Melbourne-based distributor BBF has dumped Gigabyte as its motherboard supplier of choice, after the vendor began appointing new distributors in an attempt to gain a larger market share.
BBF managing director Michael Muscat said BBF was one of the first companies in Australia to promote the motherboards. After eight years of distribution the vendor has appointed two new distributors, in a move Muscat sees as being indicative of an over-estimation of the market's size.
"Distributors find it difficult when vendors ignore the real market size here, and think their share of the business should be more than it is," he said. "So they keep appointing more and more distributors, which just puts pressure on their existing distributors."
Muscat had received assurances from Gigabyte that his loyalty had secured BBF's relationship with the vendor, promising no new distributors would be appointed. In recent months, however, the vendor has appointed Synnex and Rectron to distribute its products. According to Muscat, the vendor only informed BBF after the new distributors had been appointed.
In a move that has soured Muscat's opinion of the vendor, Gigabyte has set up a service centre with one of its new distributors, so potentially BBF is sending its clients to a competitor when there are service issues with the product.
"If I were a new distributor, my first goal would be to steal existing business from existing distributors to get the numbers up as quickly as possible," he said. "This type of thing goes on in our industry all too often."
ARN exhausted attempts to contact Gygabyte's head office in Taiwan, while a company employee from its soon-to-be-opened Melbourne office refused to comment.