April 21, 2006

Buying from a Retailer or Your Solution Provider?

Lenovo recently started selling computers (Lenovo and Think branded) via BestBuy retail stores. This move is great for both companies as Lenovo can extend is distribution channel while BestBuy can carry a great brand. However, some local resellers are not too happy.

On one hand you have many who sell computers for a living and take margins from the resale. These type of "box pushers" are a dying breed as most resellers now make money from the SOLUTIONS they provide to their small business customers.

However, even those who sell solutions know that if BestBuy is able to sell Lenovo hardware at a cheaper price than they can, BestBuy has a better chance of selling them other things - like solutions via Geek Squad.

Lenovo has promised to give both BestBuy and its solutions providers the same price.

CRN write about two points of view

Todd Barrett, a manager at CPU Sales and Service, Waltham, Mass., said he stopped worrying about retailers long ago. "?Some folks will always buy according to cost,"? he said. ?They'?ll surf the Internet, whether it's Best Buy or Dell.com... Best Buy is just one more in the saturated retail market selling stuff. Just one more fish in a large pond whoring the price."

But Jay Tipton, vice president of business solutions for Technology Specialists, Fort Wayne, Ind., said Lenovo¬?s shift is a concern. Ultimately, his opinion about the deal will be largely determined by the pricing Lenovo offers Best Buy. "?I want it to be a fair playing field,"? he said.

At the end of the day, you MUST have a solution provider to guide your use of technology in your small business.

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