Tulip unfurls its Web plans

Internet Channel worries over direct model.

Tulip Computers is to offer direct PC ordering facilities over the Web, raising concerns within the channel that the vendor may side-step resellers as it changes to a direct sales model in order to operate in the small and medium business sector.

Tulip claims that orders received via the Website will still be fulfilled through the channel, but the move has caused a ripple of uncertainty among resellers who fear that it could lead to Tulip selling direct.

Jonothan Sultan, Tulip UK marketing manager, said: 'Some of our dealers have voiced concerns that Tulip could cut out the channel and go direct.

We have assured them we will not. We don't have the setup to offer user support and services like our resellers.

'The sales from the Web will all be dealt with via the channel - none will be dealt with direct. We want to be known as a manufacturer that believes the dealer is king.'

The channel has also voiced concern that Tulip may in turn generate sales over the Web, which will provide too little of the business that fits into dealers' current models.

Andy Tibbatts, corporate sales executive at Tulip reseller Symtec, said: 'The Joe Bloggs customer that comes via the Web is not really our kind of customer - we focus more on the SME market. It may cut out some paperwork, but I can't see it generating a great deal of the kind of business we want.'

Sultan acknowledged that he expected the matching of customer and reseller profiles to pose a problem, but was not able to explain how this problem would be solved. 'A reseller that will only deal in contracts over #5 million won't want a sale for one PC pushed its way,' he admitted.

The Website is due to be rolled out within three months. Sultan revealed that 10 per cent of the business is expected to come through the site, which is still under development.