Broader strategy to improve Dicker viability

Broader strategy to improve Dicker viability

NSW-based distributor, Dicker Data, is looking to broaden its strategy this year in an attempt to establish itself as a more viable alternative to Ingram Micro.

Acer and Asus had been earmarked as potential additions to its PC stable, company director, David Dicker, said. Acquisitions would also be considered as a way of beefing up its vendor base and improving geographic reach.

"We need to establish a national presence and work with more vendors if we are to establish ourselves as a more viable alternative to Ingram Micro," he said.

Dicker is planning to start selling components again as one way of broadening its appeal. The distributor had made contact with several Chinese manufacturers to discuss importing sample cases, motherboards, monitors, keyboards and mice.

It also hopes to establish a relationship with Intel or AMD and is weighing up options in the branded component market. Once its component business is set up, Dicker intends to launch a custom-build desktop and notebook business known as BTO. This would enable resellers to buy PCs that are built to order according to specific customer requirements.

The distributor's custom PC plans come after it scrapped intentions to launch a series of digital convergence kiosks in partnership with its resellers.

As previously reported in ARN, it had hoped to offer consumers a wide range of digital gadgets and gizmos at a number of Digital Dog outlets within Westfield shopping centres across Australia. The decision not to proceed was based on fears of margin compression.

"As soon as Canon released its Ixus 55 [digital camera] there was some kid selling it on a website from his bedroom at $100 below the recommended retail price," Dicker said. "The mass merchants try to sell at retail but operate price match policies. If you can't maintain margins, you will end up working for Westfield and the vendors. That isn't an appealing proposition."

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