Johannesburg, 13 Aug 2004
In a move that the company says is nothing new to business, Mustek will soon cut 5 400 companies from its current dealer base of 6 000.
The company`s CEO, David Kan, says the move was prompted by the fact that the 600 companies that will remain on Mustek`s dealer list are bringing in 98% of the business.
He says most of the remaining dealers registered with the intention of taking personal advantage of dealer discounts.
"In order for us to be able to provide better service to genuine resellers, we feel we have to do away with the 'dead wood`, because from a service delivery and support point of view, we need to filter out companies that are not doing any or much business," says Kan.
He adds that the top 600 to 800 resellers are quite pleased with the move because it will enable Mustek to better focus on a smaller dealer list.
"We are not saying that we are ignoring the small dealers; our intention is to determine who are genuine dealers and who are 'bogus` companies. We are also going to impose a R2 000 account opening fee for new applicants," says Kan.
The streamlining process will start this month, and will involve the identification and exclusion of dormant accounts (companies that have not done any business over the last three months).
A process that will look at companies that have not reached specific numbers over the last 12 months will follow this.
The entire process should be complete by next year. Kan stresses that Mustek is still happy to do business with small dealers, but this will be on a COD basis.
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