ASCII Group to End Partnership With Tech Data

The Bethesda-based organization of 2,200 SMB solution providers, which had a volume purchasing agreement with Tech Data and $200 million in aggregate sales through the distributor in 2001, said it was acting on its members wishes.

"We have various communication vehicles and [Tech Data did not want to participate with us," said Alan Weinberger, chairman and CEO of ASCII. "We had an advisory board meeting and we talked to a lot of members and they wanted to support Ingram Micro, Synnex [Information Technologies and other distributors going forward."

Tech Data executives could not be reached for comment.

Collectively, ASCII members purchased more than $850 million from preferred distributors in 2001, the group said. This year, sales through Tech Data fell by more than 50 percent, and nearly 85 percent of ASCII members were purchasing less in 2002 than last year, according to the group.

ASCII members' sales through Ingram Micro have remained stable, and revenue through other distributors has increased, according to Weinberger.

Weinberger was recently critical of Ingram Micro's decision to cut the credit lines of several resellers, including many ASCII Group members, but he maintains that the group still has a strong relationship with Ingram Micro.

"There's a lot of pressure on distributors. Ingram Micro has stepped up more, despite some of the bad press they've gotten," Weinberger said.

The end of the Tech Data relationship was not due to money or loss of special pricing or discounts to ASCII Group members, said Weinberger.

"Nothing was done with any other intent," Weinberger said. "We have 2,200 dealers, and they wanted this decision."

He said that now there is more value in the reseller-to-manufacturer relationship than there is in the distributor-to-manufacturer relationship. "The value is shifting," he said.