claimed IT distribution is consistently undervalued from a financial perspective, despite having the most streamlined business model of its peers in other sectors.

Speaking to the assembled audience of chief executives, vice presidents and senior management representatives, Tim Curran, chief executive of the GTDC, said: "Why do vendors come back to distribution? Because they cannot duplicate the cost savings that distribution offers them.

"They understand that by coming back to distribution, they can save money."

What about resellers? What value do distributors have for them?

Although Australia isn't technically in recession, the IT market is feeling the pinch and everyone is competing for every customer they can get a hold of.

An industry source close to CRN said Ingram and Synnex will be all right in Australia because between them they have agreements with leading IT vendors.

However, no distributor has been immune from the financial problems that have hit the industry and everyone is looking at differentiating themselves in order to win over resellers.

Recently CRN reported local distributor Protac changing its distribution model in order to move away from competing with its dealers for customers.

Gary Jeng, managing director at Protac, said he couldn't compete with the likes of Ingram.

Anyware, a local accessories and peripherals distributor, has ramped up its pre and post sales servicing of Kaspersky products to offer something different to its resellers.

Is this enough to keep them in reseller's mind when they want return of business?

What are resellers looking for in a distributor? Is it a simple matter of going to the big guys because it's easier?

Do resellers recognise distributors as more than just box movers?

Discuss below...