Local is lekker – why buying local is better than importing.
Operators in the ICT industry are becoming more comfortable and willing to purchase goods from overseas companies who sell via faceless online portals. Directly imported goods are often seen as cheaper or more attractive. However, choosing to buy local is not just a patriotic gesture; it should be a practical operational decision. From technical support to reduced risk, buying locally delivers benefits that importing often cannot match.
“I know of resellers and even large network operators that purchase cheaper alternatives online, but they often forget the hidden costs and financial risks of importing,” says Gail Holt, Managing Director of Hardware Distribution.
The hidden risks of importing cheaper products
Importing ICT equipment such as low-cost SFP modules, networking components or other hardware can seem financially attractive. However, these savings often come with significant risks:
- Customs and clearance delays: Imported ICT equipment can be held up by customs due to classification issues, missing documentation or inspections. This can cause project delays and unexpected costs.
- Customs VAT and agent fees: Prior to delivery and clearance of the shipment, local agents require the importer to pay import VAT and agent fees, and in some cases, customs duties can apply.
- Upfront payments and currency risk: Importers are usually required to pay suppliers in full upfront, in foreign currency. Exchange rate fluctuations can quickly erase any perceived cost advantage.
- Warranty and replacement challenges: When imported products fail, returning them is often slow, expensive and administratively complex. Shipping faulty equipment back overseas can take weeks or months, leaving networks exposed or forcing businesses to repurchase stock.
- Limited technical support: Overseas suppliers rarely provide timely, locally based English-speaking technical support, which is critical in high-availability network environments.
“Locally sourced SFPs and fibre components, even if slightly more expensive, offer faster delivery, local warranties, immediate replacements and direct access to advice and technical support. This reliability is often far more valuable than marginal upfront savings,” continues Holt.
Gail Holt, Managing Director of Hardware Distribution.
While importing will always play a role in South Africa’s economy, prioritising a local supplier delivers far greater long-term value. In sectors such as ICT, the apparent savings of cheap imported equipment, like SFPs and fibre cables, are often outweighed by customs duties and delays, upfront payment risks, difficult replacements and an unreputable and untrustworthy supply chain.
Buying local not only helps your BEE scorecard; resellers benefit from reliable supply, local support and the security of dealing with a reputable company that you know and trust.
“As a distributor, it’s our job to handle the importation of the goods; taking this hassle from the customer. Our products are landed cost, so there are no hidden or unexpected charges – or delays. We also offer 30-day payment terms, so no upfront capital outlay. While an imported product might be cheaper upfront, Hardware Distribution’s ability to stand behind the product and provide financial and technical support far outweighs the initial cost savings,” concludes Holt.
So, the next time you casually want to give over your credit card details, remember local is lekker – choosing local is ultimately better for your business.
