Chess says they are fast becoming the channel’s choice for a new trend amongst resellers – cashing in and carrying on. “Many resellers are reviewing their strategy when it comes to fixed line, line rental and broadband,” says Chess’s Wholesale Channel Director Barney Phillips. “There are often other more financially rewarding options than simply building up a large customer base as it has associated costs including billing, administration, support and bad debt. Many resellers are cashing their base in by selling it to Chess and then maximizing their future opportunity to win new business by carrying on as a reseller of Chess Wholesale.
Resellers are using the money they receive from the sale to fund key areas of their business such as new sales people, new product development or simply taking a lump sum of money out of the business as a retirement fund for the future. Whereas in the past many resellers viewed selling their customer base as selling their crown jewels, Chess’s reseller model allows them to build another base quickly back up again and several resellers have sold two or even three customer bases to Chess and are showing no signs of stopping any time soon.
Warren Pryer, Sales Director at Chess, added “We’ve paid out over £2M in the last few months alone on resellers taking advantage of our ‘cash in and carry on’ model. We’re acquisition experts having completed 53 to date, so can seamlessly integrate a customer base into our own. This leaves the reseller free to concentrate on how to best utilise their new capital.”