We have accounts with each of the major technology distributors in the United States including Ingram Micro, Synnex, D&H, and Tech Data. This allows us to purchase hardware including phones, laptops, servers, and desktops at wholesale prices that have never been available to the general public.
Since 2010 we have leveraged the buying power of our distribution partnerships to achieve extraordinary value for our customers, including many products not available through retail channels. In 2018 we flipped the script.
While our competitors attempted to realize margins of 15-30% on hardware sales, literally describing themselves as VARs – resellers who add value with some services, we transitioned procurement itself into a service, because we are service providers who happen to use technology.
In plain english, our managed services customers pay a 4% procurement fee on top of the actual wholesale cost of whatever hardware they want to buy. We handle all the logistics to get the product to their location, and they rack up a lot of airline miles with their credit cards. The procurement fee covers our administrative and transactional costs while delivering extremely favorable pricing to our customers, and allows them to get the benefits of the distribution relationships we spent years building, as well as the purchasing power of our entire customer base.