DEALER PROFILE - Step into the learning zone

Company founded: 1994

Company headcount: 55

Company year end: 31 March

Last year's turnover: #16 million (17 months to 31 August)

Profit: No comment

Why not? It's sensitive information as we are due to become a public limited company.

Reseller base Surbiton

Lines sold Hewlett Packard, Epson, Microsoft, Toshiba, Advanced Notebook Research (ANR), Quantum, Maxtor, Compaq, Iiyarna, Sony, Syquest, Creative Labs, Yamaha, Maxtor, Umax, Intel, Quantum, Canon, Kyocera

Accreditation held None

None? Well, we've been growing so quickly recently that it's one of the things on the back burner. When we become a limited company, we'll start working towards it.

When do you intend to become a plc? Very shortly.

Why do you want to change from being a sole trader? I don't think it will affect our business a great deal immediately - it's more to help our status. I believe corporate customers prefer to do business with a limited company.

In addition, I want to have the opportunity to give our employees share options. By doing that, they will have a greater interest in the company.

Also, ultimately, if I ever wanted to sell the business, it would be easier to find a buyer than to do so as a sole trader.

Key accounts The university and education sectors

Main distributors Computer 2000, Ingram Micro, CHS, Micro Peripherals, Northamber

Main competitors Simply Computers, Dabs Direct, Watford Electronics, Choice Peripherals, Micro Warehouse

The board of directors will be Jonathan Kelly, chief executive officer; Ritchie Sharma, sales and marketing director and Dino Cooper, marketing director

Biggest bone of contention at the moment Manufacturers need to be more helpful to resellers like us over returned goods.

Do you feel you are treated differently to other dealers? Yes. It would be helpful - and fair - if vendors could extend the terms to us that they give to retail. At the moment, if goods are not faulty, we have a real problem returning them.

So what can you do about it? If customers bring a product back because it's not compliant with their system, or because they don't like the style or colour, we have to either argue with the customer, or take it back and sell it as a B grade. Either way it means financial loss.

But how could vendors afford to do this? Quite easily. In fact, I would be happy for vendors to charge more for products, if it meant they had an easier returns policy.

Thing to watch in the next 12 months I think mail-order resellers should definitely worry about retail over the next year. At the moment, the price differential is closing and although mail order used to be cheaper, it isn't any more.

In addition, retail is moving into areas that we've been traditionally good at, such as scanners and inkjet printers.

And what should retail be scared of? Mail order is becoming more aggressive towards retail, by setting up multiple sites. What we really need is mail-order superstores which appeal to the more technically aware customer.

Have you got any other predictions? On the products side, watch for technology such as digital cameras, projectors and notebooks, because the developments are excellent but, at the moment, the products themselves are too expensive.

I think the prices should come down sufficiently within the coming year to make them more popular with customers.

Issue that would make life easier from a business point of view I know that people aren't going to agree with me, but I'm not a great believer in higher margins. In fact, I wouldn't mind if margins were lower. Although it may make business harder in some respects, the higher the margins, the more competition is brought in.

What is your opinion on distributors reporting record trade figures this summer (PC Dealer, 26 August)? I would have to say that everybody I've spoken to in my area has had an excellent July, although I can't comment on the larger systems builders.

But I believe anyone who has not experienced outstanding sales this summer should be extremely worried.

Why do you think businesses have been so busy? Most probably the bad weather. If it's hot, customers have better things to think about and do with their time than buy computer products.

What is your opinion on resellers claiming that Compaq was targeting blue chip clients directly (PC Dealer, 2 September)? Compaq is such a small part of our portfolio that I really couldn't care less.

But what about other vendors? Don't you think they might follow suit?

No, I don't think so. Manufacturers have a struggle running their own businesses, never mind an extra sales operation.

If you ask me, it would be a recipe for disaster - we are the sales and marketing departments of vendors. It would be crazy of manufacturers to try to do this aspect of business themselves.

Given that resellers work on such low margins anyway, it would be commercial suicide for the likes of Compaq to try to take over our jobs as well.