Printing vendor, Lexmark, has brought on tech distributor, Dynamic Supplies, as its replacement for Cellnet.
Cellnet cut its ties with Lexmark in late June as part of its winding up Australian IT operations.
Dynamic Supplies was originally a Lexmark distributor of toner and ink products, but will expand its range to include the vendor’s hardware range.
Lexmark channel and SMB manager, Stephen Bell, said the strategic move allowed the vendor to use Dynamic Supplies’ targeted resellers while boosting Lexmark’s geographical coverage and support.
“They will get us into parts of the market where we haven’t had as high a penetration as we would have liked. They give us some additional reach into SMB, which is an area that’s growing really strongly for us,” Bell said. “There’s probably increased support for WA and Queensland.”
He said the vendor’s existing distributor relationships strongly influenced the eventual choice.
“Because of the fact that we’ve got really good relationships with both Ingram Micro and Altech, which are our other two hardware distributors, we didn’t want to make a decision where we just cut the pie up. And by virtue of Dynamics sort of getting us into a new market space we have the ability to grow by making this decision.”
But both Bell and Dynamic Supplies’ managing director, Scott McLennan, agreed there would be no limitation on the type of reseller Dynamic Supplies sells to.
“We’re certainly replacing Cellnet, but Cellnet did have a distinctly different customer base so that’s an opportunity for us to expand our reseller base into what I would probably term the 'IT reseller',” McLennan said.
“Our traditional customer base, which is a fairly strong one that buys a lot of hardware, is what we call a ‘stationary reseller’.”
Although McLennan confirmed there was going to be an increase in joint marketing funds, he said the distie was looking at a soft marketing approach.
“There’ll be some marketing promotional programs we will launch with, but they’ll probably come out in the next two to three weeks,” he said.
While the distie has high hopes for the new partnership, he had not worked out an exact expectation of revenue growth, McLennan said.
“We’ve got high expectations but we’re not going to force ourselves into a number. We’re looking at fairly strong incremental growth. We’ve got big plans,” he said.
“We have a fairly large business in the consumable space so it would be a fairly small percentage increase for us but I would say it’s a fairly large percentage increase for our existing hardware business.”