Recognising the link between consumables and printer sales, Lexmark has added another distributor to its channel, appointing Dynamic Supplies to carry its range of inkjet cartridges.
Dynamic Supplies joins the likes of Tech Pacific, Ingram Micro, Daisytek, IT Wholesale and RDT Technologies in the list of Lexmark distributors, and will primarily focus on the office supplies market, according to Lexmark.
"We had noticed pockets of resellers who deal in office products and the like, which Dynamic Supplies specialises in," said Steven Waugh, general manager of Lexmark's consumer products division. "Plus, the company is expanding."
Dynamic Supplies managing director Alex Piccinini said the company was looking to open a Sydney office before the end of this financial year. Dynamic supplies retailers ranging from Corporate Express at the high end, down to retailers buying just $500 a month.
"[The consumables market] is generally a lower margin environment for distributors than hardware distribution, but it is more stable in revenue terms, not having the severity of the peaks and troughs that the hardware market seems to have," Piccinini said.
Stock availability is of particular importance in the printer market, where buying decisions are made on the accessibility of consumables.
"We have done a lot of research into our resellers. Availability of cartridges is the main reason both they and end users buy a particular printer," Waugh said. "We have noticed Dynamic Supplies has really emerged in this market -- they have a 1,200-1,500 reseller base."
He said Dynamic's visibility in the marketplace was a major factor in Lexmark's choice of distributor. At this stage, the arrangement is limited to Lexmark's consumables, but the possibility remains open for Dynamic to move into Lexmark's hardware range down the track. "We have some flat-top scanning products, which would fit in with his [Piccinini's] business," Waugh said.
The partnership is effective immediately.