C2000 pushes price hike onto customers

Exclusive Distributor seeks to introduce 48-hour delivery service after TNT raises costs.

Computer 2000 has been forced to put up delivery charges to customerser TNT raises costs. after it was unable to absorb the price increase imposed by its freight company.

Speaking exclusively to PC Dealer, Graeme Watt, managing director of Computer 2000, admitted the distributor had increased its prices across the board on average by up to nine per cent. Its highest single increase was for standard next-day delivery which jumped 37 per cent from pounds 10.95 to pounds 14.95. This is the first time in six years that Computer 2000 has put up its charges.

Watt said: 'We felt that we could not absorb the costs passed on from our freight company, TNT. We have done so for four years and we just can't afford to do it anymore.'

He pointed out that Computer 2000 was carrying out more deliveries for its customers, which included more drop ships direct to users - on behalf of resellers - that involved smaller quantities. 'We are making more deliveries, but still earn the same amount of money,' said Watt.

He added the distributor was testing the viability of having a 48-hour delivery option, in addition to its existing service, because while the industry had accepted that next-day delivery was the norm, Computer 2000 wanted to change this.

Watt said the 48-hour delivery charge would be cheaper than its previous standard next-day charge of pounds 10.95.

One reseller said: 'The carriage of goods is a cutthroat business these days and I would have thought that carriers would have been falling over themselves to obtain Computer 2000's account.'

The reseller questioned why it was only Computer 2000 that had increased its charges when other distributors also used TNT. 'In future we will consider whether we buy items from Computer 2000 when they can be sourced from other distributors that charge less.'

STANDARD NEXT-DAY DELIVERY WITHIN UK

Datrontech: pounds 12.50 - there has been no recent change in price and no plans to change in the near future.

CHS Electronics: pounds 14.50 - the price changed about three weeks ago from betweenpounds 11 and pounds 12. This was due to various changes including an increase in the return rate and the budget fuel tax increase.

Ideal Hardware: pounds 12.50 - there has been no recent change in price and no plans to change in the near future.

Azlan: pounds 12 - there has been no recent change in price and no plans to change in the near future.

ICL Multivendor Computing: pounds 10 - there has been no recent change in price and no plans to change in the near future.

Ilion: pounds 11.95 - there has been no recent change in price and no plans to change in the near future.

Ingram Micro: pounds 10.50 - there has been no recent change in price but the vendor admitted that prices were under review with the changes expected in the next few weeks.