technology distributors, channel incentives, and gray markets (slides)
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http://ComputerDistributorGuide.com SUMMARY SLIDES: Technology distributors have the responsibility of applying vendor incentive programs, but without proper control, abuse soon occurs. Copyright (C) SP Home Run Inc.TRANSCRIPT
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Technology
Distributors,
Channel Incentives,
and Gray Markets
Courtesy of the
Small Business Computer Consulting Blog
http://blog.sphomerun.com Creative Commons Image Source: Flickr Nick Saltmarsh
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A Recent Report
From a Survey
Made Jointly by
Deloitte & Touche
LLP
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And the AGMA
(Alliance for Gray
Market and
Counterfeit
Abatement)
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Links Channel
Incentive Abuse
With the High-tech
Gray Market
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Gray Marketing is
the Unauthorized
Commercialization
of Products that
Have Been Diverted
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From Authorized
Technology
Distributors
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“Depending on the
Volumes Involved,
Even Price
Differentials of
$0.50
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Can Be Sufficient
to Stimulate Gray
Market Product
Flows.”
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Gray Marketing
Damage to the
Distribution
Channel
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Technology
Distributors and
Resellers
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Can Account for
More Than 75% of
the Revenue of
Technology
Companies
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Gray Marketing
Caused by Incentive
Abuse Ultimately
Weakens the
Distribution Channel
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With Problems in:
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• Customer
Satisfaction
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• Warranty
Administration
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• and Brand Image
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Lack of Adequate
Channel Monitoring
& Control, and Poor
Channel Partner
Communications
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Also Contribute to
the Overall Incentive
Abuse Problem
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A Complicating
Factor is the
Combination of
Incentives
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• End User Pricing
Discounts
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• Program Pricing
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• Channel Partner
Accreditation
Level Incentives
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Better Vendor &
Channel
Collaboration and
Monitoring
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Strong Management
Programs for
Channel Incentives
Should Be Good for
Vendors,
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Authorized
Technology
Distributors, and
Channel Partners
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With Control and
Profits Working in
Synergy, Rather
Than in Conflict
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Have You
Experienced
Competition From
Gray Marketers?
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What Do Your
Customers Think
of Gray
Marketing?
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Let Us Know What
You Have Seen in
the Comments
Section
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Creative Commons Image Source: Flickr Nick Saltmarsh
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