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Resellers snap up ‘crazy’ LAN 1 offer

Resellers snap up ‘crazy’ LAN 1 offer

MISTAKES can pay off if the recent LAN 1 sales promotion is anything to go on.

An administrative error led to an unexpectedly successful sales promotion for network distributor LAN 1 when it sold a month’s worth of D-Link routers in a single day last Thursday.

While Hewlett-Packard resellers were frantically ringing up customers to sell lower priced hardware during the vendor’s Crazy Day Sale, LAN 1’s channel was hard at work helping it clear its shelves of overstocked routers.

An error led to LAN 1 doubling up on the month’s order for D-Link DSL-504 ADSL routers, which it decided to clear by making the units available at a promotional price.

Emails were sent to resellers and end-users stating the distributor was keen to “quit two months worth of stock in one month and offering an $8 discount on the items with a special retail price of $214”.

The offer was meant to run until normal stock levels were reached and was valid until the end of April, but the overstocked routers were sold out by the next morning, leaving general manager Liam Venter wondering how the unprecedented success of the offer could be repeated.

“We must just have been offering the units at a critical price, but I think people responded because they realised it was a genuine offer and we were asking them to help us solve a problem,” he says.

Venter will not reveal how many units were sold on the day, but says demand outstripped supply, with most units going to resellers that had rounded up buyers in a very short time frame, while some stocked up on units.

The company made a very small margin on the routers according to Venter, and is unlikely to deliberately repeat the exercise.

“Our administration staff was rushed off their feet and some are not talking to me now.”

Venter had no intention to start the promotion to coincide with HP’s Crazy Day: “If I had known it was the same day, I would probably have chosen another day.”


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