PC memory prices may have plummetted in the last 12 months, but there are still good margins to be made in the high end of town, and memory manufacturer Dataram has launched a new partner program to help resellers capitalise on the market opportunities.
The program is aimed at garnering loyalty amongst resellers - a factor that becomes increasingly important in a tough economic climate and one which can be difficult in a market where OEM memory is king.
"We are looking for a preferred partnership from our resellers and to achieve that status, we need to prove ourselves everyday," said Dataram managing director in Australia, Andy Molnar. "It is a philosophy that reseller are not used to hearing from an OEM.
"As Hypertec, MCT and now Dataram our core business has always been about partnership and value adds. Our reason for existing is to empower the channel to drive greater margins in their business."
As the channel scrambles for business in a sluggish market and the direct threat looms ever larger, resellers are being increasingly left out of the loop. Dataram is offering incentives such as special pricing facilities, marketing rebate programs and warranty replacement offers to resellers who in turn show loyalty to the manufacturer.
"With so much uncertainty in the market and the constant threat of direct marketing from the vendors they deal with, resellers are justifyably feeling threatened," Molnar said. "If your business is focused on services, consider us as a third party supplier with a credible server line to make some margin. It is a great opportunity from a vendor at a time when others are threatening your business."
Molnar is also keen to emphasis the expanded product offerings of the company into the server market.
"We want to go to our partners and tell them that there is good news - there is still margin to be maintained in the memory market. We have got the value add and we will support you from a B2B perspective, with rebates, our sales team and our technical response team."
David Fittler, Dataram's newly appointed sales manager for Australia and New Zealand describes the server market as "the exciting end of town".
"We have had quasi-partner programs in place through our existing reseller relationships, but the partner program will elucidate the way we do business so our customers can perceive the true benefit," he said.
In the server market, where availability is the number one factor, resellers are understandably wary of using third party memory. So Dataram guarantees its server memory by paying the service fees of end users in the event of a failure.
"The server end of town is very critical to us and to resellers," Molnar said, adding resellers could achieve margins of up to 20 per cent. "They can still make great margins - just like in the good old days."