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New Research from InfoTrends/CAP Ventures Reveals How Equipment Resellers Can Increase Margins and Profits

Monday, December 19, 2005

Press release from the issuing company

(Luton, U.K.) December 15, 2005 -- InfoTrends/CAP Ventures, in collaboration with Channel Info magazine and A&V Printing magazine, conducted 50 Web-based, in-depth interviews with leading office equipment resellers in the U.K. and Italy. The survey set out to gain office equipment resellers’ perspective and outlook on equipment, supplies, services, and software. Results of the research can be found in a new report entitled Channel Trends Study: 2005. The study provides equipment resellers with the information necessary to increase margins and profits. Specifically, the document provides readers with an understanding of the importance of each product category (hardware, software, services, and supplies) in contributing to revenue and profit, insight into their business outlook as well the types and needs of end-users, channel incentives for office equipment resellers, gross margin trends, investment and business trends, and requirements for new functionality. Key insights from the qualitative study include: Average gross margins are highest for maintenance and repair services and professional services. Survey respondents in Italy attributed a higher proportion of their service revenues (29%) to service than those in the U.K. Professional services represented the most popular vertical market for workgroup sales, followed by manufacturing and government. In the U.K., the financial sector is the largest market, accounting for 60% of workgroup sales. Whilst half of Italian respondents report selling document management software, the same was true for only 35% of U.K.respondents. Although a relatively low number of resellers currently sell document management software, 31% of respondents are considering focussing on this area in the next two years. “Ultimately, the big challenge facing resellers will be to gain a better understanding of how to sell equipment as part of a professional services engagement, the document management concept, and learn how to promote its value to their customers,” commented Catherine Charlery, a Group Director at InfoTrends/CAP Ventures. “Many resellers appear to be having difficulty embracing the office document process concept and promoting its value, and that of document management, to their customers.” The research report is available immediately to clients of InfoTrends/CAP Ventures’ Digital Peripherals Solutions Consulting Service Europe. For more information about the report or to make a purchase, visit our online store or contact Alison Hipp at (781) 616-2100 ext. 126 or alison_hipp@capv.com.

 

 

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