The squeeze on channel margins is being driven by unrealistic end-user demand, according to research from Plimsoll Publishing.
The research found that spending reductions and business costs are rising, and that 57 per cent of computer equipment distributors and dealers have witnessed a fall in margins, with 21 per cent selling at a loss and 11 per cent losing money for a second year.
David Pattison, senior analyst at Plimsoll Publishing, said: “Margins and sales are an issue and profitability is not as easy as before.
“Some companies have suffered low profitability for years. As customers get used to paying less they are the ones who benefit.”
Pattison said resellers offering bundles and extra software packages are stretching their resources to land a deal, resulting in excessive end-user demands and reduced profit.
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