Franchise freedom offers pricing flexibility

In response to current market conditions, Rebound Electronics has made the transition from broker to hybrid distributor. CEO, Simon Thake, believes this will provide the flexibility on pricing and delivery that customers really need Over the last six months the financial down turn has really started to take effect in the electronics market. This situation, coupled with OEMs reluctance to place long term orders and schedules, has forced many franchised distributors to seriously reduce the level of stock they hold.

For this very reason, Rebound Electronics has made the transition from broker to hybrid distributor. The company believes the move will provide the flexibility to offer competitive pricing and deliveries, without the restrictions of being franchised. This will enable Rebound to control what products it stocks, what price it can sell at and which markets it will buy and sell in.

According to Rebound, the current market is prompting franchised distributors to put prices up on components that they dont have in stock. Rebound, on the other hand, claims to be maintaining costs and delivering stock within required lead-times with continuity of supply. This is achieved via an extensive supply base of manufacturers, agents and independent distributors who provide access to stock that franchised distributors cannot see.

When asked why Rebound is different, CEO Simon Thake replied: Our strategy is to ensure we listen to customer requirements instead of trying to sell what we think is the right solution. It is not our aim to become the largest distributor and handle thousands of customers,. Instead, we aim for a maximum of 1,500 customers that we can service across all continents. Our history of working with customers at a localised level allows us to get closer to our customers to really understand their requirements.

Furthermore, services within the Rebound group now now address customer requirements on all levels of the supply chain. Services span new product introduction, full production volume procurement, PCB procurement, complete BOM kitting including hardware and peripherals, end of life and obsolescence management and excess stock disposal.