SCSI Corporation says its expanded range of CD-ROM and optical disc technology offers resellers and systems integrators a way to rejuvenate existing accounts, while enjoying margins of more than 20 per cent.
"There's an opportunity for switched-on resellers to get out of the rat race of 3 or 4 per cent margins and really start adding value," Robert Ek, SCSI managing director, told Australian Reseller News.
By embracing what Ek calls the revolution of archiving printed material and mainframe data onto CD, resellers who have, effectively, run out of ways to sell additional product to existing accounts can tap into a lucrative and expanding field of business - to say nothing of gaining new customers.
"The revolution is happening as we speak, in the form of taking offline data - whether it's printed material, or on microfiche, microfilm or tape - and creating a nearline or online archive, by putting that data on to CD, with a search engine," Ek said. "If you think of the legal, accounting, medical and architectural markets alone, the opportunities for resellers are incredible.
"A lot of the big bureaus in Australia have seen the writing on the wall and are asking their clients 'Would you like to archive to CD?' What the client doesn't know is, they can do it very easily themselves. All they need is a standard CD recorder, a scanner if they're going from printed documents, or software called DataGrabber, if they're coming from a non-Windows environment - and that's it," Ek said.
Ek says SCSI's push for expanded mindshare among resellers is borne out of the company's relatively low profile in the past. In the minds of some, SCSI has been something of a quiet achiever. "We market our products to the large systems integrators and also to the OEMs who integrate systems. And what we've found is that although a lot of people know about us, they don't know about the breadth of our product range and they certainly don't know about the margins that we're able to offer." For example:
Product RRP Margin
7-drive CD-ROM tower $4,103 20%
21-drive CD-ROM tower $25,207 25%
49-drive CD-ROM tower $54,535 25%
CD-Recordable kit $1,129 20%
Plextor 12x CD-ROM $499 20%
Kodak CD-R media $15 26%
Building to order
Because SCSI assembles most of its CD-ROM server towers locally - in addition to building certain components here, such as the tower casings - Ek says the company has been able to implement a build-to-order model and offer resellers better margins. "In the past, we had to order product from the US, which obviously meant delays in providing product to resellers. Alternatively, we could take a punt and bring in a lot of product at once and sell it off that way. However, that meant we had to keep inventories higher than we wanted. Because of local assembly, we're able to run with leaner inventories and build the products to order. The end result is that resellers can get product in one or two days. The delivery time is virtually instantaneous in the eyes of the customer," Ek said. "It's also resulted in lower costs. The 49-drive CD-ROM tower was more than $100,000 at the beginning of this year when we were importing it from the US. Now it's half that.