Print.IT Reseller - issue 57

PRINT IT RESELLER.UK 43 HOT TOPIC manufacturers and vendors have the flexibility to change behaviours that have been ingrained on the channel. “For example, the majority of business is conducted at the end of the month or the end of the quarter. One way would be to change the rebate model to drive it to the first few weeks of the month or the beginning of the month - a move that would relieve pressure on manufacturer or distribution logistics,” he suggested. “It’s an interesting debate,” he added. Nigel Allen, Marketing Director at Automated Systems Group has over 20 years’ experience on the OEM side having worked for both Ricoh and Kyocera. “Having now ‘changed sides’, the rebates I have been involved with have always been revenue driven,” he said. “Most manufacturers are targeted with turnover growth, particularly in Japanese companies where you are one of many sales divisions of the parent company and expected to grow the market, invest locally and return a very modest profit on your sales,” Allen explained, adding: “Most OEMs are now diversifying as the margins and revenue from hardware are decreasing, this begs the question of how happy will the parent company be if the turnover from local services products overtake the revenue received from traditional unit sales? That may be an interesting debate in many boardrooms!” He added: “At ASL, dealing with most of the major OEMs, we are targeted on revenue growth and as we have shown double digit-growth consistently, we have been keeping our suppliers very happy indeed!” Wrap around solutions sales Clive Hamilton, CEO, Pinnacle Document Solutions concurs with the notion it’s time for change: “With the consolidation in the sector of various dealers/OEMs the question of does ‘rebate’ need to change is a definite yes!” he said. He continued: “However, to compete and grow a business, it is more of a benefit to get better pricing from OEMs in the first instance so we can be more competitive, more responsive and offer a more sustainable sales model to our clients. That said, to work in the changing market we are currently in, a rebate scheme would be more effective if it was wrapped around solutions sales rather than hardware.” Damien Evans, ZenOffice MPS Key Accounts Director also argues that the rebate model shouldn’t just be based on hardware spend. “The rebate model should take into consideration the hardware spend, number of units placed, consumables bought and service revenue generated; all of these factors will enable a successful organisation to remunerate for the hard work and success it achieves,” he explained. SUPPORTING PARTNERS MEANS MORE THAN JUST FINANCIAL REWARDS “Canon recently relaunched its partner programme. Our revamped programme was based upon both changing customer demands and extensive partner feedback. This has updated and improved how we certify our partners. “The new programme is now focused on end-user applications, rather than products. In practice this means two things: that end-user customers will be able to easily identify the skills of our partners; and that in turn Canon can correctly recognise and reward our partners for their expertise and skills. “We are also looking at new ways to recognise and reward their hard work. In the new partner programme, we now offer specific benefits under five key pillars: n Diversify: We broaden the service based on the breadth of applications available in the Canon portfolio; n Collaborate: We work together to design and agree business plans and achieve our shared goals; n Expand: Dedicated business generation managers work with partners to identify, scope and support demand generation activity; n Win: Sales training, with a focus on customer needs, to help build knowledge and capability; n Streamline: We find efficiencies in service deployment. “We believe that supporting our partners means more than just financial rewards. Helping them grow and diversify their businesses and better serve their customers is a key component of a successful, open and collaborative partnership.” James Pittick, Director of B2B Indirect Sales, Canon UK ...continued Nigel Allen Mark Bamford continued...