"The market here is nowhere the size it is in the States. So to survive, distributors need to make a bit more margin than you would typically make in the States because you just haven't got the volume.
"If they find a way of working on the same sort of margins they work on in the States, then that could be difficult for certain distributors over here depending on which product ranges they do that with."
Laurie Sellers, managing director, i.t.connXions"Australian resellers are cautious and not easily trusting of a new entrant in the distribution channel -- with good reason. The Australian channel is turbulent, with many new entrants of all shapes and sizes each year.
"One should also consider the vendors. In the case of most established brands, local vendor representation is solid. There are established demand generation, fulfilment and post sale support systems.
This infrastructure is necessary and in most cases deep."
Richard McLean, national sales and marketing manager, Sealcorp