Alloys International has cited a reduction in imaging product costs as the reason for the recent closure of its Brisbane offices.
The imaging distributor will now manage the region from its Sydney and Melbourne offices. Two of the Queensland office's three staff lost their jobs.
Director, David Guttmann, said pricing in the printer market had changed dramatically during the past 18 months, forcing a rethink of the company's model.
"Alloys model is a high touch, high value approach with a lot of demo facilities and highly trained staff," he said. "But the market has gone from about $15,000 for a high-end A3 printer to $8000 and from $3000 for an A4 to $500. So we no longer needed the facility."
Alloys had negotiated with its partners prior to the office closure to reach a mutual service agreement, Guttmann said.
"The warehouse did source certain things on a just-in-time basis for partners but we have looked to offer specialised services to manage that," he said. "Partners will hold additional stock so that they can service their markets."
The company could also supply the majority of its 50-100 active Queensland partners with fast-moving products, like consumables, via overnight bags, Guttmann said.
Despite the closure, Queensland remained a key part of the distributor's business, with about 15 per cent of sales coming from the region.
"We can't be everything to everyone," he said. "We align ourselves with strategic partners in mutual, long-term relationships and that's the key to our success."