MINNEAPOLIS (September 26, 2003) – Fargo Electronics, Inc (NASDAQ: FRGO) today announced the introduction of a new distribution program for its channel partners. The new program is designed to help distribution and integration partners increase both revenue and profitability by redefining and establishing new authorized channels to sell Fargo’s card-based identity authentication systems.
The new program categorizes distribution partners into three complementary, yet separate, program tracks. Fargo Solution Providers will provide retail customers with sales, service and integration expertise on Fargo’s full line of Professional and Persona® Series products and systems. Fargo Value Added Distributors will provide in-depth integration expertise and support for Fargo Solution Providers and end user customers on Fargo’s full line of products and systems. Fargo Distributors will provide product distribution services to Fargo Solution Providers and Persona Series resellers. Each category has the option to work exclusively with Fargo to develop market share and expertise in the markets they serve. The program continues Fargo’s two-product line strategy with restricted distribution on its Professional Series integrator products and broad distribution of its Persona products.
“This new program reinforces Fargo’s commitment to its distribution partners, worldwide, by developing a world-class distribution strategy that will enable us to grow our mutual business. The program’s focus is based on our distribution partners’ business model, expertise and commitment to the Fargo brand,” said Gary Holland, Fargo’s president and chief executive officer.
To effectively reach and service today’s card-based identification market, all distribution categories are important and highly valued by Fargo. Fargo has defined each distribution partner’s position within the program by using a number of different criteria, including sales volume, integration expertise, factory-certified sales and service staff and participation in various planning and reporting programs. The new program provides discounts and incentives that are proportional to the distribution partner’s value-add when selling and integrating Fargo systems. The program includes incentives for distribution partners to invest in certification and training on Fargo products and advanced technologies and systems for use in high security card-based installations.
“The new program is intended to take the best distribution system for ID card solutions and make it better,” said Mark Andersen, Fargo’s vice president for sales. “We believe that it will allow Fargo to attract and retain the industry’s best distributors and integrators. The program is designed for those channel partners who are capable of dealing with requirements for increased specialization, and can efficiently meet the needs of customers, ranging from those requiring basic ID cards up to those looking for the highest level of security that advanced ID card technologies can provide.”
With this new program, Fargo recognizes the importance of providing its distribution partners with the right tools and programs to win in an increasingly complex identification card security market. The program resulted from a review by Fargo of its existing and future channel requirements, its partners’ needs and the products that are under development by Fargo. Fargo believes this new distribution structure will be attractive to both current and new distribution partners, including distributors, value added distributors, specialty distributors, vertical integrators, systems integrators and resellers who provide solutions in Fargo’s markets.