3CShop Catalogue Targets Regional Sales
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While helping metropolitan retailers is part of the new 3CShop strategy, the company’s first major marketing initiative will be a catalogue for distribution in regional areas.

David McGill, Sales Manager for 3CShop, told SmartOffice Reseller that catalogue distribution would have the greatest impact in regional areas where the retailers have a closer affinity with the community, but that metropolitan retailers are still very much a part of the new venture’s plans going forward.

McGill said the current strategy to form a channel network for independent resellers came out of a five month process looking for ways to help resellers sustain their business.

It gets tougher every quarter and many resellers are really struggling to stay afloat says McGill. The old ways of trying to beg or squeeze additional margin out of vendors and distributors is not sustainable anymore and another approach is required.

Following five months of planning and discussions with mostly Optima partners, McGill is convinced that moving into the Digital Home area is the best bet for companies wishing to sustain their business in the face of declining whitebox sales. McGill says the 3CShop model acknowledges that we are not quite there yet, but is designed to help resellers transition to the new focus.

In a company statement Executive Chairman of parent company, Optima ICM said “This type of buying power and services have been particularly developed to support the growth of the digital market, better equipping traditional IT resellers to move from selling low margin products to high margin Digital Home solutions.”

The model is actually a bit of a hybrid and McGill is not entirely comfortable revealing how the business plans to sustain itself, though he does admit that the strategy takes a longer term view.

“You make your money when the resellers are doing well”, he explained.

McGill said that while some vendors are willing to sell through 3CShop with distributors drop shipping, which allows 3CShop to take a cut, others are going direct and resellers will work off a separate price sheet.

Describing it as a channel-focused, retail-focused business McGill said 3CShop can help resellers through the collective purchasing and marketing support, but also by providing technology training and financial services for customers.

The first 3CShop catalogue is due out in April and participating resellers will be able to personalise about five lines and include their logo. 3CShop will be asking for a financial contribution for the catalogue but will also take advertising and co-op dollars from vendors, to help with funding.

While resellers wont’ be forced to adopt 3CShop branding, McGill said some are keen to go that extra mile. “3CShop is kind of like bookends” said McGill who explained that the objective is not to sign up “all” the resellers. 3CShop will be focusing on businesses that are established and have some sort of track record of servicing their community. McGill said 91 resellers had joined up so far.