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Sarotech cuts Powermove and gets Hip

Sarotech cuts Powermove and gets Hip

Melbourne specialist distributor, Hip Gizmos, has picked up sole rights to the Sarotech range of portable storage devices. The appointment sees fellow Victorian business, Powermove, removed as the vendor's distributor.

Hip Gizmos national sales manager, Sean Mattheisz, said it had won exclusivity by placing confidence in the quality of the product and raising the bar on its warranty period.

"We negotiated to offer two years warranty on enclosures, rather than the standard one year," he said. "We wanted to capitalise on the Sarotech name and to get that we thought we'd do something other distributors weren't doing."

The Sarotech business isn't the first to be taken away from Powermove this year. In January, iPod and MP3 accessory vendor, Digital Lifestyle Outfitters (DLO), parted company with the distributor in favour of signing on with new local entrant, iWorld Australia.

Hip Gizmos has a relationship with iWorld through its distribution of DLO products to both Mac and PC resellers. iWorld delivered the same products to retail channels across the country, Mattheisz said.

Powermove CEO, John Osmotherly, said the Sarotech loss was "very minor". "Hard drives are a very competitive market and the Sarotech products just didn't deliver the returns we were looking for," he said. "Like RAM, it's a commodity kind of item. When Hip Gizmos got exclusive rights, it didn't ruffle any feathers here at all. I wish them all the best at having a shot at it."

Osmotherly said Powermove would be looking for a product genre that would bring better returns. "I'd like to offer products in other areas," he said. "We've already got MP3 covered strongly, but you don't want to have all your eggs in the one basket."

Mattheisz said Hip Gizmos had been distributing products for 12 months after transforming itself from an IT consultancy. It was also looking to branch out into audio visual kit from DLO.

"Philips recently acquired DLO and that will be in our favour," he said. "It will take between 3-6 months, but the range we can offer will rapidly expand outside iPod accessories."


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