Expert Speak

One Down, Many To Go

Many To Go

Congratulations, the standoff between the top three distributors in the country and the channel proved that there is, after all, Unity in numbers. But more importantly, it has also proved that when the matter is close to the heart, channel partners are motivated enough to come out and yell foul.

p____p This time it was the Rs 3/kg freight charge that got the channel community up in arms against Ingram Micro, Tech Pacific and Redington. On the same day, in a nearly similar worded letter, each of these distributors informed its partners that henceforth the partners would have to incur an additional Rs 3/kg cost as handling charges, even if the products were picked up from the distributor’s warehouse. This announcement saw a livid channel community call for a boycott of goods from the three distributors.

p____p And lack of money hurts even the mighty. As a result, the three distributors, who earlier had declared that the new charge would not be withdrawn, swallowed their words and relented to the channel’s demand.

p____p But this is not the end. It’s now time to take this unity forward and address long-pending, but crucial, issues like warranty and service. These issues still remain unresolved, because partners have been unable to unite and make the vendor or the distributor comply with their demands. But it’s these issues that have a wider impact on business, for if a customer is not happy with the product, he will not come back.

p____p If partners can come together and fight against the might of the distributors when the purse strings are attacked, then they can also do it to ensure that vendors follow better business practices.

p____p Right?

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