IT Re-Seller?

[Davie_GLA]

Hello all,

I'm just after a little bit of advice really, based around starting an IT re-seller company. I know the market is saturated with them, and I suppose the biggest question is to ask if there is any advantage to becoming one?

I have no presence in this market at all, but am aware of some decent profit that could be made from shifting software, particularly web based purchases whereby the price you pay is for a license key entitling you to however many users you need etc.

Anyway, just a thought at the moment, and could be a throw away one at that.

Thanks,

David

[HRG]

IMO you'd make more doing a paper round these days unless you're shifting some serious volume.

[Davie_GLA]

That's what I thought, and no-one is going to buy from a new, previously unheard of reseller at the kind of volumes you would need to shift to make any decent profit?

[HRG]

That's my take on it... For us software is a necessary evil, nothing more.

[Graham]

on most hardware your lucky to make 3% these days ( thats if its not cheaper on the web than you can get from the disty!!!)

[Messer]

i'm an it reseller and have never made 3 percent ever. Our year on year percent profit for the last 5 years has never been less then 27 percent average. The trick is not to sell commodity products and specialise in a certain asda and the rewards can be big.

[Davie_GLA]

I take it you mean area rather than asda.

What's your company?

[Ash 996 GT2]

Messer said:

i'm an it reseller and have never made 3 percent ever. Our year on year percent profit for the last 5 years has never been less then 27 percent average. The trick is not to sell commodity products and specialise in a certain asda and the rewards can be big.

Bingo!

Fully agree.

[Messer]

Sorry, yeah I meant area - I was typing on a mobile with predictive text.

Dont really want to say the company name to be honest, but we do have a small area of the business that focus on commodity such as AV as this helps to build a customer base and a database, our core business is network analysis, bandwidth management and IDS/IPS.

You can actually start up by using a company like us who will happily supply you products at a 'reseller' rate and often even give you support. In the niche markets such as us though, you will struggle to succeed alone if your aiming for the big markets. You really need to have a technical team to back up your products.

What type of products do you want to sell?