Australian value-added distributor WhiteGold is to delay plans to open a New Zealand office due to cost. However, managing director Dominic Whitehand says the company has not “dumped” its New Zealand plans in exchange for a Perth office, as reported in CRN Australia recently.
“We found there was a significant opportunity for us [to open] in Western Australia because one of our vendors cut a distributor. In terms of the plan for New Zealand, the biggest consideration for us in opening an office was to hold stock locally and the cost involved is significantly higher than opening a Perth office.”
WhiteGold specialises in unified communications, security, networking and storage. Its vendors include Shoretel, Watchguard, Fortinet and Barracuda.
Whitehand says his company could capitalise as New Zealand recovers from the economic crisis.
“The upside is that New Zealand may well come out of the downturn quicker, which would give us the ideal opportunity to come over.
“We want to enter the New Zealand market because we have a number of relationships with vendors we want to leverage.”
He says the company would look at opening an office in Auckland towards the end of 2009.
“We haven’t really built up a reseller base, but we do have a couple of products we can sell into the market.”
Whitehand says the company has a channel programme and tries to support its resellers with closing deals.
“We have a standard reseller agreement that would be easily transportable to New Zealand. We’re known [in Australia] for the value add service we provide. We’ll close a business deal 60 to 70 percent before we pass it on to a reseller, which makes it easier for them to get the sale.”