Do you know what is the common % of revenue share or mark-up usually applied on software and hardware by reseller such as Insight/Ingram/CDW...?
Most of those IT reseller show very low "mark up" on their quotation, I would assume a higher margin is made somewhere else?
Hi Amine, great question. And no straight answer I'm afraid. In the UK, public sector bodies through Crown Commercial Services framework agreements should expect 2-3% margin to be applied on commodities. That said, proving that is tricky and then there are circumstances where a 0% margin is applied as the reseller may have arrangements in place with the hardware/software vendor. Equally, it is clearly in the reseller's interests to charge as high a margin as possible, so I've also seen 20%+ applied. Always worth testing out and asking the direct questions.