Novell is Dead. Apple is Dead. Long Live Microsoft! Message Board

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Technology Stocks : Novell is Dead. Apple is Dead. Long Live Microsoft!

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To: E_K_S who wrote (14)	6/6/1996 10:06:00 AM
From: David A. Lethe	of 238

Thanks for the question Eric, I feel I have a lot to offer here, as I was also my job to recruit VARS for HWP for several years ... To answer your questions. >How would you feel (as a former VAR) to receive (1) a fixed fee for >services and (2) a bonus from corporate 'vendor' client sales and (3) >a guarantee of long term client fee service contracts? 1) Fixed fee. Very bad. I want to sell my services for whatever the market will bear. You would be surprised at the price delta between various clients. A fixed fee would constrict this. Furthermore, there might even be some UCC legal ramifications here if NOVL tried to implement them. 2) A Bonus. Impossible to manage. HP tried something like this a few years ago. Didnt work. Problem was with large customers that had multiple offices. Vendor A worked with Dallas office, Vendor B calls on NYC. Purchasing out of Atlanta. Get the picture? Who owns the acccount? 3) A guarantee. The market already has an informal method of implementing this. When I had HP leads for example, I gave them to the VAR that I felt had the greatest possibility of closing the business. (Provided they could solve the customer's problem). ----------------------------------------------------------------- On which method is best? We sell HWP & IBM UNIX boxes. IBM has by far the best program. The direct reps get 100% of quota credit when it runs through a partner. HWP gives their reps 70-75% (don't remember). Q. How many HP leads vs IBM leads do you think we got? A. We are dumping HP entirely and going all IBM. HWP lost about $15,000,000-$20,000,000 in '96 revenue on us. We are not alone. We used to have significant HWP loyalty. (Note that IBM used to have a much worse program in the late 80s/early 90's, and THAT is why their stock went down the crapper. They lost the channel business. We aren't the only ones.

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