Distributor prices and NFR

Hey, some of these prices aren't that cheap!

The distributor prices might not be lower than the lowest prices you find on the online search engines. Distributors usually only give deep discounts to loyal customers and large volume resellers. Many resellers only use one main distributor, because they have to build a relationship to get better pricing. They can't afford to divide their volume between two or three distributors. Don't expect to see the lowest prices when you open up a new account with a distributor, but it always helps to call them up and haggle. You'll never know what you can get unless you ask.

Large online retailers can get discounts by buying in bulk. Distributors usually list individual and bulk pricing for the same product right next to each other. A single Voodoo3 2000 OEM might be $95, and the 20-pack could be $1650. Retailers can break up those Voodoo3 20-packs, and sell each one individually. Unless you're confident you can get rid of the extra pieces before the price drops, buying in bulk isn't usually the best option.

Not For Resale

The real reason you'll want to become a reseller is to get access to all the promotions and Not For Resale (NFR) demo items. Many manufacturers have special programs where you can buy demo products at prices far below normal. The manufacturers have these programs to educate resellers about their products. If a reseller is familiar with a product, he's more likely to recommend it to customers. Usually, you can test a unit for 30 days, then either send it back, or buy it at the discounted price. If you're lucky, you might also get a huge "Not for Resale" sticker slapped across the unit.

Sounds good. How do I get these NFR products? Once you get your reseller's license, you can start calling manufacturers for "evaluation" products. Your best bet is to contact the manufacturer's sales department -they're usually in charge of evaluation product distribution. Some of the large manufacturers hand off the evaluation product duties to large distributors such as Ingram and Tech Data.