Sydney-based PC assembler, TPG, has begun selling personal computers direct to end-users via its website.
For almost 20 years TPG’s PC division has been building personal computers, primarily sold via the company’s dealer channel to the corporate and Government markets.
The company has now embarked on a campaign to compete with the mass merchant channel and sell personal computers directly to the volume retail market. New models of TPG-branded desktop and notebook computers will be sold via its website.
The first models to be advertised include a widescreen notebook with a 15.4" TFT Display, an AMD Athlon XP-M 1900+ processor, 256MB of DDR memory, a 30GB hard drive, DVD drive, Microsoft Windows XP home edition and a one-year warranty. It will sell for about $1400 including GST and delivery.
In order to appease its existing reseller base, TPG has decided to offer different models online to those offered through the channel.
“The products on the website will be a totally different range to those that we provide to our Value-added Resellers and will definitely not conflict with the channel,” a TPG spokesperson said. “This new range is designed to address the high-volume retail consumer market.”
There had been a mixed response from resellers, the spokesperson said.
“Generally, channel partners identify that this will be good exposure for the TPG brand, and will assist TPG to make savings at our purchasing end with the increased buying volumes,” she said. “Our channel partners realise that this will result in better buying for them with our business range of product.”
The company is optimistic about its prospects in the retail channel.
TPG will differentiate itself by being a local manufacturer that sells direct to the public.
“The Web model we are adopting has a far less overhead cost than the retail mass merchant model,” she said. “If you consider the Dell model, we believe it is possible that we will become the largest Australian reseller - across the Internet - of PCs and notebooks.”
TPG will leverage its popular Internet Service Provider (ISP) business to market the personal computers to consumers.
The company is formulating a new marketing campaign that is likely to include media advertising, awareness promotions and competitions.
The ISP business also allows TPG to consider product bundling deals in the future.
“As the new products emerge on the website, there will most definitely be Internet bundling with PCs and notebooks,” she said.