Boosted by a 27 percent increase in sales of notebook and desktop systems, D&H Distributing is poised to end the year with a 14 percent increase in sales to $2.8 billion.
The 2011 sales numbers continue a streak of 12 years of average double digit sales growth for the employee-owned Harrisburg, Pa. technology products distributor, which has been profitable every year since it was founded 93 years ago.
"We saw significant growth with all our hardware vendors, including Lenovo, HP and Acer,"said Dan Schwab, co-president of D&H, a favorite of SMB-focused VARs. "Our VARs are taking advantage of the upgrade cycle in the small business market. Small businesses are still investing in technologies that help them drive their business goals."
Besides notebooks and desktops, other areas of strong growth for D&H for 2011 included: network security with a 23 percent sales increase; server products with a 22 percent increase in sales; and tablet computers, printers and power protection products with a 20 percent sales increase.
Lenovo's sales growth with D&H is in line with the distributor's 27 percent overall increase in sales of notebooks and desktops, said Chris Frey, vice president of North America Commercial Channels at Lenovo. "We grew in notebooks with them," he said. "But we had a higher percent growth off a smaller base in the desktop market. We agreed with them that the desktop refresh isn't over." He said Lenovo's All In One desktop sales through D&H were particularly strong.
Frey praised D&H's "strategic" and "tactical" ability to grow sales, working hand in hand with Lenovo in the small business, niche partner market. "They have a very, very good foothold and relationships with those partners," he said of D&H.
"The markets that D&H serves represents pure percent growth for us," said Frey. "We don't use D&H as a fulfillment mechanism. We use them to touch markets that we can't touch on our own. Those growth numbers truly represent decisions we both made on markets we want to touch. D&H's strength is driving sales programs and campaigns."
Lenovo leveraged D&H's reach into College Campus resellers and in the small business market, said Frey. He said Lenovo will team with the D&H team in February to chart sales strategies for the new year.
D&H, for its part, sees SMB technology sales growth continuing into 2012 with a strong information technology refresh cycle sparked in part by the eagerly anticipated launch of Microsoft's Windows 8 and Windows 8-based Tablet products.
To fuel that product refresh cycle, D&H plans to increase credit for partners by $25 million in 2012. D&H estimates that additional credit could power 20 percent additional sales growth for select solution providers.
Next: D&H Sees Bright Sales Outlook For 2012