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Nagpur Partners Blame Vendors for Price Upheaval
By
Vijay Vedala
Mumbai, Dec 19, 2007
Local distributors in Nagpur are blaming vendors for setting unrealistic targets even as the controversial issue of direct selling is threatening to raise its head in the orange city.
According to the partners, many local distributors in the city are catering to the end users under the guise of retail. "The market is not as big as the vendors expect. This is resulting in unrealistic targets that is not based on the market situation," said Rakesh Aggarwal, a local distributor and proprietor of Mayur Computers.
"Besides in their quest for further growth, partners are asked to better their previous performance by a fair margin that is not always possible and leads the distributors towards using unfair means," he continued.
A local distributor cum retailer himself, Sonu Kewalramani said that due to this issue problems are cropping up within the dealer segments.
Owing to the direct selling phenomenon, channel partners in this region have to lock their horns, with disties selling their wares at prices, 3-4 per cent cheaper than the resellers. According to channel partners, the resellers of notebooks and printers are amongst the worst sufferers.
Though the Nagpur based trade body, Vidarbha Computer Media Dealers and Welfare Association (VCMDWA) confirms the malpractice, it denies receiving any formal complaint.
" We plan to talk with the vendors and set meaningful targets suitable for the market once members lodge their complaints with us," said Prashant Ugemuge, president of the VCMDWA.
However, Aggarwal said that the association is not taking up the subject seriously, as it is more inclined towards concentrating on other issues than focusing on ethical ones.
Related Links:
Education Segment Drives Nagpur IT Market
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I AGREED WITH AGRAWAL & PAREKH, WE REQUESING ALL THE VENDOR TO REVISED TARGET AND ALSO MAKE MARGINABLE MOP FOR THE PRODUCT AND TAKE STRICKLY ACTION WHO BREAK THE MOP IN THEIR REGION, IN THIS SITUATION WHERE THE MARKET IS GOING THERE IS NO BODY EARN MARGIN ANY SUB DISTRI. OR CHANNEL, DUE TO THIS ALL WANTS TO DO LOSS IN PRODUCT AND NOW A DAYS THIS INDUSTRIES IS GOING TO LOSS AND SUFFERING MANY ISSUE IN THIS CHANNEL BUSINESS, AND AGAIN THIS MATTER IS VERY SERIOUSLY AND WE ALL WANTS TRY TO RESOLVE THIS MATTER, AND WE AGAIN REQUIEST TO VENDOR AND NATIONAL DISTRI. TO ONLY SET MARGIN OF THEIR CONSISTANCY PARTNER ONLY AND THEN TRY TO DUMP THE PRODUCTS |
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- NITIN PANCHANI,
NET-LINK INFOCO, RAJKOT.
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This is practiced everywhere Nagpur case is not an exceptional one, te disties selling at laser orice for short gain. |
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- Sajjauddin,
Ayan Technoshop, Udaipur
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same is the story all over India, few weeks back even ahmedabad channel was facing this problem.
The targets need to be realistic, other wise no one gains.
Vendors need to concentrate on creating the PRIMARY DEMAND FIRST, and then DUMPING their material with the distributors.
Other wise what is happening is only going to increase, for the wORST. |
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- Limesh Parekh,
Enjay Network S, Vapi, Gujarat
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