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Saratoga sees benefit in sub-distribution

Saratoga sees benefit in sub-distribution

Adelaide-based software distributor, Saratoga, has taken on a sub-distribution contract for Kerio products with Infotronics.

The deal, which begins this month, follows in the footsteps of a similar arrangement the distributor holds with Tech Pacific.

Saratoga director, Ivar Stanelis, said he was also in discussions with a further two wholesale suppliers to act in a sub-distribution role.

"Some vendors are seeking more ways to get to the reseller channel," he said. "But often they don't want to deal with more people. However, their distributors might not reach the small end of the market.

"So distributors come to us, or we go to them."

Stanelis said the distributor could earn as much as 20 per cent on products under its sub-distribution contracts.

"Normally our margins are between six and eight per cent," he said.

The contracts allowed smaller resellers who were unable to establish accounts with the larger players to gain access to the same stock through an independent supplier, Stanelis said.

For Infotronics, Saratoga's history in selling competing products to the Kerio range, along with its reach into the smaller integrator market, made it a good distribution partner, its technical director, Phil Lancaster, said.

"They [Saratoga] more specifically address a part of the market we don't reach as a distributor," he said.

Alongside its sub-supplier push, Saratoga is also in the process of bringing e-commerce facilities to its newly launched partner site, Saratoga Online. The site was launched late last year to enable resellers to order stock online.

"We are taking steps to be more accessible," Stanelis said.

Saratoga is also the Australian agent for niche software distributor, Deerfield. To coincide with the upgrade, the distributor is now looking to integrate its subsidiary's website with its own. While many resellers were aware of the relationship between the two organisations, the merging of the two sites would make it easier for dealers of both distributors to access products and information, he said.

Increasing recognition of the Saratoga brand locally was also a factor in bringing the two sites together.

"We have not renewed our brand license agreements with them [Deerfield US]," he said. "We will have their products, but they will go through our sales channels."

The two sites were expected to be fully integrated by the end of March. Payment facilities should also be available by then, he said.


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