The significance of service and long-term product value are key criteria central to buying decisions in the Information Communications Technology arena today.
This is the view of Graham Duxbury, CEO of specialist distributor, Duxbury Networking. He says that while there are still companies in this industry that cling to the high-volume, low margin so-called "box dropping" model, more emphasis is being placed on the return-on-investment of a correctly integrated, future-proofed solution.
"There is still room in the industry for box-droppers," says Duxbury. "Some of the biggest names in distribution in South Africa have openly admitted to this business philosophy.
"However, at Duxbury Networking, we have always believed in the value of a thoroughly researched, professionally presented and - preferably - all-encompassing business solution for our customers."
He says that the key to the provision of this level of service lies in the skills levels of staff.
"Today the complexity of corporate-wide networking systems, telecommunications infrastructures, data storage repositories and security protection is greater than ever.
"In fact, the sophistication of the products on offer often exceeds the requirements of the user in the short term and it takes considerable expertise to design and implement a solution that will optimise the customer`s financial investment," he says.
Underlining this, Duxbury says that it is important for dealers to sell products that are most relevant to the customer`s particular application - and for this to occur a considerable amount of customer-related, business critical information needs to be studied.
"Companies have come to realise that there are sizable medium and long term savings to be realised from a well-designed, conceptually-sound solution and they are willing to financially support strategic thinking and service back-up."
Duxbury says the gulf that previously existed between the product prices of "box-droppers" and value added distributors and resellers has shrunk significantly over the last two to three years.
"Competition has seen companies hone and refine their pricing structures to the point where the added value of technical support, and pre- and after-sales service is not reflected in inflated quotations.
"The ICT industry has matured in the post Y2K period, with many distributors and their reseller partners evolving into value driven, solutions-selling consultants taking acceptable, sensible profit margins."
Share
Editorial contacts