Viewsonic pays distributors for hitting volume targets
LCD display and projector vendor modifies local channel rebate policy
Display vendor Viewsonic has started paying distributors for meeting quarterly targets and increased the rebate amounts on offer to resellers as part of new measures to improve partner performance.
The move to give distributors added incentive to drive sales-in behaviour has been introduced by the company's regional sales manager Junaid Gul, who joined the company at the end of last year.
According to Gul, distributors have typically survived on a combination of transactional margins and a 1% marketing development fund (MDF) payment until now. "This is the first time they are getting paid on targets and it is an incentive for them to do more," he told Channel Middle East.
Although he didn't break out target thresholds, he said distributors would now receive a fixed percentage on the sales they make for hitting a pre-agreed target and a further amount if they exceeded it.
Viewsonic works with distributors such as Al Yousuf, Trigon and Metra in the Middle East, but is looking to expand its line-up further in a bid to push sales of LCD monitors, projectors and digital signage products.
In Egypt it has just appointed Better Business as a local distributor and it is currently in negotiations with Asbis, BDL and Redington for the Saudi market.
Gul, who previously worked as regional services channel manager at Lenovo, admits the company also has plenty of work to do to improve its level of engagement with the reseller channel, but he remains confident that recent adjustments to its Finch Club partner programme will have an impact.
He says the rebate aspect of the programme "was not lucrative enough" for resellers initially, but Viewsonic has now doubled the top target bracket to 2% of sales.
"The Finch Club has always been there but the percentages were very small before. We have increased them because we want to make sure that resellers are loyal to us during this tough climate," he said.
Viewsonic has around 60 Middle East dealers signed up to the programme from a partner data base of around 300.
Gul's bid to drive greater channel engagement is being assisted by two new channel managers. Rizwan Ulhaq recently joined the company from CAD Emirates as corporate sales manager, while Lalit Chainani is now overseeing reseller accounts after moving across from Bluebell Computers.