Feeds

The channel is revolting – against CTS prices

Resellers & disties complain they can't afford to make an exhibition of themselves

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

The channel peasants are revolting and threatening to boycott next year's Computer Trade Show because of price hikes. Around 20 top distributors and resellers have grouped together to complain about floor space costs, which they claim have shot up by around 50 per cent. One square metre of floor at CTS 2000 will cost £375 at the full rate, according to organisers Imark Communications. A leaked email to the CTS organisers shows that companies spent between £20,000 and £70,000 each on this year's two-day event in Birmingham. However, it said the increased floor space costs meant that many companies would not be able to afford to attend next year's show. "This has prompted investigation into the cost of hosting the show and it has been ascertained that the true cost of stand space is disproportionately lower than the prices we have been quoted from you. "This has prompted us to group together and ask for your help in continuing our presence at the CTS trade show. "The prices we need for stand space need to be lower than last year due to the hard times we all face currently." The email warned that the 17 companies listed would be unable to support the show unless a lower price could be arranged. The companies included Hugh Symons, Flashpoint, Karma, Computer 2000 and Rock Computers. Alan Stanley, general manager of Dane-Elec, told The Register that his company would not attend next year's show if prices were not cut. "It's about the only trade show worth going to in the UK. But it won't stay that way if they price it out of the market," he said. Les Billing, MD of Microtronica – another company listed in the email – said: "There simply isn't enough margin in the industry to cope with these price rises. The organisers are trying to capitalise on the situation." Others thought it would push smaller players out of the event. Jon Atherton, general manager of Enta Technologies, commented: "There will be some people who won't be able to afford to attend. Shows like this are only healthy for the industry if lots of people with a variety of products and services attend." The group's Wat Tyler, Realtime Distribution's sales and marketing director Mark Reed, confirmed: "As a group of prominent dealers and distributors, we are in discussion with Imark over the forthcoming CTS." He declined to offer more details. David Barr, Imark sales manager for CTS, said he had scheduled a meeting for Monday, when the channel would be asked to raise their concerns. "We want to take the show forward with all the channel next year," said Barr. He refused to say whether the company would be willing to cut prices, but added: "The show is going forward. If there are issues of concern we'd like to address them. But the show cannot be perfect for everybody." ® Register fact: In the real peasants' revolt of 1381, Wat Tyler led thousands of poll tax protesters to the gates of the city of London. King Richard II invited Tyler into the city on the pretext of negotiating concessions and then stabbed him in the heart.

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.