3 Questions: NextDay PC Ramin Movahedi

Published for the Week Of December 6, 2004

CRN:

How does NextDayPC’s ResellersOnly.com site help solution providers source products?

MOVAHEDI: We consolidate a series of steps and services [and] eliminate a lot of time-consuming steps of product fulfillment—placing an order, finding a product, creating an electronic proposal, creating an electronic account for adjusted pricing. … We streamline the process. We get pricing from [many] distributors. Our challenge to them is to be reasonable with price and give VARs the services and respect they deserve, especially now that they’re under a larger umbrella.

CRN: How much of a price savings can solution providers realize?

MOVAHEDI: Because of our sheer volume, we’re at a platinum level with most distributors. Our company is very conscious to not create another tier to the distribution structure. When we get better pricing, we immediately pass it on to our VARs. … It’s usually a 1 [percent] to 5 percent difference, depending on the type of product and the distributor, and it’s 7 [percent] or 8 percent cheaper than with CDW or similar companies.

CRN: Are there any other ways in which you help solution providers?

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MOVAHEDI: Financial assistance is a big complaint of many small-business VARs. The third-party financial companies hardly have a desire for leasing capability to smaller guys. You have to qualify for a wonderful credit rating with an established history, and unfortunately some don’t qualify. But as members of our group, once the group qualifies, the financial organizations view them as part of the group and extend terms to them.