May 13, 2003

Exclusive: Behind the Gateway / CDW deal

I've just talked to a Gateway spokesperson about the CDW deal and here's more informaton on this:

[Smallbiztechnology.com] Why was this done

[Gateway] We've always had alternative channels, not just direct. But this particular move was, especially important to reach the SMB space. Some other channels that we call opportunistic channels are with the Home Shopping Network and Costco

[Smallbiztechnology.com] Will this hurt resellers

[Gateway] No. CDW will be selling the PCs at the same price as Gateway.com and other channels. There will be price parity.

[Smallbiztechnology.com] Were other retailers considered

[Gateway] Steven Mcgallitser has recently been hired to head Gateway's channel strategy. He is looking into alternative direct marketers such as Pcmall, Microwarehouse. We are also looking to refurbish our existing channel / reseller strategy.

[Smallbiztechnology.com] What's the process for selling via CDW and or other retailers

[Gateway] The process is not that hard but Gateway carefully analyzes its reselling partners to ensure they are of high caliber and
make sure that the customer experience is excellent. The reseller must ensure that technology is easier for customers - as Gateway itself prides itself in doing.

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