Recession Changing Channel Relationships

The recession is taking a toll on vendor and distributor revenues. According to the Channel Insider 2009 Market Pulse survey, here’s how solution providers think the recession will change their relationship with vendors and distributors over the next 12 months.

66 percent of solution proviers expect vendors and distributors to tighten credit terms over the next 12 months.

61 percent of solution providers believe vendors will increase prices in 2009.

57 percent of solution providers believe vendors and distributors will be less flexible on payment terms. 45 percent said vendors have already tighten payment terms.

55 percent of solution providers believe vendors will take more deals direct in 2009.

53 percent of solution providers believe market development funds will be hard to come by over the next 12 months.

51 percent of solution providers believe vendors and distributors will decrease tech and pre-sale support.

50 percent of solution providers expect vendors and distributors to add surchages for logistical support.

47 percent of solution providers expect fewer sales and marketing incentives–rebates, spiffs–from vendors over the next 12 months.