Ingram Micro cancel thousands of accounts - What business model is this?

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andynz

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#43586 21-Oct-2009 15:33

I tried to access my Ingram cash account today only to find and then be told that they cancelled thousands of accounts a while back. Didn't even do the courtesy of contacting me to explain why after having an account for 6 years. Ok, were a small reseller client with sporadic purchases for on-sale. But you would have thought any sales for Ingram are better than none in these times. Mumblings of minimal monthly purchases but couldn't tell me what was required to get the holly grail account with Ingram reinstated. CS gave me an email to write to but I get no reply, I sort of expected that. A fob of to get rid of me.

Interesting business model. Provide mediocre service, price above other suppliers on some of the products and then drop customers without any communication.

Great guys, what next, drop all customers and make life really easy for yourselves, then close down. I miss Techpac.

Cheers
Andy

PS As a "valued client" I still receive Ingram's Techbyte email. Even better guys, promote your products and services then refuse to supply.

ajobbins

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#265727 21-Oct-2009 17:14

Dove have also done the same to me in the last 12 months. Same sort of situation. We only put a few grand a year through them for sporadic on-sale sorta stuff and a bit of cable here and there. Obviously didn't want the business at all.

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nate

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#265891 22-Oct-2009 00:18

I would say it's more a reflection of the times.

I notice now Ingram Micro call me a day after the 20th of the month if we are late with account payment. They never did this before.

We also recently went on stop credit for $50, even though we have a very sizeable credit account.

Go figure.

CYaBro

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#265896 22-Oct-2009 01:02

I don't see a problem with this.
If you are doing only minimal trading with them then perhaps they see that as you may not really be a reseller/retailer or are only doing it part time.
If you read the T&C when you signed up for an account, and all other distributors have this too from memory, you must be a reseller and not and end-user and it must be your full time occupation. You also would have indicated on the application an estimate of how much you would spend with them each month.

But I also agree that they have changed and seem to put us on stop credit for the smallest amount owing or overdue even though we have a good credit limit and trading history with them.

nate

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#265897 22-Oct-2009 01:06

CYaBro: But I also agree that they have changed and seem to put us on stop credit for the smallest amount owing or overdue even though we have a good credit limit and trading history with them.

I'm glad we aren't the only ones

camo786

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#265920 22-Oct-2009 07:33

My suggestion is to setup a wholesale account at PBtech, they have such buying volumes that sometimes items are cheaper from PB than buying direct from Ingram

tonyhughes

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#265930 22-Oct-2009 08:04

I too, see no problem with IM killing the accounts. Its likely the Pareto Principle at play with the vast majority of customers bring in naff all revenue, but on average consuming the most in terms of support and admin needs.

One unnamed IT company I worked for once asked us to examine the bottom tier of our client base with a view to simply cutting off the PITA clients who were low value.

andynz

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#265932 22-Oct-2009 08:06

Although we do small volume with Techpac we are a true reseller and importer distributor, not an end user and it would be good business practice to have found out why our purchasing volume had dropped with TP rather than just deleting the account. If our cusotmers purchasing drops we contact them and find out why, common sense really.

The main reason for the drop of in purchasing from TP has been the mediocre service, lack of stock and above distributor pricing on some products. So onwards from TP.

Thanks for the suggestion on PBtech, what are they like to do business with?

Cheers
Andy

andynz

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#265936 22-Oct-2009 08:12

Tony, for the record I have only ever contacted TP for support once in our time as an account holder. We were on a cash account so minimal admin involved. I agree small customers can take up a lot of time but it is easy to filter out 'problem' customers and keep the low overhead low volume ones. When your systems are geared for a large customer base, as TP is, why reduce your sales when they cause few if any problems?

exportgoldman

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#265942 22-Oct-2009 08:30

I remember when setting up my Tech Pac account that you needed to sell roughly two PC's a month with some bits and bobs included to make their minimum requirements for having a account. That was about 5 years ago.

I've actually sold my old computer business to the company I'm working for now, and my Tech Pac account has laid dormant bar a few minor purchases for the last year, but I got missed out in the mass culling! Strange. We were doing around 240k/300k a year but nothing for the last year so perhaps they are hoping our account will come roaring back to life.

Amusingly enough after reading this post I had hoped they had canceled mine so I didn't have to...

Tyler - Parnell Geek - iPhone 3G - Lenovo X301 - Kaseya - Great Western Steak House, these are some of my favourite things.

wallop

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#265944 22-Oct-2009 08:37

So that explains why I can't get in to the website. Again I put bugger all business through them but never used any support or admin. I'm not surprised they finally closed my account but the least they could have done was send a email notifing me of the account closure.

andynz

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#265947 22-Oct-2009 08:39

Yes it all seems pretty random. Talked with another distributor yesterday who does about the same amount of minimal business with TP as we do and their account is still active. I just don't get how these sorts of businesses survive with such poor customer practices. In these times if your buying sufficient quantities to be a "desired" customer your probably sourcing direct from elsewhere. Distribution is fluid business these days. Often the only thing you have to offer over other sources is customer service. Not quite sure what TP has to offer any more. Guess the are relying on bigger customers not taking the time to find better suppliers.

andynz

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#265951 22-Oct-2009 08:49

Have been dealing with Conextech/Playtech for a while now and on a quick comparison this morning they seem to have better pricing then PB Tech and Ingram on some products. CS is pretty good too.

nate

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#265999 22-Oct-2009 11:11

andynz: Thanks for the suggestion on PBtech, what are they like to do business with?

Fantastic. Never had any issues with PBTech.

I also think they are the biggest customer of Ingram Micro.