Just thought in these times of rapid price increases it would be interesting to answer some of your questions since I have some downtime. I’ve been out of the disty game a little while, but I believe I know enough of what is happening in the IT channel. So ask away!
[AMA] I Used to Work in IT Distribution - Ask Me Anything!
NotAnAudiophile on 29/04/2020 - 00:37
Last edited 29/04/2020 - 09:59 by 1 other user
Last edited 29/04/2020 - 09:59 by 1 other user
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Mainly hardware , probably of more use to you guys ! Think graphics cards, gaming laptops, SSD etc.
what is the best discount you can give us ? :)
Haha that’s a trick question. No longer in the game now, but the margins in disty land are razer thin….
Does the disty import the hardware or is that done by someone else?
Are the distributors aligned to certain brands like Asus, Gigabyte etc?
How do RMA's work? Does the disty send the hardware to the appropriate manufacturer and return the repaired unit back to the retailer?
It’s imported by the disty themselves. Yes lots of brand alignments and it’s funny as certain types of products even within the same brand can be distributed by certain companies only due to their expertise. Where I used to work, clear cut RMAs would be sent back to the manufacturer while we would provide retailers with a new replacement unit. The manufacturer would then ship us back a new unit later.
clear cut RMAs would be sent back to the manufacturer
How much effort do you put into testing RMAs vs Just accepting the retailers word? Do the manufacturers ever turn around and say the item isn't faulty?
How does RMA work for low cost items? Who wears the direct cost? I understand the consumer is paying for it indirectly, but do you have any insight into the agreement between the manufacturer and distributor for these types of warranty claims?
Depends on the value of the item. For costly ones like graphics cards there would definitely be testing and there was a team who did it. Every disty and manufacturer has an allowable % rate for defects and questions would be asked if this is exceeded in a year . Even if the manufacturer says it’s not faulty - there is no loss to them, they now have a refurbished part they can use elsewhere . In such large volumes 1 or 2 less defective boards just isn’t going to make much difference .
What kind of work do you do?
Are you a essential worker?
How is the pay?
Good job to do?
Not an essential worker by any means. Pay wise, just average for the IT industry.
I mean no offence but imo distributing computer parts is hardly related to the "IT industry"
What is your favourite pizza topping?
Pineapple!
sorry, have to neg you
Had to upvote… pineapple belongs on pizza!
I'm sorry to hear that.
What type of truck did you drive to distribute?
None - where I used to work all the deliveries were made by courier.
Did you work in a shop just sending out customer orders, work in a big factory setup for a large company or work in a huge warehouse that services a few different clients (similar to drop shipper)?
I would say it’s a large warehouse setup, not a small shop.
Like Ingram, Dicker sized?
Not as big as those, probably just 1 level below.
I have always believed hardware like cpus/ram etc had tiny margins.
What types of items had the smallest, and which had the largest?which had the largest?
Just guessing, but it has to be accessories - cables, cases, etc. You can see what these things cost on ebay compared to what a retailer charges for a similar item.
Standard components have tiny margins. So yes accessories have the most.
What sort of volumes does a retailer need to get a decent price break? It seems like most IT distributors will set up a cash account for anyone with an ABN, but the pricing will start off more expensive than most retailers.
Graphics cards are a hot topic now so I’ll use that. For a price break, could be hundreds of cards at a go.
With the invention of the internet, many other industries swapped to direct importation from manufacturers and save money as theres no middleman any more. Why do you think this wholesaler model still exists in the IT hardware industry? Is it because of the abundance of brands SKU's of every component?
Do you think this model in Aus is going to last?
In the past distribution was seen as a warehouse and a bank for retailers. That’s changing, with drop shipping and fulfilment systems being done by disty now. There is a place for distribution, just not as a traditional importer anymore.
Are retailers barred from going direct to manufacturers by exclusivity agreements the manufacturers have with distys?
Not really, but the manufacturers wouldn’t sell direct anyway, at least to retailers. No 1 retailer could import the volume that the distys can.
What's the lag time for hardware to get in to Australia. e.g. when a new part is released. EDIT: I mean logisitcally.
Well usually there is the air freight method which is pretty quick, takes about a week all up from shipping. Problem is, usually the first wave of product gets all bought up by USA or Asia and over here we wait for the second wave of production which slows things down.
What is the best laptop under $1200?
good question. Personally i use a Spectre X360.
I've heard positive things about the Dell XPS 13 as well. What are your thoughts on that?
In more of a 2 in 1 guy so didn’t get the xps. However there have been some QC issues raised about the xps.
@NotAnAudiophile: Yeah I have read that but found very minimal info about it, other then that great reviews about it and generally in most people's top 10 laptops lists online anyway haha.
I found that Dell eBay is having 20% off sale so am considering one. Dell Inspiron 13 7391 2in1 laptop as well
What type of IT distribution? Is this software or hardware?