Ingram Micro has introduced new freight pricing marking a major change in the distributor’s delivery policy.
Tony Butler, IM managing director, says the change reflects the fact that freight has become a huge business cost to everyone.
“Historically we’ve done a great deal of averaging which means some of our customers have been subsidising others. People just won’t accept that anymore,” he says.
Under the new pricing — which applies on bulk orders and large items over 25kg — resellers in Hamilton now pay 50% less per cubic metre while Napier and Wellington also benefit.
However, prices for resellers in the South Island, Dunedin in particular, have increased.
Butler says his company went out to tender and negotiated extremely hard to get the rates as low as possible.
“For the vast majority it results in a significant decrease but I’m aware some will have to pay more. That certainly wasn’t our intention.”
Butler says Ingram has always prided itself on giving the best service to small dealers, who represent around 55% of the company’s business, and has no plans for that to change.
“That has allowed some of our competitors to give an improved service to top-end dealers. Ingram has a large base of loyal resellers that sell into the small to medium enterprise sector and it won’t back away from them.”
He says resellers must realise distribution is slowly moving to a user-pays scenario.
“This will apply more and more to freight over the next few years — I think we’ll see it becoming a lot more granular.”