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Technology Stocks : Compaq

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To: rupert1 who wrote (60054)4/29/1999 6:21:00 AM
From: hlpinout   of 97611
 
Thanks victor,
Another comment on reauthorizing resellers.

Compaq reauthorizing Internet resellers

By Nancy Weil
InfoWorld Electric

Posted at 3:09 PM PT, Apr 28, 1999
Compaq has devised guidelines that Internet-based distributors must follow in order to sell the
company's Presario consumer PCs online, and soon will re-establish that sales channel, which
was halted in February.

The sense at Compaq back then was that "this is a growing program, so let's put appropriate
procedures in place," said Hedy Baker, manager of public relations for the manufacturer's
consumer products division. Procedures being used before were established for
brick-and-mortar stores and not specifically for Internet sites, she said.

A flurry of requests from Internet-based retailers that wanted to sell Presarios prompted
Compaq to stop allowing the sale of the consumer PCs online.

Mounting tensions have arisen in sales channels because increasingly abundant Web sites often
offer products at lower prices than traditional retail stores, which have a higher overhead.
Under Compaq's new guidelines, online-only retailers and brick-and-mortar stores that also
have Web sites are able to sell Presarios online if they choose, so long as they adhere to the
rules, which were mailed to resellers earlier this week.

Baker said that under the new guidelines online resellers must have a Web site where only
new Presarios are sold without a mix of older machines offered; a business plan, provided to
Compaq, regarding online sales; regular telephone customer support hours; e-mail customer
support; a toll-free number for consumers to use to make purchases during regular working
hours; a secure site with privacy and security policies posted online; the capability for
consumers to unsubscribe from mailing lists; online postings of policies, disclaimers and
warranty information; and adherence to general Internet business principles.

The authorization process is going on now, and Baker said that the company is working out
details regarding an official announcement that Presario resellers are back online.

Asked if Compaq had received complaints about how resellers were conducting business,
Baker said she was not aware if that had occurred, adding that the company's overall objective
is that buying online be "a satisfactory consumer experience."

The new guidelines only affect Presarios, but the company is also considering selling business
PCs online as well, according to Baker.

Compaq Computer Corp., in Houston, is at www.compaq.com.
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