One percent
In an industry that lives and dies by its margins, a new player is turning established thinking on its head.
01 November 2009
In the ICT reseller business, margin is everything. And the high-volume, low-margin end of the business is cutthroat, to say the least. Velocity Group founders Jonathan Kropf and Ross Butt decided to take a same-old, same-old industry, and apply some creative thinking to it.
Says Kropf: “There was no grand plan. We just thought about it and came up with a system we thought would work, using the existing eco-system and leveraging it.” What Kropf is referring to is the local ICT reseller channel. Vendor sells to distributor, which sells to reseller, which sells to customer. At each point price, ostensibly, value is added, which accounts for the retail over wholesale price difference. Also in the system is warranty support, and delivery services.
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