Reseller hits out at Synnex account closure

Reseller hits out at Synnex account closure

A small business reseller has called on Synnex to provide answers after being informed his account with the distributor faces closure because he doesn’t buy product often enough.

Redrock Solutions previously dealt with Ingram Micro, but had looked for other options after the distributor began closing accounts with resellers spending less than $1000 a month in late 2006, director of the NSW-based business, Paul Julian, said. It had opted for Synnex because of its support for smaller resellers.

But in a generic email sent by Synnex to Redrock in November and sighted by ARN, the distributor threatened to close the account because the reseller had made “limited or no purchases” in the last 3-6 months.

“Although we do not have a minimum purchase requirement, we do however expect our customers to exhibit a regular purchasing pattern,” the email stated.

Julian said it largely sourced PC and server products from Dicker Data, but used Synnex for miscellaneous items, such as printers and smaller accessories.

He claimed to have spent more than $1000 with Synnex over the last two months either paying via cash-on-delivery or a Moneytech credit card.

“To get HP printers, I have to go to an Ingram or Synnex as Dicker doesn’t have access to those bits and pieces we don’t buy all the time,” Julian said. “After Ingram stopped our account, I had to rely on Synnex to get the gear. There’s got to be a better way.

“It’s very annoying – I know we are a relatively small business, but we want to give our customers the best price and service. It’s not my job to make sure I spend $1000 a month with a distributor. I’m trying to run a business, but how can you be a little guy trying to help the little guys?”

Responding to the claims, Synnex CEO, Kee Ong, stressed the distributor didn’t have a minimum spending limit, but said it expected resellers to make regular purchases over a three-month period.

“Every three months, we look at our resellers to see if they are active, and try and contact the resellers who haven’t been to encourage them to increase the level of business with Synnex,” he said. “About two or three years ago, we discovered a lot of resellers have disappeared because of changes in business direction and that we had resellers who hadn’t been active for 12 months or more. If their revenue is zero for one or two quarters, we will contact them and try and ignite them to do more business.”

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