Hayes partners attack Logitek appointment

Hayes Microcomputers has aroused the fury of its distributors after it appointed a seventh partner, provoking claims of termination and plummeting margin levels.

The modem vendor signed Logitek after taking on DMST three months earlier, a distributor that was inherited following Hayes' $339 million merger with Access Beyond in July last year.

But Steve Lockie, general manager of the networking division at Computer 2000, said: 'For a vendor of this size, seven distributors seems a lot.'

He added: 'While Hayes might be trying to address a different market with this distributor, the other announcement is that maybe there is going to be a termination. There is one too many.'

Lynette Summerfield, sales and marketing director at Ilion, said: 'It must be a desperate move. Logitek is known to be aggressive on pricing, which results in reduced market share and margins.'

Peter Rigby, director of marketing and communications at CHS Electronics, agreed: 'Logitek is a good box shifter, but it will be competing on cost, not support. We'll have to wait and see what happens to margins.'

Nigel Croisdale, European director at Hayes, said there would be no further appointments in the near future but conceded: 'About half a dozen distributors will be the right number.'

Logitek was unavailable for comment.