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VARs reign in LAN equipment procurement

A recent survey performed by In-Stat/MDR has found that VARs are the most popular channel for LAN equipment procur...


October 8, 2002  


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A recent survey performed by In-Stat/MDR has found that VARs are the most popular channel for LAN equipment procurement amongst surveyed large and small businesses alike.

The high-tech market research firm’s survey of those with decision-making and/or purchasing authority for network equipment and services at their companies and organizations revealed that, even though larger companies are more likely to buy directly from a manufacturer and smaller companies are more likely to buy through retail, VARs are definitely the preferred way to go, with 56.4 per cent of survey respondents indicating that they purchase their LAN equipment through that channel.

When purchasing through VARs, “after-sale service and support” and “quality products” were the two most important criteria amongst survey respondents. Conversely, when purchasing through retail outlets, “low price” was overwhelmingly the selection criterion.

According to Sam Lucero, an analyst with In-Stat/MDR, “These results simply reflect the nature of the types of products that are sold in each of the channels, and manufacturers need to assure themselves that their distribution strategy is aligned with their product strategy.”