Having recently parted ways with Express Data to handle distribution in-house, Reckon has formed a representation alliance with Marketing Results to bring its Quicken products to retailers.
The past few months have not been good to the ASX-listed financial software vendor, plagued by product returns and poor results, but CEO Greg Wilkinson believes the new alliance will help the company get back into the business of selling financial software.
"It has been a long and painful event," he admitted. "Our first goal was to establish our original relationship with retailers -- that meant getting the appropriate stock on the shelves. In a lot of cases, that hasn't represented sales, it has just been stock moving. Our poor results over the last few months is largely because sales almost came to a complete halt."
Wilkinson believes the bridges with the retail channel have been mended and the company now has to get on with the business of selling software. Enter Marketing Results. Unable to quickly rebuild its sales team, Reckon has in effect outsourced its sales force to the distribution company.
"One of the best things about Marketing Results is that it is a boutique, not a broad-based distribution company that is very experienced in dealing with retailers and buying groups," Wilkinson said. "We didn't want to substitute Express Data for another distributor because in the past the mechanics of fulfilment is where control has fallen away."
The deal, which is subject to a three month trial, means Marketing Results will manage the sale of all Quicken products, implement channel promotions and merchandise and manage the products. Reckon will be responsible for account management, shipment of inventory and marketing provision and support.
Photograph: Reckon CEO Greg Wilkinson