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The recent move by Tally Solutions to ban the Associated Master Tally Partners (AMTPs) who are involved in unfair trade practices, has created ripples in the market. Apparently, most of the partners are in a state of shock and disbelief. They feel that this step from such a reputed company is very irrational and abrupt.

However, Tally maintains that it has taken a right and corrective decision, as it has found that in the last 1 year or so, most of these AMTPs were selling Tally products at a discounted rate against those fixed by the company. Besides, they were not abiding to the rules of the company and their action was not in synergy in the way the company operates.

Justifying the Decision

Shoaib Ahmed, president, Tally Solutions points out, We have realized that most of the AMTPs are not adding value to our business. If they are eroding the price in the market, then we are going to be extremely hard on them. They left us with no choice and if we dont address this problem now, then we are only going to kill ourselves. And thats what prompted us to put a check on them. We had on the list around 100 AMTPs but this number has come down considerably. Actually, till date they are still operating but not doing much business. According to Tally, AMTPs actions were leading to the poaching of Tally Partner (TP) channel from the entire ecosystem, making it very difficult from the Master Tally Partners (MTPs) to do business with TPs who are directly attached with them as well. AMTPs intention is to get the entire business. This is making the entire market condition difficult. Also, the buying price of the TP is getting affected.

Our entire channel ecosystem is being questioned now. The second problem is that AMTPs were not distinguishing between the phone calls they were getting from channels (TPs) or customers. This was leading to the problem that they were giving one rate to the whole market. Therefore, a customer would directly go to an AMTP bypassing the TP and getting the product at a price lower than the TPs buying price, adds Ahmed.

The Partner Model

AMTPs are the subsets of MTPs. The company has been engaging with these AMTPs for the last 2 and a 1/2 years. On the other hand, most of the AMTPs feel that by making them an AMTP, Tally has got hold of their database and now with this sudden decision, it is poaching their database. This whole issue has lead to a betrayal of trust between Tally and AMTPs. Moreover, the fallout of this action will be that the AMTPs will lose out 10% margin that they were getting by selling Tally products.

Miffed with Tallys decision, Manoj Bagdiya, CEO, Compute and Compile, Rajkot says, Tally has discontinued us without giving any notice. My clients have been asked not to deal with us, as they will deal with Tally directly. Earlier, Tally had forced us to become their AMTP but they have taken this decision without giving any clarification or reasoning to us.

Nonetheless, it is not an abrupt or sudden decision taken by Tally. In June last year, it had a dialogue with AMTPs, wherein it tried to convince them. The company clearly conveyed this to the AMTPs that if they act in such a manner then it will not let that continue. But it seems the AMTPs did not adhere to the companys policies and thats what compelled Tally to take such an action.

Meanwhile, Tally hasnt banned all the AMTPs. It is taking action against only those AMTPs who are causing problems in its business. The company wants these AMTPs to operate within its pricing strategy.

Supporting Tallys cause, Chandigarh based Sanjeev Walia, CEO, Jetage Computer Traders, who is also an MTP for Himachal Pradesh and Chandigarh, believes that Tally has taken an absolutely right decision. Walia says, These AMTPs were not sincere with the company as compared to MTPs. AMTPs were selling the products at a lower price and were involved into number game. Besides maintaining the price in the market, these AMTPs have to also maintain the decorum and follow the norms of the company. Tallys decision is totally appreciated by MTPs.

Nivedan Prakash/DQChannels
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