As the number of independent office technology dealers in the distribution channel continues to decline (some estimates suggest that there were close to three times as many a decade ago), the market share shifts accordingly. In this year’s Survey, almost eight in 10 dealers took in under $15 million, while 83 dealers reported revenues exceeding $15 million. Refer to the adjacent chart, which illustrates the breakdown of 2024 dealer revenue by dollar size.
That 78% of the respondents generate less than $15 million in annual revenue isn’t necessarily bad. Many smaller dealerships thrive in small cities, suburban townships, and rural areas. ForOEMs, the lower the dealer revenue, the higher the device and supply cost.
Noteworthy about this breakdown of revenue is the influence wielded by 22% of the total office technology dealer universe. This year’s total dealer universe revenue was $6.9B. Consider that dealers who reported revenue of $40 million+ in 2024 are responsible for $4.4B of the total revenue universe (61%). By comparison, dealers in the “$40M+ Club” in last year’s Survey were responsible for 53%. This year, dealers in the “$100M+ Club,” comprising 14 dealers, were responsible for $3.2B of the total dealer revenue universe (45%). That 14 dealers out of 415 are responsible for nearly half of the revenue reported in the survey underscores the tremendous influence that “megadealers” are having on the industry.
Note: Last year, the elite group of respondents with $100M+ in revenue represented 51% of the total dealer revenue universe, largely due to the participation of two dealers with $200M+ in revenue. This year, neither of those dealers, which are both backed by private equity, participated. PE-back dealers are increasingly not permitted to participate in surveys like ours.
26% Decline Year-Over-Year in Total Office Technology Dealer Revenue from 2023 to 2024
29% Decline Year-Over-Year in Average Dealer Revenue from 2023 to 2024
40th Annual Office Technology Dealer Survey Posts (Part 1 of 2):
40th Annual Office Technology Dealer Survey: Universe and Methodology
40th Annual Office Technology Dealer Survey: Executive Summary (Part 1 of 2)
40th Annual Office Technology Dealer Survey: Dealer Revenue Breakdown in 2024
40th Annual Office Technology Dealer Survey: Manufacturer Distribution
40th Annual Office Technology Dealer Survey: A3, A4, and Managed Print Services
40th Annual Office Technology Dealer Survey: Production Printing Can Improve Profitability
40th Annual Office Technology Dealer Survey: Managed IT Revenue Rose by Nearly 30%
40th Annual Office Technology Dealer Survey: Obstacles to Improving Profitability
40th Annual Office Technology Dealer Survey: Acquisition Trends
