My day job is a computer consultant. I provide help, advice and goods to people whose lives are so busy that they don't have the time to do the research that I can do for them. One of the services I provide is sourcing computer equipment for them. Basically: they tell me what they want to do with a computer, outline all their issues they're having with their existing solution and I solve all those problems.
Mostly, I end up building computers specifically geared for their needs. You know: buy all the separate bits and put them together.
When I first set myself up doing this, I registered as a reseller with a supplier. In order to get an account with them I had to practically sign my life away in blood. I had to provide company registration documents and sign a lengthy legal agreement which said that I was buying these items specifically to resell and not for my own personal use. The upshot of this was that I was supposed to be able to buy this equipment a wholesale prices.
The wholesale prices that I'm getting just simply don't allow me to make any money at all. If I compare the prices I can buy individual items for with items on the Internet, my supplier might be one or two pounds cheaper. But, if you add their £14.95 standard charge on the top, when some of these Internet places will ship for free, suddenly their prices aren't at all attractive. Additionally, I don't have to sign any legal agreements with these people, nor do I have to provide them with any proof of my company. In addition, these people have a consumer-inspired returns policy which allows me to return something if I a) don't like it or b) ordered the wrong one by mistake - neither of which I can do with my supplier.
The only advantage that I can see for working through my current supplier is that I can usually get everything from the one place and this didn't use to be the case. But the competition have stepped up their game and I'm now finding that 9 times out of 10, I can get everything from one of the competition.
For example, I'm looking for a really spiffing case to replace the case of my computer which I've just sold to a customer. I've bought three cases from the Antec Performance One series for customers and I really like them. They've brought out a Special Edition (pictured above) with shiny polished case. Technically, under my agreement with my supplier, I'm not allowed to purchase this for my own use. However, I've just found it on another site for .30p more than my supplier is selling it, but with free P&P, making it £14.65 cheaper. I've ordered it and it should arrive on Tuesday - providing I'm around to receive it.
If wholesalers like mine aren't prepared to go argue with the manufacturers about the prices generally available to the Internet stores, I could be sent out of business. My only saving grace is that the majority of my customers don't come to me for cheap prices, they come for good quality service - which they get, every time.
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