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M2M condemns the channel's 'box shifting' culture in the UK
Andrew Wooden Apr 11 2008, 9:30am
Comments (3)
Firm warns explosive growth only leads to dilution of company values
Distributor M2M has criticised what it calls the 'box shifting' nature of the UK channel, as it looks to springboard steady expansion from its revamped web portal.
The firm is looking to grow, but asserts that too rapid expansion leads companies to forget their initial guiding principles – leading to what it has identified as a lack of value for suppliers.
"Essentially, the UK channel appears to be moving to a box shifting environment, that is not adding value to suppliers or customers, and at M2M we aim to be different," said Hitesh Kothary.
Ged Mitchell, MD at the firm added: "In my time I have seen too many good companies going to the wall because they expanded either too quickly or they forgot about the foundations or principles that got them there in the first place.
Many move from niche or specialist into broadline and essentially become box or component shifters."
The firm's new web portal is designed to offer a more bespoke service to its customers, and M2M is currently in discussions with vendor partners on how to further develop web-only services. The full roll-out of this new system will precede increased development overseas as well as in the UK.
"As well as our UK business we will continue our international expansion which we need to achieve economies of scale in volume purchasing for some of our international clients," continued Mitchell. "This in turns gives us a low cost base for our UK customers."
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Comments
“M2M condemns the channel's 'box shifting' culture in the UK”
Posted by: Richard James - Apr 11, 5:34pm
Until the Office of Fair Trading stop dictating how Manufacturers in the IT Industry present their products to the channel, every item will eventually become box shift. The bigger companies will grow and the smaller resellers will reduce. OFT are killing the independent reseller and hence reducing Consumer Choice on where to buy! Is that what they set out to do? Thoughts?
“Re: M2M condemns the channel's 'box shifting' culture in the UK”
Posted by: DON-CK - Apr 17, 9:50am
I totally agree - Box shift culture is killing our industry and its values - we also need to encourage our efforts in educating the end user of these methods also aswell as manufacturere needs to realise its brand value and associated partners. - "STOP treating people as numbers - basically"
“Re: M2M condemns the channel's 'box shifting' culture in the UK”
Posted by: Gary @ CAAOS - May 7, 2:22pm
Agree completely... How many times do us small, independant retailers hear the phrase "I can get it cheaper on "The Net"" or "from the manufacturer" (You manufacturers MUST start to play ball with the retailers!) only to find the customer coming back for the "free advise"? Box shifters kill the high street and will remove any possibility for our customer to obtain good, clear, unbiased advice. I am more than happy to explain to my customerts about "headline pricing" from the nationals and how this affects the huge hike in price for every day stuff like cartridges etc. I have to say, it is quite nice price pointing against the usual suspects only to find that I can increase my bread and butter products by a HUGE margin and still be 20% cheaper :o)