Expert Speak

Taking Stock

Taking Stock

While it’s clear that this year’s pre-Budget announcement will definitely benefit the Indian PC buyers and Indian IT manufacturers, what is still not clear is how the channel will benefit from these announcements.

p____p How does reducing the excise duty on computers by 8 percent or, for that matter, abolishing the excise duties on HDD, CD ROM drives and Microprocessors really going to help the channel? For, the channel has bigger problems to deal with. What happens to the stocks that have already been bought? Who will take the hit brought by the new prices? The partner? The vendor? Who?

p____p While the partner is justified in making this issue his priority, he should not make this his sole concern. Be extremely careful of not losing sight of the big picture to ensure that your customer knows that he is getting the
product at the lowest possible price.

p____p The last one week was lacklustre in business terms, while vendors and big distributors sat behind closed doors and decided on new price points and policies. Now that the new prices have been announced and the much-needed clarity on the pricing front has been reached, partners should go out with a vengeance to woo home buyers and corporate clients.

p____p The timing is prefect for the big sale. The home buyer has been eagerly waiting for the new prices. Entice him with a good deal and throw in some freebies and see how fast the goods get cleared from the shelves. The home user has been holding his breath for an announcement like this. Don’t let the opportunity go to waste by hatching stock protection ransom notes to vendors.

p____p For corporates too, the JFM quarter is the busiest one in terms of IT buying. IT budgets that have not been deployed during the entire fiscal year, are now looking for takers. CIOs have to spend the money allocated for IT or forfeit the unspent sum at the end of the year. Rather than do
that, most CIOs prefer investing in a solution or hardware requirement that will benefit the company in the next financial year. With the new lower prices, the temptation to invest all the remaining monies to bring his company to a higher IT level, is an offer that few could refuse.

p____p Yes, it might be difficult to see the opportunities that the new announcements have brought. Especially when one is saddled with stocks running into lakhs of rupees, on the inventory floor. But remember, the immediate concern is to be able to sell those stocks. So get proactive, go
out and develop buying-incentives that the customer will find hard to refuse.

p____p There will be time later to demand the protection that you seek.

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