Vendor to Reboot PC reseller market

Vendor to Reboot PC reseller market

Reboot PC Logistics is calling for new resellers for its line of refurbished ex-lease IT products, promising profit margins of up to 25 per cent for those who sign up.

Reboot, a wholly-owned subsidiary of Macquarie Bank’s IT leasing division, was launched 12 months ago as an outlet for refurbishing and reselling end-of-lease equipment.

Reboot general manager, Alex Rogers, said 90 per cent of the company’s assets were desktops, notebooks and monitors. In addition, it remarkets networking gear and accessories, printers, servers and Apple products.

Rogers said Reboot had previously sold its PC notebook and monitor goods via an exclusive distribution agreement with Australian PC Distributors. Under the arrangement, the distributor had access to all of Reboot’s stock, sold on a commission basis.

A small proportion of its stock was also sold via online auction site eBay, he said.

Two months ago, the company moved away from a sole distributor model in favour of a new reseller program.

Rogers said the company had decided to work directly with resellers because the distribution model had not provided value to its partner relationships. Reboot wanted to make prices as transparent and open as possible for all resellers, he said.

Under the new program, resellers will be divided into three categories: platinum, gold and silver. Partner levels will be based on the volumes of stock resellers purchased from Reboot, with the highest level platinum partners required to purchase $200,000 worth of stock each month.

Rogers said Reboot had offered Australian PC Distributor the opport­unity to become a platinum reseller.

“We anticipate an ongoing relationship with them, but at a reseller level.”

So far, 12 Australian resellers had been appointed, two of which were awarded platinum level status. Rogers said the company wanted to sign 25 to 50 resellers in total. About three were expected to reach platinum and 10 to 15 would be gold.

Discounts on Reboot goods will also be customised into three partner tiers, with platinum partner entitled to a 25 per cent discount on the price of purchasing the refurbished goods. Gold partners will be entitled to 15 per cent. Silver partners will receive 10 per cent.

On top of the staggered cost rates offered to its resellers, Reboot will also be offering additional discounts and incentives for exceptional sales.

For example, those platinum partners who exceed sales of $250,000 in any given month will be entitled to an extra two per cent cash rebate for their efforts, Rogers said.

Reboot will also be offering a marketing development fund to its reseller partners to assist them with marketing the refurbished products.

Although the company’s main business is derived from desktop PCs and notebooks, Rogers said it was increasing its levels of Apple stock. As a result, the company was planning to move these products across to resellers within the next two months. At present, these items were still being sold via eBay.

Reboot was also interested in hearing from resellers for its more specialised equipment, such as servers, printers and networking gear.

According to Rogers, sales have increased by 15 per cent since the launch of the program.

He said the company expected to have 60,000 PCs go through its channel annually. The company resold almost 70,000 assets in its first year.

On top of its reseller recruitment drive, the company will also be seeking to double the amount of two to three-year-old assets it currently sells by the end of this year, Rogers said.

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