Get what you pay for
You were quite right stating in your editorial (June 28) that resellers do not learn to replace their supplier with more "expensive" yet properly run wholesalers and distributors.
We at Westan know, and we are not even more "expensive". Our company runs on honest set-price structures, but because our staff do not bow to pressure to deviate from the structures, some customers turn away from us and go for more "flexible" competitors, sometimes for as little as $1 difference.
I believe that "bargain chasing" resellers are as much to blame as anyone else for the failures of organisations like Edge.
Johnson Wang was offering them what they wanted, and for a fairly long period of time, did extremely well because of that.
Edge offered prices that we, as distributors, could not comprehend. It is not surprising that such a company should fail, and by the same token, we expect more to follow, unless they change their trading practices. Business is a two-way affair - if only one party wins, it cannot last.
17 April - Pioneer Computers Australia relocated to Unit 2, 37 O'Riordan Street, Alexandria, right opposite Edge headquarters, the day of the tech stock crash.
8 June - Birthday of Pioneer's director - Edge goes into receivership.
First it was lost . . .
McPherson Computers is a reseller that has had a most harrowing experience with a KTX 880 notebook over the past three years. In brief, this notebook has been returned (at our cost both ways) to repair major faults including hard disk and screen failures.
It was most recently returned to Sydney on April 2nd as the screen had again failed. After faxing and phoning we were told on the phone (about a week ago) that the notebook had been shipped backed to us on the previous Friday. After 10 days (approximately), it still has not arrived.
In our view, the statement that it had been shipped was not the truth. What has become of the notebook? A fax was sent to Edge, but no reply has been received. This notebook originally cost $3000 (approximately) and about the same again in our time and freight costs. The notebook is not the property of Edge or any receiver - it is the property of our customer.
Is your publication interested in pursuing this matter for us? Can you give us the address of the receiver? Can you help us recover our customer's property?
. . . then it was found
Mark, good news! The receiver did find my customer's notebook and it has been safely returned to me (at my expense but, hey, who cares?).
My grateful thanks to Frank in the receiver's office. What a relief! My thanks to you also. Without your help it wouldn't have happened.
McPherson Computers, Gold Coast