Shares in computer distributor Renaissance Corporation have tumbled after the company announced today the immediate loss of exclusivity of distribution rights for Apple products including the hugely popular iPod.
Renaissance shares slumped 12 cents to 58c on the news.
The changes to Apple’s New Zealand supply agreements had been foreshadowed last year, but were spelt out by Renaissance today – including likely falls in sales and profits from distribution of Apple goods.
10 years after last dealing with them in any major form, my hatred still burns strong. nuke ’em from orbit! i’m shocked they lasted this long.
to elaborate, company i worked for had a huge number of schools pretty much locked in to buying from us in the late 90’s. at the time, ren were the only place in town to get compaq gear at academic pricing.
as you’d expect, they pushed HARD to get in. massive pre-sales support, sending reps out to help with presenting to principals/board, loaner/demo equipment, the lot.
yet the problem we struck was as a small business (3 guys plus admin lady), was that our school rollouts were quite intensive. huge amounts of software to install and config, big physical rollouts, and then professional development for the staff. now of course, we couldn’t invoice until it was ALL done, pushing us out past normal 30 day credit terms. as a small business, we simply didn’t have the kind of cashflow to carry a 100-150k worth of invoice.
everyone else, including places like tech pac/ingram were more than happy to bend over BACKWARDS, 60, 90, 120 days, whatever you like. they realised that all our clients (and not just us, other companies in our market) were getting in at ground level in an area where clients were going from NO IT system to a full on ground up solution. they WANTED their brands in there from the start. hell, we had canon throw down 30 bubblejets once for one single client, just because they wanted them to like them and come back when their photocopier lease rolled over.
now we don’t expect our business to be propped up by another, but we (and others) were developing a client purchasing and skill base from NOTHING. most of my old clients (including my current school) started buying anywhere from 6 to 50 PC’s, and are now rolling over anywhere from 70 to 250 on 3 yearly cycles. sure, that may be a drop in the bucket compared to corporate accounts…..but hey, whatever.
see, yes, i am bitter actually! how overjoyed we were the day news came down that tech pac would now be doing compaq academic. we took great pleasure in ringing our account manager, canceling the order for 30x 2.5k desktops and 30 x 3.5k laptops we had just faxed through about 2 hours prior and telling them to fuck off.
even tho i’m not in that game anymore, i feel the same joy today! :>