Retail question

Hi Paul

Firstly Happy New Year!

I used to work for a big HP dealer so know the score, but generally tends to be the same across most major brands - certainly in electronics.

When Dell decided to sell online, advertise heavily and discount, virtually every computer shop / dealer in the world stopped selling Dell, as the no one could no longer compete. Exactly as you have done, you have gone to Dabs then HP. HP took the decision that they wanted to maintain the distribution channels e.g. systems integrators / shops etc. and these people generally add value so they sell online at their RRP, and allow the dealers to make a percentage margin and possibly discount.

Selling direct as in Dell's case means a totally different business model, massive marketing, logistics, order processing, and a majority of Dell's customers are consumer / small business.

It's a dilemma i'm currently going through. To sell direct or use distributors / retailers. Total nightmare! where's that coin!

cheers

A

www.funkypuffin.com