PC Treasures: Software Edge Levels Playing Field
They needed the edge on software too, so that's what Austin gives them: "soft-ware bundles to help them compete against Dell, Gateway and others that include the Microsoft Works suite with their systems."
Most systems builders were offering only Microsoft's operating system with their custom PCs and couldn't compete with tier-one vendors getting volume discounts on Microsoft application software, said Austin.
"The big [software vendors reward volume," he said. "We're a buffer against the disadvantage [white-box builders have in procuring software for their systems. What we do is allow the systems builder to piggyback on the risks that we undertake in licensing software titles in volume, and then we disperse that volume among all of our customers."
Today, Oxford-based PC Treasures has licensing agreements with 40 publishers, including Corel, Intuit and Electronic Arts, and carries more than 400 software titles.
For one, PC Treasures offers systems builders a PC Works suite with Sun Microsystems' StarOffice, McAfee's VirusScan and Sierra's Print Artist 12, content which is similar to Microsoft Works.
And PC Treasures combines titles into vertical-focused bundles, complete with packaging. Education, gaming and digital imaging are among the markets the company targets.
"Our Digital Expression suite has about $150 worth of value and six different digital imaging programs in it, and the cost to systems builders is only $2.50," Austin said.
The company also creates custom titles and packaging for systems builders.
PC Treasures works with about 2,500 systems builders and generates annual revenue of almost $8 million, according to Austin.
Chad Person, business development manager at Microsel, Edina, Minn., said PC Treasures allows him to offer more value when competing in the retail channel. Microsel builds systems for retailers as well as VARs.
"We have a better price point and a more complete package with PC Treasures," he said. "When you compare it to Dell, which may have a Microsoft Works suite with only three titles, our system is going to have 20 or 30 titles."