Compaq professes faith in UK channel

Vendor cuts out US distribution partners from latest PC range.

Compaq UK's chief executive has moved to allay fears of further alienating the UK channel, following the public US launch last week of its latest direct sales programmes.

As the vendor formally launched its direct sales strategy for SMEs in New York on 11 November, Joe McNally was at pains to point out to PC Dealer that Compaq's UK channel relations are crucial to it, despite admitting that less cordial channel relations in the US had spurred the move.

'In the UK, we have a supportive channel,' McNally explained. 'This is not the case in the US. The channel does not add cost in the UK. With bundling and configuration, a direct vendor cannot compete.'

He did, however, concede that there could be a need for limited direct sales in the UK: 'There are exceptional cases where direct sales may be the best option.'

Compaq UK launched a direct operation from its call centre in Scotland earlier this year. On the day the company's acquisition of Digital was completed, chief executive Eckhard Pfeiffer openly said the vendor would sell over the internet to head off Dell and that it would expand on direct account managers (PC Dealer, 17 June).

With its Prosignia desktops just launched for the SME sector, US distributors will be cut out of the equation due to the exceedingly low margins.

Compaq will also pay resellers an agency fee if they refer business back to its direct sales force.

However, McNally denied such exclusion was planned for the UK. 'We will review routes to market next year, but Prosignia will be included in the UK channel portfolio.'

He added that a decision had not been made regarding agent fees for resellers.