After a couple of good months including a record-breaking October, Dicker Data is weighing up whether or not to shell out $2 million on doubling the capacity of its warehouse.
The NSW-based distributor has a spare block of land on which to build behind its current site and has requested quotes from building contractors. Sales manager, Chris Price, said the project would only take about nine weeks to complete if it got the go ahead.
"Last financial year we did $125 million but I am forecasting $170 million this year," he said. "If we went over that it would start to create space issues because you can't order more stock if you don't have the room.
"We are currently running at about 70 per cent capacity. Once you get above 80 per cent, you start having to move stock to get to other stock and that can affect your speed.
"We have to make a decision this year and I want to go ahead but we will have to increase revenues quickly as soon as it is built."
Dicker is also considering whether or not to pursue new vendor opportunities after learning it will not be granted access to HP printers.
"We got some very positive feedback from [HP print boss] Christoph Schell but he has decided we would not add value," Price said.
"It's pretty disappointing but there's nothing I can do about it now. We did really well on HP [PCs and servers] in the last few quarters but it's like dealing with three different companies. They have a different structure and go-to-market for each group."