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Industry
Manufacturing
Details
Date: August 2022
About The Company:
As one of the biggest VARs in North America, this organization is a leading multi-brand provider of IT solutions to customers in the US, the UK, and Canada. Their customers span multiple industries, including healthcare, business, government, and education. ReluTech first began working with this VAR in 2021 and the relationship has continued to evolve.
As one of the world’s largest manufacturers of professional and consumer electronic devices, the VAR’s customer is a multinational conglomerate corporation headquartered in Asia with operations in multiple countries across the globe.
The end-user had an estate of servers that had recently gone post-warranty with the manufacturer and were currently unsupported. These servers were globally located, with equipment spread across 30 countries including Argentina, Australia, Chile, China, and Japan.
To extend the warranty on these servers, the OEM quoted a cost of $300,000 for the equipment support and required a recertification of each asset.
A $300,000 price point was just too steep for the customer, so the VAR Account Executive decided to check with ReluTech and other TPM providers to see what they might be able to offer for support.
The VAR helped its customer avoid a costly warranty renewal with the manufacturer by switching to ReluTech’ third-party support.
ReluTech was able to provide a flexible and cost-effective extended warranty option for equipment located all across the globe.
The customer was so impressed by the deal that they are sending the remainder of their post-warranty contracts to the VAR for ReluTech’ support.
While the OEM quoted $300,000 to extend the warranty of these servers, ReluTech was able to offer the same support for $40,000, a savings of over 86%. ReluTech helped this VAR save its customer $260,000, which the customer could then repurpose for other priority business initiatives.
Additionally, the VAR Account Manager made 30% in margin, vs. the 5% he would have made selling the OEM support.
Further, ReluTech’ maintenance is multivendor, so this VAR can continue to deliver on significant cost savings for its customer’s equipment coming off warranty in the future, regardless of manufacturer.