Axed resellers urge rethink

Axed resellers urge rethink

As previously reported in ARN, Ingram has closed about 3000 accounts from August 1. Those who spent under $1000 per month over the past three quarters were sent termination letters.

Commercial and solutions director, John Walters, said the notification included a feedback form allowing unhappy resellers to state a case for being retained. Ingram had already received 600 responses, with at least half of those aiming for reinstatement.

Rather than severing ties with infrequent buyers, Julian suggested Ingram limit them to online purchasing.

"I use the Web 99 per cent time of the time and it covers my needs," he said. "It's a convenient way to purchase goods. It also means you're not using Ingram's in-house resources as much."

While agreeing the idea was theoretically sound, Walters said many resellers would still call trying to get a better price. He argued those purchasing stock infrequently should go to larger resellers, such as Harris Technology or Corporate Express, or order from Ingram's sub-distributors.

"Is their core business reselling stock, or are they doing this only when a specific opportunity comes up?" Walters asked. "We get a lot of complaints from other resellers when we sell to these guys. If someone isn't spending $1000 per month, I'm not sure they are bona fide.

"We have a group of high quality resellers spending $20,000-$100,000 per year. We're not trying to upset anyone at that level. The challenge is to determine who is legitimate."

The distributor will continue to review low spenders every six months.

Campbell said Ingram's Tech Pacific heritage had been built on small businesses but accused the distributor of concentrating on larger resellers since the merger.

Competing distributors of all sizes have expressed an interest in the trade.

Managing director at Adelaide-based Saratoga, Ivar Stanelis, said smaller resellers were its bread and butter.

"I'm happy to sell to a reseller spending less than $1000 per month," he said. "I'd be very pleased if all of my resellers spent that much every time."

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