Ingram, ASCII Ink Distribution Deal

The Santa Ana, Calif.-based distributor had let its agreement with ASCII run out at the end of 2004 because it wanted ASCII members to choose a pricing structure in its Choice Advantage program instead of negotiating volume discounts with organizations such as ASCII.

Under the new deal, Ingram and ASCII will work with vendors to gain product rebates, said Alan Weinberger, chairman and CEO of ASCII.

"In addition, Ingram Micro will have dedicated personnel to handle ASCII questions," he said.

ASCII members purchased $850 million through distribution last year, including about $300 million from Ingram Micro, according to ASCII. Through the years, the Bethesda, Md.-based group has secured volume purchase agreements with other distributors including Synnex, D&H Distributing, Azerty, ScanSource and SED. This year, ASCII has not had agreements with Ingram Micro and Tech Data, the two largest broadline distributors.

"There's no downside in going to war with someone if their 80 percent is the same as someone else's 100 percent. Ingram Micro is adding value to ASCII. Did we get everything we wanted? No. But we negotiated in good faith. They did too," Weinberger said.

"We were looking for an enhanced relationship, with ways we can help their customers be more successful through key relationships with vendors and enabling them to deliver solutions to their end users," said Bob Stegner, vice president of channel development at Ingram Micro. "They reach a a segment of the market that is important to Ingram Micro."

ASCII is not currently in discussions with Tech Data, Weinberger said.

Jay Tipton, president of Technology Specialists, a Fort Wayne, Ind.-based solution provider, said the return of Ingram Micro was important to ASCII, but he does not plan to increase his purchases through the Santa Ana, Calif.-based distributor.

"It will benefit the group, but there are distributors doing a lot more for me than Ingram does. I'm glad to see something accomplished, but they're not on my radar," Tipton said.

Ingram Micro's recent decision to outsource some of its backoffice functions to India and the Philippines had no impact on ASCII negotiations, Weinberger said.