Encore becomes a VAR

Encore Asset Services Inc. is taking a page from practically every bride who ever walked down that aisle by using something old, something new, something borrowed, and something big blue as it begins to develop hardware solutions as a full-fledged reseller.

Woodbridge, Ont.-based Encore, which has been providing asset management services to PC vendors and leasing companies/brokers since 1997, has inked reseller agreements with Compaq Canada Corp., IBM Canada Ltd., and Hewlett-Packard Canada Ltd. along with distribution agreements with Tech Data Canada and Merisel Canada.

“We want to position ourselves as a hardware solution provider,” said Keith Pitts, president of Encore. “Whether the product is used or new from distribution, we could help the end user directly or partner with other channel players and work with them to reach the market-place.”

All Encore hardware solutions will come with full warranties, Pitts said, adding that Encore has already built up a sales team and e-commerce portal from their merger with Valu-Net Corp. last February.

Valu-Net is now called BSM Technologies Inc., which stands for Business Systems Management.

“It is a pretty unique situation with us and we are targeting computer savvy customers who will except a new/used hardware solution. Which is good for Encore because then we can deal with the end user on the back end,” Pitts said.

Part of Encore’s main business is handling end-of-lifecycle or end-of-lease computers from end users.

Pitts sees end users adopting a lifecycle management strategy where companies continuously move hardware in and out of their business.

“(For example), Pentium II product is between $300 to $350 for 24 months. When they start taking in Pentium III 700 MHz machines they’ll get a credit for the Pentium II boxes between $100 and $125, which they can use for their new Pentium IIIs. By that time, the Pentium IIIs will be in the $300 to $350 range,” he said.

Pitts still plans to continue the asset management side of the business. Encore supplies tier two and three distributor/resellers, end users, wholesalers and other companies who strip down systems for parts with refurbished systems off of lease or from open box returns. Encore plans to process between 150,000 to 170,000 pieces of computer equipment this year in its 80,000 square-foot warehouse facility.

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