Row, row the boat..
They've battled exceptionally well over the years but it doesn't get any easier...
Services-based reseller Keltec has reported a double digit drop in sales and profits for 2012, amid claims from management that some of its customers remain jittery about the economic recovery and are refusing to sign off new projects. The reseller, headquartered in Bracknell, has filed full calendar year results at Companies …
Channel resellers are increasingly being squeezed on a number of sides.
The economic climate, customers buying smarter with the usefulness of open information on the net combined with a longer burn on existing kit, less refreshes = less purchases to go around. Add into this a pressure on vendors and distributors who are reviewing channel programs and discounts and making cuts for their own agenda's and a wealth of business moving to the cloud with customer procurements going often to new supplies, resellers and vendors where the prevailing reseller has not introduced cloud in protecting their legacy business from cannabilisation.
Add these together and we have already seen 2e2 and many others in the channel go in the UK and we have analyst reports that between 30-70% of IT resellers are expected to consolidate or go in the next 3 years.
Times are hard, but yet many still prevail and are growing sales and margins in the same period. Change is essential, its hard work, but fruitful.
Ian Moyse
Workbooks.com