D&H Sees Robust End-Of-Year Sales Growth

The Harrisburg, Pa. distributor said sales for the fourth quarter are up in excess of 30 percent.

D&H President Dan Schwab said the sharp fourth quarter sales increase means the distributor will end the year with its 11th consecutive year of double digit sales growth.

Schwab said the strong 2009 sales performance is in large part due to the distributor's aggressive decision to "double down" on reseller education and training and credit programs in the midst of the most severe economic downturn since the Great Depression.

Schwab said small business-focused solution providers are having a strong fourth quarter.

Patrick Derosier, co-owner of CPU Guys, a Hanson, Mass.-based solution provider which relies heavily on D&H, said fourth quarter sales are up dramatically due in large part to the release of Windows 7. He said he expects a big fourth quarter sales kick to allow CPU Guys to post sales growth of about 10 percent for 2009.

"That's a lot better than we thought it would be," said Derosier."We expected to be down a lot given the state of the market early in the year."

Derosier said D&H has been a big help as CPU Guys ramped up sales. "D&H is clutch for us," he said. "Good prices. Excellent service and great support after the sale." He said D&H's software licensing desk has been particularly helpful as CPU Guys has attempted to hammer out software configurations. "Licensing can get somewhat complex," he said. "D&H knows the products and I don't have to wait for answers."

Schwab said he sees the strong fourth quarter performance continuing into 2010. "We see 2010 being a continuation of the sales acceleration we saw in the second half," he said. "The revenue growth opportunity for small businesses from a technology standpoint is clearly around mobility and server."

Schwab said he sees small business solution providers being able to backfill the holes that developed in clients' infrastructure with some customers holding back on purchases.

D&H is making an all out offensive in 2010 to help its solution provider partners focus on customer pain points like infrastructure, mobility and health care electronic records, said Schwab.

Schwab said one reason D&H has been able to show sales growth is its unique employee-owned business model compared with the publicly held position of many of its competitors.

"We have much more flexibility in investing in the business," he said. "Our shareholders are our customers, vendors and employees. We took a long-term mentality in 2009. It was an investment year for us. That's why we are seeing strong sales results. We owe a debt of gratitude to our vendor partners who offered very creative programs and our loyal customers who have focused on emerging technologies and added value to their business models."