Let Mohawk Network Solutions Act As A Firewall To The Open Market
Utilize Mohawk Network Solutions’ thirty years of experience to mitigate risk and maximize your company’s monthly, quarterly, and annual profits. At Mohawk Network Solutions, we strike the right balance between safe and ethical sourcing methods through our trusted partners and cost effective savings that make choosing us the smart choice for strategic savings.
There are three distinct distribution models that fall under the term “open market.” These distribution models include open market trading, parallel distribution, and “grey market.”
Open Market Trading
The true open market consists of overstocked goods that have been reintroduced into the marketplace. By way of being over-purchased, mis-purchased, or merely purchased as redundancy and never used – these products must re-enter the market place as commoditized items because there is no channel for their return. Thus the only option for end-users who have surplus goods to recoup their losses becomes offloading them at deep discounts. These products are then purchased by distribution houses, evaluated, and resold at a discount. Companies like Buy.com have built success using this same strategy for years. The open market offers dynamic opportunities for strategic saves; however, stock issues can arise as availability is subject to what is being released at any given time. Thus the open market is limited to the products available at the time.
Beyond the open market, parallel distribution offers access to the full catalog of a given manufacturer’s goods – rather than being limited only to available product like the open market. Parallel distribution leverages strategic relationships and partnerships to make special orders of product through distal distribution centers. Utilizing parallel distribution allows you to intelligently source your hardware and to achieve maximum savings with minimal risk.
The term grey market first came into the IT world by channel representatives needing a way to discourage their accounts from sourcing their products at lower costs through the open market. However, with the emergence of online vendors using platforms like Google or Amazon to advertise their product, the term “grey market” bears more relevance now than ever. These vendors offer no accountability, transparency, or quality control methods to ensure that the product they are posting meet industry standards. Products from these “grey” vendors come with a high risk of exposing your company and your clients to one of the many pitfalls of purchasing from unauthenticated vendors. That is why it is imperative to have a trusted guide when buying out channel under any circumstance.