The abuse of vendor channel market programs -- including partner rebates and other incentives -- plays a bigger role in the sale of gray market IT gear than previously thought, according to an industry group made up of IT vendors.
“We’re always looking for root causes, and we found that channel incentive program abuse had a bigger impact than we thought,” said AGMA spokesman Scott Olsen. Improving partner programs, but tightening up reporting requirements, could help ease the problem.
Some VARs agreed that fine-tuning partner programs could bolster VAR-vendor relationships and keep partners on the straight and narrow.
“It might help. It’s just another form of enticement, and it does help build a better line of communication,” said David Dadian, CEO at PowerSolution.com. “I can understand why vendors are trying to tighten partner programs.”