Gateway makes play for the channel

Gateway makes play for the channel

Sick of the expense and hassle of reselling PCs for minimal or even non-existent margins? Former direct-only vendor Gateway last week claimed to have tossed a lifeline, with a unique hybrid direct/channel model that allows resellers to focus on the services side of their business.

"The reseller community has been complaining for years about shrinking margins and increasing costs that are inherent in our customer's traditional legacy distribution models," said Peter Lees, managing director for Gateway Australia-New Zealand.

"Many channel organisations have traditionally cross-subsidised their added value from hardware margins, but they now realise that is a recipe for disaster."

The Gateway Partners program claims to have fused together the best aspects of its direct model, with key advantages of the channel model. Resellers will be responsible for lead generation and first-tier support. They pass the sale through to Gateway who delivers the PC and pays the reseller a commission. This starts at 3 per cent for desktops and ranges up to 12 per cent for servers.

"We believe this commision is equal to, or greater than, their net profit from the traditional distribution models," Lees said.

Resellers then have the opportunity to on-sell services to that customer and also get paid commission on all future sales into that customer while they are a Gateway partner.

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