Distributors

CRN's ChannelWeb.com has a distributor locator (which, unfortunately was down at the time of this publication) as well as a list of the Top 50 distributors, most of which are also international. I have personally dealt mostly with the local distributors in the San Francisco Bay Area, California area so I would not be of much help in recommending distributors outside California. Local distributors generally have better prices for small orders, but do not have as much variety or inventory. I would definitely recommend trying to find a good local distributor first. But Ma Labs is always a good fall-back, no matter where you are.

I'm in xxxx country, where can I get a list of distributors in my area?

See Question Above

Won't shipping costs from distributors kill my bottom line?

In general, No. Distributors generally buy and ship in huge volumes. So as a result, most of them have special deals with the shipping companies. Their UPS and Fed-Ex charges are usually much lower than retailers, and there is usually no additional handling charges. Many large distributors also offer free shipping if the order is over a certain amount (usually $1000-$2000). In addition, local distributors often have dedicated drivers and offer free delivery if the order is over a certain amount. Large distributors sometimes also have local offices in big cities, so you might want to check with them on that. Lastly, if shipping is a concern, you can personally pick up the parts from your local distributors at their will call booths.

What's involved in opening a distributor account?

This varies slightly between distributor to distributor, but in general the steps are:
1. Call up their regional sales person and ask them for a product list. You want to make sure they carry the parts you are looking for before continuing. But they will rarely ever quote you a price before opening the account.
2. Ask the sales person for an account application form. The will usually fax or e-mail this to you. If you are lucky, you can download a PDF version off their web site. These forms are generally 2-3 pages in length, and will require you provide your company information, bank account numbers, resale permit numbers, and perhaps trade references. For trade references, put down customers or companies you have done business with - though it is preferred if you list other distributors. You will most likely also have to fax a copy of your resale license and a voided check.
3. Fax the form back to the sales person. It will take anywhere from 15 minutes to a day to process. Larger distributors are slower in this area.
4. The sales person will call you back once the account is created. They will also let you know if you qualify for any credit. (see question below)
5. Place the order! Make sure you ask them about shipping costs and payment methods. Haggle if the distributor does not have fixed prices (you will know because their initial prices are close to retail.)

What does Net-## mean and how do I get credit with distributors?

You will often see Net-10 or Net-30 on invoices. Net-10 means that you can pay for the product 10 days after you receive it. Net-30 means that you pay 30 days after receipt of goods. Distributors only give out net terms to resellers who have excellent credit ratings or whom they have good relationships with. If you are a small reseller, there is almost no chance of getting net terms unless you know someone who works in accounting at the distributor. Fortunately, many large distributors allow credit card payments, which is roughly equivalent to Net-30 in most cases. From experience, distributors who allow credit card payments also have slightly higher prices.

Isn't Ingram Micro way overpriced?

Yes, in general their prices are pretty high for small quantity orders. Higher in fact than most mail order retailers. However, being a large distributor, they offer many promotions and incentives which resellers could take advantage of. They also have an extremely comprehensive product line and a web site with up-to-the-minute pricing and inventory. Many online mail-order retailers use Ingram Micro as their supplier, so being able go directly to the source for inventory and pricing information can be very handy. HardwareStreet.com and Buy.com both use Ingram Micro to fulfill their orders, at least to our knowledge. Lastly, their prices are negotiable. They will almost always match prices, and if your order is over $1000, you also get free UPS Ground shipping.