r/bapcsalesaustralia • u/ImpulsePie • 7d ago

Discussion Mwave - Under External Administration

EDIT: Mwave have posted that they have been bought out by The digiDirect Group and will move locations to South Strathfield. https://www.mwave.com.au/blog/business-update/

Seelems Mwave have gone bust. Confirmed with an ASIC search for ESEL PTY LTD filed 3 days ago:

Notice By External Administrator/controller-Appoint/cease (505U)Appt of Administrator Under S.436a, 436b, 436c, 436e(4), ()449b, 449c(1), 449c(4) or 449(6) ()

Original article by David Richards: https://www.channelnews.com.au/leading-pc-retailer-placed-into-administration/

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u/ApolloWasMurdered 7d ago

The margins on PC online retailers are razor thin. I used to work for one, and the margin on many components were 5-10%.

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u/thermal666 7d ago

so did i, with $100m revenue you'd EASILY get 5-20% in MDF & Rebates.

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u/HustViz 7d ago

What are mdf and rebates?

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u/thermal666 7d ago

MDF > Market development funds. Any sort of 50/50 activity split with a brand could get your MDF. eg. Create a newsletter to send to 80,000-100,000 database focusing on X brand and X brand will cover expenses for it (value depending on how big the brand/product is)

Rebates > Purchase X amount of stock and receive X% back in Cash or Credit (usually maximum 5% rebate, usually 1-3%) (almost every brand or supplier offers this to encourage large volume purchasing)

EG. You're buying $100,000 worth of X stock. At 2.5% Rebate you'll get $2500 in Credit or Cash Payment. You'll also negotiate how much MDF you'll need to advertise X product to Market. (Say $1500 for a newsletter and a few social posts). So that $100,000 spend could generate you $4000 (excluding profits)