BuyDirect prices anger IBM VARs
IBM's BuyDirect campaign came under further attack from resellers and distributors last week when it unveiled the online pricing for its Netfinity servers.
IBM's BuyDirect campaign came under further attack from resellers and distributors last week when it unveiled the online pricing for its Netfinity servers.
A Netfinity 3000 sold directly costs £949 ex-VAT - almost 30 per cent below the retail price of £1395. One distributor said: "They are massively undercutting the channel. This leaves us with stock we cannot sell."
IBM earned its partners' wrath last month when it offered desktop and laptop PCs direct for less than distributors pay.
One wholesaler said the vendor had not warned distributors about its plans, adding: "I've already had one dealer ring up and cancel his orders. He's buying from the site instead."
Another claimed Northamber had about 300 Thinkpads on its shelves which will be difficult to sell as a result of IBM's pricing. One source suggested the logistics behind IBM's campaign were being handled by Northamber's facility co-located at IBM's Greenock site.
Henry Matthews, Northamber's managing director, refused to comment.
Vince Smith, marketing manager at IBM, said IBM was not undercutting the channel as resellers got cheaper prices on the same products through its small-business programme. Smith said BuyDirect customers also have to pay with a credit or debit card and callers who wanted additional services were referred to resellers.
"The reason some resellers are concerned is basically just confusion," Smith said. But one of IBM's VARs said: "There is no mechanism in place to connect online buyers in need of services to a reseller."
Another distributor insisted IBM did not warn partners so they could clear their inventory. Kevin Drew, managing director of IBM reseller Triangle, said: "In part it looks like it can undercut us, in some part it doesn't. If resellers provide some value add, it will be better for customers to go to one of the existing channels."