Metroline vs. Distribution 11

[Bezerk32]

I have a question to other Avaya certified partners. We currently buy all of our Avaya products from distribution, Westcon, Synnex,..., how can Metrolinedirect blow the doors off the pricing we can get from distribution. I am seriously considering purchasing phones only from Metroline as their pricing would allow me be more competitive bidding jobs and still make higher margins. Thanks for the insight, just curious how others feel about this.

 

[joe2938]

I believe that because they buy in higher volume and thus would get a much better pricing model, the more you buy the cheaper price per unit. I believe this is how it works, just ask Walmart

 

[rdoubrava]

Read your contract.

 

[Bezerk32]

I understand it is in my contract to use a distributor, but how do I explain to a customer that I have to sell you a 9608 for 200+ dollars and they can buy the same thing at Metroline for $112 dollars.

 

[joe2938]

Then just let them purchase it and then hire you to install it

 

[rdoubrava]

That’s a question for Avaya.
Their response will be buy from your distributor or lose you dealership.
Metro line offers no support. They cannot sell an Avaya warranty, NO IPOSS

 

[amriddle01]

And when it goes wrong, they need to buy another, you also don't attend any issues owing to their use or cover any phones they did purchase from you as you can no longer tell which are yours and which aren't, they soon see the difference

 

[Telecomboy]

Have your potential client google Avaya Gray Market Telephones.

 

[rdoubrava]

Avaya can track the s/n and determine what distributor the phone went through.

 

[Bezerk32]

Thanks for the info guys, being that Metroline is probably selling "Gray Market" phones we will inform them google search "Gray Market" and make the decision of where they would like to purchase from.

 

[yaturp]

The question is why does Avaya place the onus on dealers to keep their distributors honest?

The internet has changed distribution methods whether Avaya sanctions it or not.

The "Gray Market" is here to stay.

 

[Westi]

AHHHHHH
here is my big pet peeve again, gray market.
Avaya manufactures the phones all in China (oh surprise as Mexico got to expensive), then they take a big shipment and bring it to (let's say for example) North America.
They sell 2 or 3 Million dollars worth of phones with a big rebate to some big company that has some pull due to the volume they deal with. This company then sells it to Metroline with a small margin because they have 0 work other than processing the paperwork.
Metroline then ups the price again just a little bit and sells it to anyone that has a credit card.

Official distributors don't get that huge rebate because they only get the rate that Avaya tells them they get otherwise they lose the distributor status and they buy it also for more than Metroline sells it.

Avaya then says:"Oh these are gray market phones (not black market as that is reserved for cigarettes and weapons) even though it is the identical hardware and manufactured in the same plants.

Avaya is worse than a $20 h@@ker as they have absolutely no morals to what they sell and to whom. They could easily stop that if they really wanted to. The problem is that this is built into their planning for the sales targets.
Then comes the worst, they force business partners to only buy the expensive stuff and bolster their profit. A billion dollar company squeezes money out of small and medium business while the big ones that funnel the gray market phones through their books get the profit.

Joe W.

FHandw, ACSS (SME)


"This is the end of the world, make sure to buy your T-shirt before it is too late"
Original expression of my daughter

 

[Bezerk32]

Westi,
Great post!, I totally agree with your comments. We are partnered with numerous other companies and those companies actually protect and value their partners. Avaya does not seem to put forth any effort to stop the sale of "Gray Market" phones to put a value on their partners. The phones that Metroline sells are legitimate Avaya phones just not sold through a distributor.
Thanks again for the great comment, this is the discussion I was hoping to see!

 

[pmcook]

You can buy phones graymarket and have no worries. Everything else you better buy from a authorized source or it can come back to bite you on the arse.

 

[holdmusic34]

And how many of you have contacted your Channel Account Manager and made this a deliverable target?
I have.
I went undercover and bought handset from the UAE. Paid for by Avaya. Handsets came out of Europe. Avaya shut the dealer down.

How many have contacted Avaya's Compliance hotline after obtaining no response from their CAM?
Email compliance@avaya.com

Show Avaya exactly where in this document below they are failing to act ethically and make them respond on it:

[URL unfurl="true"]http://travelreg.madisonpg.com/2012avayaconference/partner/assets/documents/Code_of_conduct.pdf[/url]

Nobody moves if it's comfortable. You only start wriggling when you feel the heat.

Here's a witty rejoinder for you.

 

[rdoubrava]

To pmcook. You are totally wrong. If Avaya catches you doing this you will lose your dealership and be sued.

 

[crumthwacket]

Avaya can track the s/n and determine what distributor the phone went through.

So why haven't they done anything about it?

 

[gknight1]

my understanding, I could be wrong. I was told Metroline is a business partner, just like CDW. So technically you aren't buying bad stuff from Metroline, you are just buying it from a business partner at $1 above distributor pricing.

Another thing that hasn't been brought up is the revenue in Avaya's eyes. If you buy from anyone besides a distributor, it doesn't count towards your Avaya numbers which goes towards getting to the next discount level. Basically, if you sell a $100k system, but you buy $30k worth of phones from Metroline or CDW, Avaya is only going to see the remaining $70k that is bought from the distributor.

 

[jayjr1105]

Distribution being badly overpriced is no big surprise. Amazon and Newegg are frequently cheaper than through our two major computer distributors Ingram Mirco, and D&H.

My sales guy always complained because of the massive price difference on Metroline.

I've purchased from them for one job and it was a volunteer job for my church outside of work. Can't beat $1800 for an entire phone system installed all said and done. My labor was free of course

 

[pmcook]

rdoubrave a - you do not need to be a dealer to legitimately sell Avaya products. You can be an affiliate partner.