Lexmark to introduce reseller- recommended pricing

Lexmark will soon introduce a reseller-recommended pricing for its four tiers

of channel network. Prices and margins for distributors, resellers, dealers and

retailers, will be made available to each of the individual tier. This,

according to PG Kamath, the newly-appointed Country GM, will create transparency

and will help the company monitor price stability.

Elucidates Kamath, "Just having an MRP on the box is not enough. We

realize that multiple levels in distribution put constraints on channel

profitability, and this leads to undercutting. We will inform our channel

partners on how to be flexible with the prices without making losses."

Lexmark is also launching its authorization program for consumables and

printer partners. Dealers can register themselves on lexmark.com and once the

process of certification is over, their details will be posted on the site and

made available to the toll-free helpdesk for providing business leads.

Lexmark will also bring a second national distributor on board by the end of

this year. Though no names were revealed, the likely contenders for the slot are

Redington and Tech Pacific.

Lexmark has also re-designed the packaging of its consumables for the Indian

market in an effort to curb counterfeit business. Says Frances Duggan, Ex

Country GM, "By doing this we wanted to safeguard customers who were

unknowingly buying counterfeit consumables." Lexmark sells its conusmables

at 15 percent lower than international prices to gain larger market share.

Lexmark currently has a channel base of 450 of which 60 are dedicated Lexmark

partners. Kamath hopes to increase this number to 380 by the end of this

calendar year.

VINITA BHATIA