Siltek Distribution Dynamics has concluded a deal that enhances its UPS offering, by securing the Meissner agency alongside existing APC.
Dereck Hindry, divisional director of SDD, says initiating involvement in the channel is a challenge for any company. "Right from the outset of negotiations some months ago, there was a feeling of mutual respect, which is what we look for in a partner and we look forward to working with Meissner in achieving its goals with the channel."
Steve Ellis, channel sales manager at Meissner, says: "SDD is a major distributor of peripheral equipment in South Africa and it`s a feather in our cap to be associated with them."
This move was not an easy one for the UPS vendor to make. "Our strengths have traditionally been in moving larger UPS equipment ourselves. We haven`t been involved in selling smaller units because we`re not geared to supply these quickly, something the entry level to mid range market requires," says Mike Kersten, MD of Meissner.
He adds: "SDD has around 3 500 resellers who can walk into SDD and now walk out with our product."
Incorporating the channel in bringing product to market, although with its advantages of service, value-add and market penetration capabilities, also means an adjustment on margins. "The price we pay for using the channel is sharing of margin, but it is the channel that increases our volumes, says Kersten.
Moving product through the channel is a two-way street and requires investment from both the vendor and the distributor. Meissner is a specialised company with all the service and support operations in place to back the channel initiative. "The UPS is not the same as a network card, it requires a level of technical service and support," says Kersten.
Ellis concurs, saying that Meissner will share its expertise in the higher end products with SDD, and a transfer of skills will form the basis of the shift of that product line to SDD also. "In terms of supporting the product we will offer a 12-month swap-out of any faulty units, with service centres around the country to back that offer.
Hindry believes SDD has secured a major coup for itself in gaining the Meissner agency. "There are only two major UPS vendors in Africa - APC and Meissner. Wherever you go they`re number one and two. He says. "Now we can offer our clients both."
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