VARs missing untapped margins
Offering a recycling service could yield extra revenue, specialist claims
UK VARs are missing out on untapped margins in the refurbishment and asset disposal markets, refurbishment specialist World Data Products (WDP) has claimed.
US-based WDP has been running for over 18 years but has recently opened an office in the UK. It is now actively seeking UK VARs to help it expand.
Will Richardson, European sales manager for WDP, told CRN: " We've been doing business for some time in the UK but the refurbishment market is now growing in the UK so we made the strategic decision to set up a base in the UK. We specialise in high-end systems such as IBM, Sun and Cisco – we don’t play in the desktop or notebook space."
Richardson believes awareness of the refurb market is very low in the UK but thinks the impending Waste Electrical and Electronic Equipment (WEEE) directive will raise its profile.
"When WEEE come in, resellers will have the ability to say to their customers that there is a legal requirement for correct disposal of old kit and for a cost per box we can help you comply. The more enterprising VARS will realise the opportunities surrounding WEEE and create opportunities for themselves."
However, Rod Haddrell, managing director of refurbishment firm Tin Direct, does not believe WEEE will provide a revenue opportunity for resellers.
"I don't think it is a huge opportunity for resellers. They do need to make sure they're not falling foul of WEEE, but resellers aren’t in business to deal with end-of-life services. It's like Tin Direct trying to suddenly become a reseller."
"I also wouldn’t agree with WDP that UK VARs are missing out on untapped margins. The refurbishment market has been going for two or three decades and is something most VARs are aware of," he added.
Nick King, chief executive of VAR Apex, said: "I disagree with WDP – the refurbishment market has not been slow to take-off in the UK, and I believe there is a revenue opportunity for resellers surrounding WEEE."