Phoenix Toner will look to source monitors and other new hardware lines as part of ongoing plans to balance margins across a broad range of products.
General manager, Don Bentley, said the wholesaler had started carrying Kyocera and Oki printers to supplement its traditional IT consumables business. It was also investigating new opportunities to bring in other popular hardware items, including monitors.
"Being a distie is tough but the squeeze is on right through the channel," he said. "You need to have a big mix of products on offer to compete against falling margins."
The new Kyocera products for example, would allow Phoenix to expand business with resellers who were currently buying its consumables, Bentley said.
"We are trying to offer a better value proposition to our dealers," he said.
Phoenix was also expanding its stable with compatible consumables from China and the US, Bentley said. "We are a box-mover so we can move anything provided it is associated with our core business of IT and office products," he said.
Alongside new opportunities, Bentley said it was also continuing to build on its HP contract. The distributor has recorded 700 per cent growth in this side of the business since signing a formal deal in November 2003, with the vendor's products now accounting for about $4 million a month in sales.
"In the first six months it was tough to work out the infrastructure we needed," he said.
The company had significantly expanded its warehousing capabilities in Sydney, Adelaide and Melbourne, as well as employed an additional five staff.