D-Link is simultaneously slashing prices and widening reseller margins, in an attempt to help its reseller partners through the credit crunch.

Though this will exert a squeeze on its own revenue streams from both sides, D-Link’s general manager Chris Davies described the loss as a good investment. “We need partners as much as they need us. If we can keep more resellers in business, it is worth it in the long run,” he said.

Davies denied there was any kind of price war taking place. “This is about injecting margin into the channel at a time when many will be experiencing increasingly competitive trading conditions.”

D-Link claimed it has slashed suggested retail prices by up to 38 per cent and raised channel margin by up to 30 per cent across its networking, consumer, security and unmanaged switch products.

The manufacturer’s green Ethernet switches have been cut by 13 per cent. “We expect this to be a big seller,” said Davies.
Peter Titmus, managing director of channel support firm Networks First said he had heard of resellers falling into trouble.

“In the near future we could see end users turning to low-cost solutions,” he said.