A recent IDC survey has shed some light on just how bad the lack of credit availability has affected VAR’s.
It’s an unfortunate consequence of the spoiled economy. One that has affected every level of the channel – from manufacturer to the end user.
Ironically enough the middleman is actually being squeezed at both ends.
As VAR’s struggle to capitalize themselves, they’ve also got to fight competitors and manage ROI requirements of customers that force margins ever downward.
No capital. Thin margins.
Sounds like a disaster waiting to happen.
Two years ago if you asked me if there was money in being a regular ‘ole value added reseller in some city I would’ve said yes. “It’s where the cash’s at.”
Today, I don’t think I’d say the same thing.
It’s not all doom and gloom. But thanks to pricing “strategies”, over distribution and now the lack of access to capital, there’s no cash for the small guy in VoIP. Credit or margin.
Begging the question, where is the next cash grab at in VoIP?