Investment by Lancashire consultant helps SME’s secure better value and stretch IT budgets.
Investment by N J Grime Purchasing Services Ltd T/As Tech Buyers Club is generating better value for SME’s on their purchases of technology products.
The cost of each and every technology product is comprised of a wholesale cost and then the margin the reseller adds on to it before selling it to their customers.
The reseller market has consistently been resistant to calls for cost transparency and for them to be open about the margins that they are making.
The wholesale costs of tech products move on a daily basis, which often provides the resellers with an opportunity to inflate their margins. Price reductions are not passed on to customers and any increases can be exaggerated.
Following their investment, Tech Buyers Club now has access to the same wholesale pricing information as the reseller market.
This now means that purchases made at any time can be analysed to identify the supplier margins and expose any excessive values against the industry guideline of 3%?
A recent case study identified the average supplier margin was 66.90% and the highest individual supplier margin was 483%. Through negotiation the current supplier was retained and costs were redued by 17.4%
SME’s and other organisations can take advantage of this via a subscription service that will:
- Renegotiate with current suppliers when required
- Guarantee a supply source @ 3% margin should suppliers remain resistant
- Manage enquiries for all future requirements, saving admin time
- Ensure all future purchases are based on the agreed supplier margin
- Ensure product availability
- Identify suitable alternative products that are more competitive
- Utilise buying patterns to generate further discounts from mnufacturers
Tech Buyers Club said “This is a totally unique and different way to manage purchases of technology supplies. It is our aim to disrupt the reseller market to ensure SME’s and other organisations can receive excellent value.”
To support this aim anyone using the subscription service will not have to sign any contracts or enter into any long term agreements. They will also be backed by three guarantees:
- Availability of a supply source at a 3% supplier margin (Quoted above)
- They will save a minimum of twice the cost of the service
- 100% monies returned after 100 days if they are not completely satisified
In addition to SME’S, Tech Buyers Club is now starting to help schools make their budgets go further.
