Sagem Communications, which holds the licence to sell Philips fax machines, is aiming to buy its way into the market with a new channel incentive programme.

The Ovation programme will offer resellers a variety of sales incentives as a reward for selling Philips fax machines.

The online loyalty scheme, exclusive to Philips resellers, is to be run by London-based Beta Distribution. Once resellers are registered, they qualify for points that can be swapped for a variety of goods and services.
Initially, the vendor will offer resellers double the usual rate of remunerations, so for every £100 worth of kit they sell, the reseller receives £15 worth of loyalty points. This initial high rate ends on 31 May.

“It is very generous, but to be honest we are trying to buy our way into the market,” said Jeff Root, Sagem Communications’ general manager.

The offer relates to Philips’ own-brand laser products, which it decided to sell through the channel.

Previously, thermal transfer fax machines went through retail outlets. By building up channel sales, the vendor intends to capture the lucrative consumables revenues that follow after machines are installed.

Philips has invested in training for a telesales campaign from its distributor, Beta, which will spend a day calling its major accounts encouraging them to switch supplier.

“It is a great product and has already been well received,” said Steve Soper, Beta’s marketing manager. “Our initial launch day, with office equipment resellers, ended with a good uptake on our web site.”