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View Full Version : How do you Become a reseller of Computer hardware?


splinter_watsup
30-11-2009, 12:26 PM
Hi all :)

I am thinking about becoming a computer Hardware reseller since I am a IT Technician who does on site jobs for the public and is often asked where is the best place to buy hardware and the likes.

I would like to find out what I will need to have to be able to buy from the computer distibuters like rectron,corex and the likes?

At this present time I am working under a sole trader and from what I understand I can only buy direct if I am a Close Corporation is this true and if so what is the best way going about becoming a CC?

I would also like to find out if you have to have a bank account to start buying from the distributor and if I have to pay a registration fee to be able to buy from the reseller?

If you are able to answer any of my questions it will be greatly appreciated!

Thanks :)
Madman88
30-11-2009, 12:46 PM
Yes, you need to be a cc, with IT support/resale in your cc description. Company's like rectron/sahara/frontosa ect will want to see that description in your CK2 before they open an account for you.

Also make sure its not too general a description, make it long if you have to, but be specific, you can always change your ck2 later if you decide to branch out.
PsyWulf
30-11-2009, 12:53 PM
Also a business cheque account + cheque book is required for some distributors when signing up
kayvee
30-11-2009, 01:43 PM
Being a CC is not a requirement, at least from Rectron, or at least it never used to be. CC's are on the way out anyway.

Registering for VAT would be a benefit, as a lot of customers would want to claim their VAT back, and without you being registered, they can't.

As stated, you will need a bank account. Cheque books, do they still print those?
Madman88
30-11-2009, 01:53 PM
Being a CC is not a requirement, at least from Rectron, or at least it never used to be. CC's are on the way out anyway.

Registering for VAT would be a benefit, as a lot of customers would want to claim their VAT back, and without you being registered, they can't.

As stated, you will need a bank account. Cheque books, do they still print those?

One of their requirements is a CK document . How do you get a CK2 without registering a cc?

Requirements as per their application form:


•Copies of the directors' ID documents
•Original cancelled cheque or a letter from the company's bankers, stating banking details
•Company's registration documents (CK or CM)
•Proof of physical address
DrJohnZoidberg
30-11-2009, 02:00 PM
I had to go through all this as well, they should really update the process. This is the 21st century, who still uses cheque books??
TheRift
30-11-2009, 02:00 PM
Odd... I've never needed any of that and I'm with Rectron, Frontosa, Axiz, TVR, Syntech and others. I've signed up as sole proprietor.
kayvee
30-11-2009, 02:02 PM
One of their requirements is a CK document . How do you get a CK2 without registering a cc?



Simple, I am registered as a Sole Proprietor.
TheRift
30-11-2009, 02:06 PM
Also note that Axiz changed their sign up terms at the start of this year requiring one to do R10K worth of sales per month or you pay R1K deposit to start trading and when you hit R10K/month you get the R1K back. I thought my account was shut down, but I checked last week and I'm still in business with them. So it seems those who signed the old contract don't have this crap applying.
kayvee
30-11-2009, 03:21 PM
That's why I qualified my earlier comment with a "or at least it never used to be".

The distributors change the dealer admission policies from time to time and apply the new rules to cover their proverbial nether regions, and if you signed up before that good for you. If you are still around and buying from them all well and good, you live with the terms you signed up with.

Now it's just a shame the cellular service providers can't take a leaf out of their books.
Madman88
30-11-2009, 03:29 PM
Simple, I am registered as a Sole Proprietor.

Ok, but did you have to give them a CK2?
The reason I am interested is because I have a friend who is a Sole Proprietor who I have let buy on my account. Now he wants to do it more often, he's staring some sort of Laptop rental business.. I'm not too keen to let that happen, but if you say you did it... That would be much easier for me.
kayvee
30-11-2009, 03:54 PM
Ok, but did you have to give them a CK2?
The reason I am interested is because I have a friend who is a Sole Proprietor who I have let buy on my account. Now he wants to do it more often, he's staring some sort of Laptop rental business.. I'm not too keen to let that happen, but if you say you did it... That would be much easier for me.

No I didn't give them one because I don't have one. I applied as a Sole Proprietor and was granted dealership on that basis. I did have to give them all the other documents such as company details and bank details, VAT and the like. . Remember this was about 8 or 9 years back, hence my comments about them changing dealer admission policies, so I don't know if will accept sole proprietors now.
Madman88
30-11-2009, 04:02 PM
No I didn't give them one because I don't have one. I applied as a Sole Proprietor and was granted dealership on that basis. I did have to give them all the other documents such as company details and bank details, VAT and the like. . Remember this was about 8 or 9 years back, hence my comments about them changing dealer admission policies, so I don't know if will accept sole proprietors now.

Ah well. I was hoping anyway. Do you think rectron really cares who buys on your account? My gut tells me they do. How would they find out anyway? We always pay cash for our stuff.
kayvee
30-11-2009, 04:09 PM
I am sure they don't, as long as they are making money out of you, they get their cash up front anyway.
splinter_watsup
30-11-2009, 06:35 PM
Thanks for all the tips guys :) Its to bad you now have to be a CC to beable to buy from the distributor :(

Do I have to registrar for Tax? Also I am thinking about using my finance( https://www.myfinance-online.co.za/Services/8 ) for the registration of the CC since it is only R250,is this the best way to do it?

Thanks again!
kayvee
30-11-2009, 08:24 PM
Don't assume you have to be a cc, splinter. I suggest you call them up and ask. For sure if you want to a reseller be prepared to provide credible credit references, if you are applying as a sole proprietor you are applying in your personal capacity, legally speaking. Nothing wrong with that if you have a string of good credit references.

As I said earlier, the closed corporation as we know it is to be scrapped shortly in SA, so don't think you have to be that. Good luck.