Heey Michal,
Yesterday we talked about how to deal with IT resellers and the 4 issues we identified.
The 4 issues are:
• Payment - the payment behavior of small shops is below level, payment in cash or check is expensive for RI;
• Consignment - causing discussions about lost and/or damaged products;
• Distribution - delivery of goods to a limited number of shops is expensive;
• Profitability - due to the issues as mentioned above and the limited margin on products it is impossible for RI to make this profitable.
SCRATCH CARDS
To tackle these 4 issues we talked about a using a different sales method that uses scratch cards. As we concluded yesterday this solution resolves all 4 of the issues as mentioned above. However, one new issue popped up and that is the payment to the reseller. The reseller has to trust or needs the assurance that he gets his share of the realized sales.
To overcome this possible issue I want to propose a change to the concept we discussed yesterday.
CONCEPT CHANGE
Reseller gets the margin by selling the scratch card for its margin. For example: the reseller gets 25% of the sales price. The sales price is THB 400, his margin therefore is THB 100. The reseller sells the scratch card for THB 100 to the customer.
Advantage to the Reseller
• The reseller instantly receives payment of his margin;
• no payment upfront for the reseller*;
• no risk of stock;
• no arguments about damaged or lost goods that are held in consignment;
• reseller can decide to reduce the price for the scratch card for promotional activities.
*) We might consider to charge a little money for the delivery of the scratch card, let's say the price of the scratch card, to prevent that the reseller all to easy gives away the scratch cards. On the other hand, when a reseller can give away the scratch cards for free it might generate extra revenue for Bitdefender and RAI INFOTECH. A point to consider.
Advantage to Bitdefender/RAI INFOTECH
• There's no registration required to which reseller a scratch card goes which reduces the complexity and risks for errors;
• we don't have to pay attention or register payments to the reseller which simplifies our financial administration;
• the online CRM system becomes less complicated which reduces our development costs and development time.
Promotional possibilities
We can also do promotions with CyberPower and other brands. When an end user enters his information including that of the UPS or laptop or PC, we can later use that information for different purposes like up selling, renewal or otherwise.
For RAI INFOTECH it is very good to know who bought a Syndome UPS. In 3 years time we can start to use this information.
It also might be possible to have Syndome (or some other UPS or PC brand) pay for extra discount on the Bitdefender anti virus software in order to promote their product. By doing this we get payment from Syndome and at the same time we know who bought Syndome.
Please consider and I'll see you this afternoon around 2 PM.
With kind regards,
RAI INFOTECH
John Jongsma
General Manager
Mobile : +66 925 32 6465
E-Mail : john@raiinfotech.com
Rai Infotech Co.,Ltd.
888/155 Mahatun Plaza Building , Ploenchit Road ,
Lumpini, Patumwan, Bangkok 10330, Thailand.
Tel. +66-2-254-2629 Fax. +66-2-689-6299
Website : www.raiinfotech.com
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