New D&H Model: Not Broadline, Just Broader

The company,which has always prided itself on holding a limited, carefully selected line card,has spent the last two months adding almost as many new products as some of its larger counterparts.

But Dan Schwab, vice president of marketing at D&H, says longtime customers shouldn't worry about the company's seemingly rapid expansion. There is a method to the company's growth.

"Our goal is to be narrow and deep, but don't expect us to be everything to everybody," he said. "When we pick up a vendor, we make sure it adds value. Because we've become such a strong destination for white-box builders and integrators, it has forced us to evolve and offer more products."

D&H has served the white-box market for years but has increased its focus over the past six months. The company recently became the preferred national distributor of the North American System Builders Association (NASBA), a consortium of 9,000 white-box solution providers. Over the past few years, the group has worked with vendors to develop programs suited to its members.

The problem was finding a distributor that could bundle the programs with product and deliver it to a wide audience, said Robert Danese, NASBA's executive director.

Then the Atlanta-based group approached D&H.

"We couldn't get distributors to pay attention to our base," Danese said. "Our members rely extensively on distribution. One thing that's really important is that we have a distributor that helps our members save money and make money. D&H has always been successful in the small-business space, and they've been a tremendous partner for us."

Over the past few months, D&H has worked with several vendors to develop NASBA-specific programs. The latest includes discounts on Cyber Acoustics speakers, voice-activated microphones and headsets, as well as free marketing materials. NASBA members can buy the product from other distributors, but they don't receive the same vendor programs they do from D&H, Danese said.

Some of D&H's newest products include Riverdeep's FoolProof Security software, Unitech graphic cards, Plextor CD-R drives, Authenex password-replacement devices, Dicota accessories, e.Digital audio products, Hawking Technology networking solutions, Hansol monitors, EnGenius wireless LAN routers and NESO displays.

Don Limacher, channel sales manager at EnGenius, has dealt with other distributors while he was working at different companies. and D&H has one attribute that other distributors seem to be ignoring: "They're very relationship-driven with their customers. When a company like EnGenius is new to distribution, relationships like that are key to getting us into new accounts."

Chris Chiang, sales manager at NESO USA, also said D&H will help push the vendor's products into the SMB market, the sweet spot for most vendors today.

"We've worked with a lot of smaller distributors, but D&H had the experience and dedication we needed," Chiang said. "What distinguishes D&H from other distributors is that they have a better understanding of how to penetrate the SMB market."

Stuart Lipman, owner of Lipman Computers, South Windsor, Conn., agreed: "[D&H has quality parts that are always in stock, and I get them at a consistently good price."

Lipman said he does some business with Tech Data but buys most of his product through D&H "because when you're loyal with one vendor, they're loyal to you."

While D&H will continue to make selective choices for its line-card, solution providers can expect a steady flow of new products and product in the coming months, Schwab said.

"We've always focused on the SMB and white-box solution providers because we've seen too many people ignore them," he said. "Regardless of the competition or the economy, there will always be small systems builders and VARs. We have to continue to work with different vendors to develop programs that help them."