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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (81245)	11/19/1998 7:39:00 PM
From: On the QT	Read Replies (1) \| Respond to of 176387

Rudedog, Thank you for sharing your thoughts and insights in this area with the thread. Your posts are well grounded and understood and appreciated. My take on some of things you and others recently posted on with regard to VAR's. VAR= Value Added Reseller. Those that survive as true VARs need to add something aside from the price to the product. That something increasingly should be directed towards solution oriented services. In my day for me it was always about doing more for the account than my competitor. Price was only a part of that value equation. The other parts were and I believe still is: Selection, Quality and Service. ( A term I copyrighted for my current business advertising). Then, the lines between a Distributor of Product ( a DOP), no disparagement intended, VAR, Dealer were somewhat blurred, but definable. Today, even the small dealer as included in the description in your postings as VARS, who must to some degree add something to the sale in the way of value. If one adds to that description something indigenous to that dealer that goes beyond the commodity nature of tacking on an additional add on price than they can be loosely defined as a VAR. However, a truly Authorized VAR usually needs to pass muster in a more through fashion. As you know, there were very few warehouse type distributors of computers that dealt deal exclusively through VAR and Dealers. Today it really does not exist in the same form as in the distant past. VAR's as described by me in this post will use one manufacturer over another based on a myriad of factors always to some degree addressing this value equation and not necessarily in this order: Price, Quality, Selection, and Service. The converse is also true. Manufacturers when choosing an Authorized VAR will similarly look to how will that VAR fits into their marketing and sales plans. The Authorized VAR's ability to either sell through to, and or maintain, the end user account is always subject to review . The VAR similarly when pro-actively engaging his marketing plans will need to tailor all four of these considerations(PQSS) to the size and needs of that which the VAR subjectively defines as his marketplace. The VAR marketplace can be loosely defined as the current and potential end user of the product and or services provided and or offered. It is always in a state of flux. In the past, the VARs were the glue that made the marriage of the end user to the manufacturer. Then it was clearly the duty of the manufacturer to court the VAR and vice versa, today it depends on the plans and the size of the players. All of it is very competitive and not, as understood ,clearly implemented by all the players. A, B, C, accounts subjectively classified as potentially greater to lesser with A the greater and C the lesser, have different challenges and opportunities for the Dealer, VAR and Manufacturer. Where once there was great cooperation between the manufacturer and the VAR in the marketplace, there is increasing evidence that this has shifted. There always was some crossover but from what I can gather from those who were in the trenches with me,it has changed considerably. While there will always be a niche for an Authorized VAR its ability to survive and thrive depend on its ability to correctly spend its money in people talents in the right areas. A true VAR without real support and commitment from its supplier(s) will not only not grow and its very survival is in question. We as a VAR still have value to the big end user but it is married to a large extent by who it is that we represent besides our own company. Do we bring high brand recognition to the table or do we bring X Brand. Can the end user go directly to the source? What are the price savings and or services gained? That direction of certain representation has changed. Interestingly enough while some manufacturers may be looking to more direct involvement at certain levels, there is some indication that Dell may be giving some thought to VAR support in some areas! Certainly, Dell on a direct level has made its point. Gateway to a degree has clearly moved in the same direction. Compaq has committed to similarly doing so. IBM has redefined itself, got its people together and is moving in a better way. Perhaps in the best way to meet future needs. Dell, initially vertical, in direction shows signs of bringing more and more in its sales bag. IBM a giant with much in its sales bag shows signs of focusing with new direction and determination on its strength. No doubt the blue machine will be offering much in the way of new developments. Perhaps IBM will not fair as well in all areas in currently plays in. However, the way that IBM is internally communicating and the way their story is being played out in the market place, overall improvement is probably a good bet. Dell is more a puzzle to me. MD has gone on record as saying that he prefers to grow his company organically. How fast will this happen and to what degree will Dell's competition influence this preference? I can't help wondering if this is Mikey's final word on that. Problem identification and by definition, solution attainment was and still is, in my opinion the way to go. One clear thing that comes through to me is through cooperation and direction far more is accomplished in the competitive arena. When a relationship between the Distributor/VAR/Dealer and the manufacturer is clearly appreciated and understood more can be accomplished together than separately. Sincere Regards, QT PS Rudedog? Wonder what prompted you to choose that name?