ITTA warns distis of breadth billing

PUDUCHERRY, INDIA: Information Technology Traders Association (ITTA), Puducherry has sent a notice to distributors about 'breadth billing,' which has been happening in the region for quite sometime.

The term 'breadth billing' refers to the practice of direct billing by distributors or vendors to end-users. “We have been hearing a lot about direct billing being done by national distributors to end-users. If distributors or vendors can sell products to the end-users directly then what is the need for channel partners,” questioned Rajesh Jain, President, ITTA, Puducherry.

After tolerating the practice for some time, the association finally called for a meeting last week. A notice was sent to distributors about the practice and they were requested to immediately stop breadth billing in the region. “Almost every national distributor present in the region is billing to end-users even for a small amount,” said M Sridhar, Secretary, ITTA.

He also mentioned that besides billing to the end-users directly, the distributors are also billing to small channel partners. “There are hardly four to five sub-distributors in the region and the channel partners are billing through them. However, the distributors have been giving a special price to the channels and billing them, which is also a big hindrance for us,” Sridhar claimed.

Distributors on the other hand have reportedly rejected all the claims put by the association. “Being a small region, the end-users clearly know the presence of these distributors and bill with them directly for much lesser price than that being offered by the channels. However, the distributors have completely rejected our claims. But we dealers are aware of the happenings in our region, which can’t be refuted by anyone, and we can also prove it if necessary,” Jain averred.

Sridhar said that the association would formally lodge a complaint with Confed-ITA, if the issue was not resolved by the distributors.

When The DQ Week contacted national distributors in the region, they completely rejected that breadth billing was happening in the region and said that they were billing only to the registered dealers and sub-distributors, and were not billing to any of the end-users directly.