Dell's secret channel relationship exposed

FOR YEARS Dell has denied using conventional retailers and Value Added Resellers (VARs) to flog its products, but now it appears that the outfit has set up a secret channel.

According to the Channel Insider, more VARs are buying Dell computers for their clients. Dell is granting them visits from account representatives, sales support and hardware discounts.

The magazine estimates that more than 20 per cent of Dell's sales are now derived from a channel that it denies exists.

The VARs offer the PC maker incremental business opportunities and Dell fills those orders using its traditional direct-sales mechanisms.

An analyst quoted here, said that Dell will never admit it or make the channel a formal programme. This is because Dell has a reputation for owning the customer. µ