SED Becomes Microsoft Master Distributor
As an associate distributor, SED wasn't eligible for rebates and other incentives to offer Microsoft Gold partners, which kept the distributor from being competitive in pricing to its bigger Microsoft reseller partners. However, as a master distributor, SED will have access to all rebates and incentives, including training, sales and marketing support, for partners of all levels.
"It was kind of a tough situation because we had Gold customers who wanted to buy from us and buy all of their components from us, but there were times when it was not necessarily in their best interest to buy from SED," Kalman said. "Now, going forward, that won't happen anymore, and our programs and incentives are in line with Microsoft's channel programs the same as they are for all of the distributors."
Microsoft didn't hand SED master distributor status. The company had to earn it by meeting sales goals for specific products and reaching a target number of non-Gold partner customers. Microsoft still looks to SED to service the smaller, non-Gold VAR that likely does less than $1 million in business annually, according to Kalman.
Murlin Computer is one such customer. The Sedalia, Mo.-based VAR expects to do between $500,000 and $700,000 in business this year, and it's not a Microsoft Gold partner and has been buying from SED for 17 years. Owner Murlin Lange said SED's move to master distributor will hopefully help his business with greater access to Microsoft services.
"Needless to say, that's going to put them higher up on the echelon if we ever needed help. It's hard for a small company [like mine] to get that," Lange said. "SED has done that for me for years, and I appreciate their assistance when we need it."
For Jean Tang, vice president at the Baton Rouge, La.-based branch of Bits Technical, Houston, SED's move to master distributor will make it a viable option for Microsoft product sourcing, since Bits is a Gold partner. Bits also purchases from Synnex and D&H Distributing, and SED's southern location makes it an attractive prospect for quick product turnaround, according to Tang.
"I'm very happy they've become a Microsoft master distributor. I've been with them so long. I'm very lucky. I have two sales reps, and they're both very nice guys. They are very quick," Tang said. "I feel [happier] having more vendors to choose from who can support me."
And the ability to keep both sets of customers happy is a boon to SED, Kalman noted.
"Our mission in life is to service specifically that smaller customer base. That continues to be our focus," he said. "But now we can also take care of the larger customers consistently. A lot of larger customers also enjoy buying from us and sourcing their products from SED."