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Charges increase across the channel

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Ingram Micro will join the ranks of distributors raising prices, blaming restructuring and channel service improvement costs for the move. Investments are being made in ecommerce, sales training and white-box assembly lines. Ingram said it needed to fund these measures, but believed resellers would benefit in the long run, according to US channel mag Computer Reseller News. Phil Ellet, Ingram executive VP and president of North America, said: "We have to pay for those investments, and we will price accordingly. But the end result is the reseller enjoys more cost-effective solutions to their business issues." Ellet would not give exact details on the price hikes, but added: "Will there be price increases on certain products? Yes, over time. But overall, Ingram will provide the best value in the business." The moves follow Ingram’s announcement in March that it would slash its workforce by 1,400. Net sales for the 1999 first quarter were also expected to fall short of analyst expectations, dropping around $6.5 billion. This week, Computer 2000 also admitted it had increased delivery prices across the board by an average nine per cent. The distributor said the measures were forced on it by its freight company TNT, according to this week’s PC Dealer magazine. Last month US distributor Pinacor also said it would raise prices. ®

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