Xerox Brings The Channel In

Xerox debuts in this category in the No. 3 spot, only two points behind the leaders. "In 1998, we revamped our program and we're seeing the results in 1999," says Chuck Blackmon, manager of North American channel and marketing operations.

To address its third-place ranking in product quality, Xerox is including channel partners in the beta testing of new products. Blackmon expresses disappointment at not finishing in the top spot in product functionality. "We're the only manufacturer that is marketing a 40 pages-per-minute monochrome laser printer and we can do more with paper over the network than anybody in the industry," he says.

Xerox tied for second place in profitability. "We've developed a model which provides the channel with better income opportunities than our competitors. The top three manufacturers are about the same when it comes to equipment margins, but Xerox offers interest free floor planning through a third party," comments Blackmon. VARs can also receive commissions on leasing.

Technical support, where the vendor took third place is "at the top of the list" for improvements for the remainder of 1999 according to Blackmon.

Xerox's last-place finish in channel management was a surprise to Blackmon. "Xerox has taken steps to avoid channel conflict and 100 percent of our sales are fulfilled by the channel," he says. "Unlike our competitors, we do not sell directly from our Web site. Customers have the ability to buy product from the Xerox Web site, but it is fulfilled by a reseller."

One VAR who agrees with this assessment is Gene Calvano, owner of Small Business Computer of New England in Amherst, N.H. "The Xerox sales force doesn't sell 40-ppm-and-under printers. They'll get us involved in the large account they're working with," he says. "I found that Xerox has better options on the high-end,a finisher/stapler, stacker and high-capacity feeder. It's a strong, saleable product."