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Direct Selling Hits Partners in Nashik
By
Vijay Vedala
Mumbai, Jun 6, 2007
The ghost of direct selling has started haunting partners in smaller towns like Nashik with sub-disties reaching out their products to the end-users, at discounted prices.
This stiff competition from the distributors by selling products to end-users at the dealers' rate has consequently led to a steep decline in the sale of PCs, and related products in the town.
According to the sources, the difference among the prices for an entire set is around Rs.600-700, whereas, the peripherals differ from anywhere between Rs.50-150.
"The distributors, in their bid to achieve their targets, indulge in direct selling, which eats our market," says Sunil Gholap, proprietor of Star Systems.
According to Sameer Aggarwal of Usha Infotech, "Some of the distributors enter this race just to keep their money circulating, even at the expense of doing away with profit. Without mentioning any names, he further elaborated that there are around 7-8 such distributors, with 3-4 big distributors indulging in such practice too."
The result of this practice is obvious and the dealers are suffering. "Earlier I used to sell around 250-300 PC's per year, but now this has reduced to 150-175 only. And direct selling by the distributors is one of the major factors" laments Pramod Gaikwad of Silicon Valley Computer Services.
The problem has reached the ears of the Computer Association of Nashik (CAN), but an action is yet to be taken. According to Sharad Mishra, president of CAN, "We have asked our Channel partners to give a written complaint so that we can take an action. Verbal complaints don't help."
Mahesh Chawla of Standard Computers, a company which caters to around 70-80 dealers as well as the end users, defended the sub-distributors. "This is not harming the dealers as the dealers are selling their products anyway," he argues.
It must be noted that dealers in Nashik are struggling with many problems, which vary from the low service margin to the delay in the replacement of damaged parts.
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Small Dealers Strong point in Service ,Personal Relation ,Same are -ve Point of Distributer , We also Reccomand to Coustomer Who are Price Contious Purchase Form Biggest Distributer IN Pune Data Care Corporation ,We loss Our Profitt of Max 700 /- We CCan Recover From Same Coustomer 1,400 /- in Service,
Bigest Distributers Punch Tedhi hi Reahegi , We Must Hard Work & Give Best Service, Also We must Hunt Another Consumer Market / Product Which Sale on Basis of Service |
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- S Bhandari,
SPYDER SYSTEMS, PUNE
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this is right action to fight gray market |
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- PREM BALANI,
GURU KRIPA TELE, INDORE
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Such stories should be brought out in the focus, otherwise small runner of this business will be ruined |
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- Ashish G. Katka,
Navabharat, Ulhasnagar
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Associations should take some stiff stand - individuals shall not dare take a stand to safeguard their own interest. such if company like samsung who doesn't hesitate to take partners to courts for even petty matters is involved then this becomes more important to stay away and let associations take up the matter. |
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- darpok dealer,
India, India
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thanks for ur valuable thoughts. |
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- vijay,
IT Nation, mumbai
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City, like nashik and other B grade cities are facing stiff compition after A class cities. There is no other option for the distributors company except direct selling. end user will get benefit and no doubt dealers will loose business. in this case dealers has to move to parallel importers or the competetors of direct selling co. U have to sell the companies product ofcourse but as far as margin is concern it is dealers problem not distributors. So
for marging deal unique latest products. |
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- Vijay Pal Singh,
SMC Internation, New Delhi
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If the manufacturing com. or any doing they the same like direct deales with end use either they are from Hardware or from Software. Eachand every dealeer's. Distributor's and Reseller Boycot the product as immediately strick action. No need to sell the produt like that company who directly deals with End- Users.
I suggest to all like that happened please Boycot the product. No Need to deal in future. So many products are there with the same feature and same quality. Which manufaturer give support to dealers, that only product we need to sell. As all dealers took lots of effeort to sell the product. And if like that happened Who belived. |
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- Kalpesh,
iCAT Infotech, Hyderabad
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Ku... Ki Punchh Seedhi nahi hoti - ho chahe kar lo |
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- dealer,
dealer, dealer
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